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- **Paramount Deal Breakthrough**: $6.6B acquisition of 13M sq. ft. Class A offices at 75% discount to replacement cost, targeting 20% returns.
- **Direct Lending Growth**: $21M loan closed Q3, $100M cash on hand for selective commercial lending.
- **Value Unlocking**: 52% discount to book value ($5.30 vs. $2.40) with no legacy issues, exploring equity offerings or auction process.
- **Strategic Focus**: Shifting from residential to commercial, with Genesis lending platform integration for scale.

**【Management Opening Remarks】**
- Michael Nierenberg highlighted the company's stabilization since taking over in June 2025, with a focus on liquidating residential assets and adding higher-yielding commercial real estate floaters.
- Discussed three strategic options: recapitalizing with an equity offering, exploring liquidation, or staying the course while seeking growth opportunities.

**【CEO Commentary】**
- Announced a $6.6 billion deal to acquire 13 million sq. ft. of Class A office properties in NYC and SF, targeting a 7% cap rate and 20% returns.
- Emphasized the company's clean balance sheet with no legacy issues, contrasting with peers facing credit challenges.
- Highlighted a $100 million cash position and plans to deploy into direct lending, with a $21 million loan closed this quarter.
- Discussed potential equity offerings to capitalize on the 52% discount to book value ($5.30 vs. $2.40 stock price).

**【Q&A Highlights】**
- Paramount Deal Economics: RPT could invest $50 million for a 2x MOIC and 20% IRR, with third-party capital readily available.
- Direct Lending Focus: Passing on high-risk deals like NYC rent-stabilized loans, prioritizing selective commercial lending.
- Liquidity Strategy: Exploring options to unlock value, including a potential auction process to realize book value.

Rithm Property Trust Inc. (RPT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RPT

RPT fundamentals

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