rhome-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________to________________

Commission File Number: 000-56783


Rithm Perpetual Life Residential Trust
(Exact name of registrant as specified in its charter)

Maryland

39-7059385

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

799 Broadway

New York

10003

(Address of principal executive offices)

(Zip Code)


(212)			850-7770
(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 9, 2026, the registrant had 8,370,369 common shares of beneficial interest, $0.01 par value per share, outstanding consisting of 7,966,175 Class J common shares and 404,194 Class E common shares.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS SUMMARY

References herein to the “Company,” “we,” “us,” or “our” refer to Rithm Perpetual Life Residential Trust, together with its feeder vehicles, if any, and consolidated subsidiaries unless the context specifically requires otherwise. References herein to “Sponsor” refer to Rithm Capital Corp., a Delaware corporation and a publicly-traded real estate investment trust (“REIT”). References herein to “Adviser” refer to RCM GA Manager LLC, a Delaware limited liability company, an affiliate of the Sponsor and the Company’s external adviser.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about our business and prospects, including, in particular, statements about our plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “plan,” “should,” “potential,” “expect,” “intend,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “continue,” “could,” “project,” “predict,” or other similar words. These statements include our plans and objectives for future operations, including plans and objectives relating to future growth and availability of funds, and are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to these statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond our control. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate, and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our plans, strategies and objectives, which we consider to be reasonable, will be achieved.

Our business, financial condition, results of operations, net income and prospects, and our ability to satisfy our debt obligations or make distributions to our shareholders are subject to numerous risks, and the following summarizes the principal risks that may materially adversely affect the foregoing. The following should be carefully read in conjunction with the more complete discussion of risk factors we face set forth in Part I, Item 1A. “Risk Factors” section of our Annual Report on Form 10-K for the period ended December 31, 2025 (the “2025 Form 10-K”). These risks include, among others:

Risks Related to Our Business and Operations

•We have a limited operating history, and there is no assurance that we will be able to successfully achieve our investment objectives.

•We face risks associated with the deployment of our capital.

•We are dependent on the Adviser and its affiliates and their key personnel who provide services to us through the advisory agreement between us and the Adviser, dated as of November 18, 2025 (as amended by Amendment No. 1 to the Advisory Agreement, dated November 9, 2026 (the “Amendment”), the “Advisory Agreement”), and we may not find a suitable replacement for the Adviser if the Advisory Agreement is terminated, or for these key personnel if they leave us or otherwise become unavailable to us.

•The Adviser manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek the approval of our Board of Trustees (our “Board”) for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and, in turn, may materially and adversely affect us.

•There is no public trading market for our shares; therefore, your ability to dispose of your shares will likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.

•Your ability to have your shares repurchased is limited. We may choose to repurchase fewer shares (or none at all) than have been requested to be repurchased, in our discretion at any time, and the amount of shares we may repurchase is subject to caps. Further, our Board may make exceptions to, modify or suspend our share repurchase plan if it deems such action to be in our best interest.

•We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

Risks Related to Our Structure and Organization

•Our shareholders generally have limited voting rights.

•Our Amended and Restated Declaration of Trust does not provide for the annual election of trustees by our shareholders and contains provisions that could make removal of our trustees difficult, which could make it difficult for our shareholders to effect changes to our management.

Risks Related to Our Investments Generally

•Our loans and other investments expose us to risks associated with debt-oriented real estate investments generally.

•Residential mortgage loans and other pools of residential mortgage loans that we may acquire are subject to delinquency, foreclosure and loss, which could result in losses to us.

•Our success depends on the availability of attractive investment opportunities.

•We operate in a highly competitive market for investment opportunities and competition may limit our ability to originate and/or acquire desirable investments in our target assets and could also affect the pricing of these assets. Additionally, our business may be impacted by economic, market and political conditions, including, but not limited to, geopolitical tensions or conflicts, such as the conflict in Iran, wars, tariffs, ongoing inflation, government shutdowns, increased market volatility and governmental intervention in the mortgage and credit markets.

•Real estate valuation is inherently subjective and uncertain.

•Declining real estate valuations and impairment charges could materially and adversely affect our business, financial condition, results of operations and cash flows.

Risks Related to Specific Investments

•The residential transition loans (“RTLs” and each, an “RTL”) in which we may invest may be subject to a greater risk of loss than conventional mortgage loans.

•Risks of cost overruns and non-completion of renovations of properties in transition may result in significant losses.

•We may face risks related to lower credit quality loans.

