Rithm Property Trust Public Offering and Share Reaction
Rithm Property Trust Inc. (NYSE:RPT) disclosed the commencement of a public offering of its common stock. Following the announcement, the shares fell 6.9% in after‑hours trading on Monday.
The offering is being managed by a syndicate of book‑running managers that includes Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, UBS Investment Bank, Wells Fargo Securities, LLC, BTIG, LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co. The underwriters have been granted a 30‑day option to purchase an additional 15% of the shares sold in the offering to cover any over‑allotments.
An affiliate of Rithm Capital Corp. (NYSE:RITM), which is affiliated with the Trust’s manager, indicated interest in purchasing shares of the common stock and potentially shares of a new class of non‑voting convertible preferred stock in a concurrent private placement. The private placement will be priced at the same per‑share price as the public offering, with closing conditioned on and expected to occur promptly after the public offering closes.
Rithm Property Trust plans to use the net proceeds from both the public offering and the concurrent private placement, together with available cash and borrowings under its master repurchase facility, to acquire a portfolio of multifamily residential transition loans from affiliates of Rithm Capital. Remaining proceeds will be allocated to other investments and general corporate purposes.
The Trust is described as an opportunistic commercial real‑estate investment platform that is externally managed by an affiliate of Rithm Capital Corp. It is organized as a Maryland corporation and operates as a real‑estate investment trust for federal income‑tax purposes.