Top 5 Beaten-Down REITs Ready for a Rotation Rally

4. Rithm Capital Corp. (NYSE:RITM)

Number of Hedge Fund Holders: 31

Year-To-Date Performance: -15.50%

Stock Upside: 41.15%

Rithm Capital Corp. (NYSE:RITM) is one of the top beaten-down REITs ready for a rotation rally. On July 2, Piper Sandler lowered its price target on Rithm Capital Corp. (NYSE:RITM) to $12.50 from $14, while maintaining an Overweight rating.

The firm argued that the mortgage lending environment has stayed difficult heading into the third quarter. For that reason, the analysts favor agency-focused mortgage companies over originators like Rithm Capital. A key factor the firm used to support its position is that 30-year mortgage rates have remained stuck around 6.50%. In the analysts’ view, this level is so high that it is weighing on loan origination activity and, consequently, squeezing profitability for companies that depend on new mortgage volume.

Because of these persistently high rates, Piper Sandler does not expect much positive news from origination-focused management teams, including Rithm Capital’s, when they report the next quarterly results. The firm noted this is the main reason it trimmed its target even while staying bullish on the stock overall.

Separately, on June 22, Rithm Capital’s board of directors declared Q2 FY2026 dividends covering both its common stock and six series of preferred stock.

The common stock dividend of $0.25 per share is payable July 31, to shareholders of record as of July 2. This rate has held unchanged for eight consecutive quarters since 2024. The payouts for Series A, B, C, D, E, and F preferred shares range from $0.4375 to $0.6207 per share depending on the series, and are payable August 17.

Rithm Capital Corp. (NYSE:RITM) is an asset manager operating as a REIT. The company focuses on real estate, credit, and financial services, and operates through Origination and Servicing, Investment Portfolio, Residential Transitional Lending, and Asset Management segments. Its REIT structure provides tax efficiency through distribution of at least 90% of taxable income to stockholders.