Paseo on Fifth Launch Might Change The Case For Investing In Rithm Capital (RITM)

• The official leasing launch of 50 Paseo Place in Park Slope recently took place, marking the debut of the two-building Paseo on Fifth residential development, co-developed by William Macklowe Company, GreenBarn Investment Group, NTT UD USA Inc., and Rithm Capital.
• This project not only adds modern amenities to a prime Brooklyn location but also signifies Rithm Capital's active involvement in high-profile urban real estate ventures.
• We'll consider how Rithm Capital's participation in Paseo on Fifth highlights its hands-on approach to real estate asset management growth.

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Rithm Capital Investment Narrative Recap

To believe in Rithm Capital as a shareholder, you’d need confidence in its ability to grow its asset management business and capture value from urban real estate, credit, and private funds. The debut of Paseo on Fifth highlights Rithm’s on-the-ground involvement in high-quality projects, but its significance to short-term catalysts, such as earnings momentum and expanding asset management, is not material, as this is one development among many. However, risks like execution in new business areas remain important to watch.

Of the recent announcements, the $500 million senior unsecured notes offering stands out, as debt management is crucial with ambitious growth goals in real estate and new asset classes. Efficiently refinancing debt while absorbing new development projects speaks directly to Rithm’s ability to unlock shareholder value, though the pace and impact of each initiative will play into those wider catalysts over time.

Still, while ambitious urban projects can support growth, investors should be mindful of execution risk in new business areas, especially since...

Read the full narrative on Rithm Capital (it's free!)

Rithm Capital is forecast to reach $5.8 billion in revenue and $1.2 billion in earnings by 2028. This outlook assumes a 17.8% annual revenue growth rate and an increase in earnings of $574.5 million from the current $625.5 million.

Uncover how Rithm Capital's forecasts yield a $12.77 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Rithm’s fair value between US$12.77 and US$34.08, based on two distinct forecasts. Diversified asset management efforts are a key catalyst, but the range of opinions highlights how investor outlooks can widely differ depending on focus and expectations.

Explore 2 other fair value estimates on Rithm Capital - why the stock might be worth just $12.77!

Build Your Own Rithm Capital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rithm Capital research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Rithm Capital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rithm Capital's overall financial health at a glance.

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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.

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