Company: RITM-PC
Filing Date: 2025-09-22
Form Type: 424B5
Source: 0001140361-25-035712
Chunk: 107

Company: Rithm Capital Corp.
Filing Date: 2025-09-22
Form: 424B5
Chunk 107
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 however, that our hedging activities will not give rise to income that does not qualify for purposes of the REIT gross income tests, or that our hedging activities will not adversely affect our ability to satisfy the REIT qualification requirements. Taxable Mortgage Pools and Excess Inclusion Income An entity, or a portion of an entity, may be classified as a taxable mortgage pool (“ TMP”) under the Code if:

| • | substantially all of its assets consist of debt obligations or interests in debt obligations, |

| • | more than 50% of those debt obligations are real estate mortgages or interests in real estate mortgages as of specified testing dates, |

| • | the entity has issued debt obligations (liabilities) that have two or more maturities, and |

| • | the payments required to be made by the entity on its debt obligations (liabilities) “bear a relationship” to the payments to be received by the entity on the debt obligations that it holds as assets. |

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TABLE OF CONTENTS

Under regulations issued by the U.S. Treasury Department, if less than 80% of the assets of an entity (or a portion of an entity) consist of debt obligations, these debt obligations are considered not to comprise “substantially all” of its assets, and therefore the entity would not be treated as a TMP. We may enter into financing and securitization arrangements that are classified as TMPs, with the consequences as described below. Where an entity, or a portion of an entity, is classified as a TMP, it is generally treated as a taxable corporation for U.S. federal income tax purposes. In the case of a REIT, or a portion of a REIT, or a disregarded subsidiary of a REIT, that is a TMP, however, special rules apply. The TMP is not treated as a corporation that is subject to corporate income tax, and the TMP classification does not directly affect the tax status of the REIT. Rather, the consequences of the TMP classification would, in general, except as described below, be limited to the stockholders of the REIT. A portion of the REIT’s income from the TMP arrangement, which might be non-cash accrued income, could be treated as “excess inclusion income.” Under IRS guidance, the REIT’s excess inclusion income, including any excess inclusion income from a residual interest in a REMIC, must be allocated among its stockholders in proportion to dividends paid. The REIT is required to notify stockholders of