LEASES

6 Months Ended

Jun. 30, 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 June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 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 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 June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 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 12).

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

Year Ending	Operating Leases		Finance Leases		Total
July 1 through December 31, 2024	$	25,523	$	—	$	25,523
2025	41,511		228		41,739
2026	35,451		228		35,679
2027	36,452		228		36,680
2028	26,800		—		26,800
2029 and thereafter	40,189		—		40,189
Total remaining undiscounted lease payments	205,926		684		206,610
Less: imputed interest	31,428		76		31,504
Total remaining discounted lease payments	$	174,498	$	608	$	175,106

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods.

Other information related to leases is summarized below:

	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years)
Operating leases	5.3		5.8
Finance leases	3.0		3.5
Weighted average discount rate
Operating leases	6.5	%	6.2	%
Finance leases	7.9	%	7.9	%

	Six Months Ended June 30,
Supplemental Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	17,551	$	15,752
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	14,846		1

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 June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 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 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 June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 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 12).

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

Year Ending	Operating Leases		Finance Leases		Total
July 1 through December 31, 2024	$	25,523	$	—	$	25,523
2025	41,511		228		41,739
2026	35,451		228		35,679
2027	36,452		228		36,680
2028	26,800		—		26,800
2029 and thereafter	40,189		—		40,189
Total remaining undiscounted lease payments	205,926		684		206,610
Less: imputed interest	31,428		76		31,504
Total remaining discounted lease payments	$	174,498	$	608	$	175,106

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods.

Other information related to leases is summarized below:

	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years)
Operating leases	5.3		5.8
Finance leases	3.0		3.5
Weighted average discount rate
Operating leases	6.5	%	6.2	%
Finance leases	7.9	%	7.9	%

	Six Months Ended June 30,
Supplemental Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	17,551	$	15,752
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	14,846		1