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]