Financial Data and Key Metrics Changes - The company reported flat earnings quarter over quarter, maintaining a dividend of $0.06 [5][11] - Cash and cash equivalents at the end of the quarter were $81 million, with total equity at $292 million [11] - The portfolio value is approximately $308 million, with the company holding around $100 million in cash [10][11] Business Line Data and Key Metrics Changes - During the quarter, the company originated a $21 million loan on a grocery-anchored retail center, expected to yield in the mid-teens [11] - The company has liquidated several residential assets and added higher-yielding commercial real estate floaters [5][6] Market Data and Key Metrics Changes - The company is exploring opportunities in the commercial real estate market, particularly in office spaces, which are currently seen as undervalued [21][26] - The market for commercial mortgage REITs is experiencing significant discounts, influenced by recent bankruptcies and credit concerns [20][21] Company Strategy and Development Direction - The company is considering several strategic options, including recapitalization through equity offerings, liquidation, or continuing its current strategy [6][7] - The management is focused on growing the direct lending business and exploring opportunistic investments in commercial real estate [8][21] - The recent acquisition of Paramount is seen as a significant opportunity for growth, with plans to participate in the transaction [7][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's clean balance sheet and lack of legacy issues, positioning it well for future growth [20][34] - The company is actively seeking to grow earnings and believes the current equity valuation is fundamentally mispriced [34] Other Important Information - The company has a pipeline of potential investments and is keen on executing its growth strategy [10][11] - The management highlighted the importance of capital for growth and is considering various funding options [23][29] Q&A Session Summary Question: What does the loan pool look like currently? - Management discussed the Paramount deal and the potential for direct lending growth, mentioning a $21 million loan originated this quarter [15][16] Question: What are the economics of the Paramount transaction? - The Paramount deal is primarily equity-based, with expectations of significant returns due to acquiring assets at a discount to replacement costs [26][27] Question: Could Rithm Capital deploy capital into Rithm Property Trust? - Management acknowledged ongoing discussions about potential equity offerings and the possibility of a rights offering backed by a pool of assets [28][29] Question: Has the Paramount deal opened up potential partners for Rithm Property Trust? - Management confirmed that the deal has led to new conversations with potential partners, enhancing opportunities for funding [30][31]

Financial Performance & Position - Rithm Property Trust (RPT) reported a GAAP Comprehensive Income loss of $04 million, or a loss of $001 per diluted share, and an Earnings Available for Distribution (EAD) loss of $07 million, or a loss of $002 per diluted share for Q3 2025[10] - As of September 30, 2025, RPT had $814 million in cash and cash equivalents and total equity of $2915 million, with a GAAP book value of $530 per common share[10] - RPT paid a common stock dividend of $006 per share for the third quarter of 2025[10] Investment Portfolio & Strategy - Rithm Property Trust has an active investment pipeline of over $2 billion[8] - The company's CRE portfolio has an Unpaid Principal Balance (UPB) of $308 million[8] - RPT is transitioning to a portfolio focused on high-quality CRE assets, targeting an illustrative portfolio yield of 12-16%[14] - The target yield for Commercial Mortgage-Backed Securities is 10-12%, with an existing portfolio UPB of $274 million and a current levered yield of 12%[14] - The target yield for Senior Loans is 10-14%, with an existing portfolio UPB of $17 million and a current levered yield of 14-16%[14] Management & Market Opportunity - Rithm Property Trust is externally managed by an affiliate of Rithm Capital, which has grown from $1 billion in equity to $85 billion[9] - RPT originated a $21 million loan on a grocery-anchored retail center outside of Seattle in August 2025, with $17 million funded at close, an 113% going-in debt yield, and a 52% appraised Loan-to-Value (LTV)[11]

