UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-36844 (Commission file number) RITHM PROPERTY TRUST INC. (Exact name of registrant as specified in its charter) Maryland 46-5211870 (I.R.S. Employer Ide ...

Exhibit 99.1 • GAAP comprehensive income of $1.4 million, or $0.03 per diluted common share (1),(2) • Earnings available for distribution of $0.1 million or $0.00 per diluted common share (1),(3) • Paid a common dividend of $2.7 million or $0.06 per common share • Book value per common share of $5.37 (1) (2) Comprehensive income is a GAAP financial measure that adjusts GAAP net income by any unrealized gain (loss) on investment securities measured at fair value through other comprehensive income and the rel ...

Financial Transactions - Rithm Property Trust completed a strategic transaction on June 11, 2024, selling $14.0 million of common stock to Rithm at $4.87 per share, and terminated the existing management contract with the Former Manager for approximately 3.2 million shares and $0.6 million in cash[148]. - During the quarter ended March 31, 2025, the company issued 2,084,232 shares of 9.875% Series C Preferred Stock, generating total net proceeds of $50.8 million after expenses[198]. Portfolio and Asset Management - As of March 31, 2025, the carrying value of the portfolio was $921.9 million, with mortgage loans held-for-investment at $387.0 million and CMBS at fair value of $275.5 million[154]. - The average mortgage loan portfolio decreased to $417.193 million from $898.343 million, a reduction of $481.150 million year-over-year[184]. - The total unpaid principal balance (UPB) of the loan portfolio as of March 31, 2025, was $443,743,000, a decrease from $454,893,000 as of December 31, 2024, reflecting a decline of about 2.4%[191]. - The number of loans in the portfolio decreased from 2,625 as of December 31, 2024, to 2,575 as of March 31, 2025, indicating a reduction of approximately 1.9%[191]. - The market value of collateral for the loan portfolio as of March 31, 2025, was $1,150,581,000, down from $1,160,673,000 as of December 31, 2024[195]. Financial Performance - Net interest income for the three months ended March 31, 2025, was $3.814 million, an increase of $2.182 million from $1.632 million in the same period of 2024[177]. - Interest income decreased to $13.200 million from $15.738 million year-over-year, a decline of $2.538 million[181]. - Interest expense decreased significantly to $9.386 million from $14.106 million, resulting in a year-over-year improvement of $4.720 million[177]. - Total revenue for the three months ended March 31, 2025, was $249 thousand, compared to a loss of $49.381 million in the same period of 2024, reflecting a positive variance of $49.630 million[177]. - The company experienced a net loss attributable to common stockholders of $3.744 million for the three months ended March 31, 2025, a significant improvement from a loss of $74.319 million in the same period of 2024[177]. Expenses and Liabilities - Total expenses decreased by $19.9 million to $3.776 million for the three months ended March 31, 2025, primarily due to a reduction in management fees[187]. - The company recorded no allowance for credit losses in the three months ended March 31, 2025, compared to an allowance of $4.230 million in the same period of 2024[179]. - Total liabilities decreased to $187.7 million from $414.8 million, while total equity increased to $111.2 million[216]. Economic Indicators - The U.S. economy contracted by an annualized 0.3% in Q1 2025, with the unemployment rate slightly increasing to 4.2%[155]. - The 12-month increase in the Consumer Price Index (CPI) was 2.4% in March 2025, down from 2.9% in December 2024, indicating progress towards lower inflation[156]. - The nominal 10-year Treasury yield fell to 4.23% at the end of March 2025 from 4.58% in December 2024, reflecting lower real yields from TIPS[158]. - Average payroll growth was 152,000 jobs per month in Q1 2025, compared to 168,000 jobs per month in 2024, with year-over-year growth in average hourly earnings at 3.8%[159]. - Total home sales averaged 4.81 million units in Q1 2025, only slightly lower than the previous quarter, with median resale price growth at 2.7%[160]. Market Conditions - The commercial real estate market is experiencing a turnaround, supported by improved liquidity and sentiment, although uncertainty remains due to trade tensions[162]. - The company does not expect to acquire significant new commercial mortgage assets in the near future due to financial challenges and limited financing sources[165]. - The company is subject to various market risks, including interest rate risk, credit risk, and real estate risk, which may impact financial performance[219]. Cash and Liquidity - The total cash and cash equivalents at March 31, 2025, were reported at $97.4 million[196]. - Cash and cash equivalents at the end of the period were $97.4 million, a decrease of $2.6 million compared to the previous year[208]. - Net cash used in operating activities decreased by $6.6 million year-over-year, primarily due to lower interest and other expenses[209]. - Net cash from investing activities decreased by $108.7 million, mainly due to increased purchases of investments in CMBS and equity method investments[210]. - Net cash from financing activities increased by $88.1 million, primarily due to the issuance of Series C Preferred Stock[211]. - The company expects to meet long-term liquidity requirements through cash on hand and potential additional borrowings[207]. - The company is required to maintain a minimum liquidity of $30.0 million and tangible net worth of $240.0 million, with a maximum leverage ratio of 4.0 to 1.0[202].

