Economic Indicators - The number of Americans filing for initial jobless claims fell by 5,000 to 227,000, compared to the expected 222,000 [2] - U.S. existing home sales decreased by 8.4% month-over-month to a 16-month low of 3.91 million, weaker than the expected 4.16 million [2] - The Consumer Price Index (CPI) rose 2.4% annually, a notable drop from the previous month, with a monthly increase of 0.2% [5] Stock Market Performance - Wall Street's major indices ended in the red, with significant declines in the Magnificent Seven stocks, including Apple (AAPL) down 5% and Tesla (TSLA) down over 2% [4] - Cisco Systems (CSCO) plunged over 12% after reporting weaker-than-expected FQ2 adjusted gross margin and issuing tepid FQ3 guidance [4] - Equinix (EQIX) surged over 10% after issuing strong FY26 guidance, marking it as the top percentage gainer on the S&P 500 [4] Corporate Earnings - Notable companies such as Moderna (MRNA) and Advance Auto Parts (AAP) are set to release their quarterly results [6] - Pinterest (PINS) plunged over 19% in pre-market trading after reporting weaker-than-expected Q4 revenue and issuing below-consensus Q1 revenue guidance [13] - Applied Materials (AMAT) surged over 11% in pre-market trading after posting stronger-than-expected FQ1 results and issuing strong FQ2 guidance [13] International Market Developments - The Euro Stoxx 50 Index is down 0.09% as investors digest fresh corporate earnings reports and await key U.S. inflation data [7] - Eurozone's GDP growth for the fourth quarter stood at 0.3%, in line with preliminary estimates [8] - Spain's annual inflation rate eased more than expected in January, with CPI falling 0.4% month-over-month and rising 2.3% year-over-year [8] Pre-Market Movements - U.S. steel stocks slid in pre-market trading after reports of President Trump's plans to roll back some tariffs on steel and aluminum products, with Steel Dynamics (STLD) down over 4% [12] - Most chip stocks are moving lower in pre-market trading, with Micron Technology (MU) and Intel (INTC) falling more than 1% [12]

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]

Company Updates - Greenlane Holdings Inc. announced the resignation of its CEO, Barbara Sher, effective immediately, leading to an 11% drop in shares, closing at $2.35 on Friday [1] - Tokyo Lifestyle Co. Ltd. reported a loss of 2 cents per share for H1, compared to earnings of 3 cents per share in the previous year, while sales increased to $190.421 million from $98.003 million, resulting in a 3.3% decline in shares to $2.66 in after-hours trading [1] - Comfort Systems USA Inc. appointed COO Trent T. McKenna as president, effective January 1, with shares gaining 0.6% to $945.99 in after-hours trading [1] - cbdMD Inc. reported a loss of 8 cents per share for the fourth quarter, slightly worse than market estimates of a loss of 7 cents per share, but sales of $4.721 million exceeded estimates of $4.702 million, leading to a 1.3% increase in shares to $1.53 in after-hours trading [1] - Rithm Property Trust Inc. announced a 1-for-6 reverse stock split effective December 30, 2025, with shares falling 2.5% to close at $2.78 on Friday [1]

