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SINGLE-FAMILY RENTAL PROPERTIES
 9 Months Ended
Sep. 30, 2025
Real Estate [Abstract]  
SINGLE-FAMILY RENTAL PROPERTIES SINGLE-FAMILY RENTAL PROPERTIES
Rithm Capital invests in and manages a geographically diversified portfolio of high-quality SFR properties. Rithm Capital owns SFR properties classified as both HFI and HFS. SFR properties HFI are carried at cost less accumulated depreciation and impairment. SFR properties HFS are managed for near term sale and disposition and are measured at the lower of carrying value or fair value less estimated cost to sell. SFR properties HFI and HFS are presented within single-family rental properties on the consolidated balance sheets.

The following table summarizes the net carrying value of investments in SFR properties:
September 30, 2025December 31, 2024
Land$188,145 $191,992 
Building752,601 767,966 
Capital improvements159,649 150,811 
Total gross investment in SFR properties1,100,395 1,110,769 
Accumulated depreciation(102,279)(82,474)
Investment in SFR Properties, Net$998,116 $1,028,295 

Depreciation expense for the three months ended September 30, 2025 and 2024 totaled $6.9 million and $7.3 million, respectively, and $21.7 million and $22.3 million for the nine months ended September 30, 2025 and 2024, respectively. Depreciation expense is included in general and administrative in the consolidated statements of operations.

As of September 30, 2025 and December 31, 2024, the carrying amount of the SFR properties includes capitalized acquisition costs of $6.8 million and $7.0 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, 2024$989,002 $39,293 $1,028,295 
Acquisitions and capital improvements13,935 — 13,935 
Transfers to (from) HFS/HFI10,197 (10,197)— 
Dispositions— (22,451)(22,451)
Depreciation expense(21,663)— (21,663)
Balance at September 30, 2025$991,471 $6,645 $998,116 

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:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Rental revenue$19,920 $19,348 $58,814 $57,216 
Other variable revenue2,697 833 7,582 2,492 
Total $22,617 $20,181 $66,396 $59,708 

The following table summarizes the future minimum rental revenues under existing leases on SFR properties:
2026$18,075 
2027 and thereafter
40,053 
Total$58,128 
The following table summarizes SFR portfolio activity for the period by number of properties:
SFR Properties HFISFR Properties HFSTotal
Balance at December 31, 20243,891 158 4,049 
Transfer to (from) HFS/HFI42 (42)— 
Disposition of SFR properties— (75)(75)
Balance at September 30, 20253,933 41 3,974 

See Note 18 regarding the financing of SFR properties.