Rithm Capital Corp. reported third-quarter 2026 GAAP net income of $217.1 million, or $0.38 per diluted common share, a sharp increase from the $0.04 per share reported in the second quarter. The company also disclosed earnings available for distribution of $315.3 million, or $0.55 per diluted share, and declared a common dividend of $0.25 per share, totaling $139.6 million.
Michael Nierenberg, CEO of Rithm Capital, attributed the results to disciplined execution across the platform, highlighting growth in fee-based earnings and performance across operating companies. The company's book value per common share stood at $12.51 as of September 30, 2026.
The Newrez mortgage origination and servicing platform was a primary driver of the quarter's financial performance. Newrez posted pre-tax operating income of $329.7 million, excluding mortgage servicing rights mark-to-market gains, net of hedges, and other non-operating items of $275.2 million. This figure represented an increase from the second quarter operating income. On a segment basis, Newrez generated a 24% annualized operating return on equity based on $5.5 billion of average ending segment equity.
Operational metrics at Newrez showed mixed signals regarding volume. Total servicing unpaid principal balance reached $878.9 billion at the end of the third quarter, including $282.8 billion in third-party servicing. However, origination funded production volume declined to $12.9 billion in the third quarter, marking a 19% decrease from the prior quarter and a 21% drop year over year.
In its residential transitional lending segment, Genesis Capital recorded $1.5 billion in residential transition loan origination volume for the third quarter, a 25% increase year over year. The company expanded its sponsor base by funding 125 new sponsors in the quarter, a 74% year-over-year increase. Genesis also completed Rithm's first securitization collateralized entirely by multifamily residential transition loans, valued at $375 million.
Rithm Asset Management, which includes Sculptor Capital Management and Crestline Management, maintained approximately $61 billion in assets under management as of September 30, 2026. The platform added $569 million in gross new capital and fund commitment inflows during the third quarter, bringing year-to-date gross inflows to $2.9 billion.
Elecor Properties, Rithm Capital's commercial real estate division, reported year-to-date leasing activity of 1.0 million square feet in New York City and San Francisco. Management noted that rents across the portfolio are 22% higher than in fiscal year 2025. Elecor closed a joint venture with an institutional partner for the ownership of 1301 Avenue of the Americas, where Rithm will retain a significant interest and continue operations. Additionally, Elecor completed a $515 million refinancing of 31 West 52nd Street using a structure that included a commercial mortgage-backed securitization and two mezzanine financing tranches.
The investment portfolio segment purchased $1.6 billion in unpaid principal balance of non-qualified mortgage loans during the third quarter. Rithm Capital sponsored two non-qualified mortgage securitizations totaling $975 million in unpaid principal balance and acquired $521 million in home improvement loans under an agreement with Upgrade Inc., bringing total purchases through quarter-end to $1.5 billion. The company amended its forward flow agreement with Upgrade to allow for an additional $1.2 billion in home improvement loan purchases and completed a $306 million securitization of these loans.