OTHER ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2025

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


	March 31, 2025		December 31, 2024			March 31, 2025		December 31, 2024
CLOs, at fair value	$	266,612	$	242,227	Accounts payable	$	127,400	$	133,037
Derivative and hedging assets (Note 17)	40,553		75,147		Accrued compensation and benefits	114,192		322,957
Due from related parties	30,733		35,198		Net deferred tax liability	744,778		786,141
Equity investments(A)	646,256		502,610		Derivative liabilities (Note 17)	60,756		52,610
Excess MSRs, at fair value (Note 13)	354,923		369,162		Escheat payable	181,647		187,830
Goodwill (Note 15)	133,832		133,832		Excess spread financing, at fair value	104,721		101,088
Income and fees receivable	64,464		208,672		Interest payable	225,463		260,931
Intangible assets (Note 15)	318,893		331,949		Lease liability (Note 16)	167,121		160,437
Loans receivable, at fair value(B)	17,717		31,580		Notes receivable financing(E), at fair value	373,508		371,788
Margin receivable, net(C)	114,843		414,404		Unearned income and fees	15,329		17,280
Non-Agency securities, at fair value	639,458		552,797		Other liabilities	228,095		236,672
Notes receivable, at fair value(D)	434,124		393,786			$	2,343,010	$	2,630,771
Operating lease ROU assets (Note 16)	109,264		99,224
Other receivables	194,369		178,651
Prepaid expenses	64,323		59,198
Principal and interest receivable	171,078		181,271
Property and equipment	70,689		70,495
REO	24,181		27,898
Servicer advance investments, at fair value (Note 14)	321,531		339,646
Servicing fee receivables	154,828		106,228
Warrants, at fair value	10,174		9,316
Other assets	268,078		200,124
	$	4,450,923	$	4,563,415

(A)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 common and preferred securities, (vi) Newrez Joint Ventures (as defined in Note 20), (vii) APM, and (viii) an energy fund managed by Rithm.

(B)Represents a loan made pursuant to a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Company’s former external manager, FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. The loans are measured at fair value under the FVO election.

(C)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.

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

(E)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.

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, 2024	$	27,898
Purchases	2,152
Property received in satisfaction of loan	(1,145)
Sales(A)	(4,996)
Valuation reversal	272
Balance at March 31, 2025	$	24,181

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

As of March 31, 2025, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $40.7 million and $20.9 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, 2024	$	393,786	$	31,580	$	425,366
Fundings(A)	37,913		—		37,913
Payment in kind	981		1,137		2,118
Proceeds from repayments	—		(15,000)		(15,000)
Fair Value Adjustments Due To:

Other factors(B)	1,444		—		1,444
Balance at March 31, 2025	$	434,124	$	17,717	$	451,841

(A)Rithm Capital acquired one additional note receivable during 2025 collateralized by commercial real estate.

(B)There were no fair value adjustments due to changes in instrument-specific credit risk in the current period.

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




	March 31, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
Current	$	543,887	$	451,841	$	(92,046)	$	518,856	$	425,366	$	(93,490)
90+	—		—		—		—		—		—
Total	$	543,887	$	451,841	$	(92,046)	$	518,856	$	425,366	$	(93,490)

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