Segment Reporting

As noted above, prior to the first quarter of 2025, the Company had only one reportable operating segment. Beginning with the first quarter of 2025, the Company has two reportable operating segments: Residential and Commercial. Segment information for prior periods has been recast to reflect this change. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under Corporate as a reconciling item to the Company’s consolidated financial statements. The activities within Corporate primarily consist of general and administrative expenses, corporate cash, related interest income and interest expense on corporate debt, which included the 2027 Notes (as defined below) and, prior to their settlement in 2024, the 2024 Notes. See Note 2 for additional details on the Company’s segments.

The structure of the reportable segments is differentiated by the financial information used by the CODM and the nature of the Company’s business activities, which is consistent with the reporting structure of the Company’s internal organization. The Company conducts its business and generates substantially all of its revenues in the U.S.

Income before income taxes is the measure of segment profit and loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and used by the CODM to evaluate segment results. It is also one of the factors considered in determining capital allocation among the segments, assessing performance for each segment.

The following tables summarize segment financial information and financial information for the Corporate category, as applicable:


	Year ended December 31, 2025
($ in thousands)	Residential		Commercial		Corporate Category		Total
Interest income	$	31,676	$	17,803	$	3,321	$	52,800
Interest expense	(14,262)		(10,537)		(12,588)		(37,387)
Net interest income (expense)	17,414		7,266		(9,267)		15,413

Related party loan servicing fee	1,964		—		—		1,964
Related party management fee	—		—		6,253		6,253
Professional fees	—		38		3,574		3,612
General and administrative	198		134		3,828		4,160
Total expense	2,162		172		13,655		15,989

Net change in the allowance for credit losses	7,003		—		—		7,003
Unrealized gain on residential mortgage loans held-for-sale, net	5,892		—		—		5,892


Other loss	(2,451)		(7,937)		(397)		(10,785)
Total other gain (loss)	10,444		(7,937)		(397)		2,110

Income (loss) before income taxes	25,696		(843)		(23,319)		1,534
Income tax expense (benefit)	(35)		—		95		60
Net Income (Loss)	$	25,731	$	(843)	$	(23,414)	$	1,474


	Year ended December 31, 2024
($ in thousands)	Residential		Commercial		Corporate Category		Total
Interest income	$	44,036	$	4,704	$	4,134	$	52,874
Interest expense	(30,101)		—		(13,471)		(43,572)
Net interest income (expense)	13,935		4,704		(9,337)		9,302

Related party loan servicing fee	4,175		—		—		4,175
Related party management fee	—		—		23,276		23,276
Professional fees	—		—		3,413		3,413
General and administrative	—		—		9,026		9,026
Total expense	4,175		—		35,715		39,890

Net change in the allowance for credit losses	(5,087)		—		—		(5,087)
Unrealized loss on residential mortgage loans held-for-sale, net	(54,537)		—		—		(54,537)
Fair value adjustment on mark-to-market liabilities	—		—		3,078		3,078

Other (loss) gain	(9,112)		1,205		2,136		(5,771)
Total other (loss) gain	(68,736)		1,205		5,214		(62,317)

(Loss) income before taxes	(58,976)		5,909		(39,838)		(92,905)
Income tax expense	—		—		145		145
Net (Loss) income	$	(58,976)	$	5,909	$	(39,983)	$	(93,050)


($ in thousands)	Residential		Commercial		Corporate Category		Total
As of December 31, 2025
Total assets	$	588,704	$	370,949	$	81,874	$	1,041,527
Equity method investments	—		79,168		—		79,168
As of December 31, 2024
Total assets	$	631,324	$	276,530	$	69,485	$	977,339
Equity method investments	—		—		538		538

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Rithm Property Trust Inc. Segments Disclosure

About Segments Disclosures

Other Available Disclosures