LEASES

12 Months Ended

Dec. 31, 2023

Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the years ended December 31, 2023, 2022 and 2021 totaled $45.8 million, $45.2 million and $26.1 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants.

Operating lease ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of December 31, 2023, the Company has pledged collateral related to its lease obligations of $6.2 million, which is presented as part of restricted cash on the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are grouped and presented as part of other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets (Note 15).

The table below summarizes the future commitments under the non-cancelable leases:


Year Ending	Operating Leases		Finance Leases		Total
2024	$	41,305	$	228	$	41,533
2025	33,617		228		33,845
2026	26,982		228		27,210
2027	27,111		228		27,339
2028	23,818		—		23,818
2029 and thereafter	37,271		—		37,271
Total remaining undiscounted lease payments	190,104		912		191,016
Less: imputed interest	31,680		100		31,780
Total remaining discounted lease payments	$	158,424	$	812	$	159,236

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $18.6 million due in the future periods.

Other information related to leases is summarized below:


	December 31,
	2023		2022
Weighted-average remaining lease term (years)
Operating leases	5.8		5.7
Finance leases	3.5		-

Weighted-average discount rate
Operating leases	6.2	%	4.0	%
Finance leases	7.9	%	—	%


	Year Ended December 31,
Supplemental Information	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	34,655	$	51,005	$	24,667
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,449	$	5,773	$	3,013