Rithm Perpetual Life Residential Trust: A Look Back at 2025

Discover the key highlights from Rithm Perpetual Life Residential Trust's annual performance. This report covers the fiscal year that ended on December 31, 2025, offering investors clear insights into the Trust's operations and financial results.

Business Overview: Investing in Homes for Long-Term Growth

Rithm Perpetual Life Residential Trust is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing a diverse portfolio of residential properties across the United States. Unlike publicly traded REITs, our shares are not traded on a stock exchange. Our "Perpetual Life" structure means we do not have a pre-determined liquidation date, which allows us to pursue long-term investment strategies and aim for consistent income and growth opportunities. Our main goal is to generate strong returns for our investors through rental income and property value appreciation.

RCM GA Manager LLC (the "Adviser"), an affiliate of Rithm Capital Corp. (the "Sponsor"), a publicly-traded real estate investment trust, externally manages the Trust. This means the Adviser handles our day-to-day operations, property acquisitions, asset management, and overall investment strategy. For these services, the Adviser receives a management fee, typically a percentage of our assets, and may also earn incentive fees based on performance. This external management model aligns our interests with the Sponsor's extensive real estate expertise.

The Trust qualifies as a "smaller reporting company" and an "emerging growth company." This designation means we comply with fewer public reporting requirements compared to larger, more established companies, which can lead to less frequent or detailed disclosures.

Financial Performance

Despite a dynamic real estate market, the Trust delivered solid financial performance for the fiscal year ended December 31, 2025:

• Net Asset Value (NAV) Growth: The estimated NAV per Class J share grew from $10.00 at the start of the year to $10.50 as of December 31, 2025, representing a 5.0% appreciation.
• Distributions to Investors: We paid out $0.60 per Class J share in distributions throughout 2025, providing shareholders with a consistent income stream.
• Total Return: Combining NAV growth and distributions, Class J shares achieved an estimated total return of approximately 11.0% in 2025.
• Portfolio Expansion: Our portfolio expanded significantly, with total real estate assets increasing from approximately $50 million to $75 million. We acquired 5 new residential properties, growing our total to 15 properties across key growth markets.
• Strong Occupancy: Our properties maintained a healthy average occupancy rate of 95% throughout the year.

Revenue and Profitability: For the fiscal year ended December 31, 2025, the Trust generated substantial rental income from its expanding portfolio. This revenue growth stemmed primarily from our strategic asset acquisitions and high occupancy rates. We effectively managed operating expenses, which contributed to positive net operating income. While our detailed financial statements provide specific net income figures, the Trust achieved positive Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)—key metrics for REIT performance—demonstrating the operational profitability of our real estate assets. Compared to the prior year, the Trust saw an increase in both total revenues and net operating income, underscoring the successful execution of our investment strategy and efficient property management.

Risk Factors

Investing in the Trust carries several risks that investors should understand:

• Limited Liquidity: As a non-exchange traded REIT, your investment is illiquid. While we offer a redemption program, redemptions are not guaranteed, may be limited, and could be suspended. This means you might not be able to sell your shares when or at the price you desire.
• Limited Operating History: The Trust is relatively new and has a "limited operating history." This means we do not have an extensive track record of performance for evaluation, making it harder to predict future results.
• Reliance on External Management: Our success heavily depends on the Adviser's expertise. Potential conflicts of interest could arise between the Adviser and the Trust, and the fees we pay to the Adviser could impact our overall returns.
• Real Estate Market Risks: Our performance depends on the residential real estate market, which economic downturns, interest rate fluctuations, property vacancies, and local market conditions can affect.
• Valuation Risk: The Adviser estimates our NAV per share based on appraisals and other factors. This valuation may not reflect the price at which investors could sell shares if the Trust were liquidated.

Management's Discussion and Analysis (MD&A Highlights)

Management's Discussion and Analysis of Financial Condition and Results of Operations provides a comprehensive review of the Trust's 2025 performance.

Our Net Asset Value (NAV) per share increased to $10.50, a 5.0% appreciation, primarily due to the strong performance of our residential property portfolio. Favorable market conditions in our target geographies and effective asset management drove this growth. The strategic expansion of our real estate assets from $50 million to $75 million, including the acquisition of 5 new properties, significantly boosted our revenue growth and increased our capacity for future income generation.

We maintained a high average occupancy rate of 95% throughout the year, reflecting robust demand for quality residential housing and the effectiveness of our tenant acquisition and retention strategies. Consistent cash flow from operations supported the $0.60 per Class J share in distributions. Management believes the Trust's 2025 performance demonstrates the resilience of its investment strategy amidst varying economic conditions and its ability to generate attractive returns for investors. Our external management structure, leveraging RCM GA Manager LLC's expertise, proved instrumental in identifying and executing acquisition opportunities and optimizing portfolio performance.

Financial Health

As of December 31, 2025, the Trust maintained a sound capital structure to support its long-term investment objectives. Our financing strategy primarily combines equity capital with secured mortgage debt on our properties. The Trust uses leverage in a disciplined manner to enhance returns while managing risk. We hold adequate cash and cash equivalents to meet operational needs, fund distributions, and manage short-term liabilities. Potential access to credit facilities further supports our liquidity, with specific details outlined in the full financial statements. The Trust's ability to generate consistent rental income and positive cash flow from operations is crucial to its financial health and its capacity to service debt obligations and fund future growth initiatives. Management continuously monitors market conditions and interest rate environments to optimize our debt structure and manage refinancing risks.

Future Outlook

As we enter the next fiscal year, Rithm Perpetual Life Residential Trust remains committed to acquiring high-quality residential properties in resilient markets. We will continue to focus on optimizing property performance, managing expenses, and prudently deploying capital to enhance shareholder value and provide consistent distributions. We believe our diversified portfolio and experienced management team position us well to navigate future market conditions and capitalize on opportunities for continued growth. This summary does not include specific financial guidance for the upcoming year.

Competitive Position

The residential real estate market where the Trust operates is highly competitive. We compete with various entities, including other non-exchange traded REITs, publicly traded REITs, institutional investors, private equity funds, and individual investors, all seeking to acquire, own, and manage residential properties. Competition for attractive acquisition opportunities can be significant, potentially impacting property pricing and cap rates.

Our competitive advantages include:

• Affiliation with Rithm Capital Corp.: This provides us with extensive real estate expertise, market insights, and potential deal flow.
• "Perpetual Life" Structure: This allows for a long-term investment horizon, differentiating us from funds with finite lives and enabling us to navigate short-term market fluctuations.
• Strategic Market Focus: We acquire properties in diversified, high-growth markets with strong demographic trends, aiming to mitigate localized risks and enhance long-term appreciation potential.
• Professional Management: Our commitment to professional property management and tenant satisfaction helps us attract and retain tenants and maintain high occupancy rates.

Understanding Your Investment: Not Publicly Traded

It's crucial for investors to understand that Rithm Perpetual Life Residential Trust shares do not trade on a public stock exchange like the NYSE or Nasdaq. This means you cannot buy or sell shares daily through a brokerage account. Instead, the Trust offers a share redemption program, typically on a quarterly basis. This program allows investors to request to sell their shares back to the Trust at the then-current NAV per share, subject to certain limitations and availability of funds. As of March 6, 2026, approximately 5.5 million total common shares were outstanding, primarily Class J shares (around 5.3 million) and Class E shares (about 227,000).