SINGLE-FAMILY RENTAL PROPERTIES

12 Months Ended

Dec. 31, 2023

Rithm Capital continues to invest in its SFR portfolio and is striving to become a leader in the SFR sector by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high quality residents.

The following table summarizes the net carrying value of investments in SFR properties:


	December 31,
	2023		2022
Land	$	183,359	$	175,607
Building	733,437		702,427
Capital improvements	138,869		118,999

Total gross investment in SFR properties	1,055,665		997,033
Accumulated depreciation	(53,737)		(25,720)
Investment in SFR properties, net	$	1,001,928	$	971,313

Depreciation expense for the years ended December 31, 2023 and 2022 totaled $28.2 million and $18.9 million, respectively, and is included in other income (loss), net in the Consolidated Statements of Operations.

As of December 31, 2023 and 2022, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.5 million and $7.7 million, respectively.

SFR properties held-for-sale are managed for near term sale and disposition. For the year ended December 31, 2023, Rithm Capital transferred 30 SFR properties to held-for-sale.

The following table summarizes the activity related to the net carrying value of investments in SFR properties:


	SFR Properties Held- for-Investment		SFR Properties Held- for-Sale		Total
Balance at December 31, 2021	$	579,607	$	—	$	579,607
Acquisitions and capital improvements	415,858		—		415,858
Dispositions	(5,242)		—		(5,242)


Accumulated depreciation	(18,910)		—		(18,910)
Balance at December 31, 2022	$	971,313	$	—	$	971,313
Acquisitions and capital improvements	67,013		—		67,013
Transfers to held-for-sale	(9,747)		9,747		—
Dispositions	(250)		(7,990)		(8,240)


Accumulated depreciation	(27,972)		(186)		(28,158)
Balance at December 31, 2023	$	1,000,357	$	1,571	$	1,001,928

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years. The following table summarizes our future minimum rental revenues under existing leases on SFR properties:


2024	$	39,942
2025 and thereafter	$	2,399
Total	$	42,341

The following table summarizes the activity of the SFR portfolio by units:


	SFR Properties Held- for-Investment	SFR Properties Held- for-Sale	Total
Balance at December 31, 2021	2,551	—	2,551
Acquisition of SFR units	1,196	—	1,196
Disposition of SFR units	(16)	—	(16)

Balance at December 31, 2022	3,731	—	3,731
Acquisition of SFR units	182	—	182
Transfer to held-for-sale	(30)	30	—
Disposition of SFR units	(1)	(24)	(25)

Balance at December 31, 2023	3,882	6	3,888

See Note 20 regarding the financing of SFR Properties.