Core Insights - The article focuses on analyzing Rithm Capital Corp.'s (RITM) recent performance metrics in comparison to 17 mortgage real estate investment trust (mREIT) peers, highlighting investment composition, leverage, hedging coverage, and economic returns [1][3][54] Investment Composition and Portfolio Overview - As of September 30, 2025, RITM's investment portfolio consisted of 21% fixed-rate agency MBS, 0% variable-rate agency MBS, 32% mortgage servicing rights (MSR), and 47% non-agency MBS and other mortgage-related investments [19][28] - RITM's diverse investment strategy includes subsidiaries like Newrez, SCU, Crestline, and RPT, which contribute to a broad range of financial investments [28][39] Leverage and Hedging Coverage - RITM's on-balance sheet leverage ratio was 2.4x, with an at-risk leverage ratio of 1.0x as of September 30, 2025, indicating a slight decrease in on-balance sheet leverage and a slight increase in at-risk leverage compared to the previous quarter [20][21] - The hedging coverage ratio for RITM decreased to 58% as of September 30, 2025, reflecting the company's strategy to prepare for lower mortgage interest rates [51] Economic Returns and Valuation - RITM reported a book value (BV) of $12.83 per share at the end of Q3 2025, representing a quarterly increase of 0.94% and an economic return of 2.91% for the same period [22][23] - The trailing 24-month economic return for RITM was 20.37%, ranking it as the 4th best performer among the analyzed mREIT peers, significantly outperforming the average returns of other mREIT categories [55] Comparative Analysis with Peers - RITM's economic return and leverage metrics indicate it operates with lower average leverage compared to its closest peer, PMT, and the broader mREIT sector, which helps mitigate book value volatility [56] - The stock price of RITM was trading at a 13.44% discount to the estimated current BV as of December 5, 2025, suggesting potential undervaluation [52][53]

Core Viewpoint - The article discusses the performance and structure of various SPACs, particularly focusing on American Exceptionalism Acquisition Corp. (AEXA) and its sponsor Chamath Palihapitiya, highlighting the potential for significant returns while also addressing structural issues within SPACs [1][4][12]. SPAC Performance - AEXA reached a new 52-week high of $11.91, which is 19.1% higher than its $10 offering price, starting trading on September 26 [3][5]. - A total of 68 stocks hit new 52-week highs on the NYSE, while 20 hit new lows; on Nasdaq, 187 stocks reached new highs and 73 new lows [5]. - The Dow Jones Industrial Average gained 218 points, reaching a record high of 46,924.74, driven by strong quarterly results from companies like 3M, Coca-Cola, and General Motors [5]. SPAC Structure and Investor Returns - Palihapitiya's AEXA has no warrants attached, and his compensation only vests if shares appreciate by 50% post-combination, which are seen as positive changes [6][9]. - The Class B founders' shares in AEXA convert to Class A common shares based on specific price thresholds, with the first vesting price at $15 for 20 consecutive days [10]. - If an investor bought 100 Class A shares at $10 and the shares hit $20, the return on investment would be 100% over 18 months, equating to an annualized return of 66.7% [11]. Comparison with Other SPACs - Pyrophyte Acquisition Corp. II (PAII) reached a new 52-week high of $10.27, slightly above its $10 offering price, and has a 24-month deadline to complete a business combination [13][17]. - Rithm Acquisition Corp. (RAC) went public on February 26, 2025, and hit a new 52-week high of $10.40, with a focus on financial services and real estate for potential mergers [19][22]. - The sponsors of RAC have seen a return on investment of 1,018.7% based on current share prices, indicating significant potential despite previous underperformance of associated companies [23].

Transaction Overview - Rithm Capital is set to acquire Paramount Group, Inc, a Class A office REIT, for approximately $1.6 billion in cash[7] - The transaction is valued at $6.60 per fully diluted share of Paramount common stock[7] - The acquisition is targeted for late Q4 2025, pending customary closing conditions and Paramount shareholder approval[7] Paramount Group Overview - Paramount's portfolio includes 13 owned and 4 managed high-quality office assets, totaling over 13.1 million square feet, with 85.4% currently leased as of June 30, 2025[7] - Paramount's properties are predominantly located in New York City and San Francisco[7, 20] - The average lease term for office leases is 7.1 years[16] Strategic Rationale - Rithm believes it is entering a dislocated sector at attractive valuations, positioned for significant upside and the opportunity to create enterprise value[9] - Real estate is valued approximately 40% below pre-COVID values and around 25-30% of replacement cost[9] - Rithm aims to expand its asset management model, generating fee-related earnings[9] Financial Position - At the expected closing time, Rithm is projected to have $2.5 – 3.0 billion of available cash and liquidity[7] - Rithm has approximately $100 billion in investable assets[11, 31]

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]