Compass Point Initiates Coverage on Rithm Property Trust (RPT) with Buy Rating

Rithm Property Trust Inc. (NYSE:RPT) is included among the 13 Dividend Stocks with Over 8% Yield.

On January 7, Compass Point began coverage of Rithm Property Trust Inc. (NYSE:RPT) with a Buy rating and set a $24 price target.

During the company’s third-quarter earnings call, CEO Michael Nierenberg reflected on where the business stood when the current management team took control last June. At that time, the company was losing roughly $10 million per quarter. Since then, operations have been stabilized, earnings have moved closer to breakeven, and the company has continued to support a $0.06 dividend. He pointed to the exit from residential assets and a shift toward commercial real estate floating-rate loans, which sit higher in the capital stack and offer more attractive yields.

Nierenberg laid out several strategic paths management could pursue. Those include recapitalizing the business by raising equity tied to specific asset pools, exploring a broader liquidation, or simply staying the course and continuing to execute on the current plan. He also highlighted the disconnect between book value, which sits around $5.30, and the share price, which has been trading closer to the mid-$2 range, framing that gap as a meaningful opportunity for equity investors.

The CEO also spent time discussing progress in building out a direct lending platform. Through partnerships such as the one with Genesis and continued growth in construction lending, production has expanded sharply. What was once a business generating about $1.7 billion in loan volume is now expected to exceed $5 billion this year.

From a balance sheet perspective, the company holds roughly $100 million in cash and about $300 million in total equity. The overall portfolio stands near $308 million, and management described the lending pipeline as healthy and active.

Rithm Property Trust Inc. (NYSE:RPT), formerly known as Great Ajax Corp., operates as a REIT and is externally managed by an affiliate of Rithm Capital Corp.

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Disclosure: None.