Rithm Property Trust Inc. Q4 2025 Earnings Call Summary

• Management is focused on a strategic recapitalization to transition the vehicle into a dedicated commercial real estate and opportunistic investment platform.

• The company executed a 6:1 reverse stock split during the fourth quarter to improve share price optics and attract broader investor interest.

• Performance was characterized as flat during the transition period following the June 2024 management takeover, with a focus on cleaning the balance sheet and raising liquidity.

• The current strategy leverages the parent company’s ecosystem, including the Genesis and Paramount platforms, to source high-yielding assets without a traditional J-curve.

• Management attributes the current valuation discount to a dislocated real estate sector where many peers face liquidity issues or underwater balance sheets.

• The vehicle maintains a defensive posture with approximately $100 million in cash and liquidity while waiting for market stabilization to execute growth plans.

• Management has identified a clear path to grow earnings to a range of $1.60 to $1.70 per share, contingent upon successful capital formation and recapitalization.

• The future state model targets a 9% dividend yield and a book value of approximately $20 per share, assuming capital is raised at favorable levels.

• The investment pipeline includes a identified $1 billion pool of multifamily loans from the Genesis business that can be deployed immediately upon recapitalization.

• Strategic initiatives include exploring the acquisition of licenses to become a Fannie Mae or Freddie Mac servicer and originator in the multifamily space.

• Genesis production is projected to reach between $6 billion and $7 billion this year, providing a consistent source of high-yielding, levered assets for the trust.

• The trust made a $50 million investment in the Paramount transaction alongside its parent company, providing a pro rata share of net operating income.

• A 6:1 reverse stock split was completed to address the low nominal share price and improve marketability to institutional investors.

• The company is currently trading at approximately 50% of its $31 per diluted share book value, which management views as an extremely low valuation.

• The acquisition of Crestline by the parent company in December is expected to enhance the trust’s ability to source opportunistic product.

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