Rithm Property Trust (RPT) Q2 2025 Earnings Call July 24, 2025 05:00 PM ET Speaker0Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rhythm Property Trust Inc. Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to tu ...

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]

Rithm Property Trust (RPT) Q1 2025 Earnings Call April 28, 2025 05:07 PM ET Speaker0 Thank you for standing by and welcome to the Rhythm Property Trust First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer Thank you. I'd now like to turn the call over to Emma Bola, Associate General Counsel of Rhythm Capital. You may begin. Speaker1 Thank you and good morning everyone. I ...

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 ...

Rithm Property Trust (RPT) Q1 2025 Earnings Call April 28, 2025 08:00 AM ET Company Participants Emma Bolla - Associate General CounselMichael Nierenberg - Interim CEO and Chairman, President & CEO - Rithm CapitalJason Stewart - Director - Mortgage FinanceThomas Catherwood - MD & REITs Equity ResearchRandy Binner - Managing DirectorJade Rahmani - Managing Director Conference Call Participants Douglas Harter - Equity Research Analyst Operator Thank you for standing by and welcome to the Rhythm Property Trust ...

Rithm Property Trust (RPT) Q1 2025 Earnings Call April 28, 2025 08:00 AM ET Company Participants Emma Bolla - Associate General CounselMichael Nierenberg - Interim CEO and Chairman, President & CEO - Rithm CapitalJason Stewart - Director - Mortgage FinanceThomas Catherwood - MD & REITs Equity ResearchRandy Binner - Managing DirectorJade Rahmani - Managing Director Conference Call Participants Douglas Harter - Equity Research Analyst Operator Thank you for standing by and welcome to the Rhythm Property Trust ...

Group 1 - 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] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that emphasizes sustainable portfolio income, diversification, and inflation hedging [2] - The service offers a Free Two-Week Trial to explore top ideas across exclusive income-focused portfolios [2] Group 2 - The Retired Investor has a background in data analysis and pension fund management, providing insights for retirement preparation through investments in CEFs, ETFs, BDCs, and REITs [3] - The Retired Investor shares long-only investment strategies and options trading strategies with a focus on cash-secured puts [3]

Group 1 - The focus is on closed-end funds, with an emphasis on identifying directional and arbitrage opportunities due to market price deviations [1] - Timing is highlighted as a crucial factor in executing trades related to closed-end funds [1] Group 2 - The article is part of a series analyzing exchange-traded fixed-income security IPOs, specifically focusing on Rithm Property Trust Inc. (NYSE: RPT) [2] - The author discloses no current stock or derivative positions in the mentioned companies and has no plans to initiate any within the next 72 hours [2]

