Thank you for joining us. I would like to welcome everyone to the Rithm Property Trust Fourth Quarter 2025 Earnings Call. I will now hand the call over to Emma Hoelke, Deputy General Counsel. You may proceed.

Thank you, and good morning, everyone. I would like to thank you for joining us today for Rithm Property Trust's fourth quarter and full year 2025 earnings call. Joining me today are Michael Nierenberg, Chief Executive Officer of Rithm Capital and Rithm Property Trust; and Nick Santoro, Chief Financial Officer of Rithm Capital and Rithm Property Trust. Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Rithm Property Trust website, www.rithmpropertytrust.com. If you've not already done so, I'd encourage you to download the presentation now. I would like to point out that certain statements made today will be forward-looking statements, including any statements regarding illustrative portfolios or earnings. These statements, by their nature, are uncertain and may differ materially from actual results. I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and to review the risk factors contained in our annual and quarterly reports filed with the SEC. In addition, we will be discussing some non-GAAP financial measures during today's call. Reconciliations of these measures to the most directly comparable GAAP measures can be found in our earnings supplement. With that, I will turn the call over to Michael.

Thanks, Emma. Good morning, and happy Friday the 13th. Thank you for joining us for Rithm Property Trust's fourth quarter earnings call. To start, investment activity has been limited, apart from a small investment we made in the Paramount transaction announced by our parent company, Rithm, in December. Our balance sheet and cash position are solid. In the fourth quarter, we announced a reverse stock split at a 6:1 ratio, which has led to our stock currently trading between $15 and $16, compared to approximately $2 before. We are optimistic that this will generate more interest due to the higher share price. As many of you are aware, we took over the management of what was formerly known as Great Ajax in June 2024, aiming to establish it as a dedicated commercial real estate and opportunistic investment vehicle. We have since repositioned the company, cleaned up the balance sheet, and successfully raised capital. Our focus remains on the potential recapitalization of the company alongside earnings and dividend growth. We have a clear plan that hinges on raising capital to transition from flat earnings to an anticipated range of $1.60 to $1.70 per share, with a projected dividend yield of approximately 9% and a book value around $20. Achieving this depends on both the recapitalization and the capital raising process. Our strategy includes acquiring multifamily loans from our operating business, Genesis, where we have already identified a pool of loans, alongside other commercial real estate investments. Therefore, we do not expect to face any J-curve impact regarding our earnings growth. Currently, many REITs, BDCs, and similar investment vehicles are underperforming, and while we will be patient, we hope to proceed when market conditions improve. Now, I'll refer to our online supplement, starting on Page 3. Presently, the company has roughly $100 million in cash and liquidity, with total equity amounting to $300 million. Given that our current trading price is around $15, the company is trading at approximately 50% of its book value. Rithm externally manages us, and we have a robust team of real estate investment professionals to support this vehicle and its growth. We have successfully navigated similar situations before, notably with New Residential back in 2013, and we aim for comparable growth and success in this venture. Financially, our earnings were flat. Since we took over in June 2024, the company had not generated any revenue. In the fourth quarter, we reported GAAP earnings of $2.5 million, but EAD was about negative $500,000, yielding a diluted per-share loss of $0.06. Our book value was around $300 million or $31 per diluted share. We will maintain our common stock dividend at an 8.7% yield, with cash and liquidity also at around $100 million. Our strategy focuses on maintaining a clean balance sheet and addressing a dislocated sector in real estate. Many commercial REITs are struggling due to liquidity issues or balance sheets that require further cleanup. We are committed to being patient and will not keep this vehicle open indefinitely. However, we aim for a recapitalization akin to what Blackstone achieved with BXMT and Cap Trust, prioritizing how we generate value for our shareholders. We believe our valuation, as well as those of Rithm and RPT, is currently low and anticipate market stabilization. Now, turning to the portfolio on Page 6, focusing on multifamily loans through our Genesis business, which we acquired from Goldman in 2022. At that time, they were producing $1.7 billion, and we project our production this year will reach between $6 billion and $7 billion. We plan to expand our multifamily lending operations and are exploring opportunities in acquiring licenses to become Fannie and Freddie servicers or originators in this sector. We're excited about our recent acquisition of Paramount, which will take time but positions us well moving forward. Historically, we have excelled in identifying and acquiring opportunistic investments, drawing from our experiences since 2013. On Page 7, we also discuss our capabilities to source opportunities at the parent level of Rithm, Genesis, and Paramount. We successfully closed Crestline last December and partnered with Sculptor to unlock further product sourcing opportunities. Looking ahead, as shown on Page 8, we see potential in the commercial real estate sector, including the office market, despite recent turbulence linked to AI developments hitting some commercial REITs. It's essential to note that both Rithm and RPT have diversified businesses. In the fourth quarter alone, Rithm generated over $400 million in earnings available for distribution, with some segments performing exceptionally, while others faced challenges such as increased amortization in our mortgage division. Overall, we pride ourselves on establishing a diverse earnings foundation. In closing, we see significant opportunities in commercial real estate and other areas of opportunistic investment that will enhance our growth trajectory. Now, I'll turn it back to the operator for any questions.

And your first question comes from Craig Kucera with Lucid Capital Markets.

I think the Paramount transaction at Rithm Capital closed for about $1.6 billion and was generating about $300 million in NOI. Will RPT be receiving a slice of that NOI going forward? Or how should we think about the earnings impact or accretion from that investment?

You should consider it as something that's likely back-ended. It's a pro rata share of what Rithm achieved on the balance sheet. So when you look at it, RPT has $50 million from the Paramount deal on its balance sheet, and it will be pro rata in relation to Rithm.

