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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