Property Portfolio and Leasing - As of September 30, 2023, the company's property portfolio consisted of 43 wholly-owned shopping centers, 13 shopping centers owned through a grocery-anchored joint venture, and 49 retail properties owned through a net lease joint venture, totaling 14.9 million square feet of GLA, with a pro-rata share of 93.5% leased[120]. - The company derives 96.7% of its multi-tenant retail annualized base rent from the top 40 national markets, including cities like Boston, Atlanta, Detroit, and Nashville[127]. - Approximately 66% of existing leases are triple net leases, allowing the company to recover operating expenses, with 97% of leases expected to recover increases in operating expenses during inflationary periods[130]. - The company has long-term lease agreements with 7% - 12% of leases expiring each year over the next three years, allowing for potential rent resets to market rates[133]. - As of September 30, 2023, the total Gross Leasable Area (GLA) for multi-tenant retail properties was 13,295,402 square feet, with an overall leased percentage of 93.4% and an occupied percentage of 88.6%[136]. - The company reported 229 leasing transactions during the nine months ended September 30, 2023, totaling 1,781,230 square feet, with a base rent of $17.32 per square foot[137]. Financial Performance - Total revenue for the three months ended September 30, 2023 was $54.7 million, a slight increase of $0.2 million or 0.3% compared to the same period in 2022[152]. - Total revenue for the nine months ended September 30, 2023 decreased by $7.9 million or 4.8% compared to the same period in 2022[166]. - Funds from operations (FFO) available to common shareholders for the three months ended September 30, 2023, was $16.6 million, compared to $24.1 million for the same period in 2022[214]. - Operating FFO available to common shareholders for the nine months ended September 30, 2023, was $65.9 million, down from $74.6 million in 2022[214]. - The company reported a net loss attributable to common shareholders for the three months ended September 30, 2023, was $7.9 million, compared to a net income of $11.3 million in 2022[214]. - The company reported a net loss available to common shareholders of $7.858 million for Q3 2023, compared to a net income of $11.299 million in Q3 2022[218]. Debt and Capital Structure - As of September 30, 2023, the company had net debt of $898.5 million, representing a net debt to total market capitalization ratio of 46.4%, down from 57.5% a year earlier[139]. - The company had $852.2 million in total debt outstanding as of September 30, 2023, which includes $511.5 million in senior unsecured notes and $310.0 million in unsecured term loan facilities[190]. - The company maintains a strong, flexible, and investment-grade balance sheet, with only 3% of total debt being variable-rate borrowings as of September 30, 2023[132]. - The company has $472.0 million of unused capacity under its $500.0 million unsecured revolving credit facility as of September 30, 2023[179]. - The company anticipates using net proceeds from property sales to reduce outstanding debt and support growth initiatives, subject to restrictions in the Merger Agreement[181]. Merger and Strategic Initiatives - The proposed merger with Kimco is expected to close in early 2024, subject to shareholder approval and customary closing conditions[126]. - Each common share of RPT will be converted into the right to receive 0.6049 shares of common stock of Kimco upon the merger[123]. - The company aims to capitalize on accretive acquisition opportunities and maintain a disciplined capital recycling strategy to enhance shareholder value[129]. - The company intends to pursue growth through strategic acquisitions and redevelopment of existing properties, while selectively disposing of maximized return properties[197]. Operating Expenses and Cost Management - Inflation has significantly increased operating expenses, but long-term leases with contractual rent escalations help mitigate some adverse impacts[130]. - Non-recoverable operating expense increased by $0.2 million or 5.5% for the three months ended September 30, 2023, mainly due to increased legal fees associated with tenant bankruptcies[155]. - General and administrative expense increased by $0.3 million or 3.2% for the three months ended September 30, 2023, mainly due to higher bonus and stock-based compensation expenses[158]. - Recoverable operating expense increased by $0.9 million or 4.1% for the nine months ended September 30, 2023, primarily due to higher common area maintenance expenses[167]. - Non-recoverable operating expense increased by $0.6 million or 7.6% for the nine months ended September 30, 2023, mainly due to increased property-related employee compensation[168]. Cash Flow and Investments - The company reported net cash provided by operating activities of $71.9 million for the nine months ended September 30, 2023, a decrease of $9.4 million compared to $81.3 million in 2022[183][184]. - Net cash used in investing activities decreased significantly by $110.2 million, totaling $(23.2) million for the nine months ended September 30, 2023, compared to $(133.5) million in 2022[183][184]. - The company recorded merger costs of $8.2 million for the three and nine months ended September 30, 2023, related to financial, legal, and tax advisory services[185]. Market and Economic Conditions - The company continues to face risks related to obtaining necessary governmental approvals and potential impairments for development projects[142]. - A 100 basis point increase in interest rates would decrease the fair value of the company's total outstanding debt by approximately $17.3 million as of September 30, 2023[219]. - The company’s fixed-rate debt totaled $824.173 million, with a weighted average interest rate of 3.7%[220]. Occupancy and NOI - Same Property NOI for Q3 2023 was $37.271 million, a 2.6% increase from $36.340 million in Q3 2022[218]. - Total NOI for Q3 2023 was $40.228 million, compared to $41.342 million in Q3 2022, reflecting a decrease of 2.7%[218]. - The period-end occupancy rate for Q3 2023 was 89.9%, slightly down from 90.1% in Q3 2022[218].

