Rithm Property Trust Partially Exercises Over-Allotment Option
Rithm Property Trust Inc. a leading real estate investment trust (REIT), announced today that it has sold an additional 84,232 shares of its 9.875% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”). This sale was made pursuant to the partial exercise of the over-allotment option granted to the underwriters of its previously announced public offering. The additional shares generated gross proceeds of approximately $2,105,800 before deducting underwriting discounts and offering expenses.
Use of Proceeds
The company plans to utilize the net proceeds from this offering for investments, general corporate purposes, and working capital. By strategically allocating these funds, Rithm Property Trust aims to enhance its portfolio, optimize liquidity, and strengthen its financial position to support its evolving investment strategies.
Trading and Market Information
The Series C Preferred Stock began trading on the New York Stock Exchange (NYSE) under the symbol “RPT.PRC” on March 12, 2025. Investors who acquire these shares will receive cumulative dividends at a fixed-to-floating rate, making them a valuable addition to an income-focused investment strategy.
Underwriters and Offering Details
The offering was led by prominent financial institutions, including:
- Janney Montgomery Scott LLC
- BTIG, LLC
- Piper Sandler & Co.
Additionally, Lucid Capital Markets, LLC, JonesTrading Institutional Services LLC, and Wedbush Securities Inc. served as co-managers for the offering.
The sale of additional shares under the over-allotment option was conducted in accordance with Rithm Property Trust’s effective shelf registration statement filed with the Securities and Exchange Commission (SEC). The offering is made exclusively through a prospectus and a related prospectus supplement, providing full transparency and legal compliance for potential investors.
Access to Offering Documents
Prospective investors are encouraged to review the prospectus supplement, the base prospectus, and any other related documents filed with the SEC. These materials contain crucial information about Rithm Property Trust and the specifics of the offering. Investors can access these documents free of charge through the SEC’s EDGAR
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities. No sales of these securities will take place in jurisdictions where such transactions are not registered or qualified under local securities laws.
About Rithm Property Trust
Rithm Property Trust is a real estate investment platform externally managed by an affiliate of Rithm Capital Corp. (NYSE: RITM). Historically, the company has focused on acquiring, investing in, and managing re-performing loans and non-performing loans secured by single-family residences and commercial properties.
Following a recent strategic transaction with Rithm Capital Corp., the company is shifting toward a more flexible commercial real estate investment strategy. This transformation positions Rithm Property Trust to capitalize on a broader range of opportunities within the real estate market while maintaining its commitment to delivering strong risk-adjusted returns for investors.
As a Maryland corporation, Rithm Property Trust operates as a real estate investment trust (REIT), ensuring favorable federal income tax treatment for shareholders. By leveraging its expertise and strategic investment approach, the company continues to strengthen its portfolio and drive long-term value for investors.
Strategic Implications of the Over-Allotment Exercise
The partial exercise of the over-allotment option reflects strong investor confidence in Rithm Property Trust’s financial health and strategic direction. By raising additional capital through preferred stock, the company reinforces its liquidity position and enhances its ability to deploy capital into high-yielding investments.
In an evolving market landscape, characterized by interest rate fluctuations and economic uncertainty, Rithm Property Trust’s proactive capital management strategy ensures that it remains agile and well-positioned for sustainable growth. The successful completion of this offering also underscores the company’s ability to attract institutional and retail investors looking for stable income-generating opportunities.