Financial Performance - Comprehensive income for Q1 2025 was $1.1 million, or $0.02 per diluted common share, down from $2.2 million, or $0.05 per diluted common share in Q4 2024[4] - Earnings available for distribution increased to $0.7 million, or $0.02 per diluted common share, compared to $0.3 million, or $0.01 per diluted common share in the previous quarter[4] - The company reported a net loss attributable to common stockholders of $3.7 million for Q1 2025, compared to a net income of $2.9 million in Q4 2024[14] - Comprehensive income for Q1 2025 was $1,114,000, compared to $2,202,000 for Q4 2024[23] - Earnings Available for Distribution (Non-GAAP) increased to $717,000 in Q1 2025 from $323,000 in Q4 2024[23] - Basic and diluted Earnings Available for Distribution per common share were both $0.02 in Q1 2025, up from $0.01 in Q4 2024[23] Equity and Assets - Book value per common share slightly decreased to $5.40 from $5.44 in Q4 2024, with total equity rising to $295.9 million from $246.9 million[4] - Total assets increased to $1,028.3 million from $977.3 million, with cash and cash equivalents rising to $97.4 million from $64.3 million[16] - The weighted average shares outstanding for basic and diluted calculations were 45,422,030 in Q1 2025, slightly up from 45,298,505 in Q4 2024[23] Dividends and Investments - The company declared a cash dividend of $0.06 per share, totaling $2.7 million, consistent with the previous quarter[8] - The company deployed $64 million into commercial real estate investments, including $46.7 million in commercial mortgage-backed securities, bringing total CMBS investments to $274.6 million[12] - Issued 2,084,232 shares of 9.875% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for net proceeds of $50.8 million[12] - Sold legacy RMBS with a total unpaid principal balance of $20.7 million, resulting in a remaining RMBS portfolio of $101.1 million[12] Income and Interest - Interest income for Q1 2025 was $13.2 million, an increase from $12.9 million in Q4 2024, while net interest income rose to $3.8 million from $3.6 million[14] Strategic Direction - Rithm Property Trust has transitioned to a flexible commercial real estate investment strategy following a strategic transaction with Rithm Capital in 2024[25] - The company focuses on acquiring, investing in, and managing re-performing and non-performing loans secured by residential and commercial properties[25] Forward-Looking Statements - Forward-looking statements indicate management's expectations regarding future events, highlighting inherent uncertainties[26] - The company disclaims any obligation to update or revise forward-looking statements except as required by law[26] Investor Relations - Investor relations contact is available for further inquiries at 646-868-5483 or ir@rithmpropertytrust.com[27]