Property Portfolio and Leasing - As of June 30, 2023, the company's property portfolio consisted of 43 wholly-owned shopping centers, 13 shopping centers owned through a grocery-anchored joint venture, and 49 retail properties owned through a net lease joint venture, totaling 14.9 million square feet of GLA[111]. - The company's pro-rata share of the aggregate portfolio was 93.2% leased as of June 30, 2023[111]. - The company reported a total of 155 leasing transactions for 1,033,558 square feet, with a base rent of $17.40 per square foot[122]. - The company derives 96.5% of its multi-tenant retail annualized base rent from the top 40 national markets, including cities like Boston, Atlanta, and Detroit[113]. - The company has long-term lease agreements with tenants, with 7% - 13% of leases expiring each year over the next three years, allowing for potential rent resets[118]. Financial Performance - Total revenue for the three months ended June 30, 2023, decreased by $4.2 million, or 7.7%, compared to the same period in 2022, primarily due to the impact of properties disposed[140][141]. - Total revenue for the six months ended June 30, 2023 decreased by $8.1 million, or 7.3%, compared to the same period in 2022, totaling $103.3 million[149]. - Net income available to common shareholders for Q2 2023 was $(1,644) thousand, a decrease from $5,120 thousand in Q2 2022[196]. - The company reported a net loss of $(1,644) thousand for the first half of 2023, compared to a net income of $9,221 thousand for the same period in 2022[196]. - Funds from Operations (FFO) available to common shareholders for Q2 2023 was $24,113 thousand, compared to $21,972 thousand in Q2 2022, representing an increase of 5.2%[196]. - Operating FFO available to common shareholders and dilutive securities for the first half of 2023 was $47,776 thousand, down from $49,382 thousand in the first half of 2022[196]. Expenses and Cash Flow - Recoverable operating expenses increased by $0.4 million, or 6.0%, for the three months ended June 30, 2023, primarily due to higher common area maintenance expenses[142]. - Non-recoverable operating expenses rose by $0.2 million, or 9.9%, for the three months ended June 30, 2023, mainly due to increased property-related employee compensation[143]. - General and administrative expenses increased by $1.3 million, or 7.5%, primarily due to one-time employee termination benefits and higher stock-based compensation[156]. - Net cash provided by operating activities increased by $9.0 million, totaling $45.9 million for the six months ended June 30, 2023[166]. - Net cash used in investing activities decreased by $93.1 million compared to the same period in 2022[168]. Debt and Capital Structure - Net debt as of June 30, 2023, was $898.6 million, with a net debt to total market capitalization ratio of 46.9%, down from 51.2% a year earlier[124]. - The Company had $133.0 million of common shares remaining available for issuance under the Current ATM Program as of June 30, 2023[125]. - As of June 30, 2023, the company had $853.4 million in outstanding debt, including $511.5 million in senior unsecured notes and $310.0 million in unsecured term loan facilities[174]. - The interest rates on the senior unsecured notes and term loan facilities range from 2.50% to 4.74%, with maturity dates from June 2025 to November 2031[174]. - The company has $1.1 billion in total contractual obligations, including scheduled amortization and interest payments[182]. Inflation and Operating Expenses - Approximately 66% of existing leases are triple net leases, allowing the company to recover operating expenses, mitigating some inflation impacts[115]. - The company expects to recover increases in operating expenses from approximately 97% of existing leases during inflationary periods[115]. - Inflationary pressures may increase general and administrative expenses, impacting results of operations and operating cash flows over time[116]. Strategic Growth and Investments - The company plans to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and disciplined capital recycling strategies[114]. - The company plans to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and redeveloping existing properties[181]. - The company anticipates capital expenditures between $20.0 million and $30.0 million for the remainder of 2023, with ongoing expenditures of $13.0 million to $18.0 million and discretionary expenditures of $7.0 million to $12.0 million[188]. Interest Rate and Fair Value - A 100 basis point increase in interest rates would decrease the fair value of the company's total outstanding debt by approximately $18.3 million as of June 30, 2023[201]. - The company has entered into 11 interest rate swap agreements with an aggregate notional amount of $310.0 million to convert floating rate corporate debt to fixed rate debt[176]. - The fixed-rate debt obligations total $824.381 million, with a weighted average interest rate of 3.7%[202]. - The company has variable-rate debt obligations amounting to $29.000 million, with an average interest rate of 6.3%[202].