Okay. That's helpful. I'm thinking about the loans you're originating at Genesis, which I believe would benefit Rithm compared to where you raised capital last year. Are you looking into providing Rithm with more of those types of loans? When discussing your future situation with a larger capital base, is that contingent on the common stock getting closer to book value? What is the path forward?

So Genesis is expected to produce around $6 billion to $7 billion this year. There are numerous loans that will contribute to the Rithm balance sheet. If we successfully raise capital for RPT, there will be specific loans we've identified. There isn't a J-curve here; the loans will go directly onto the balance sheet, leading to a noticeable increase in earnings at the RPT level. We are also expanding our channels for sourcing third-party loans in the same sector, whether it's multifamily or the types of sponsored loans that Genesis handles. Additionally, we have a funds business, including funds or separate managed accounts with global sovereigns and a fund we launched with a wirehouse that's using some of our products. We have various capital vehicles acquiring Genesis loans or similar loans from other originators, and we expect this trend to persist. Regarding capital, Rithm typically holds between $1.5 billion to $2.5 billion in cash and liquidity on the balance sheet. Our stock is trading below book value, and I don't foresee issuing equity unless it offers significant benefits for our organization. That's my comment regarding the equity aspect.

Okay. That's helpful.

Thank you.

Your next question comes from the line of Henry Coffey with Wedbush.

It's good to be on the phone with you all. So timing, I mean, I think that's the only question at this point. Getting RPT over book value, that's a big jump. Is there a tolerance for finding other sources of capital, be they preferred or common that would allow you to move ahead with the recap plan? Or are we just going to have to kind of wait?

I believe timing is important. I would respond to markets. So when you mention timing, I refer to markets. The short answer is yes, there is third-party capital interested in being part of the vehicle. It is possible for us to bring in third-party capital alongside the current vehicle at some point. However, we do not intend to leave this vehicle trading where it is indefinitely. It is a timing issue. We want to ensure we avoid anything that would be highly dilutive. Last year, we conducted a preferred offering related to this. The company currently has cash and liquidity, as well as liquid assets on the balance sheet. If we identify something more beneficial, we would likely sell those assets and invest in other opportunities. But again, it hinges on timing and the market, and I expect us to keep adding more third-party capital.

And then basically, just to kind of reiterate, the primary source of loans is going to be multifamily and what Genesis generates mainly higher-yielding repositioning loans? Or you'll be doing some more traditional multifamily lending as well inside of RPT?

I think right now, what we've identified as a pool of assets is something around $1 billion of assets that would go right into the vehicle, obviously, subject to Board approvals. Once that happens, you'd see an immediate pop in earnings. That is the way I would view it. Could there be other types of loans? The answer is yes. But for now, look at the Genesis loans from a levered perspective; they're well above 15%, and I think they'll be highly accretive to what we're doing in the vehicle.

All right. I look forward to moving forward with you on this.

Good to hear your voice, Henry. Have a good weekend.

And your next question comes from the line of Jason Stewart with Compass Point.

Interesting opportunity at Genesis. Obviously, Genesis is not a forced seller. You do know the quality of the loans you're familiar with them. But could you talk about the pros and cons of buying from Genesis versus a third party who might be more of a motivated or forced seller in the market?

We do both, and the short answer is that the more we do, the better. Based on our third-party fundraising, we have tremendous demand for this product, both in our funds business on the Rithm balance sheet due to higher coupon earners and in the Rithm Property Trust. It will be a combination of everything. We have already established flow agreements with several originators. I want to emphasize that we are very mindful of credit when sourcing products from third parties. I really appreciate that Clint Arrowsmith, who runs our Genesis business, has a strong background in banking as a credit officer, which is crucial. While we could aggressively grow origination, we need to remain cautious about our credit guidelines, which is essential as we source from external partners. In this industry, when challenges arise—though I’m not pointing fingers—this product tends to be in high demand from our LPs and aligns with our goals for the balance sheet. We just have to avoid any credit missteps, which is something we are very aware of. In summary, we will source from third parties whenever possible, as long as we are comfortable with the credit.

Got it. Okay. And you mentioned banks. I would have expected banks to have been sort of rate dislocated sellers in this market. Is that something you're seeing as an opportunity to acquire, especially since it's multi? Or is that opportunity past?

You're not seeing a lot of bank selling is what I would say. When I talk about the banks, we launched a fund on one of the wirehouses on the bank platform. Again, that's creating more demand for the product that Genesis is making and some of our non-QM products. I think the banks are probably better buyers. What you've seen from the banks is the regional banks pulling back, which has created a great opportunity for Genesis and some of our other lending businesses to grow production.

Okay. Got it. One big picture question. You mentioned the Fannie, Freddie licensing. Is the ultimate goal here to be able to go end-to-end sort of from an intermediate loan to permanent financing through the GSEs? Is that the vision for RPT down the road to have that license and create the customer relationship end-to-end?

Yes, if we could do it, for sure. I mean when you think about the power of the franchise, look at Genesis. Genesis can make a loan to a builder, in let's say, in the build-to-rent space. The mortgage company, Newrez, can then work in conjunction with Genesis and provide loans, for example, to that community of builders or it could be a builder that's buying, building and selling on a go-forward basis. A lot of our thesis and what we're trying to do across the board is to capture as much wallet as we can from our customer base. You look even at the mortgage company, which has over 4 million customers; are there other products that we could offer them that would generate earnings for our shareholders? We're working on cards and other things that we hope to roll out here in the near future. So that is an example, but end-to-end is something that we're trying to do for sure.

Appreciate it.

Thanks, Jason.

There are no further questions at this time. I will now turn the call back over to Michael Nierenberg for closing remarks.

Have a great holiday weekend, everyone. Thanks for your support. Thanks for dialing in and be safe. Speak to you soon.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.