Rithm Property Trust (RPT) AI Stock Analysis

• Market Cap: $118.09M
• Dividend Yield: 9.23%
• Average Volume (3M): 317.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -42.79%
• EPS Growth: 86.97%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 58
• Industry: REIT - Mortgage
• EPS (TTM): 0.00
• Shares Outstanding: 45,420,753
• 10 Day Avg. Volume: 192,159
• 30 Day Avg. Volume: 317,181
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.66
• Enterprise Value/Revenue: -10.54
• Enterprise Value/Gross Profit: -10.54
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 53.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ―

Rithm Property Trust faces significant financial challenges with declining revenues, consistent losses, and high leverage. Despite these issues, technical indicators show potential for upward price movement. The stock is undervalued, trading below its book value, and offers a high dividend yield. The earnings call provides some optimism for growth, though legacy asset challenges and low earnings per share relative to dividends remain concerns. Overall, the stock score reflects a balance of financial distress and potential growth opportunities.

Positive Factors

Debt Management

The company plans to pay down approximately $50M of its high-coupon unsecured debt, reducing its interest expense burden.

Earnings

Rithm Property Trust achieved positive GAAP EPS and distributable earnings for the first time since the takeover, marking a notable milestone for the company.

Negative Factors

Book Value

GAAP BVPS declined 1.6% QoQ in 3Q24 to $5.47 as the company under earns the dividend.

Dividend Coverage

The company is projected to achieve only 83% dividend coverage on the year due to 50% coverage in the first quarter.

Rithm Property Trust Business Overview & Revenue Model

Company Description

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's shopping centers offer diverse, locally-curated consumer experiences that reflect the lifestyles of their surrounding communities and meet the modern expectations of the Company's retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange. The common shares of the Company, par value $0.01 per share are listed and traded on the NYSE under the ticker symbol RPT. As of June 30, 2020, our property portfolio consisted of 49 shopping centers (including five shopping centers owned through a joint venture) representing 11.9 million square feet of gross leasable area. As of June 30, 2020, the Company's pro-rata share of the aggregate portfolio was 93.6% leased.

How the Company Makes Money

Rithm Property Trust generates revenue primarily through rental income from its portfolio of properties. This involves leasing space to residential tenants, businesses, and retailers, which provides a steady stream of rental payments. The company may also engage in property development and sales, where it constructs and sells properties to earn profits. Additionally, RPT might benefit from strategic partnerships with other real estate firms and financial institutions, enhancing its revenue through joint ventures and investment opportunities. The trust's ability to effectively manage and optimize its property assets contributes significantly to its financial performance.

Rithm Property Trust Financial Statement Overview

Summary

Rithm Property Trust is experiencing considerable financial distress, marked by declining revenues, consistent net losses, and high leverage. Cash flow is volatile, with recent negative operating cash flow affecting liquidity. The balance sheet shows leverage risks due to high debt-to-equity ratio, although cash reserves are reasonable.

Income Statement

Rithm Property Trust shows a concerning decline in revenue and profitability. The total revenue turned negative in recent years, indicating the company is facing significant financial challenges. The net income has been consistently negative, highlighting ongoing losses. The lack of EBIT and EBITDA margins further points to operational difficulties.

Balance Sheet

The balance sheet reveals a moderate financial position with a high debt-to-equity ratio, suggesting potential leverage risks. The equity ratio is relatively low, indicating dependence on liabilities. The return on equity is negative due to persistent net losses, pointing to inefficiency in generating returns for shareholders. However, the company maintains a reasonable level of cash and short-term investments.

Cash Flow

Cash flow analysis indicates significant volatility. The operating cash flow has fluctuated, turning negative recently, which affects liquidity. Free cash flow is minimal, limiting the company's ability to reinvest. The operating cash flow to net income ratio is unfavorable due to negative net income, further indicating cash flow constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.22M	-16.86M	217.66M	213.49M	191.71M
Gross Profit	-76.92M	-16.86M	150.95M	145.21M	127.75M
EBITDA	0.00	0.00	116.94M	116.64M	103.75M
Net Income	-91.83M	-47.07M	-15.01M	68.64M	-10.47M
Balance Sheet
Total Assets	977.34M	1.34B	1.48B	1.90B	1.95B
Cash, Cash Equivalents and Short-Term Investments	373.04M	184.39M	262.48M	13.37M	208.89M
Total Debt	366.00M	621.57M	907.38M	902.44M	1.05B
Total Liabilities	730.57M	1.03B	1.15B	1.01B	1.15B
Stockholders Equity	246.92M	308.93M	960.51M	876.94M	782.39M
Cash Flow
Free Cash Flow	290.00K	-46.46M	68.27M	64.72M	39.94M
Operating Cash Flow	290.00K	-46.46M	1.14M	92.86M	63.06M
Investing Cash Flow	297.27M	172.82M	-63.73M	-167.13M	-18.93M
Financing Cash Flow	-286.15M	-121.37M	-42.10M	-123.18M	52.80M

Rithm Property Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPT, the sentiment is Negative. The current price of 2.6 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.69, and below the 200-day MA of 2.82, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.24 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPT.

Rithm Property Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$150.63M	9.67	5.71%	13.19%	-11.97%	-27.40%
Sector *	65 Neutral	$1.98B	18.69	2.45%	5.16%	0.63%	-5.29%
ACR	63 Neutral	$142.63M	66.03	5.05%	―	-15.82%	-98.23%
LFT	56 Neutral	$112.50M	10.80	6.38%	18.14%	-10.98%	-35.75%
RPT	50 Neutral	$118.09M	―	-2.52%	9.23%	-42.79%	86.97%
CHMI	50 Neutral	$88.50M	43.78	-2.83%	22.14%	0.33%	-37.48%
GPMT	49 Neutral	$121.98M	―	-20.41%	7.94%	-26.87%	-189.15%

Rithm Property Trust Corporate Events

Rithm Property Trust Appoints New CFO Amidst Leadership Change

Rithm Property Trust Inc. announced the appointment of Nicola Santoro, Jr. as Chief Financial Officer and Chief Accounting Officer effective April 28, 2025, following the resignation of Mary Doyle. The company reported a GAAP comprehensive income of $1.1 million for the first quarter of 2025, with earnings available for distribution of $0.7 million. It deployed $64 million into commercial real estate investments and issued preferred stock for net proceeds of $50.8 million. The company declared a cash dividend of $0.06 per share, demonstrating its strategic focus on capital deployment and shareholder value.

Spark’s Take on RPT Stock

According to Spark, TipRanks’ AI Analyst, RPT is a Neutral.

Rithm Property Trust faces significant financial challenges, including declining revenues and consistent net losses, which heavily impact its stock score. Although recent earnings indicate a potential turnaround, the technical indicators remain bearish, and valuation metrics are concerning due to negative earnings. Nevertheless, a high dividend yield and strategic repositioning towards commercial real estate are positive factors. The need for additional capital and legacy asset issues continue to present risks.

To see Spark’s full report on RPT stock, click here.