Rithm Property Trust (RPT) Q4 2024 earnings summary

Executive summary

• Achieved first positive economic result in nearly three years, reporting $2.9 million GAAP net income ($0.06 per diluted share) in Q4 2024, following a strategic shift to commercial real estate and a rebranding from Great Ajax Corp. to Rithm Property Trust.

• Management transition and new business plan led to capital redeployment into CRE debt investments and significant liquidation of legacy residential assets.

• Rithm Property Trust leverages Rithm Capital’s platform, aiming to become a leading CRE investment platform with a $1bn+ investment pipeline.

• Maintained a $0.06 per share dividend, with management optimistic about future growth through M&A and capital market activities.

Financial highlights

• Q4 2024 GAAP net income was $2.9 million ($0.06 per diluted share), reversing prior losses; book value per share was $5.44 at year-end 2024.

• Earnings available for distribution turned positive at $0.3 million ($0.01 per diluted share) in Q4 2024.

• Cash and liquidity at quarter-end totaled $64.2 million; total shareholder equity was $246.9 million.

• Sold down nearly $340 million in legacy residential mortgage assets and deployed $48–50 million into commercial real estate.

• Total assets declined to $977.3 million at year-end 2024 from $1.34 billion at year-end 2023.

Outlook and guidance

• Targeting low double-digit returns in CRE debt investments, with a $1bn+ pipeline across senior mortgages, subordinate loans, mezzanine loans, and opportunistic investments.

• Plans to raise capital through a preferred equity deal in Q1 to support growth and strengthen the capital base.

• Continued focus on selling legacy assets, seeking M&A opportunities, and achieving scale to enhance capital deployment and shareholder liquidity.

• Management expressed confidence in the repositioned strategy and ability to grow shareholder value.

• Expecting an acceleration of loan sales from banks in 2025 as higher rates pressure commercial real estate.