•We may be subject to risks associated with construction lending, such as declining real estate values, cost overruns and delays in completion.

•The non-qualified mortgage loans (“NQMs” and each, an “NQM”) in which we invest are subject to increased risk of loss compared to other investments.

Risks Related to Debt Financing

•The amount of our debt may subject us to increased risk of loss and could materially adversely affect us.

•We may not be able to earn returns on loans we make in excess of the interest we pay on our borrowings.

•For our borrowed money, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk of investing in us.

•We may face risks associated with hedging and investments in derivatives.

•We may not be able to access financing sources on attractive terms which could adversely affect our ability to execute our business plan.

Risks Related to Our Relationship with the Adviser and the Advisory Agreement

•We depend on the Adviser to select our investments and otherwise conduct our business, and any material adverse change in its financial condition or our relationship with the Adviser could have a material adverse effect on us.

•There are conflicts of interest in our relationships with the Adviser, which could result in outcomes that are not in our best interests.

Risks Related to Our REIT Status and Certain Other Tax Items

•Our failure to qualify as a REIT would subject us to United States (“U.S.”) federal income tax and potentially increased state and local taxes, which would reduce the amount of our income available for distribution to our shareholders.

•REIT distribution requirements could adversely affect our ability to execute on our strategies and may require us to incur debt, sell assets or take other actions to make such distributions.

We caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Except as otherwise required by law, we do not undertake to publicly update or revise any forward-looking statements, including, but not limited to, as a result of new information or future events.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
FORM 10-Q

INDEX

									PAGE
Part I. Financial Information
Item 1. Financial Statements (Unaudited)									1
Consolidated Balance Sheets									1
Consolidated Statements of Operations									2
Consolidated Statements of Changes in Shareholders’ Equity									3
Consolidated Statement s of Cash Flows									5
Notes to Consolidated Financial Statements									6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations									26
Item 3. Quantitative and Qualitative Disclosures About Market Risk									34
Item 4. Controls and Procedures									34
Part II. Other Information
Item 1. Legal Proceedings									35
Item 1A. Risk Factors									35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds									35
Item 3. Defaults Upon Senior Securities									36
Item 4. Mine Safety Disclosures									36
Item 5. Other Information									36
Item 6. Exhibits									37
Signatures									38

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share and per share data)


	September 30, 2026 (Unaudited)		December 31, 2025
Assets
Residential transition loans, at fair value(1)	$	448,931	$	176,584
Residential mortgage loans, at fair value(1)	214,359		87,630
Cash and cash equivalents	4,783		638
Restricted cash(1)	5,681		7,007
Accounts receivable and other assets(1)	6,094		4,594
Derivative assets, at fair value	1,103		—
Total Assets	$	680,951	$	276,453
Liabilities and Shareholders’ Equity
Liabilities
Secured financings, at fair value(1)	$	512,944	$	207,084
Due to related parties(1)	5,379		11,134
Accounts payable and other liabilities(1)	2,663		1,038
Total Liabilities	520,986		219,256
Commitments and Contingencies (Note 12)
Shareholders’ Equity
Common shares, Class J shares, par value $0.01 per share; 7,777,301 and 2,847,900 shares issued and outstanding, respectively	78		28
Common shares, Class E shares, par value $0.01 per share; 395,936 and 159,850 shares issued and outstanding, respectively	4		2
Additional paid-in capital	159,432		59,916
Retained earnings (accumulated deficit)	451		(2,749)
Total Shareholders’ Equity	159,965		57,197
Total Liabilities and Shareholders’ Equity	$	680,951	$	276,453

(1)The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs” and each, a “VIE”). VIE assets can only be used to settle obligations and liabilities of the VIEs. Substantially all obligations of the consolidated VIEs are non-recourse to Rithm Perpetual Life Residential Trust. As of September 30, 2026 and December 31, 2025, total assets of such consolidated VIEs were $674.6 million and $275.8 million, respectively, and total liabilities of such consolidated VIEs were $512.2 million and $215.6 million, respectively. See Note 8 for further details.

