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Rithm Property Trust (RPT)
NYSE:RPT
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Rithm Property Trust
(NYSE:RPT)
50Neutral
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.
Investment Strategy
RPT will benefit from having no legacy CRE exposure, sponsorship from a manager with experience, and a strong historical track record of scaling mortgage REITs while delivering peer-leading shareholder performance.
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. S&P 500 (SPY)
Market Cap
$125.37M
Dividend Yield8.7%
Average Volume (3M)196.10K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-42.79%
EPS Growth86.97%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength68
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.02
Shares Outstanding45,423,084
10 Day Avg. Volume106,496
30 Day Avg. Volume196,105
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.46
Price to Sales (P/S)0.00
P/FCF Ratio466.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside44.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 Financial Statement Overview
Summary
Rithm Property Trust is experiencing considerable financial distress, marked by declining revenues, consistent net losses, and high leverage. The company faces challenges in maintaining profitability and liquidity, which could impact its ability to sustain operations and growth.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| -76.92M | -16.86M | 217.66M | 213.49M | 191.71M | Gross Profit |
| -76.92M | -16.86M | 150.95M | 145.21M | 127.75M | EBIT |
| 98.67M | 0.00 | 37.49M | 44.39M | 26.70M | EBITDA |
| 0.00 | 0.00 | 116.94M | 116.64M | 103.75M | Net Income Common Stockholders |
| -91.83M | -47.07M | -15.01M | 68.64M | -10.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 373.04M | 184.39M | 262.48M | 13.37M | 208.89M | Total Assets |
| 977.34M | 1.34B | 1.48B | 1.90B | 1.95B | Total Debt |
| 366.00M | 621.57M | 907.38M | 902.44M | 1.05B | Net Debt |
| 301.75M | 568.74M | 901.96M | 889.07M | 837.56M | 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
Negative
2.76
Price Trends
2.74
Negative
2.84
Negative
2.93
Negative
Market Momentum
<0.01
Positive
47.64
Neutral
17.17
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 2.76 is below the 20-day moving average (MA) of 2.78, above the 50-day MA of 2.74, and below the 200-day MA of 2.93, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Rithm Property Trust Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $179.17M | 10.39 | 6.27% | 11.72% | -11.97% | -27.40% | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
60 Neutral | $141.23M | 66.00 | 5.47% | ― | -13.68% | -53.53% | |
56 Neutral | $131.86M | 12.41 | 6.38% | 12.70% | -10.98% | -35.75% | |
50 Neutral | $125.37M | ― | -7.80% | 8.70% | -42.79% | 86.97% | |
50 Neutral | $102.44M | 43.78 | -2.83% | 19.48% | 0.33% | -37.48% | |
49 Neutral | $119.08M | ― | -20.41% | 8.10% | -26.87% | -189.15% |
* Real Estate Sector Average
Performance Comparison
RPT
Rithm Property Trust
2.72
-0.46
-14.47%
ACR
ACRES Commercial Realty
18.80
5.78
44.39%
SEVN
Seven Hills Realty Trust
11.90
0.18
1.54%
LFT
Lument Finance Trust
2.52
0.35
16.13%
CHMI
Cherry Hill Mortgage
3.05
-0.05
-1.61%
GPMT
Granite Point Mortgage
2.40
-0.69
-22.33%
Rithm Property Trust Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: -0.72%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in a strong capital position with potential for growth through strategic investments and capital deployment. However, the undervalued stock, low earnings per share compared to dividends, and challenges with legacy assets present significant hurdles. The sentiment is mixed, with optimism about future growth countered by current financial challenges.Q1-2025 Updates
Positive Updates
Strong Capital Position
Rithm Property Trust is sitting on almost $100 million of cash after a capital raise, indicating a strong liquidity position.
Growth Potential
The company deployed $65 million in various CRE debt, including $47 million of AAA CMBS bonds with an approximately 11% yield, and a $35 million loan at SOFR plus $800 million on a midtown office building, expecting 12% to 13% unlevered return.
Undervalued Stock
The GAAP book value is $5.40 per share, but the current stock market trades at about $2.85, suggesting that the equity is extremely undervalued.
Successful Capital Raise
The company raised $52 million of capital through preferred equity issuance, aiming to grow earnings while being mindful of market volatility.
Negative Updates
Earnings per Share
GAAP income was $1.1 million, translating to $0.02 per diluted share, which is low compared to the dividend paid of $0.06 per share.
Legacy Asset Constraints
The company holds $25 million in legacy resi assets that are difficult to sell due to retained interests, limiting potential liquidity.
Dividend Coverage Challenge
The current earnings growth rate suggests it would take another four quarters to fully cover the dividend without transformative acquisitions or investments.
Market Volatility Impact
Volatility in the markets has affected the equity price negatively, despite a pop after last quarter's earnings calls.
Company Guidance
During the Rithm Property Trust First Quarter 2025 Earnings Conference Call, Michael Nierenberg, CEO of Rithm Property Trust, provided guidance highlighting the company's strong financial position and future growth plans. He noted that the company currently holds approximately $300 million in equity and nearly $100 million in cash, having raised capital during the quarter. Rithm deployed $65 million in commercial real estate (CRE) debt, including $47 million in AAA CMBS bonds yielding around 11%. The company paid a $0.06 dividend per share, with total equity valued at $295 million and a GAAP book value of $5.40 per share, while the stock trades at about $2.85. Nierenberg emphasized the undervaluation of the stock and the potential for shareholder value creation. Rithm plans to grow earnings by strategically investing in high-yield opportunities and possibly involving third-party partners or M&A transactions to enhance scale.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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.