LEASES

3 Months Ended

Mar. 31, 2025

Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2035. Rent expense, net of sublease income for the three months ended March 31, 2025 and 2024 totaled $7.3 million and $11.9 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants.

Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of March 31, 2025, the Company has pledged collateral related to its lease obligations of $7.3 million, which is presented as part of restricted cash on the consolidated balance sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets (Note 12).

The table below summarizes the future commitments under the non-cancelable leases:


Year Ending	Operating Leases		Finance Leases		Total
April 1 through December 31, 2025	$	34,175	$	—	$	34,175
2026	39,349		228		39,577
2027	40,471		228		40,699
2028	29,942		—		29,942
2029	28,162		—		28,162
2030 and thereafter	25,225		—		25,225
Total remaining undiscounted lease payments	197,324		456		197,780
Less: imputed interest	30,616		43		30,659
Total Remaining Discounted Lease Payments	$	166,708	$	413	$	167,121

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $32.7 million due in the future periods.

Other information related to leases is summarized below:




	March 31, 2025		December 31, 2024
Weighted Average Remaining Lease Term (Years):
Operating leases	5.3		5.1
Finance leases	2.3		2.5

Weighted Average Discount Rate:
Operating leases	6.7	%	6.5	%
Finance leases	7.9	%	7.9	%


	Three Months Ended March 31,
Supplemental Information	2025		2024
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows - operating leases	$	11,386	$	11,411
Operating cash flows - finance leases	3		4
Finance cash flows - finance leases	225		224
Supplemental Non-Cash Information on Lease Liabilities Arising from Obtaining ROU Assets:
ROU assets obtained in exchange for new operating lease liabilities	$	14,146	$	126

See Note 9 for further information on leases of SFR properties.