Update shared on03 Oct 2025
Analysts have increased their price target for Rithm Property Trust, citing an outlook for dividend coverage improvement and repositioning of capital that could drive multiples higher.
Analyst Commentary
Bullish Takeaways- Bullish analysts see improved dividend coverage as a near-term catalyst for higher valuation multiples.
- Capital is being repositioned into higher-yielding commercial real estate debt, which could enhance earnings power in coming years.
- The company's diverse portfolio of commercial loans and securities is viewed as driving stable income and long-term growth potential.
- The anticipated shift to full dividend coverage by 2026 is considered a key milestone for restoring investor confidence.
- Bearish analysts remain cautious about the company's current inability to fully cover its dividend, which has persisted since 2022.
- There is execution risk associated with redirecting capital into more subordinated segments of the real estate debt stack.
- Market uncertainty and evolving commercial real estate dynamics could impact the pace of recovery in earnings and valuation multiples.
What's in the News
- Rithm Property Trust reported completing the repurchase of 525,039 shares, accounting for 2.27% of outstanding shares. The total amount spent was $5.1 million under its buyback program announced March 3, 2020 (Key Developments).
- No shares were repurchased between April 1, 2025 and July 31, 2025 under the current buyback tranche (Key Developments).
Valuation Changes
- Fair Value remains unchanged at $3.67 per share.
- Discount Rate has risen slightly, from 9.14% to 9.15%.
- Revenue Growth projection remains steady at 148.25%.
- Net Profit Margin is unchanged at 28.60%.
- Future P/E ratio has increased marginally, from 8.96x to 8.96x.
Disclaimer
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