Core Insights - Rithm Property Trust Inc. reported a comprehensive loss of $0.4 million for Q3 2025, translating to a loss of $0.01 per diluted common share, compared to a comprehensive income of $1.4 million or $0.03 per diluted common share in Q2 2025 [2][4][8] Financial Highlights - Comprehensive income per diluted common share decreased from $0.03 in Q2 2025 to $(0.01) in Q3 2025 [2][4] - The company recorded a comprehensive loss of $(0.4) million in Q3 2025, down from a comprehensive income of $1.4 million in Q2 2025 [2][4] - Earnings available for distribution per diluted common share was $(0.02) in Q3 2025, compared to no earnings available for distribution in Q2 2025 [2][4] - The common dividend paid remained stable at $2.7 million or $0.06 per share for both Q3 2025 and Q2 2025 [2][4] Operational Performance - Net interest income for Q3 2025 was $3.988 million, a decrease from $4.213 million in Q2 2025 [8] - Total expenses were $3.965 million in Q3 2025, slightly up from $3.961 million in Q2 2025 [8] - The company reported a net loss attributable to common stockholders of $(1.559) million in Q3 2025, compared to a net income of $0.612 million in Q2 2025 [8] Balance Sheet Overview - Total assets decreased from $1.014 billion in Q2 2025 to $1.003 billion in Q3 2025 [9] - Cash and cash equivalents declined from $98.629 million in Q2 2025 to $81.446 million in Q3 2025 [9] - Total liabilities decreased from $719.784 million in Q2 2025 to $711.590 million in Q3 2025 [9] Dividend Information - The Board declared a cash dividend of $0.06 per share of common stock for Q3 2025, payable on November 28, 2025 [21]

Core Insights - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1][2] - The service aims to provide sustainable portfolio income, diversification, and inflation hedging for investors [2] Group 1 - The investment strategy emphasizes complete access to research and a suite of trackers and portfolios [1] - The service offers a Free Two-Week Trial to explore top ideas across exclusive income-focused portfolios [2] - The author has a background in data analysis and pension fund management, focusing on helping others prepare for retirement through various investment vehicles [3]

Core Points - Rithm Property Trust Inc. has declared its third quarter 2025 common and preferred stock dividends [1] - The common stock dividend is set at $0.06 per share, payable on November 28, 2025, to stockholders of record as of November 14, 2025 [2] - The preferred stock dividend for the 9.875% Series C is declared at $0.6171875 per share, payable on November 17, 2025, to preferred stockholders of record on November 1, 2025 [3] Company Overview - Rithm Property Trust is a real estate investment platform managed by an affiliate of Rithm Capital Corp. and focuses on acquiring, investing in, and managing re-performing and non-performing loans secured by residential and commercial properties [4] - The company has transitioned to a flexible commercial real estate investment strategy as part of its 2024 strategic transaction with Rithm Capital [4]

Financial Data and Key Metrics Changes - The company reported GAAP income of $1.4 million or $0.03 per diluted share for Q2 2025, which is an improvement from a loss of $0.35 per diluted share in Q2 2024 [12][16] - The total equity stands at approximately $300 million, with a GAAP book value of $5.37, while the stock is trading at around $2.70, reflecting a 50% discount to book value [12][9] - Cash and cash equivalents are reported at about $98.6 million [12] Business Line Data and Key Metrics Changes - The company has a current pipeline of approximately $2 billion in assets under evaluation, with a focus on various types of real estate investments including senior mortgages, subordinate loans, and mezzanine loans [11][15] - The company has deployed $300 million in commercial real estate assets over the past year [7] Market Data and Key Metrics Changes - The company is entering the real estate market at what it believes is an attractive time, with significant opportunities arising from repricing in commercial real estate assets and continuous debt maturities [13][15] - The company is currently evaluating a large pipeline of deals, indicating a robust market presence [10][35] Company Strategy and Development Direction - The company aims to position itself as an opportunistic commercial real estate REIT, focusing on growth and capital deployment without diluting shareholders [7][19] - The management team emphasizes the importance of careful underwriting and capital deployment to achieve double-digit returns [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future value proposition of the company, despite current stock price challenges, citing a clean balance sheet and significant investment opportunities [9][10] - The management team is focused on maintaining the current dividend and growing earnings, with a commitment to not reduce the dividend in the near term [12][42] Other Important Information - The company has no legacy commercial real estate assets, which is seen as a positive factor for future growth [9][14] - The management team consists of approximately 75 to 100 employees working across various vehicles [14] Q&A Session Summary Question: Near term opportunities in the pipeline - Management discussed the breakdown of the pipeline across different sectors, including retail, multifamily, and office spaces, with a focus on strong tenants [21][23] Question: Go forward plan for the portfolio - Management indicated that they plan to deploy about $50 million in capital this quarter, focusing on retail, multifamily, and office opportunities [27][29] Question: Scaling the pipeline and execution opportunities - Management noted that the increase in the pipeline is due to more conversations with sponsors and banking partners, and emphasized a cautious approach to capital deployment [32][34] Question: Funding sources for new opportunities - Management mentioned the potential to use their securities book as a funding source for new lending opportunities, while also considering third-party capital for larger transactions [36][39] Question: Dividend levels and earnings growth - Management acknowledged the need to create scale around capital formation to maintain and grow the dividend, while also aiming for earnings growth [41][42]

