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Rithm Property Trust (RPT)
NYSE:RPT
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Rithm Property Trust
(NYSE:RPT)
Rating:50Neutral
Price Target:―
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 (RPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.19M
Dividend Yield9.3%
Average Volume (3M)169.33K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-23.34%
EPS Growth95.08%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength52
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.00
Shares Outstanding45,420,753
10 Day Avg. Volume181,885
30 Day Avg. Volume169,331
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap6.72
Enterprise Value/Revenue22.58
Enterprise Value/Gross Profit36.29
Enterprise Value/Ebitda26.39
Forecast
1Y Price Target
$4.00Price Target Upside55.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Rithm Property Trust Business Overview & Revenue Model
Company DescriptionRPT 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 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:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant positive strides towards profitability and a robust future pipeline, but challenges remain with the stock's significant discount to book value and limited immediate earnings for distribution.Q2-2025 Updates
Positive Updates
Successful Deployment of Capital
The company deployed $300 million in commercial real estate assets and raised a new pool of capital without diluting shareholders.
Path to Profitability
The company reported $1.4 million in GAAP income or $0.03 per diluted share compared to a loss of $0.35 per diluted share in Q2 of '24.
Robust Pipeline
The current pipeline includes $2 billion of real estate assets under evaluation, with plans to deploy $50 million in equity in Q3 with double-digit returns.
High Target Yields
Target yields for future investments are expected to be around 15% across various investment types, including CMBS senior loans and mezzanine loans.
Negative Updates
Stock Trading at Discount
The equity trades at a 50% discount to book value, with the current stock price around $2.70 compared to a GAAP book value of $5.37.
Minimal Earnings Available for Distribution (EAD)
EAD is about $100,000 or effectively zero, indicating limited earnings for distribution.
Limited Immediate Cash Deployment
Although sitting on approximately $100 million in cash, the company is cautious in deploying capital to ensure high returns, suggesting restraint in immediate growth.
Company Guidance
In the second quarter 2025 earnings call for Rithm Property Trust, Michael Nierenberg, the CEO, outlined the company's strategic initiatives and future prospects. The company has transitioned into an opportunistic commercial real estate REIT, deploying $300 million in commercial real estate assets over the past year. Despite a current stock price trading at a 50% discount to its GAAP book value of $5.37, Nierenberg emphasized the potential for significant upside as they continue to execute their strategic plan. The current pipeline includes $2 billion of assets under evaluation, with the aim to deploy $50 million of equity in the third quarter, targeting returns in the teens. The company reported $1.4 million in GAAP income, or $0.03 per diluted share, and declared a common stock dividend of $0.06 per share. With approximately $100 million in cash and liquidity, Rithm plans to leverage third-party capital for larger transactions to avoid diluting shareholders and maintain the dividend. The management is focused on scaling the business and enhancing shareholder value, while being cautious in capital deployment, particularly in the current real estate market environment.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 | 34.85M | 47.22M | -16.86M | 217.66M | 213.49M | 191.71M |
| Gross Profit | 21.68M | 19.77M | -16.86M | 150.95M | 145.21M | 127.75M |
| EBITDA | 29.82M | -44.43M | 0.00 | 116.94M | 116.64M | 103.75M |
| Net Income | -6.61M | -91.83M | -47.07M | -15.01M | 68.64M | -10.47M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 977.34M | 1.34B | 1.48B | 1.90B | 1.95B |
| Cash, Cash Equivalents and Short-Term Investments | 422.93M | 373.04M | 184.39M | 262.48M | 13.37M | 208.89M |
| Total Debt | 349.84M | 366.00M | 621.57M | 907.38M | 902.44M | 1.05B |
| Total Liabilities | 719.78M | 730.57M | 1.03B | 1.15B | 1.01B | 1.15B |
| Stockholders Equity | 294.74M | 246.92M | 308.93M | 960.51M | 876.94M | 782.39M |
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
Neutral
2.58
Price Trends
2.60
Negative
2.61
Negative
2.72
Negative
Market Momentum
>-0.01
Negative
48.94
Neutral
50.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPT, the sentiment is Neutral. The current price of 2.58 is above the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.60, and below the 200-day MA of 2.72, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $161.99M | 10.40 | 5.71% | 12.26% | -16.74% | -32.89% | |
63 Neutral | $7.00B | 13.45 | -0.52% | 6.98% | 3.61% | -22.78% | |
60 Neutral | $116.72M | 12.00 | 6.01% | 17.57% | -24.12% | -47.91% | |
59 Neutral | $156.10M | 66.03 | 5.05% | ― | -16.01% | -98.23% | |
54 Neutral | $104.53M | 43.78 | -2.56% | 20.83% | -2.02% | -20.61% | |
50 Neutral | $117.19M | ― | -2.52% | 9.30% | -23.34% | 95.08% | |
49 Neutral | $131.76M | ― | -14.12% | 7.19% | -29.55% | 42.09% |
* Real Estate Sector Average
Performance Comparison
RPT
Rithm Property Trust
2.58
-0.36
-12.24%
ACR
ACRES Commercial Realty
20.85
5.10
32.38%
SEVN
Seven Hills Realty Trust
10.85
-1.62
-12.99%
LFT
Lument Finance Trust
2.22
0.10
4.72%
CHMI
Cherry Hill Mortgage
2.88
-0.02
-0.69%
GPMT
Granite Point Mortgage
2.78
0.38
15.83%
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.