Rithm Property Trust Inc. Announces Results for the Quarter and Year Ended December 31, 2024
NEW YORK--(BUSINESS WIRE)--January 30, 2025--
Rithm Property Trust Inc. (formerly known as Great Ajax Corp.) (NYSE: RPT, "Rithm Property Trust" or the "Company") today announced the following financial results for the quarter ended December 31, 2024.
Fourth Quarter Financial Highlights:
--
GAAP net income attributable to common stockholders of $2.9 million, or
$0.06 per diluted share1
--
Earnings available for distribution of $0.3 million or $0.01 per
diluted common share1,2
--
Book value per common share of $5.44 at December 31, 20241
--
Paid a common dividend of $2.8 million, or $0.06 per common share
Q4 2024 Q3 2024
----------------- -----------------
Summary of Operating Results:
GAAP Net Income/(Loss) per
Diluted Common Share(1) $ 0.06 $ (0.18)
GAAP Net Income/(Loss) $ 2.9 million $ (8.0) million
Non-GAAP Results:
Earnings Available for
Distribution per Diluted Common
Share(1,2) $ 0.01 $ (0.12)
Earnings Available for
Distribution(2) $ 0.3 million $ (5.4) million
Book Value:
Book Value per Common Share $ 5.44 $ 5.47
Book Value $ 246.9 million $ 246.1 million
Common Shares Outstanding 45,420,752 44,978,969
Common Dividend Paid:
Common Dividend per Share $ 0.06 $ 0.06
Common Dividend $2.8 million $ 2.7 million
__________________________________________
1.
Common share calculations for both GAAP net income/(loss) and earnings
available for distribution are based on weighted average diluted shares
of 45,298,505 and 45,327,254 for the quarters ended December 31, 2024 and
September 30, 2024, respectively.
2.
Earnings available for distribution is a non-GAAP financial measure.
For a reconciliation of earnings available for distribution to GAAP net
income/(loss), as well as an explanation of this measure, please refer to
the section entitled "Non-GAAP Financial Measures and Reconciliation to
GAAP Net Income/(Loss)."
"When we took over the management of Great Ajax in June of 2024, we set out to reposition the Company to take advantage of a great opportunity to deploy capital into commercial real estate," said Michael Nierenberg, Chief Executive Officer of Rithm Capital. "We have since changed the Company's name to Rithm Property Trust, repositioned the balance sheet, stabilized book value and grown earnings into positive territory from a loss of $12.7 million in Q2'24 to a net income of $2.9 million this quarter. While we continue to work toward our long-term objectives, we believe in Rithm Property Trust and our ability to grow shareholder value."
Fourth Quarter Company Highlights:
--
Commercial Real Estate Investments: Acquired $154 million in UPB of
commercial mortgage-backed securities ("CMBS") bringing our total
investment in CMBS to $244 million in UPB as we continue to execute on
our transition into the commercial real estate sector.
--
Rebrand to Rithm Property Trust: Launched the new name and brand on
December 2, 2024, highlighting a new chapter in the Company's evolution.
Dividend Declaration:
--
On January 29, 2025, the Company's board of directors declared a cash
dividend of $0.06 per share to be paid on February 28, 2025, to
stockholders of record as of February 14, 2025.
Financial results for the year ended December 31, 2024, are included in the tables at the end of this press release.
Earnings Conference Call
Rithm Property Trust will host a conference call at 8:00 AM ET on Thursday, January 30, 2025, to review its financial results for the fourth quarter ended December 31, 2024. The conference call may be accessed by dialing 1-888-596-4144 (from within the U.S.) or 1-646-968-2525 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Rithm Property Trust Fourth Quarter 2024 Earnings Call" and conference ID "5035792".
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.rithmpropertytrust.com. Participants are encouraged to pre-register for the webcast at https://events.q4inc.com/attendee/467202940.
A replay of the conference call will also be available two hours following the call's completion through 11:59 P.M. Eastern Time on Thursday, February 13, 2025, in the News & Events -- Events section of the Company's website.
About Rithm Property Trust
Rithm Property Trust is a real estate investment platform externally managed by an affiliate of Rithm Capital Corp. (NYSE: RITM). Rithm Property Trust has historically focused on acquiring, investing in and managing re-performing loans and non-performing loans secured by single-family residences and commercial properties. In connection with its recent strategic transaction with Rithm Capital, the Company is transitioning to a flexible commercial real estate focused investment strategy. Rithm Property Trust is a Maryland corporation that is organized and conducts its operations to qualify as a real estate investment trust $(REIT)$ for federal income tax purposes.
Forward-Looking Statements
This press release contains certain information which constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "seek," "believes," "intends," "expects," "projects," "anticipates," "plans" and "future" or similar expressions are intended to identify forward-looking statements. These statements are not historical facts. These forward-looking statements represent management's current expectations regarding future events and are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond our control. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements see the sections entitled "Cautionary Statement Regarding Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent annual and quarterly reports and other filings, including the Company's recent proxy statements, filed with the Securities and Exchange Commission. The Company expressly disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
RITHM PROPERTY TRUST INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share amounts)
(Unaudited)
Three months ended Year ended
-------------------------- ----------------------------
December September December December
31, 2024 30, 2024 31, 2024 31, 2023
------------ ------------ ------------ --------------
Revenues:
Interest income $ 12,873 $ 12,348 $ 52,874 $ 72,332
Interest expense (9,239) (8,660) (43,572) (59,286)
---------- ---------- ---------- ----------
Net interest
income 3,634 3,688 9,302 13,046
Net change in the
allowance for credit
losses -- (857) (5,087) (8,137)
---------- ---------- ---------- ----------
Net interest
income after the
net change in the
allowance for
credit losses 3,634 2,831 4,215 4,909
Loss from investments
in affiliates -- (624) (1,077) (1,308)
Loss on joint venture
refinancing on
beneficial
interests -- -- -- (11,024)
Mark to market gain
(loss) on mortgage
loans held-for-sale,
net 970 (1,712) (54,537) (8,559)
Other income/(loss) 1,029 (3,278) (4,089) (1,092)
---------- ---------- ---------- ----------
Total
revenue/(loss),
net 5,633 (2,783) (55,488) (17,074)
Expenses:
Related party loan
servicing fee 524 593 4,175 7,269
Related party
management fee 1,410 2,235 23,276 7,769
Professional fees 769 1,083 3,413 3,157
Fair value adjustment
on mark to market
liabilities -- -- (3,078) 4,491
Other expense 1,147 1,286 9,631 6,985
---------- ---------- ---------- ----------
Total expense 3,850 5,197 37,417 29,671
Gain on debt
extinguishment -- -- -- (31)
---------- ---------- ---------- ----------
Income/(loss) before
provision for income
taxes 1,783 (7,980) (92,905) (46,714)
Provision/(benefit)
for income taxes 26 (23) 145 243
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