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SINGLE-FAMILY RENTAL PROPERTIES
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
SINGLE-FAMILY RENTAL PROPERTIES SINGLE-FAMILY RENTAL PROPERTIES
Rithm Capital invests in its SFR portfolio by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high-quality residents.

SFR properties HFI are carried at cost less accumulated depreciation and impairment and are presented within single-family rental properties on the consolidated balance sheets.

SFR properties HFS are managed for near term sale and disposition. They are measured at the lower of cost less accumulated depreciation and impairment or fair value less estimated cost to sell and presented within single-family rental properties on the consolidated balance sheets. For the year ended December 31, 2024, Rithm Capital transferred 206 SFR properties HFI to HFS.
The following table summarizes the net carrying value of investments in SFR properties:
December 31,
20242023
Land$191,992 $183,359 
Building767,966 733,437 
Capital improvements150,811 138,869 
Total gross investment in SFR properties1,110,769 1,055,665 
Accumulated depreciation(82,474)(53,737)
Investment in SFR Properties, Net$1,028,295 $1,001,928 

Depreciation expense for the years ended December 31, 2024, 2023 and 2022 totaled $30.0 million, $28.2 million and $18.9 million, respectively. Depreciation expense is included in general and administrative in the consolidated statements of operations.

As of December 31, 2024 and 2023, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.0 million and $7.5 million, respectively.

The following table summarizes the activity for the period related to the net carrying value of investments in SFR properties:
SFR Properties HFISFR Properties HFSTotal
Balance at December 31, 2022$971,313 $— $971,313 
Acquisitions and capital improvements67,013 — 67,013 
Transfers to HFS(9,561)9,561 — 
Dispositions(250)(7,990)(8,240)
Depreciation expense(28,158)— (28,158)
Balance at December 31, 20231,000,357 1,571 1,001,928 
Acquisitions and capital improvements70,355 — 70,355 
Transfers to HFS(50,615)50,615 — 
Dispositions(1,140)(12,893)(14,033)
Depreciation expense(29,955)— (29,955)
Balance at December 31, 2024$989,002 $39,293 $1,028,295 

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years.

The following table summarizes rental revenue and other variable revenue included in other revenues and other income (loss), net, respectively, on the consolidated statements of operations based on the specific lease terms for the period:
Year Ended December 31,
202420232022
Rental revenue$76,561 $73,216 $54,567 
Other variable revenue4,524 2,299 464 
Total Revenue$81,085 $75,515 $55,031 

The following table summarizes the future minimum rental revenues under existing leases on SFR properties:
2025$39,067 
2026 and thereafter
3,419 
Total$42,486 
The following table summarizes the activity for the period of the SFR portfolio by properties:
SFR Properties HFISFR Properties HFSTotal
Balance at December 31, 20223,731 — 3,731 
Acquisition of SFR properties182 — 182 
Transfer to HFS(30)30 — 
Disposition of SFR properties(1)(24)(25)
Balance at December 31, 20233,882 6 3,888 
Acquisition of SFR properties219 — 219 
Transfer to HFS(206)206 — 
Disposition of SFR properties(4)(54)(58)
Balance at December 31, 20243,891 158 4,049 

See Note 18 regarding the financing of SFR properties.