See notes to consolidated financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except share and per share data)


	Three Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,		Nine Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,
	2026		2025		2026		2025
Revenues
Interest income	$	13,410	$	—	$	31,877	$	—
Other revenues	—		—(1)		—		—(1)
Total Revenues	13,410		—(1)		31,877		—(1)
Expenses
Interest expense	(7,113)		—		(16,905)		—
General and administrative expenses	(770)		—		(3,796)		—

Management fees	(237)		—		(565)		—
Financing and other fees	(282)		—		(741)		—
Total Expenses	(8,402)		—		(22,007)		—
Other Income (Loss)
Realized and unrealized gain on residential transition loans, at fair value	693		—		908		—
Realized and unrealized loss on residential mortgage loans, at fair value	(2,325)		—		(3,202)		—
Realized and unrealized gain on derivatives	1,103		—		1,103		—
Total Other Income (Loss)	(529)		—		(1,191)		—
Net Income and Comprehensive Income	$	4,479	$ —(1)		$	8,679	$ —(1)

Net Income by Class of Common Share
Class J basic and diluted	$	4,245	$	—	$	8,232	$	—
Class E basic and diluted	234		—(1)		447		—(1)

Net Income per Common Share
Class J basic and diluted	$	0.57	$	—	$	1.38	$	—
Class E basic	0.61		0.04		1.56		0.04
Class E diluted	0.60		0.04		1.51		0.04
Weighted Average Number of Common Shares Outstanding
Class J basic and diluted	7,491,418		—		5,965,039		—
Class E basic	382,073		100		286,578		100
Class E diluted	391,823		100		296,328		100

(1)Amount is presented as zero as it is less than one thousand.

See notes to consolidated financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026 AND FOR THE PERIOD FROM JULY 31, 2025 (DATE OF FORMATION) THROUGH SEPTEMBER 30, 2025
(dollars in thousands, except share and per share data)


	Three Months Ended September 30, 2026
	Common Shares
	Class J Shares	Class E Shares	Class J Par Value		Class E Par Value		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Total Shareholders’ Equity
Balance at June 30, 2026	6,769,340	384,554	$	68	$	4	$	139,078	$	—	$	139,150
Common shares issued	926,361	—	9		—		18,668		—		18,677
Shareholder servicing fees	—	—	—		—		(237)		—		(237)
Distribution reinvestment	81,600	913	1		—		1,663		—		1,664
Distributions declared on common shares	—	—	—		—		—		(4,028)		(4,028)
Management fees paid in shares	—	10,469	—		—		212		—		212
Share-based compensation	—	—	—		—		48		—		48
Net income	—	—	—		—		—		4,479		4,479
Balance at September 30, 2026	7,777,301	395,936	$	78	$	4	$	159,432	$	451	$	159,965


	For the Period of July 31, 2025 (date of formation) through September 30, 2025
	Common Shares
	Class J Shares	Class E Shares	Class J Par Value		Class E Par Value		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Total Shareholders’ Equity
Balance at July 31, 2025	—	—	$	—	$	—	$	—	$	—	$	—
Common shares issued	—	100	—		—(1)		2		—		2





Net income	—	—	—		—		—		—(1)		—(1)
Balance at September 30, 2025	—	100	$	—	$ —(1)		$	2	$ —(1)		$	2

(1)Amount is presented as zero as it is less than one thousand.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND FOR THE PERIOD FROM JULY 31, 2025 (DATE OF FORMATION) THROUGH SEPTEMBER 30, 2025
(dollars in thousands, except share and per share data)


	Nine Months Ended September 30, 2026
	Common Shares
	Class J Shares	Class E Shares	Class J Par Value		Class E Par Value		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Total Shareholders' Equity
Balance at December 31, 2025	2,847,900	159,850	$	28	$	2	$	59,916	$	(2,749)	$	57,197
Common shares issued	4,759,662	212,563	48		2		100,143		—		100,193
Shareholder servicing fees	—	—	—		—		(565)		—		(565)
Distribution reinvestment	169,739	2,143	2		—		3,464		—		3,466
Distributions declared on common shares	—	—	—		—		(4,105)		(5,479)		(9,584)
Management fees paid in shares	—	21,380	—		—		433		—		433
Share-based compensation	—	—	—		—		146		—		146
Net income	—	—	—		—		—		8,679		8,679
Balance at September 30, 2026	7,777,301	395,936	$	78	$	4	$	159,432	$	451	$	159,965


	For the Period of July 31, 2025 (date of formation) through September 30, 2025
	Common Shares
	Class J Shares	Class E Shares	Class J Par Value		Class E Par Value		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Total Shareholders’ Equity
Balance at July 31, 2025	—	—	$	—	$	—	$	—	$	—	$	—
Common shares issued	—	100	—		—(1)		2		—		2





Net income	—	—	—		—		—		—(1)		—(1)
Balance at September 30, 2025	—	100	$	—	$ —(1)		$	2	$ —(1)		$	2

(1)Amount is presented as zero as it is less than one thousand.

