Lucid files for 1-for-10 reverse stock split requiring shareholder approval
NEW YORK - Rithm Property Trust Inc., previously known as Great Ajax Corp (NYSE:AJX)., has initiated a public offering of its Series C Fixed-to-Floating Cumulative Redeemable Preferred Stock, with a liquidation preference set at $25.00 per share. The $6.18 billion market cap real estate investment trust (REIT), currently trading near its 52-week high, also plans to provide underwriters a 30-day option to purchase additional shares to cover potential over-allotments. According to InvestingPro data, the company has maintained consistent dividend payments for 12 consecutive years, offering investors an attractive 8.43% dividend yield.
The proceeds from this offering are intended for investment purposes, as well as for general corporate and working capital needs. Rithm Property Trust is taking steps to list the Series C Preferred Stock on the New York Stock Exchange following the offering. The company’s strong financial position is reflected in its GOOD overall health score on InvestingPro, with impressive revenue growth of 34.29% in the last twelve months.
Janney Montgomery Scott LLC, BTIG, LLC, and Piper Sandler & Co. are serving as the offering’s book-running managers. Lucid (NASDAQ:LCID) Capital Markets, LLC, JonesTrading Institutional Services LLC, and Wedbush Securities Inc. have been appointed as co-managers.
This offering is part of the company’s shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Potential investors are advised to read the prospectus and the related prospectus supplement, as well as other documents filed with the SEC, for a more complete understanding of the company and the offering.
Rithm Property Trust, externally managed by an affiliate of Rithm Capital Corp. (NYSE: RITM), has a history of investing in re-performing and non-performing loans secured by single-family and commercial properties. Trading at an attractive P/E ratio of 7.04, the company appears undervalued according to InvestingPro’s Fair Value analysis. The company is currently transitioning towards a more flexible commercial real estate investment strategy, with analysts maintaining a positive outlook and setting price targets ranging from $12.50 to $14.00 per share.
The press release includes forward-looking statements, which are based on management’s current expectations for future events. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected
In other recent news, Rithm Capital Corp. has been the focus of attention from analysts due to its strategic business shifts and financial performance. RBC Capital reiterated its Outperform rating with a price target of $13.00, highlighting Rithm Capital’s transformation into an alternative investment manager. This shift focuses on a fee-based, capital-light model, with potential plans for a spinoff or listing of the Newrez business in 2025. The firm emphasized the favorable conditions for mortgage servicing due to elevated interest rates and the company’s strategic capital allocation.
Meanwhile, B.Riley maintained a Buy rating and a $14.00 price target, citing the resilience of Rithm Capital’s $878 billion servicing portfolio. The company’s market share growth in mortgage servicing and lending through its Newrez segment was noted, with a significant increase to a 3.4% origination market share by the end of the third quarter. Rithm Capital’s Genesis segment also showed expansion, adding 119 new sponsors and increasing funded volume in originations to $761 million. The Sculptor segment was highlighted for its recent achievements, including the first closing of a $1.3 billion Real Estate Fund V and the establishment of a new US CLO.
Rithm Capital’s liquidity, with $2 billion available, is expected to support its near-term execution plans, while its dividend coverage was more than twice covered in the third quarter of 2024. Both RBC Capital and B.Riley express confidence in Rithm Capital’s strategic direction and growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.