Strategic Transactions and Management Changes - The company completed a strategic transaction with Rithm on June 11, 2024, involving the sale of $14.0 million of common stock at a price of $4.87 per share[21]. - The company terminated its existing management contract with the former manager in exchange for approximately 3.2 million shares of common stock and $0.6 million in cash[21]. - The management agreement with RCM GA is effective until June 11, 2027, with automatic renewals for successive two-year terms[42]. - The company disposed of its interest in Great Ajax FS LLC and assigned servicing agreements to Newrez as part of the strategic transaction[22]. Investment Strategy and Asset Management - The company shifted its investment strategy to focus on originating and acquiring loans and securities collateralized by various commercial real estate assets, moving away from RPLs and NPLs[26]. - The new investment strategy includes targeting senior loans, subordinated debt, mezzanine loans, preferred equity, and commercial mortgage servicing rights[27]. - The company anticipates financing its strategy through various options, including borrowing under credit facilities and issuing commercial real estate collateralized loan obligations[28]. - The investment guidelines adopted by the board allow for changes in target asset classes without stockholder approval[31]. - The company does not currently hedge the risk associated with its investment portfolio but may undertake risk mitigation activities in the future[36]. Financial Performance and Risks - The company incurred a net loss attributable to common stockholders of $92.2 million for the year ended December 31, 2024[82]. - The market value of the company's residential and commercial mortgage loans has significantly deteriorated, leading to substantial operating losses[82]. - Higher historical interest rates are expected to continue negatively impacting the company's loan assets, extending duration and decreasing fair market value[83]. - The company has identified certain mortgage loans for potential sale, but unfavorable market conditions may result in losses upon sale[84]. - The company may face significant liabilities related to environmental contamination at properties it owns or acquires[74]. Compliance and Regulatory Risks - The company intends to qualify as a REIT and must distribute at least 90% of its current taxable income each year to avoid federal income tax[64]. - The company conducts operations to avoid registration as an investment company under the Investment Company Act, ensuring less than 40% of total assets consist of investment securities[66]. - The company monitors compliance with the Investment Company Act to ensure subsidiaries meet applicable exemptions or exclusions[69]. - Regulatory compliance is critical for the Servicer, and any failure could increase expenses and adversely affect results[147]. - The Dodd-Frank Act has introduced significant regulatory changes that impact the financial services industry, including enhanced regulations for mortgage lending and servicing[186]. Market Conditions and Economic Factors - The overall level of commercial mortgage loan defaults remains significant, with many underlying commercial real estate market values distressed[93]. - The company is exposed to risks from weather conditions and natural disasters, which could materially impact asset values and financial performance[95]. - Difficult conditions in the mortgage and real estate markets have adversely affected asset values and are expected to persist in the foreseeable future[100]. - Changes in underwriting standards by Freddie Mac, Fannie Mae, or FHA could adversely affect the company's ability to refinance mortgage loans, impacting business operations[113]. Conflicts of Interest and Management Challenges - Conflicts of interest may arise between the company and its New Manager, potentially leading to decisions that prioritize incentive compensation over capital preservation[199]. - The Servicing Agreements are not negotiated at arm's length, which may result in less favorable terms compared to agreements with unaffiliated third parties[201]. - Rithm's investment policy allows for significant latitude in asset selection, which may lead to investments with lower returns or higher risks than anticipated[209]. - The complexity of managing conflicts of interest may lead to regulatory scrutiny or litigation, negatively impacting Rithm's business and financial condition[208]. Financial Strategies and Risks - The company uses leverage to enhance financial returns, but this increases both potential gains and losses, impacting cash available for distribution to stockholders[168]. - The company's financing strategy relies on placing debt at rates that provide a positive net spread; widening spreads could severely restrict future financings[162]. - The company may pursue various hedging strategies to reduce exposure to adverse interest rate changes, but these strategies can be expensive and may not provide the intended protection[179]. - The inability to refinance short-term facilities may require the company to seek less attractive financing options or liquidate assets at unfavorable times[176].

