Rithm Property Trust (RPT) is expected to experience growth in commercial real estate mortgages and related investments in fiscal 2026, which will have a substantial impact on earnings available for distribution, according to Wedbush analysts, who initiated coverage on the stock on Tuesday.
The company's earnings available for distribution in Q4 are forecast to be in line with its Q3 results, analysts said.
Analysts said they have high expectations that the company will benefit over time from a series of accretive acquisitions, but have not priced that into its current estimates.
Wedbush currently forecasts Rithm Property fiscal 2026 and 2027 earnings available for distribution of $0.15 and $0.34 per share, respectively, compared with a loss of $0.01 in fiscal 2025.
Wedbush said that while the company faces the same cyclical challenges as any investor in the commercial real estate sector, it is operating with the benefit of a freshly underwritten portfolio and the reach and resources of its external manager, Rithm Capital (RITM).
Wedbush has an outperform rating on the stock and a $4 price target.