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Rithm Property Trust (RPT)
NYSE:RPT
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Rithm Property Trust
(NYSE:RPT)
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Rating:50Neutral
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
Strong Capital Position
A strong liquidity position with $100 million in cash provides Rithm Property Trust with the flexibility to pursue strategic investments and weather financial challenges.
Growth Potential
Investing in high-yield commercial real estate debt positions Rithm Property Trust for potential earnings growth and enhances its revenue-generating capabilities.
Leadership Change
The appointment of a new CFO can bring fresh strategic insights and financial management, potentially improving the company's financial health and operational efficiency.
Negative Factors
Declining Revenue
Declining revenues indicate challenges in maintaining income levels, which could impact the company's ability to sustain operations and growth over the long term.
High Leverage
High leverage increases financial risk, potentially limiting Rithm Property Trust's ability to invest in growth opportunities and manage economic downturns effectively.
Legacy Asset Constraints
Legacy assets that are hard to liquidate can tie up capital, reducing liquidity and flexibility to invest in new, potentially more profitable ventures.
Rithm Property Trust (RPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.46M
Dividend Yield9.41%
Average Volume (3M)165.04K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth-2.17%
EPS Growth98.78%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.02
Shares Outstanding45,420,753
10 Day Avg. Volume177,342
30 Day Avg. Volume165,037
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.48
Price to Sales (P/S)2.53
P/FCF Ratio411.66
Enterprise Value/Market Cap7.19
Enterprise Value/Revenue20.52
Enterprise Value/Gross Profit36.65
Enterprise Value/Ebitda42.39
Forecast
1Y Price Target
$3.00Price Target Upside17.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rithm Property Trust Business Overview & Revenue Model
Company DescriptionRithm Property Trust (RPT) is a real estate investment trust that operates in the real estate sector, focusing on the acquisition, ownership, and management of income-generating properties. The company's core services include leasing, property management, and real estate development, with a diversified portfolio that spans across residential, commercial, and mixed-use properties.
How the Company Makes MoneyRithm 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 Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company that has stabilized and is exploring strategic opportunities to grow and enhance value. While there are positive developments, such as stabilization, strategic asset management, and potential in the Paramount transaction, the challenge of the stock trading well below book value and flat earnings remain notable concerns.Q3-2025 Updates
Positive Updates
Stabilization and Dividend Maintenance
The company has stabilized from losing $10 million a quarter to breaking even and continues to pay a $0.06 dividend.
Strategic Asset Management
Liquidated residential assets and added commercial real estate floaters, providing liquidity and higher yields.
New Loan Originations
Originated a $21 million loan on a grocery-anchored retail center with yields likely in the mid-teens.
Paramount Transaction Excitement
Rithm is excited about the Paramount deal, a large office REIT transaction in NYC and San Francisco, expected to deliver significant returns.
Direct Lending Business Development
Plans to grow the direct lending platform in conjunction with Genesis, targeting a production increase from $1.7 billion to over $5 billion.
No Legacy Issues
The company has no legacy issues, positioning it well compared to other REITs with underwater loans.
Negative Updates
Stock Trading Below Book Value
The stock is trading at about 50% of book value, presenting a challenge for capital growth without diluting shareholders.
Limited Activity and Flat Earnings
Limited activity during the quarter with flat earnings, indicating a need for more material action to generate growth.