Financial Performance - GAAP net income for Q4 2024 was $2.9 million, or $0.06 per diluted share, compared to a loss of $8.0 million in Q3 2024[3] - Earnings available for distribution for Q4 2024 were $0.3 million, or $0.01 per diluted common share, up from a loss of $5.4 million in Q3 2024[3] - The company stabilized its book value and achieved positive earnings growth from a loss of $12.7 million in Q2 2024 to a net income of $2.9 million in Q4 2024[4] - Net income attributable to common stockholders for the three months ended December 31, 2024, was $2.914 million, compared to a loss of $8.029 million for the previous quarter[23] - Earnings available for distribution (EAD) for the same period was $323,000, a significant improvement from a loss of $5.360 million in the prior quarter[23] - Basic and diluted earnings available for distribution per common share were both $0.01 for the three months ended December 31, 2024, compared to a loss of $0.12 per share in the previous quarter[23] Asset and Liability Management - Total assets decreased to $977.3 million as of December 31, 2024, down from $1.3 billion a year earlier[15] - Total liabilities were reported at $730.6 million, a decrease from $1.0 billion at the end of 2023[15] - Book value per common share decreased slightly to $5.44 at December 31, 2024, from $5.47 at September 30, 2024[3] Dividend Declaration - The company declared a cash dividend of $0.06 per share, totaling $2.8 million, to be paid on February 28, 2025[6] Investment Strategy - The company acquired $154 million in UPB of commercial mortgage-backed securities, increasing total investment in CMBS to $244 million[10] - The transition to a commercial real estate-focused investment strategy was highlighted following the rebranding to Rithm Property Trust on December 2, 2024[10] Earnings Distribution Policy - The company views earnings available for distribution as a consistent financial measure of its portfolio's ability to generate income for distribution to common stockholders[21] - To maintain qualification as a REIT, the company is required to distribute at least 90% of its REIT taxable income annually[21] - Management excludes certain realized and unrealized losses from earnings available for distribution as they are not considered part of the company's core operations[20] Strategic Transactions - The company reported unrealized losses of $1.516 million for the quarter ended December 31, 2024, compared to unrealized gains of $1.640 million in the prior quarter[23] - The company incurred $1.010 million in expenses related to a strategic transaction during the previous quarter[23] - The strategic transaction with Rithm Capital involved a management agreement with an affiliate to serve as the external manager for Rithm Property Trust[23]

Core Insights - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and related securities [2][3]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, providing investment advisory services and market commentary focused on publicly traded securities in the real estate industry [2]. - The commentary emphasizes the importance of consulting with investment, tax, or legal advisers before making investment decisions, highlighting the complexities involved in real estate investments [2]. Group 2: Industry Insights - The article notes that investments in real estate companies and housing industry companies carry unique risks, which may not be suitable for all investors [2]. - It mentions that past performance of market data does not guarantee future results, indicating the volatile nature of the real estate market [3].

Market Risks - The primary market risks include real estate risk, interest rate risk, prepayment risk, and credit risk, which the company actively manages [268]. - Increases in interest rates are expected to lower refinancing volume and potentially increase defaults on CMBS, while home price increases may slow down [269]. - Higher interest rates could lead to a decline in the value of real estate assets and net income if not accompanied by increases in loan yield and rental yield [273]. - Prepayment risk is influenced by various factors, including interest rates and borrower behavior, which can affect the yield on assets and reinvestment opportunities [274]. - Credit risk is present due to potential borrower defaults, which may arise from personal income reductions, job loss, or poor property management [276]. - Inflation and interest rate increases by the Federal Reserve have raised the company's cost of funds, impacting the value of residential mortgage assets [277]. Financial Management - The company plans to continue securitizing whole loan portfolios to create long-term, fixed-rate financing, while utilizing repurchase lines of credit as interim financing [271]. - The company has not experienced any material changes in internal control over financial reporting during the last fiscal quarter [281]. - There are no material pending legal or regulatory proceedings involving the company or its subsidiaries [283]. - No material changes to risk factors were reported for the three months ended September 30, 2024 [284].

