Overview of Rithm Property Trust’s Financial Performance

Rithm Property Trust (formerly Great Ajax Corp.) is a real estate investment trust (REIT) that focuses on investments in the commercial real estate (CRE) sector. In 2024, the company underwent a strategic transaction with Rithm Capital Corp., which became the company’s new external manager. This transition shifted Rithm Property Trust’s business from a predominantly residential mortgage strategy to a more flexible CRE-focused investment approach.

For the year ended December 31, 2025, Rithm Property Trust reported net income attributable to common stockholders of $1.5 million, a significant improvement from the $92.2 million net loss in the prior year. This turnaround was driven by several key factors:

Revenue and Profit Trends

• Net interest income increased by $6.1 million, primarily due to a $6.2 million decrease in interest expense. This was achieved through lower average debt balances and reduced financing costs, as the company paid down secured bonds financing related to residential mortgage-backed securities (RMBS) and settled certain repurchase financing arrangements.

• The company also saw a $60.4 million favorable change in the unrealized gain/loss on its residential mortgage loans held-for-sale, compared to a $54.5 million loss in the prior year. This was largely due to the transfer of a substantial portion of the portfolio from held-for-investment to held-for-sale in 2024, which required the loans to be remeasured to the lower of cost or fair value.

• Additionally, the company recorded a $12.1 million favorable change in the allowance for credit losses, primarily driven by the reversal of a provision on beneficial interests recorded in 2024.

These positive factors were partially offset by a $17.0 million decrease in related party management fees, which was largely attributable to a $15.5 million management termination fee recorded in 2024 in connection with the transition to the new manager.

Strengths and Weaknesses

Strengths:

• Successful transition to a more flexible CRE-focused investment strategy, which is expected to generate attractive long-term returns
• Improved net interest income through lower debt balances and financing costs
• Favorable changes in unrealized gains/losses and credit loss allowances

Weaknesses:

• Continued uncertainty in the securitization markets, which has limited the company’s access to financing
• Reliance on external management and potential conflicts of interest
• Restrictions on ownership and transfer of the company’s stock, which could discourage takeovers or other transactions

Outlook and Future Prospects

Looking ahead, the company believes the current market conditions in the CRE sector are creating refinancing challenges and capital dislocations that may present attractive risk-adjusted investment opportunities. The company’s flexible investment strategy, which includes originating and acquiring CRE-related investments such as senior and subordinated mortgage loans, mezzanine loans, preferred equity, and commercial mortgage servicing rights, positions it to generate attractive returns across a range of market conditions.

However, the company’s ability to acquire significant new commercial mortgage assets in the near future may be limited due to certain financial challenges, including the significant losses it has previously incurred and potentially limited sources of financing.

The company also faces risks related to its reliance on external management, potential conflicts of interest, and restrictions on ownership and transfer of its stock, which could discourage takeovers or other transactions that may be beneficial to shareholders.

Overall, Rithm Property Trust’s transition to a CRE-focused strategy and the improvement in its financial performance in 2025 are positive developments, but the company continues to navigate a challenging and uncertain environment in the real estate and financial sectors.

Key Financial Data

The following tables provide a summary of Rithm Property Trust’s key financial data:

Net Interest Income ($ in thousands) 2025 2024 Variance Interest income $52,800 $52,874 $(74) Interest expense (37,387) (43,572) 6,185 Net interest income $15,413 $9,302 $6,111

The increase in net interest income was primarily driven by a $6.2 million decrease in interest expense, as the company paid down secured bonds financing related to RMBS and settled certain repurchase financing arrangements.

Expenses ($ in thousands) 2025 2024 Variance Related party loan servicing fee $1,964 $4,175 $(2,211) Related party management fee 6,253 23,276 (17,023) Professional fees 3,612 3,413 199 General and administrative 4,160 9,026 (4,866) Total expenses $15,989 $39,890 $(23,901)

The decrease in total expenses was primarily due to a $17.0 million decrease in related party management fees, which included a $15.5 million management termination fee recorded in 2024, as well as a $4.9 million decrease in general and administrative expenses.

Other Income (Loss) ($ in thousands) 2025 2024 Variance Net change in the allowance for credit losses $7,003 $(5,087) $12,090 Change in unrealized gain (loss) on residential mortgage loans held-for-sale, net 5,892 (54,537) 60,429 Fair value adjustment on mark-to-market liabilities — 3,078 (3,078) Other loss (10,785) (5,771) (5,014) Total other income (loss) $2,110 $(62,317) $64,427

The increase in other income was primarily driven by a $60.4 million favorable change in the unrealized gain/loss on residential mortgage loans held-for-sale and a $12.1 million favorable change in the allowance for credit losses, partially offset by a $3.1 million decrease in fair value adjustments on mark-to-market liabilities and a $5.0 million increase in other losses.

Residential Mortgage Loan Portfolio ($ in thousands) 2025 2024 Residential mortgage loans held-for-investment, net $362,829 $396,052 Residential mortgage loans held-for-sale, net 29,419 27,788 Total residential mortgage loans $392,248 $423,840

The company’s residential mortgage loan portfolio decreased from $423.8 million as of December 31, 2024, to $392.2 million as of December 31, 2025, primarily due to loan sales, paydowns, and reclassifications from held-for-investment to held-for-sale.

In summary, Rithm Property Trust’s financial performance in 2025 showed significant improvement compared to the prior year, driven by higher net interest income, favorable changes in unrealized gains/losses and credit loss allowances, and lower expenses. However, the company continues to face challenges, including limited access to financing and potential conflicts of interest related to its external management structure. The company’s ability to execute its CRE-focused investment strategy and generate attractive long-term returns for shareholders will be crucial going forward.