Rithm Property Trust initiated with a Buy at Janney Montgomery Scott

Janney Montgomery Scott initiated coverage of Rithm Property Trust (RPT) with a Buy rating and $4 fair value estimate. The company’s transition to a commercial real estate investment strategy will deliver near-term earnings in support of the dividend and capitalize over time on the substantial demand for CRE capital, combined with a dearth of lending activity in the sector, the analyst tells investors. Rithm Property will benefit from having no legacy CRE exposure, sponsorship from an experienced manager and “a strong historical track record of scaling mortgage REITs while delivering peer-leading shareholder performance,” the analyst argues.