Financial Data and Key Metrics Changes - The company reported a GAAP net income loss of $8 million or $0.18 per diluted share for Q3 2024 [12] - Earnings available for distribution were negative $5.4 million or $0.12 per diluted share [12] - Book value remained relatively stable at $5.47, compared to $5.50 in the previous quarter [8] - The dividend declared for Q3 was $0.06, with a current dividend yield of 7.2% [12] Business Line Data and Key Metrics Changes - The company sold $85 million of residential mortgage loans, generating nearly $18 million in cash [13] - Approximately 91% of legacy residential mortgage loans held for sale were sold since the end of Q1 [13] - The company also sold $62.7 million of residential securities, generating $14 million in cash [13] - Net interest income increased by 126% from $1.6 million to $3.6 million by the end of Q3 [14] Market Data and Key Metrics Changes - The company is focusing on cash-flowing assets, particularly in the commercial real estate sector, with recent bids on $1 billion of assorted commercial real estate loans [9][21] - The company is seeing some movement from banks in terms of asset availability, although caution is advised due to potential risks in the market [17] Company Strategy and Development Direction - The company aims to sell down legacy residential assets and redeploy capital into cash-flowing CMBS, targeting breakeven by the end of Q1 2025 [6] - A name change from Great Ajax to Rithm Property Trust is planned for Q4 2024 [10] - The management strategy involves being patient and ensuring that any transactions are significant winners to transform the company [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding the right transactions to transform the company into a successful entity, emphasizing the importance of patience for investors [11] - The current economic environment presents both challenges and opportunities, particularly in the commercial real estate sector [17][27] - Management believes that the need for equity and debt financing in commercial real estate will continue, regardless of interest rate fluctuations [28] Other Important Information - Cash and equivalents on the balance sheet totaled $84 million, with approximately $30 million available for investment [12] - The company has a reserve of roughly $50 million and stockholder equity is just under $250 million [12] Q&A Session Summary Question: What segments of the commercial real estate debt universe have dislocation and mispricing that match a Rithm type investing strategy? - Management highlighted a recent bid on a portfolio that included multifamily and affordable housing, emphasizing the need for cash-flowing assets [21] Question: Could lower rates give borrowers some cushion to ride out distress, reducing opportunities? - Management indicated that while lower rates could provide some cushion, there will still be significant opportunities for recapitalization in distressed assets [27] Question: Has any more cash been deployed in October, and are there smaller investments that could be monetized soon? - Management stated that about $20 million to $25 million remains available for deployment, with various small positions being cleaned up [30] Question: Will the vehicle be financed using bank lines or look to the markets for other financing alternatives? - Management noted that bank lines would be specific to the securities portfolio, but there are plans to explore debt and equity markets for different securities in the future [40]

Financial Performance - GAAP net loss attributable to common stockholders was $(8.0) million, or $(0.18) per diluted share, compared to a loss of $(12.7) million, or $(0.32) per diluted share in Q2 2024[1][2] - Earnings Available for Distribution was $(5.4) million, or $(0.12) per diluted common share, improving from $(9.6) million, or $(0.24) per diluted common share in the previous quarter[2][3] - The company reported a net loss attributable to common stockholders of $(8,029,000) for the three months ended September 30, 2024, compared to $(12,742,000) for the previous quarter[27] - Earnings available for distribution for the quarter ended September 30, 2024, were $(5,360,000), down from $(9,598,000) in the prior quarter[27] - Basic and diluted earnings available for distribution per common share were both $(0.12) for the quarter ended September 30, 2024, consistent with the previous quarter[27] - The company reported realized and unrealized gains of $1,640,000 for the quarter ended September 30, 2024, compared to $2,058,000 in the previous quarter[27] Asset and Liability Management - Total assets decreased to $858.2 million from $1.3 billion at the end of 2023[17] - Total liabilities decreased to $611.1 million from $1.0 billion at the end of 2023[18] - Total liabilities and equity amounted to $858,151,000 as of December 31, 2023, down from $1,336,291,000 in the previous period[19] - The company had 1,135,590 shares issued and outstanding as of December 31, 2023[19] - The company’s retained deficit increased to $(158,126,000) from $(54,382,000) in the previous period[19] Equity and Book Value - Book value per common share decreased to $5.47 from $5.56 in Q2 2024, with total book value at $246.1 million[2][3] - As of December 31, 2023, the company had total equity of $247,093,000, a decrease from $310,895,000 at the end of the previous period[19] - The company’s accumulated other comprehensive loss improved to $(8,279,000) from $(14,027,000) in the previous period[19] Strategic Transactions and Investments - The company sold residential loans and securities with an unpaid principal balance of approximately $148.0 million, generating net proceeds of approximately $31.7 million[4] - Acquired $81.9 million in unpaid principal balance of commercial mortgage-backed securities, increasing total investment in CMBS to $101.9 million[4] - The company incurred expenses related to the Strategic Transaction amounting to $1,010,000 for the quarter ended September 30, 2024[27] Corporate Actions - The company declared a cash dividend of $0.06 per common share, to be paid on November 29, 2024[6] - The company filed a shelf registration statement with the SEC to increase the maximum offering price of its securities to $400 million[5] - The company plans to rebrand as Rithm Property Trust Inc. and change its ticker symbol to "RPT" in Q4 2024[7]