Rithm Property Trust, Inc. Q4 FY2025 earnings call

• Investment activity was light except for a small investment in the Paramount transaction. • Completed a 6:1 reverse split of shares. • Took over management of Great Ajax in June 2024, repositioned the company, cleaned up balance sheet, and raised capital. • Focused on potential recap of the company, earnings and dividend growth. • Company has ~$100 million cash and liquidity, total equity in the vehicle is $300 million, trading at roughly 50% of book. • Externally managed by Rithm, with a team of real estate investment professionals. • Q4 GAAP earnings were $2.5 million, EAD was negative ~$500,000, per diluted share was -$0.06, book value was approximately $300 million or $31 per diluted share, and a 8.7% dividend yield. • Plan to acquire multifamily loans from Genesis and other commercial real estate investments, with no J-curve in earnings growth. • Active investment pipeline, diversified business with multiple earnings streams. • Announced acquisition of Paramount, excited about its potential, and repositioned the company to be a dedicated commercial real estate and opportunistic investment vehicle.

• Hoping to accomplish recap and growth when markets stabilize. • Potential to take the company from flat earnings to $1.60-$1.70 per share earnings, ~9% dividend yield, and book value ~$20, depending on recap and capital formation. • Genesis expected to do ~$6 billion-$7 billion of production this year, loans from Genesis and third parties to be on RPT balance sheet, with no J-curve in earnings.

• Market instability affecting REITs, BDCs, and other capital vehicles. • Credit risks when sourcing third-party loans.

Q: About the Paramount transaction and earnings impact for RPT.

A: RPT has $50 million of the Paramount deal on its balance sheet and will be pro rata versus Rithm.

Q: About Genesis loans feeding Rithm and the path to future state.

A: Genesis is expected to do ~$6 billion-$7 billion of production this year, loans go to Rithm balance sheet, no J-curve, source third-party loans, and not anticipating equity issuance unless accretive.

Q: Timing of RPT over book value and capital sources.

A: Timing depends on markets, third-party capital possible, but not wanting dilutive moves, and the company is sitting on cash and liquidity.

Q: Pros and cons of buying loans from Genesis vs third parties.

A: Source from both, mindful of credit, Genesis has a strong credit officer, and focus on the credit box.

Q: Fannie, Freddie licensing and end-to-end vision.

A: Goal to have end-to-end from intermediate loan to permanent financing through GSEs, capture wallet from customer base, and working on other products like cards.