Rithm Capital: 296% Coverage, Soaring Earnings, 16% BV Discount

2026-02-19 11:07:26 ET

Rithm Capital Corp. ( RITM ) easily exceeded distributable earnings expectations in the last quarter, with the REIT’s core earnings surpassing the consensus estimate by a massive $0.16 per-share. The investment firm benefited from a strong performance in its asset management business, which Rithm Capital has strategically been building for years, and, for the first time in its history, had investable assets exceeding $100B. The dividend remained well-supported by earnings available for distribution/EAD, and shares continue to trade well below net asset value…which I believe is undeserved. I like the investment setup here, especially for high-yield investors, as the company’s investment platform is evolving in the right direction and the asset management business is booming....

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