OTHER ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2024

Other assets and accrued expenses and other liabilities — other assets and accrued expenses and other liabilities on the consolidated balance sheets consist of the following:


	Other Assets					Accrued Expenses and Other Liabilities
	December 31,					December 31,
	2024		2023			2024		2023
CLOs, at fair value(A)	$	242,227	$	226,486	Accounts payable	$	133,037	$	165,144
Deferred tax asset(G)	—		279,019		Accrued compensation and benefits	322,957		290,464
Derivative and hedging assets (Note 17)	75,147		28,080		Deferred tax liability(G)	786,141		801,857
Due from related parties	35,198		32,319		Derivative liabilities (Note 17)	52,610		51,765
Equity investments(B)	502,610		173,882		Escheat payable	187,830		169,914
Excess MSRs, at fair value (Note 13)	369,162		271,150		Excess spread financing, at fair value	101,088		—
Goodwill (Note 15)	133,832		131,857		Interest payable	260,931		166,620
Income and fees receivable	208,672		59,134		Lease liability (Note 16)	160,437		159,236
Intangible assets (Note 15)	331,949		387,920		Notes receivable financing(F), at fair value	371,788		—
Loans receivable, at fair value(C)	31,580		31,323		Unearned income and fees	17,280		37,468
Margin receivable, net(D)	414,404		75,947		Other liabilities	236,672		223,293
Non-Agency RMBS, at fair value(A)	552,797		577,543			$	2,630,771	$	2,065,761
Notes receivable, at fair value(E)	393,786		398,227
Operating lease ROU assets (Note 16)	99,224		104,207
Other receivables	178,651		152,046
Prepaid expenses	59,198		62,513
Principal and interest receivable	181,271		168,516
Property and equipment	70,495		40,038
REO	27,898		15,507
Servicer advance investments, at fair value (Note 14)	339,646		376,881
Servicing fee receivables	106,228		156,777
Warrants, at fair value	9,316		16,599
Other assets	200,124		182,881
	$	4,563,415	$	3,948,852

(A)Non-Agency RMBS and CLOs were reclassified from real estate and other securities, as presented in prior periods, to other assets on the consolidated balance sheets.

(B)Represents equity investments in (i) certain real estate redevelopment projects, (ii) various real estate services operating companies, (iii) funds managed by Sculptor, (iv) credit risk transfer entity that holds exposure in residential mortgage loan warehouse lines (measured at fair value under the FVO election with changes in fair value presented in other income (loss) in the consolidated statements of operations), (v) Rithm Property Trust securities, (vi) Newrez Joint Ventures (as defined in Note 20), (vii) APM and (viii) an energy focused fund managed by Rithm.

(C)Represents a loan made pursuant to a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are measured at fair value under the FVO election.

(D)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments.

(E)Represents notes receivable secured by commercial properties. The notes are measured at fair value under the FVO election.

(F)During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million, subject to a repo financing of $323.5 million, from a third party to a nonconsolidated joint venture for cash consideration of $48.0 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the FVO and is included in accrued expenses and other liabilities in the consolidated balance sheets. The amount presented within notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in other assets in the consolidated balance sheets, at fair value.

(G)Effective in the third quarter of 2024, Rithm Capital’s taxable subsidiaries file combined federal and state returns and as a result, present deferred tax liability or asset on a net basis on its consolidated balance sheets.

REO — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property as a result of foreclosure of the underlying loan. Rithm Capital measures REO assets at the lower of cost or fair value, with valuation provision recorded in other income (loss), net in the consolidated statements of operations. REO assets are managed for prompt sale and disposition.

The following table presents activity for the period related to the carrying value of investments in REO:


Balance at December 31, 2022	$	19,379

Property received in satisfaction of loan	21,943
Sales(A)	(27,512)
Valuation reversal	1,697
Balance at December 31, 2023	15,507
Purchases	16,256
Property received in satisfaction of loan	28,859
Sales(A)	(31,614)
Valuation provision	(1,110)
Balance at December 31, 2024	$	27,898

(A)Recognized when control of the property has transferred to the buyer.

As of December 31, 2024, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $43.5 million and $35.1 million, respectively.

Notes and Loans Receivable — The following table summarizes the activity for the period for notes and loans receivable:


	Notes Receivable		Loans Receivable		Total
Balance at December 31, 2022	$	—	$	94,401	$	94,401
Fundings(A)	399,977		—		399,977
Payment in kind	—		5,636		5,636
Proceeds from repayments	(1,750)		(68,945)		(70,695)

Fair Value Adjustments Due To:

Other factors	—		231		231
Balance at December 31, 2023	398,227		31,323		429,550
Fundings(A)	23,036		—		23,036
Payment in kind	—		4,677		4,677
Proceeds from repayments	(33,250)		(4,420)		(37,670)

Fair Value Adjustments Due To:

Other factors	5,773		—		5,773
Balance at December 31, 2024	$	393,786	$	31,580	$	425,366

(A)Rithm Capital acquired one and two notes receivable during 2024 and 2023, respectively, collateralized by commercial real estate.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable:


	December 31,
	2024						2023
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
Current	$	518,856	$	425,366	$	(93,490)	$	565,786	$	429,550	$	(136,236)
90+	—		—		—		—		—		—
Total	$	518,856	$	425,366	$	(93,490)	$	565,786	$	429,550	$	(136,236)

(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.