Financial Performance - As of June 30, 2025, Rithm Property Trust's total assets were approximately $1014373 thousand, compared to $1028331 thousand as of March 31, 2025[15] - The book value per share decreased from $540 as of March 31, 2025, to $537 as of June 30, 2025[16] - Net income attributable to common stockholders for the three months ended June 30, 2025, was $612 thousand, compared to a loss of $3744 thousand for the three months ended March 31, 2025[17] - Basic net income per common share was $001 for the three months ended June 30, 2025, compared to a loss of $008 for the three months ended March 31, 2025[17] Portfolio & Investment Strategy - The company targets yields of 10-12% for Commercial Mortgage-Backed A Securities, 10-14% for Senior Loans, 12-18% for Subordinated/Mezzanine Loans, and 15-20% for Opportunistic Investments[13] - The illustrative portfolio yield is targeted at 12-16%[13] - Rithm Property Trust emphasizes growth opportunities in the Commercial Real Estate landscape[6] Liabilities & Equity - Total liabilities were $719784 thousand as of June 30, 2025, compared to $732411 thousand as of March 31, 2025[15] - Stockholders' equity in Rithm Property Trust Inc was $294739 thousand as of June 30, 2025, compared to $296071 thousand as of March 31, 2025[15]

Financial Data and Key Metrics Changes - For Q1 2025, GAAP income was $1.1 million or $0.02 per diluted share, while earnings available for distribution were $7.07 million or $0.02 per diluted share [8][9] - The first quarter dividend paid was $0.06, with expectations for future growth [9] - Cash and cash equivalents totaled approximately $97 million, with total equity at $295 million and a GAAP book value of $5.4 per share, while the stock trades at about $2.85, indicating significant undervaluation [10][11] Business Line Data and Key Metrics Changes - The company deployed $65 million in various commercial real estate (CRE) debt during the quarter, including $47 million in AAC CMBS bonds with an approximate 11% yield [11] - A $35 million loan was split between Rhythm Capital and Rhythm Property Trust, yielding a 12% to 13% unlevered return [11] - The company sold $21 million of legacy residential assets during the quarter [12] Market Data and Key Metrics Changes - The company has no legacy commercial real estate exposure, positioning it favorably in the current market environment [6][15] - The market has seen wider spreads across various asset classes, with increased deal flow opportunities despite volatility [21][22] Company Strategy and Development Direction - The company aims to grow earnings by focusing on opportunistic investments and diversifying across different asset classes, including CMBS, senior loans, and mezzanine investments [16][27] - The management is looking for strategic acquisitions to enhance earnings and capital growth, while being patient in deploying capital due to market volatility [12][15] - The company plans to maintain a clean balance sheet and continue moving away from legacy assets [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create shareholder value and grow earnings, despite current market challenges [10][15] - The management highlighted the attractiveness of REITs in the current market, noting that the company trades at a significant discount to book value [33] - Future growth is expected to come from third-party partnerships and potential M&A opportunities [60] Other Important Information - The company raised $52 million in capital during the quarter, indicating strong financial positioning [11] - The management emphasized the importance of maintaining dividend policies while also focusing on capital deployment for growth [34] Q&A Session Summary Question: Has market volatility changed seller motivations and activity levels? - Management noted that while wider spreads are observed, there is still a robust deal flow from various counterparties, indicating ongoing opportunities despite market conditions [21][22] Question: How is the $17.5 million subordinate mortgage investment categorized? - Management clarified that this investment is viewed as opportunistic and part of a diversified portfolio strategy [26][27] Question: When will the company start paying down higher coupon corporate debt? - Management indicated that the 9.5% corporate debt will likely remain outstanding until the company scales further, with potential for a rate drop upon an upgrade [29][30] Question: What is the current status of the legacy portfolio? - Management stated that the ability to sell legacy assets is limited, with only about $25 million remaining that could potentially be sold [40] Question: What percentage of the balance sheet is focused on commercial real estate? - Management indicated that the core balance sheet will increasingly focus on commercial real estate assets as capital is deployed [50] Question: What is the experience level of the team focusing on CRE? - Management highlighted the extensive experience of the team, including partnerships with established firms, ensuring a robust approach to commercial real estate investments [52] Question: What are the banks' current lending activities in the CRE space? - Management noted that banks are still lending on the senior side and are looking for partners, although they may sell non-performing loans if credit deteriorates [55]

