RITM Stock: Rithm Capital Dividend vs Earnings, Book Value 2026

The dividend against two earnings numbers

Quote pages show the $0.25 and the price. The filings show what the dividend is paid out of. Rithm reports GAAP net income and a non-GAAP measure, earnings available for distribution, and the two have moved far apart.

For full-year 2025 the company reported GAAP net income of $1.04 per diluted share and EAD of $2.35, against $1.00 of dividends; for 2024 the figures were $1.67 and $2.10. In dollars, the last four quarters were $334.8 million of GAAP income to common stockholders and $1,344.3 million of EAD against $556.7 million of common dividends (our arithmetic). Preferred dividends ($36.1 million in Q2 2026) are already deducted before either measure.

The company is explicit about what EAD is not. Its release says the measure “is not intended to reflect all of the Company’s activity” and “should not be considered as an indication of the Company’s taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay.” The 10-K adds that the board has not set a floor: the risk factor is titled “We have not established a minimum distribution payment level for our common stock.”

What turns $0.04 of GAAP earnings into $0.60

Here is the company's own reconciliation for the last two reported quarters, in dollars.

Three things stand out. First, the mortgage servicing rights (MSRs) line: in Q2 the change in fair value of MSRs, net of economic hedges, was a loss of $392.9 million, of which $213.9 million is the run-off of expected cash flows, against a loss of $204.2 million in Q1. Second, depreciation: EAD did not add back any real estate depreciation in Q3 2025 but added back $27.8 million in Q4 2025 (the Elecor stub period) and $87.3 and $87.9 million in the next two quarters. Third, deferred taxes: $111.6 million in Q4 2025, $38.7 million in Q1 and $13.6 million in Q2, so the EAD that comes after tax is not a cash-tax number either.

What lifted EAD from $289.6 million in Q1 to $338.9 million in Q2? The segment tables show incentive fees in Asset Management up from $15.7 million to $51.7 million (+$36.1 million) and Newrez pre-tax operating income, before MSR marks and other items, up from $273.7 million to $307.6 million (+$33.9 million). Incentive fees are performance-based and can reverse.

Cash flow is a third lens, with a warning. Net cash provided by operating activities was $274.8 million in the first six months of 2026 against $864.2 million a year earlier, while common dividends declared were $279.2 million and preferred dividends $70.9 million. For a company that originates and sells mortgage loans, operating cash flow swings with loan inventory, so it is not a clean coverage test, but it is on the same page of the 10-Q as the dividend.

Book value: four quarters down, with 5.3% more shares

Book value per common share peaked at $12.83 on September 30, 2025 and has fallen each quarter since: $12.66, $12.51, $12.33. At June 30, 2026 it was calculated on 558,407,031 shares; a year earlier there were 530,292,171, so the share count rose 5.3% (our arithmetic). Equity attributable to Rithm Capital Corp. was $8.52 billion, including $1.63 billion of preferred stock (liquidation preference $1.69 billion).

Put the dividend and book value together: $12.33 against $12.71 a year earlier is -3.0%, and adding the $1.00 declared brings the change to +4.9% of the earlier book value (our arithmetic). The $1.00 dividend is 8.1% of June 30 book value (our arithmetic); the filings do not give a market price, and this page takes no view on one.

Total assets rose from $44.3 billion at June 30, 2025 to $54.1 billion at June 30, 2026 (+22%, our arithmetic), with the additions of Elecor's real estate ($6.1 billion of real estate, net at June 30, 2026), Crestline's insurance investments ($1.12 billion) and more consolidated entities. Assets grew faster than per-share equity.

Segments: where the $8.5 billion of equity sits

Starting in the first quarter of 2026 the company reports six segments, with Commercial Real Estate split out of Asset Management.

Newrez is the engine and the swing factor. It posted pre-tax operating income of $307.6 million in Q2, before a $194.5 million MSR mark-to-market loss net of hedges and other non-operating items, a 22% annualized operating return on $5.7 billion of equity. Reported segment pre-tax income was $113.1 million, because the marks are real in GAAP. Servicing UPB was $865.2 billion at June 30, $268.4 billion of it third-party; funded origination volume was $15.9 billion. MSRs and MSR financing receivables were carried at $11.1 billion, 20% of total assets (our arithmetic).