See notes to consolidated financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)


	Nine Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,
	2026		2025
Cash Flows From Operating Activities
Net income	$	8,679	$ —(1)
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
Realized and unrealized gain on residential transition loans, at fair value	(908)		—
Realized and unrealized loss on residential mortgage loans, at fair value	3,202		—
Realized and unrealized gain on derivatives	(1,103)		—
Share-based compensation	146		—
Changes in Assets and Liabilities:
Accounts receivable and other assets	(3,322)		—
Accounts payable and other liabilities	236		—
Due to related parties	2,525		—
Net cash provided by operating activities	9,455		—(1)

Cash Flows From Investing Activities
Residential transition loan acquisition and funding activities	(402,328)		—
Residential mortgage loan acquisition and funding activities	(151,399)		—
Residential transition loan paydowns	125,244		—
Residential mortgage loan paydowns	20,523		—
Net cash used in investing activities	(407,960)		—

Cash Flows From Financing Activities
Borrowings under secured financings	421,086		—
Repayments of secured financings	(115,226)		—
Proceeds from issuance of common shares	100,193		2
Distributions to shareholders	(4,729)		—
Net cash provided by financing activities	401,324		2
Net increase in cash and cash equivalents and restricted cash	2,819		2
Cash and cash equivalents and restricted cash, beginning of period	7,645		—
Cash and cash equivalents and restricted cash, end of period	$	10,464	$	2

Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents	$	4,783	$	2
Restricted cash	5,681		—
Total Cash and Cash Equivalents and Restricted Cash	$	10,464	$	2

Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	$	16,669	$	—

Supplemental Disclosure of Noncash Investing and Financing Activities:
Distribution reinvestment	$	3,466	$	—
Management fees paid in shares	433		—
Shareholder servicing fees	565		—

(1)Amount is presented as zero as it is less than one thousand.

See notes to consolidated financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

1. ORGANIZATION

Rithm Perpetual Life Residential Trust (the “Company”) was formed on July 31, 2025 as a Maryland statutory trust and has elected to be taxable as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2025. The Company’s sponsor is Rithm Capital Corp. (the “Sponsor”). RCM GA Manager LLC (the “Adviser”), an affiliate of the Sponsor, serves as the external adviser to the Company pursuant to the advisory agreement between the Company and the Adviser (the “Advisory Agreement”).

The Company’s investment strategy is to invest primarily in North America in asset-based finance opportunities. The Company is initially focusing on residential transition loans (“RTLs” and each, an “RTL”), which are generally short-term loans to finance a property's acquisition or rehabilitation, and non-qualified mortgage loans (“NQMs” and each, an “NQM”) and may also invest across a range of other assets and investment types, including, but not limited to, investments in scratch-and-dent loans which are loans that have become ineligible for sale to government-sponsored entities, non-performing loans and reperforming loans, closed-end second loans, manufactured housing loans, synthetic and/or credit risk transfers, consumer loans, equity and other securities, including collateralized loan obligation securities and other collateralized products and other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the U.S. Investment Company Act of 1940, as amended and the rules thereunder. Such investments may take the form of debt securities, warrants, options, other derivative instruments and other asset types, including equity-linked securities and, on an opportunistic basis, equity securities.

In December 2025, the Company launched a private placement offering exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) (such private placement offering, the “Private Offering”). The Company sells common shares monthly in the Private Offering at a price generally equal to the prior month's net asset value (“NAV”) per share as determined pursuant to the valuation guidelines adopted by the Company's board of trustees (the “Board”), plus applicable fees and commissions. NAV is not a measure used under accounting principles generally accepted in the U.S. (“GAAP”), and the valuation of and certain adjustments to the Company's assets and liabilities used in the determination of NAV will differ from GAAP. The Company's Class S, Class T, Class D and Class I shares (each as defined in Note 9) are generally available for issuance in the Private Offering. Class J and Class J-2 shares (each as defined in Note 9) are available through a third-party distribution partner. Class E shares (as defined in Note 9) are only expected to be held by the Adviser, its personnel and its affiliates.

2. SIGNIFICANT ACCOUNTING POLICIES

The Company believes the following significant accounting policies, among others, affect its significant estimates and assumptions used in the preparation of the consolidated financial statements.

Basis of Accounting — The accompanying consolidated financial statements are prepared in accordance with GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the full fiscal year. The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated. The Company consolidates entities classified as VIEs in which it is determined to be the primary beneficiary.