Company Guidance
During the Rithm Property Trust Third Quarter 2025 Earnings Call, CEO Michael Nierenberg highlighted the company's stable performance, noting that after taking over last June, they stabilized the company which was previously losing around $10 million per quarter and is now essentially flat, maintaining a $0.06 dividend. The company has $100 million in cash, total equity of $292 million, and a portfolio valued at $308 million. Nierenberg discussed strategic options for the company, including potential equity offerings, liquidation, or continuing current operations. He emphasized the recent acquisition of Paramount, a large office REIT, and its potential to contribute to Rithm's growth strategy, with expectations of a 2x MOIC and over 20% returns. During the quarter, Rithm originated a $21 million loan on a grocery-anchored retail center with yields likely in the mid-teens, reflecting their focus on opportunistic and direct lending. Despite the stock trading at a significant discount to its book value of $5.30, Nierenberg expressed optimism about leveraging Rithm's clean balance sheet and lack of legacy issues to explore growth opportunities.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.25
Negative
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.40
Negative
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.35M | 47.22M | -16.86M | 217.66M | 75.76M | 28.53M |
| Gross Profit | 21.47M | -61.07M | -16.86M | 150.95M | 68.33M | 28.53M |
| EBITDA | 18.56M | -44.43M | 0.00 | 116.94M | 0.00 | 0.00 |
| Net Income | -6.61M | -91.83M | -47.07M | -15.01M | 41.85M | 28.50M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 977.34M | 1.34B | 1.95B | 1.76B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 98.63M | 64.25M | 184.39M | 5.41M | 84.43M | 107.15M |
| Total Debt | 712.34M | 722.57M | 621.57M | 907.38M | 678.41M | 1.13B |
| Total Liabilities | 719.78M | 730.57M | 1.03B | 967.79M | 1.26B | 1.14B |
| Stockholders Equity | 294.74M | 246.92M | 308.93M | 960.51M | 497.30M | 485.36M |
Cash Flow | ||||||
| Free Cash Flow | -9.36M | 290.00K | -46.46M | 68.27M | 64.72M | 39.94M |
| Operating Cash Flow | -9.36M | 290.00K | -46.46M | 1.14M | 92.86M | 63.06M |
| Investing Cash Flow | -84.12M | 297.27M | 172.82M | -63.73M | -167.13M | -18.93M |
| Financing Cash Flow | 120.08M | -286.15M | -121.37M | -42.10M | -123.18M | 52.80M |
Rithm Property Trust Technical Analysis
Positive
2.55
Price Trends
2.45
Positive
2.50
Positive
2.59
Negative
Market Momentum
0.02
Negative
57.97
Neutral
49.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPT, the sentiment is Positive. The current price of 2.55 is above the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.45, and below the 200-day MA of 2.59, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RPT.
Rithm Property Trust Risk Analysis
Rithm Property Trust disclosed 54 risk factors in its most recent earnings report. Rithm Property Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The Exchange Ratio is fixed and will not be adjusted in the event of any change in the stock prices of either Kimco or RPT. Q3, 2023
2.
The market price of Kimco common stock may decline as a result of the Mergers. Q3, 2023
3.
The market price and trading volume of the Kimco common stock after the Mergers may be volatile. Q3, 2023
Rithm Property Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $141.62M | 9.06 | 5.72% | 14.12% | -18.06% | -18.94% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $79.59M | 15.72 | 4.14% | 23.03% | -31.69% | -72.10% | |
54 Neutral | $148.85M | 21.29 | 6.58% | ― | -18.37% | 18.80% | |
54 Neutral | $83.40M | 118.23 | 4.55% | 24.23% | 22.14% | ― | |
50 Neutral | $109.46M | -52.74 | 0.31% | 9.41% | -2.17% | 98.78% | |
49 Neutral | $124.17M | -1.23 | -9.11% | 7.75% | -28.13% | 62.49% |
* Real Estate Sector Average
RPT
Rithm Property Trust
2.55
-0.21
-7.61%
ACR
ACRES Commercial Realty
20.43
3.13
18.09%
SEVN
Seven Hills Realty Trust
8.78
-2.81
-24.25%
LFT
Lument Finance Trust
1.52
-0.73
-32.44%
CHMI
Cherry Hill Mortgage
2.27
0.06
2.71%
GPMT
Granite Point Mortgage
2.58
-0.69
-21.10%
Rithm Property Trust Corporate Events
Executive/Board ChangesPrivate Placements and FinancingDividendsBusiness Operations and StrategyFinancial Disclosures
Rithm Property Trust Appoints New CFO Amidst Leadership Change
Neutral
Apr 28, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.