LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

LEASES

Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended March 31, 2024 and 2023 totaled $11.9 million and $12.2 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 right-of-use (“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 March 31, 2024, 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 presented as part of other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets (Note 14).

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

Year Ending	Operating Leases		Finance Leases		Total
April 1 through December 31, 2024	$	31,076	$	—	$	31,076
2025	33,465		228		33,693
2026	26,992		228		27,220
2027	27,109		228		27,337
2028	23,818		—		23,818
2029 and thereafter	37,271		—		37,271
Total remaining undiscounted lease payments	179,731		684		180,415
Less: imputed interest	28,834		88		28,922
Total remaining discounted lease payments	$	150,897	$	596	$	151,493

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $19.3 million due in the future periods.

Other information related to leases is summarized below:

	March 31, 2024		December 31, 2023
Weighted average remaining lease term (years)
Operating leases	5.7		5.8
Finance leases	3.3		3.5
Weighted average discount rate
Operating leases	6.2	%	6.2	%
Finance leases	7.9	%	7.9	%

	Three Months Ended March 31,
Supplemental Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	11,411	$	8,276
Operating cash flows - finance leases	4		—
Finance cash flows - finance leases	224		—
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets:
ROU assets obtained in exchange for new operating lease liabilities	126		—

LEASES

LEASES

Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended March 31, 2024 and 2023 totaled $11.9 million and $12.2 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 right-of-use (“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 March 31, 2024, 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 presented as part of other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets (Note 14).

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

Year Ending	Operating Leases		Finance Leases		Total
April 1 through December 31, 2024	$	31,076	$	—	$	31,076
2025	33,465		228		33,693
2026	26,992		228		27,220
2027	27,109		228		27,337
2028	23,818		—		23,818
2029 and thereafter	37,271		—		37,271
Total remaining undiscounted lease payments	179,731		684		180,415
Less: imputed interest	28,834		88		28,922
Total remaining discounted lease payments	$	150,897	$	596	$	151,493

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $19.3 million due in the future periods.

Other information related to leases is summarized below:

	March 31, 2024		December 31, 2023
Weighted average remaining lease term (years)
Operating leases	5.7		5.8
Finance leases	3.3		3.5
Weighted average discount rate
Operating leases	6.2	%	6.2	%
Finance leases	7.9	%	7.9	%

	Three Months Ended March 31,
Supplemental Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	11,411	$	8,276
Operating cash flows - finance leases	4		—
Finance cash flows - finance leases	224		—
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets:
ROU assets obtained in exchange for new operating lease liabilities	126		—