Great Ajax(AJX) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights CEO Commentary Michael Nierenberg, CEO of Rithm Capital, highlighted Q2 2025 as a pivotal quarter for Rithm Property Trust, emphasizing the establishment of a foundation for core investment portfolio growth, supported by a robust pipeline and disciplined investment approach - CEO Michael Nierenberg stated Q2 2025 was a pivotal quarter, laying the foundation for core investment portfolio growth[2] - The company is well-positioned for sustained value delivery to shareholders, citing a robust pipeline, disciplined investment approach, and focused team[2] Key Financial Metrics Overview Rithm Property Trust reported GAAP comprehensive income of $1.4 million ($0.03 per diluted share) and non-GAAP earnings available for distribution of $0.1 million ($0.00 per diluted share) for Q2 2025, with book value per common share at $5.37 and a common dividend of $0.06 per share paid Summary of Operating Results (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :------------------------------------ | :------ | :------ | :----------- | | Comprehensive Income per Diluted Share | $0.03 | $0.02 | +$0.01 | | Comprehensive Income (in millions) | $1.4 | $1.1 | +$0.3 | | EAD per Diluted Common Share | $0.00 | $0.02 | -$0.02 | | EAD (in millions) | $0.1 | $0.7 | -$0.6 | | Book Value per Common Share | $5.37 | $5.40 | -$0.03 | | Book Value (in millions) | $244.0 | $245.3 | -$1.3 | | Common Dividend per Share | $0.06 | $0.06 | No Change | | Common Dividend (in millions) | $2.7 | $2.8 | -$0.1 | - GAAP comprehensive income was $1.4 million, or $0.03 per diluted common share, for Q2 2025[4] - Earnings available for distribution (non-GAAP) was $0.1 million, or $0.00 per diluted common share, for Q2 2025[4] Financial Statements Consolidated Statements of Operations For Q2 2025, Rithm Property Trust reported a net income of $1.9 million, a significant improvement from a net loss of $3.4 million in Q1 2025, driven by an increase in net interest income and substantial unrealized gains on mortgage loans held-for-sale, net, offsetting higher expenses Consolidated Statements of Operations (Q2 2025 vs Q1 2025) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Net Interest Income | $4,213 | $3,814 | +$399 | | Total Expense | $3,961 | $3,753 | +$208 | | Total Other Income (Loss) | $1,673 | $(3,588) | +$5,261 | | Income (Loss) before Income Taxes | $1,925 | $(3,527) | +$5,452 | | Net Income (Loss) | $1,899 | $(3,391) | +$5,290 | | Net Income (Loss) Attributable to Common Stockholders | $612 | $(3,744) | +$4,356 | | Comprehensive Income | $1,393 | $1,114 | +$279 | | Diluted Net Income (Loss) per Share | $0.01 | $(0.08) | +$0.09 | | Diluted Comprehensive Income per Share | $0.03 | $0.02 | +$0.01 | - Net income attributable to common stockholders improved significantly from a loss of $3,744 thousand in Q1 2025 to a gain of $612 thousand in Q2 2025[11] - Unrealized gain on mortgage loans held-for-sale, net, increased substantially from $970 thousand in Q1 2025 to $2,519 thousand in Q2 2025[11] Consolidated Balance Sheets As of June 30, 2025, total assets decreased slightly to $1,014.4 million from $1,028.3 million at March 31, 2025, primarily due to a decrease in mortgage loans held-for-investment and other investments, alongside a reduction in total liabilities Consolidated Balance Sheets (June 30, 2025 vs March 31, 2025) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Total Assets | $1,014,373 | $1,028,331 | $(13,958) | | Cash and cash equivalents | $98,629 | $97,439 | +$1,190 | | Mortgage loans held-for-investment, net | $378,894 | $386,997 | $(8,103) | | Total Liabilities | $719,784 | $732,411 | $(12,627) | | Secured bonds payable, net | $241,764 | $250,903 | $(9,139) | | Repurchase financing agreements | $362,502 | $367,010 | $(4,508) | | Stockholders' Equity in Rithm Property Trust Inc. | $294,739 | $296,071 | $(1,332) | - Total assets decreased by approximately $13.96 million quarter-over-quarter, primarily driven by a reduction in mortgage loans held-for-investment[12] - Total liabilities decreased by approximately $12.63 million, mainly due to reductions in secured bonds payable and repurchase financing agreements[12] Non-GAAP Financial