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Rithm Capital (RITM) Closes DRA Venture Following New York Tower Deal Is It A Bargain

Simply Wall St · 1d ago

Rithm Capital (RITM) has closed a joint venture with a DRA Advisors managed fund for 1301 Avenue of the Americas, retaining majority control of the fully leased New York office tower.

Rithm Capital’s joint venture lands at a time when the share price has declined 21.49% year to date and 13.37% over the past month, while the 3-year total shareholder return of 22.87% and 5-year total shareholder return of 26.41% point to more resilient longer term momentum.

See how Rithm Capital compares with other real estate and financial players by reviewing our hand picked list of list of solid balance sheet and fundamentals (25 results)

Rithm Capital now pairs a recent price slide with new capital partnerships around a fully leased tower. Is most of the repricing already behind the stock, or does the valuation still leave meaningful upside on the table?

Most Popular Narrative: 34% Undervalued

Against a last close of $8.62, the most followed narrative puts Rithm Capital’s fair value at $13.15, which frames the recent share price slide as a discount rather than a verdict on the long term earnings plan.

Technology and AI driven cost initiatives across Newrez, including expectations to move cost per loan to roughly 50% below industry averages and to cut servicing cost per loan to $93 with more than $65 million of annual savings after the Valon migration in early 2027, are aimed at expanding net margins and supporting future ROE.

See why 73 investors see Rithm Capital as 34% undervalued.

Result: Fair Value of $13.15 (UNDERVALUED)

Still, the Rithm Capital story can break if higher funding costs squeeze returns or if mortgage competition keeps pricing tight and crimps servicing economics.

Find out about the key risks to this Rithm Capital narrative.

Next Steps

Mixed views on Rithm Capital so far. If you want to move fast and build your own conviction, start with the balance of 3 key rewards and 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.