Use of Estimates — The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are reasonable. The most critical estimates include those related to fair value measurements of the Company’s assets and liabilities. Actual results could differ from those estimates, and such differences could be material.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Risks and Uncertainties — In the normal course of its business, the Company primarily encounters two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on the Company’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and loss severity risk, which is the risk of loss upon a borrower’s default on a mortgage loan or other secured or unsecured loan. Loss severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying the Company’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, the Company believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of the Company’s assets is dependent on its servicers’ and subservicers’ abilities to perform their servicing obligations with respect to the RTLs and NQMs.

Consolidation — The Company consolidates entities in which the Company has a controlling financial interest. The Company evaluates whether it holds a variable interest in an entity and whether that entity is a VIE. Entities are classified as VIEs, if the equity investors either do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity’s activities or are not exposed to the entity’s losses or entitled to its residual returns. The Company consolidates a VIE when it is the primary beneficiary of a VIE, where it has a controlling financial interest in the entity, which is defined as (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant. In circumstances where an entity does not have the characteristics of a VIE, it would be considered a voting interest entity (“VOE”). The Company would consolidate a VOE where the Company has a majority equity interest and has control over significant operating, financial and investing decisions of the entity. The Company reassesses the classification of such entities when there is a substantive change in the entity’s governing documents, contractual arrangements, capital structure or activities. The Company also continuously reassesses whether it remains appropriate to consolidate any VIE or VOE.

Cash and Cash Equivalents and Restricted Cash — Cash and cash equivalents include cash maintained in one or more custodian bank accounts. The Company considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. As of September 30, 2026 and December 31, 2025, restricted cash was $5.7 million and $7.0 million, respectively. Restricted cash consists of cash balances subject to contractual or legal restrictions on use. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure.

Residential Transition Loans and Residential Mortgage Loans — The Company’s loan portfolio primarily consists of RTLs and residential mortgage loans, specifically, NQMs.

The Company has elected to apply the fair value option for all RTLs and residential mortgage loans. The fair value option provides an election which allows a company to irrevocably elect fair value for certain financial assets and liabilities on an instrument-by-instrument basis. The Company elected the fair value option for these loans to better align reported results with the underlying economic changes in value of the loans on the Company’s consolidated balance sheets. Furthermore, as a result of the election to apply the fair value option, these loans are not subject to an allowance for credit losses under the current expected credit losses impairment model. The Company reports the change in the fair value of RTLs and NQMs within realized and unrealized gain (loss) on residential transition loans, at fair value and realized and unrealized gain (loss) on residential mortgage loans, at fair value, respectively, in the consolidated statements of operations.

RTLs include construction holdback and interest reserve when funded on the consolidated balance sheets. The construction holdback represents amounts withheld from the funding of construction loans and released as the project progresses. The interest reserve represents amounts withheld from the funding of certain mortgage loans in order to satisfy monthly interest payments for all or part of the term of the related loan. Accrued interest is paid out of the interest reserve and recognized as interest income on a monthly basis.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

RTLs can be placed in contractual default status for (i) an interest payment that is more than 30 days past due or sooner, if collection is considered doubtful, (ii) a loan that matures and the borrower fails to make payment of all amounts owed or extend the loan or (iii) the collateral that becomes impaired in such a way that the ultimate collection of the loan receivable is doubtful. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, the Company may place a current loan on non-accrual status and recognize interest income on a cash basis. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the suspended loan becomes contractually current or a credit analysis supports the ability to collect in accordance with the terms of the loan. In addition to interest income, the Company may generate loan fee income, including loan origination fees, loan renewal fees and inspection fees.

The Company may earn loan extension fees when maturing loans are renewed or extended and amendment fees when loan terms are modified, such as increases in interest reserves and construction holdbacks. Loans are generally only renewed or extended if the loan is not in default and satisfies the Company’s underwriting criteria. Loan fee income is recorded as interest income at origination or amendment given the Company’s election of the fair value option. Both interest and loan fee income earned on mortgage loans are presented in interest income in the consolidated statements of operations.

Fair value of residential mortgage loans is generally determined using a market approach by utilizing either (i) the fair value of securities backed by similar residential mortgage loans, adjusted for certain factors to approximate the fair value of a whole residential mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics.

Interest income on residential mortgage loans is accrued based on the unpaid principal balance (“UPB”) and the contractual interest rate. Interest earned on mortgage loans is reported in interest income in the consolidated statements of operations. If it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the original contractual terms of the loan agreement, or if the loan becomes 90 days delinquent, the Company will reverse all prior accrued and unpaid interest on such mortgage loan. The Company will return loans to accrual status only when it reinstates the loan and there is no significant uncertainty as to collectability.

