Compass Point Initiates Coverage on Rithm Property Trust (RPT) with Buy Rating

Core Insights - Rithm Property Trust Inc. (NYSE:RPT) is recognized among 13 dividend stocks yielding over 8% [1] - Compass Point initiated coverage on RPT with a Buy rating and a price target of $24 [2] Financial Performance - In the third-quarter earnings call, CEO Michael Nierenberg noted that the company was losing approximately $10 million per quarter when the current management took over last June, but operations have since stabilized and earnings are nearing breakeven while maintaining a $0.06 dividend [3] - The company has exited residential assets and shifted focus to commercial real estate floating-rate loans, which provide more attractive yields [3] Strategic Direction - Nierenberg outlined several strategic options for management, including recapitalizing the business through equity tied to specific asset pools, exploring broader liquidation, or continuing with the current plan [4] - He emphasized the significant gap between the book value of around $5.30 and the share price in the mid-$2 range, presenting a potential opportunity for equity investors [4] Lending Operations - The company is making progress in building a direct lending platform, with partnerships such as one with Genesis, leading to a sharp increase in construction lending [5] - Loan volume, which was previously about $1.7 billion, is expected to exceed $5 billion this year [5] Balance Sheet Overview - Rithm Property Trust holds approximately $100 million in cash and about $300 million in total equity, with an overall portfolio valued near $308 million [6] - The management described the lending pipeline as healthy and active [6]