Measures Explanation of Earnings Available for Distribution (EAD) Earnings available for distribution (EAD) is a non-GAAP measure used by management to assess operating performance by excluding net realized and unrealized gains/losses on certain assets/liabilities and other non-investment portfolio related income/losses, aiming to highlight the core operating results of the Company's investment portfolio - EAD is a non-GAAP measure used to evaluate operating performance by excluding net realized/unrealized gains/losses and other non-investment portfolio related income/losses[13][15] - Management believes EAD helps investors and analysts track the core operating performance of the Company's assets and compare results between periods[17] - EAD is not a substitute for GAAP comprehensive income or cash flows from operating activities and is one metric used by the board to determine common stock dividends, but not an exclusive indicator of taxable income or dividend amounts[18] Reconciliation to GAAP Comprehensive Income The reconciliation shows that Earnings Available for Distribution decreased significantly from $717 thousand in Q1 2025 to $134 thousand in Q2 2025, despite an increase in GAAP comprehensive income, primarily due to higher negative adjustments for realized and unrealized gains in Q2 Reconciliation of GAAP Comprehensive Income to EAD (Q2 2025 vs Q1 2025) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Comprehensive income — GAAP | $1,393 | $1,114 | +$279 | | Net income attributable to noncontrolling interest | $1 | $3 | -$2 | | Realized and unrealized gains | $(1,265) | $(317) | $(948) | | Other adjustments | $5 | $(83) | +$88 | | Earnings Available for Distribution — Non-GAAP | $134 | $717 | $(583) | | Diluted EAD per common share | $0.00 | $0.02 | -$0.02 | - Earnings Available for Distribution (Non-GAAP) decreased from $717 thousand in Q1 2025 to $134 thousand in Q2 2025[19] - The adjustment for realized and unrealized gains significantly impacted EAD, moving from $(317) thousand in Q1 2025 to $(1,265) thousand in Q2 2025[19] Company Information & Disclosures Additional Information & Conference Call Details Rithm Property Trust directs investors to its website for additional presentations and announced an earnings conference call for July 24, 2025, at 5:00 PM ET, with webcast and replay options available - Additional investor information, including presentations, is available on the Company's website: www.rithmpropertytrust.com[7](index=7&type=chunk) - An earnings conference call to review Q2 2025 financial results will be held on Thursday, July 24, 2025, at 5:00 PM Eastern Time, with a webcast and replay available[8][9] Cautionary Note Regarding Forward-Looking Statements The press release contains forward-looking statements subject to inherent uncertainties and risks, and the Company disclaims any obligation to update them, except as required by law, advising investors to refer to SEC filings for a discussion of risks - The press release includes forward-looking statements, identified by words like 'may,' 'will,' 'expects,' and 'anticipates,' which are subject to inherent uncertainties and risks beyond the Company's control[21] - The Company disclaims any obligation to publicly update or revise forward-looking statements, except as legally required, and advises investors to consult SEC filings for risk factors[21] About Rithm Property Trust Rithm Property Trust is a real estate investment platform managed by an affiliate of Rithm Capital Corp, which has transitioned its investment strategy to focus on flexible commercial real estate and operates as a REIT for federal income tax purposes - Rithm Property Trust is a real estate investment platform externally managed by an affiliate of Rithm Capital Corp[22] - The Company transitioned to a flexible commercial real estate focused investment strategy in connection with a 2024 strategic transaction with Rithm Capital[22] - Rithm Property Trust is organized to qualify as a real estate investment trust (REIT) for federal income tax purposes[22] Investor Relations Contact information for Investor Relations is provided for inquiries - Investor Relations can be reached at 646-868-5483 or ir@rithmpropertytrust.com[23]