Rithm Property Trust Launches Public Offering, Shares Drop 5.2% After Hours
RPT is trading near its 52-week low of $12.88 (2.9% above the low).
Summary
Rithm Property Trust announced a public stock offering after Monday's close, sending shares down 5.2% to $13.25 in after-hours trading. The offering size and price are not yet set, but proceeds will fund the acquisition of multifamily residential transition loans from Rithm Capital affiliates, plus other investments and general corporate purposes. Underwriters have a 30-day option for an additional 15% of shares. An affiliate of Rithm Capital has indicated interest in buying common stock and possibly convertible preferred stock in a concurrent private placement. The offering follows a Q1 net loss and a recent $10M buyback program, and comes as the stock trades near its 52-week low of $12.88. The dilution risk and lack of pricing details are pressuring shares, though the affiliate's participation could signal some support.
At the time of this announcement, RPT was trading at $13.25 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $108.7M. The 52-week trading range was $12.88 to $17.94. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.