Is Rithm Capital Corp. (RITM) an Undervalued REIT Stock to Buy Now?

Rithm Capital Corp (NYSE:RITM) is one of the top undervalued REIT stocks to buy now. On April 28, Rithm Capital Corp (NYSE:RITM) delivered strong first-quarter results despite a challenging, volatile market environment.

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Net income in the quarter increased to $67.8 million or $0.12 per diluted share compared to $53.1 million or $0.09 a share in the fourth quarter. However, earnings available for distribution dropped to $289.6 million or $0.51 per diluted common share, compared to $418 million or $0.74 per diluted share in the fourth quarter.

During the quarter, the company completed four non-qualified mortgage securitizations totaling $2 billion. It also acquired $140 million in home improvement loans, bringing the total purchased to date under the Investment portfolio to $667 million.

Rithm Capital Corp also recorded $1.6 billion in origination volume, an 80% year-over-year increase. Assets under management on the alternative asset management platform increased to $59 billion as of March 31, up from $35 billion at the same period last year, driven by the acquisition of Crestline.

Rithm Capital Corp. (NYSE:RITM) is a global alternative asset manager and real estate investment trust (REIT) focused on residential/commercial real estate, mortgage servicing rights (MSRs), and credit-related businesses. Through subsidiaries such as Newrez and Genesis Capital, it operates a vertically integrated model encompassing mortgage origination, servicing, and transitional lending.

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