Rithm Property Trust, Inc. Q3 FY2025 earnings call

Michael Nierenberg noted that Rithm Property Trust was stabilized since he took over in June, with earnings now flat and a $0.06 dividend maintained. The company liquidated residential assets and added commercial real estate floaters (CMBS floaters) with higher yields and liquidity. Options for the company include recap with equity offering, exploring liquidation, or staying the course. He expressed excitement about the Paramount transaction, a large office REIT private acquisition in NYC and SF, and potential to add Paramount to Rithm Property Trust. The company is developing a direct lending business, leveraging Genesis partners' experience, and originated a $21M retail grocery-anchored loan with mid-teens yield.

Options for the company include recap with equity offering associated with a pool of assets, exploring liquidation, or staying the course. Interest in adding Paramount to Rithm Property Trust and growing the direct lending business using the platform. Mentioned potential for a pool of assets offering to grow the vehicle.

Bifurcated market with legacy commercial real estate REITs still dealing with underwater loans, but Rithm Property Trust has no legacy issues. Credit concerns in commercial mortgage REITs, but market is bifurcated with some overdone fears regarding credit.

Q: About loans close to finish line and Paramount deal A: Michael mentioned the Paramount deal and direct lending growth, noting past loan activity and passing on some deals like rent-stabilized loans in NYC and the Rosewood Hotel in Dallas Q: On Paramount economics and market risk A: Paramount is equity-based, market is bifurcated with Rithm having no legacy issues Q: On Paramount transaction economics and third-party capital A: Discussed Paramount deal structure, third-party capital conversations, and cross-pollination with firm's other deals