Asset management is where the company has been building: Rithm Asset Management (Sculptor and Crestline) reported about $61 billion of AUM at June 30, 2026 on $1.9 billion of gross inflows, and Asset Management revenue of $142.2 million. The Asset Management segment itself earned $14.0 million before tax in Q2 after losing $28.7 million in Q1. Crestline was bought for $324.7 million in cash on December 1, 2025. Note that the December 31, 2025 10-K describes the segment as managing about $63 billion and the Q1 2026 release says about $59 billion; the AUM definitions in each document differ and we have not reconciled them.

Residential Transitional Lending (Genesis) originated $1.9 billion in Q2, up 52% from a year earlier, and held $3.83 billion of transition loans at fair value. Insurance company investments from Crestline were $1.12 billion at June 30.

Elecor (Paramount): the office REIT acquisition is done

The premise that Rithm is buying an office REIT is out of date. The company completed the acquisition of Paramount Group, Inc. on December 19, 2025 for total consideration of about $1.8 billion including capitalized costs (the Q3 2025 earnings release described about $1.6 billion in cash consideration), accounted for as an asset acquisition with no goodwill. In the first quarter of 2026 it rebranded the platform Elecor Properties and created a separate Commercial Real Estate segment.

What the filings show about it:

• Income: Q2 2026 commercial real estate revenue was $182.1 million, but the segment lost $34.8 million before tax after $66.8 million of depreciation and amortization and $61.8 million of interest expense.
• Occupancy risk: the 10-K put the vacancy rate of the Paramount assets (at Rithm's share) at 14.1% at December 31, 2025, with 537,500 square feet, about 8.6% of annualized rents, scheduled to expire during 2026. The Q2 release says year-to-date leasing reached 681 thousand square feet, at rents 32% higher in New York City and 1% higher in San Francisco than in FY 2025.
• Financing: a $283 million single-asset CMBS refinancing of 1325 Avenue of the Americas closed in Q2 2026.
• Inherited issue: the 10-K says Paramount “is subject to an investigation by the SEC’s Division of Enforcement” into the adequacy of prior disclosures on executive compensation, perquisites, related-party transactions and conflicts of interest, and that it “continues to cooperate with the SEC.” The company says it cannot estimate the outcome.

So the office exposure is on Rithm's own balance sheet, $6.1 billion of real estate, net, at June 30, and it is the segment that currently loses money. It also changes how EAD should be read, as shown above.

Debt: $36.0 billion, mostly secured, with a heavy second half of 2026

The 10-Q gives contractual maturities of debt obligations as of June 30, 2026, split between non-recourse and recourse.

Total contractual debt is 4.0 times total stockholders' equity of $9.05 billion, and recourse debt is 2.2 times the $8.52 billion of equity attributable to Rithm Capital Corp. (our arithmetic). The 10-Q does not split the maturity table by instrument, but its footnote shows the recourse column includes $11.3 billion of secured financing agreements and $5.8 billion of secured notes and bonds. The company also lists $28.9 billion of borrowing capacity with $17.0 billion outstanding and $11.8 billion shown as available financing, and warns that this availability is uncommitted. Certain debt carries covenants triggered by declines in equity or a failure to maintain a specified tangible net worth, liquidity or indebtedness to tangible net worth ratio; the company reported compliance at June 30.

The unsecured layer is small and recent: $775 million of 8.000% notes due April 1, 2029, $500 million of 8.000% notes due July 15, 2030, and $500 million of 8.500% notes due June 1, 2031, issued May 14, 2026 for general corporate purposes, which the 8-K says may include repaying certain indebtedness. The notes require unencumbered assets of at least 120% of unsecured debt, and holders can put them back at 101% on a change of control or a “Mortgage Business Triggering Event.” Unsecured notes on the balance sheet rose from $1.42 billion at March 31 to $1.90 billion at June 30, 2026.

Rithm Property Trust and the Perpetual Life trust: one manager, three ways to own the same pipeline

Holders of non-traded vehicles often meet Rithm through two products that share its brand. The 10-Q describes both as managed by the “Rithm Advisers,” which earn management and, for the Perpetual Life trust, performance fees; Rithm's CEO is also the CEO of both.

