{"data":{"id":"sw_87e5cb610951bea17e3d","slug":"rithm-capital-s-10-47-yield-sits-alongside-negative-operating-cash-flow-82-5-deb","title":"Rithm Capital's 10.47% Yield Sits Alongside Negative Operating Cash Flow, 82.5% Debt Ratio","subheadline":"The diversified REIT's high payout coexists with negative cash flow per share and elevated leverage, according to its latest regulatory filings.","summary":"Rithm Capital Corp offers a 10.47% dividend yield, but its operating cash flow per share is negative and debt to book capital stands at 82.53%, per its Q1 2026 earnings release, raising leverage questions for the diversified REIT.","body":"Rithm Capital Corp, the New York based diversified real estate investment trust formerly known as New Residential Investment Corp, is currently paying a dividend yield of 10.47%, a figure that stands in contrast to two other numbers from the same filing period: operating cash flow per share of negative $1.35 and a debt to book capital ratio of 82.53%. The combination first stood out in data tracked on REIT Research, a Madison Labs research site, which compiles yield, cash flow and leverage metrics for U.S. REITs.\n\nThe figures come from Rithm's Q1 2026 earnings release, filed as an 8-K exhibit on April 28, 2026. That filing also shows earnings available for distribution of $0.51 per share for the quarter, alongside a net debt to EBITDA ratio of 30.46x on a GAAP estimated basis. The company does not report FFO per share, which the underlying data source notes is common practice among mortgage REITs, whose business model differs from equity REITs that own physical property directly.\n\nOn a balance sheet basis, Rithm reported total debt of $39.58 billion against total assets of $53.06 billion and total equity of $8.43 billion for the latest fiscal year. Its market capitalization stands at $5.33 billion, while enterprise value, which adds debt and subtracts cash, is listed at $43.89 billion, a gap that reflects the scale of leverage embedded in the company's balance sheet relative to its equity market value.\n\nThe payout ratio calculated against operating cash flow is listed at negative 74.05%, a mathematical consequence of the negative operating cash flow per share figure. In plain terms, the dividend is not being funded by operating cash flow in the period measured, according to the figures disclosed in the filing. Whether that reflects the timing of loan originations, securitization activity, or other elements specific to Rithm's asset manager and mortgage related business lines is not addressed in the disclosed figures themselves.\n\nFor income focused investors, the coexistence of a double digit yield with negative operating cash flow per share and a debt to book capital ratio above 80% presents a data point worth weighing alongside other elements of the company's disclosures, including its earnings available for distribution figure, which the company does report and which differs conceptually from GAAP operating cash flow. Rithm operates through three segments, Origination and Servicing, Residential Transitional Lading, and Asset Management and Investment Portfolio, spanning single family rental properties, mortgage servicing rights, collateralized loan obligations and consumer loans, a diversified structure that distinguishes it from single sector mortgage REITs.\n\nRithm qualifies as a REIT for federal tax purposes, meaning it is generally not subject to federal corporate income tax provided it distributes at least 90% of its taxable income to shareholders, a structural requirement that helps explain why REITs frequently maintain high payout levels relative to reported cash flow metrics, particularly in periods of portfolio repositioning or origination volume swings.\n\nThe broader market backdrop includes continued strength in large technology and semiconductor names, with Intel, Meta Platforms, Advanced Micro Devices and Qualcomm all posting notable single day gains, while shares of Union Pacific and ConocoPhillips moved lower, according to trading data for the session. Within fixed income adjacent markets, deposit rates have remained a point of comparison for income seeking investors, with certificate of deposit rates reported at up to 4.40% APY as of September 22, 2026, according to rate tracking data cited in market coverage that day.\n\nRecent company specific news includes Rithm's announcement of its third quarter 2026 common and preferred dividends and the appointment of Ann DeVries as head of investor relations, according to company disclosures dated September 17, 2026. Zacks Investment Research also published commentary in September 2026 characterizing Wall Street sentiment toward the stock as broadly optimistic, a characterization attributed to that publication's own analysis rather than to Rithm's disclosed financial figures.\n\nInvestors and analysts tracking Rithm's next quarterly filing are likely to focus on whether operating cash flow per share turns positive, whether the debt to book capital ratio moves from its current 82.53% level, and how earnings available for distribution compares against the declared dividend in coming quarters. None of the figures cited here constitute a forecast of future performance, and the company's own disclosures do not project forward values for these metrics.","source":{"name":"REIT Research","slug":"reit-research"},"category":"REITs","article_type":"Data Story","license":"Free to republish, in full or in part, with attribution to SourceWire and a link to the original article. No fees, registration, or permission required.","quality_score":86,"human_reviewed":false,"original_url":"https://reinvestmenttrust.com/reits/RITM","featured_image":null,"published_at":"2026-09-22T11:36:22.219127+00:00","updated_at":"2026-09-22T11:36:22.219127+00:00","is_demo":false,"attribution":"Via SourceWire. Discovered via REIT Research.","attribution_html":"Via SourceWire. Discovered via REIT Research."},"meta":{"demo_data":false}}