Quarterly Supplement Q1 2025 Disclaimers Rithm Property Trust $1bn+ $296mm $298mm ~$97mm ~ ~ • – • – – Q1'25 Financial Highlights Q1'25 Business Highlights Earnings Growth Looking Ahead at the Opportunity Why CRE Debt? ✓ Why Rithm Property Trust? What to Expect? Driving Growth ✓ ✓ ✓ – ✓ – ✓ ✓ ✓ Illustrative Future State Portfolio(1) | Category | | Description | Target Levered Yield(2) | | --- | --- | --- | --- | | A Securities | Commercial Mortgage-Backed | Lower-risk, highly liquid, mostly senior bonds acr ...

Financial Data and Key Metrics Changes - For the first quarter, GAAP income was $1.1 million or $0.02 per diluted share, while earnings available for distribution were $5 million or $0.02 per diluted share [9][10] - The first quarter dividend paid was $0.06, with expectations for future growth [10] - The company has approximately $295 million in total equity and a GAAP book value of $5.4, while the stock trades at about $2.85, indicating significant undervaluation [10][15] Business Line Data and Key Metrics Changes - In the first quarter, the company deployed $65 million in various commercial real estate (CRE) debt, including $47 million in AAC CMBS bonds with an approximate 11% yield [11] - A $35 million loan was split between Rhythm Capital and Rhythm Property Trust, yielding a 12% to 13% unlevered return [11] - The company sold $21 million of legacy residential assets during the quarter [12] Market Data and Key Metrics Changes - The company has no legacy commercial real estate exposure, positioning it favorably in the current market environment [6][15] - The market has seen wider spreads across various asset classes, indicating increased volatility and potential opportunities [21][22] Company Strategy and Development Direction - The company aims to grow earnings and shareholder value by focusing on opportunistic investments and diversifying across different asset classes [15][16] - The management is looking for strategic transactions or acquisitions to enhance earnings growth [12][13] - The company plans to maintain a clean balance sheet while gradually moving away from legacy assets [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create shareholder value despite market volatility [10][21] - The company is focused on deploying capital at attractive returns while being patient in the current market [12][15] - There is a robust pipeline of opportunities, and management believes that the current valuation presents a significant growth opportunity [13][15] Other Important Information - The company raised $52 million in capital during the quarter [11] - Management emphasized the importance of maintaining a diversified portfolio to mitigate risks [16] Q&A Session Summary Question: Has market volatility changed sellers' motivations? - Management noted wider spreads across the board and observed stability in the market, indicating more opportunities for deal flow [21] Question: Are there shifts in thoughts on platform or transformative acquisitions? - Management clarified that they are still looking at platforms and origination businesses, focusing on how to leverage origination engines [23] Question: What is the status of the $17.5 million subordinate mortgage investment? - Management described it as an opportunistic investment and emphasized a diversified portfolio strategy [29] Question: When will the company start paying down higher coupon corporate debt? - Management indicated that the corporate debt at 9.5% will likely remain until the company scales further [31] Question: How is the dividend coverage progressing? - Management stated that growing earnings and reducing lower coupon assets are key to improving dividend coverage [34] Question: What is the outlook for selling legacy assets? - Management indicated that the ability to sell legacy assets is limited, with only about $25 million remaining that could potentially be sold [42] Question: What percentage of the balance sheet is core long-term home versus commercial real estate? - Management stated that the goal is to deploy capital primarily in commercial real estate assets, with a focus on opportunistic investments [52] Question: What is the experience of the team focusing on CRE? - Management highlighted a robust team with extensive experience in commercial real estate, including partnerships with affiliates [54] Question: What are the banks' current lending activities? - Management noted that banks are still lending on the senior side and are looking for partners, while also being cautious with non-performing loans [57]