On October 15, 2026 the Perpetual Life trust filed the September 30 NAV; on October 6 it reported selling only $1.5 million of shares on October 1 and declared a $0.17 per share distribution payable around October 20. Our detailed page, Rithm Property Trust (RPT) vs Perpetual Life Residential Trust, covers fees, leverage, redemption terms and RPT's own earnings. For RITM shareholders the relevant point is the interlocking: the same Genesis-originated loans, the same executives and a stake in each vehicle. For investors in the private trust, the parent's disclosure is that its own financial exposure there is 4.3%.

Tax: all of the common dividend was ordinary income

The 10-K's tax table shows common stock distributions per share of $1.25 in 2023 and $1.00 in each of 2024 and 2025, each 100% ordinary income, with no long-term capital gain and no return of capital. The December 2025 dividend, paid in January 2026, is treated as received in 2025. REIT ordinary dividends do not carry the qualified-dividend rate; see Section 199A dividends from non-traded REITs for the 20% pass-through deduction that can apply, and REIT distributions and return of capital for the other cases. The Series A and Series B preferred tables in the same note also show 100% ordinary income. This is not tax advice; the final character comes on your Form 1099-DIV, see when 1099-DIVs are due.

How this differs from the other mortgage REIT pages

Rithm is not a spread REIT in the AGNC sense. Our AGNC and Annaly page is about agency bonds financed with repo; Rithm's largest assets are MSRs, a servicing and origination operating company, an asset manager and now $6.1 billion of office real estate. MFA Financial reports a distributable earnings measure that failed to cover its dividend; Rithm's measure covers it comfortably but is built from different add-backs. For lenders against commercial property, see commercial mortgage REIT dividends and delinquencies.

What the next filing will show, and when

The Q3 2026 10-Q has not been filed as of October 16, 2026. In 2025 Rithm furnished its Q3 results 8-K on October 30 and filed the 10-Q on October 31; in 2024 the results 8-K was dated October 29. The Q2 2026 pair were the 8-K on July 28 and the 10-Q on August 4. That points to late October or early November 2026 (our inference from past dates, not a company statement). The 10-Q's dividend table lists declarations through June 22, 2026; we found no Q3 2026 declaration in an SEC filing, so check the company's press releases for it.

What a shareholder can do with this

• Read both earnings lines. GAAP earnings were $0.60 a share over the last four quarters against $1.00 of dividends, and EAD was $2.39. Which one you treat as the dividend's source decides how safe $1.00 looks.
• Check three numbers in the Q3 10-Q: whether book value per share stops falling from $12.33, whether the real estate depreciation add-back (about $88 million a quarter) is still the same share of EAD, and the Q4 maturities of the $13.1 billion due by December.
• Watch MSR marks separately from operations. Newrez's operating income was $307.6 million in Q2; the MSR loss and other items took $194.5 million of it back.
• Know what your other Rithm holdings are. If you also hold the Perpetual Life trust, the parent's 10-Q says it owns 4.3% of it and its adviser is paid fees by it; the trust's own filings show its leverage and its repurchase limits.
• Price is outside this page. The filings give book value, not a market price, and nothing here is a price view or a recommendation.

If a single mortgage-REIT dividend is a large share of your income, or you hold RITM next to a Rithm-managed private vehicle, a second opinion on the whole position is reasonable.

Rithm Capital (CIK 1556593) files 10-Qs, 10-Ks and 8-Ks on EDGAR; its latest earnings filing was the 10-Q of August 4, 2026. The alert below emails you when it files a new one.

FAQ

Sources, read and saved on October 16, 2026: Rithm Capital Corp. (CIK 1556593) Form 10-K for 2025 (accession 0001556593-26-000012); Form 10-Q for June 30, 2026 (0001556593-26-000029); earnings 8-K exhibits for Q1 2025 (0001556593-25-000013), Q2 2025 (0001556593-25-000020), Q3 2025 (0001556593-25-000030), Q4 2025 (0001556593-26-000007), Q1 2026 (0001556593-26-000018) and Q2 2026 (0001556593-26-000026); 8-K of May 14, 2026 on the 2031 senior notes (0001104659-26-061287); Rithm Perpetual Life Residential Trust (CIK 2081628) 8-Ks of October 6 and October 15, 2026 (0001628280-26-065197, 0001628280-26-066023). Figures marked “our arithmetic” are our calculations from the cited rows. This is analysis of public documents, not investment, legal or tax advice.