Secured Financings — The Company finances its RTL and NQM portfolios through secured borrowing arrangements, including repurchase agreements and warehouse credit facilities entered into by the VIEs. Under these arrangements, the Company pledges mortgage loans and/or related trust interests evidenced by trust certificates (with legal title to the underlying mortgage loans held by a trustee on behalf of the related trust) as collateral to the financing counterparty; the trust may also provide a guaranty in connection with certain arrangements.

These arrangements are accounted for as secured financings whereby the pledged assets remain on the consolidated balance sheets and the proceeds received are recorded as a secured borrowing. Interest expense is recognized over the term of the borrowing including any contractual price differential, and the arrangements are typically subject to margin maintenance provisions that may require the Company to post additional collateral or cash. The Company has elected to apply the fair value option for all secured financings. Borrowings under these secured financing arrangements generally bear interest at floating rates (benchmark rate plus a contractual spread) and, because the borrowings are typically short-term and reprice frequently, the Company believes the carrying value of the secured borrowings approximates fair value as of the reporting date.

Derivatives and Hedging — The Company enters into economic hedges, including exchange-traded interest rate futures, to hedge a portion of its interest rate risk exposure on its floating-rate secured financings. The Company’s derivative instruments are economic hedges that are not designated as hedges for accounting purposes. The Company does not use derivative instruments to hedge its investments in loans.

Derivatives and other economic hedging instruments are recorded at fair value and presented separately as derivative assets, at fair value or derivative liabilities, at fair value on the consolidated balance sheets. Changes in fair value, together with realized gains and losses, are recognized currently in earnings within realized and unrealized gain on derivatives. Because the Company has elected the fair value option for its secured financings, those financings are not eligible to be designated as hedged items, and the Company therefore does not apply hedge accounting. Changes in the fair value of the Company’s derivative instruments are recognized in the period in which they occur, while the interest expense that those instruments are intended to offset is recognized over the remaining term of the Company’s floating-rate secured financings as it accrues.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Amounts or obligations owed by or to the Company are subject to the right of setoff with the counterparty. Daily changes in the value of the Company's open futures positions are reflected as open trade equity at the Company's clearing broker and are not settled in cash until a position is closed. The Company therefore carries its derivative instruments at the full fair value of the open positions and has no variation margin accounts against which derivative amounts are presented net.

Share-based Compensation — The Company records all equity-based incentive grants to non-employee members of the Board based on their fair values determined on the date of grant. Share-based compensation expense, which is included in general and administrative expenses in the consolidated statements of operations, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards.

Income Taxes — The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Code, commencing with its taxable year ending December 31, 2025. A REIT is subject to several organizational and operational requirements including that it must distribute at least 90% of its REIT taxable income to its shareholders each year. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates.

Operating Expenses — The Company will pay directly or reimburse the Adviser or its affiliates for costs and expenses the Adviser or its affiliates incur in connection with the services they provide to the Company, including, but not limited to, (i) the actual cost of goods and services used by the Company and obtained from either an affiliate or a non-affiliated person, including fees paid to affiliated service providers, administrators, transfer agents, consultants, attorneys, accountants, tax advisors, technology providers and other service providers, and brokerage fees paid in connection with the origination, acquisition, purchase and sale of its investments, (ii) expenses of managing, operating and disposing of its investments, whether payable to an affiliate or a non-affiliated person, (iii) expenses related to the personnel of the Adviser performing services for the Company other than those who provide investment advisory services to us, (iv) expenses relating to compliance-related matters and regulatory filings relating to its activities and (v) administration fees and expenses, if any, payable under the Advisory Agreement (including payments based upon its allocable portion of the Adviser’s overhead in performing its obligations under the Advisory Agreement, including rent and the allocable portion of the cost (including total compensation) of its chief financial officer and chief legal officer, and their respective staffs that assist with the activities covered by the Advisory Agreement).

The Adviser has agreed to advance certain of the Company's operating costs and expenses, certain costs and expenses incurred pursuant to the Advisory Agreement, and other expenses incurred on its behalf, through the earlier of (i) the date that its aggregate NAV is at least $200.0 million and (ii) the first anniversary of the date on which the Company first calculates NAV, which is December 1, 2026 (the “Operating Expense Commencement Date”). The Company will reimburse the Adviser for all such advanced operating expenses ratably over the 60 months following such date. For purposes of calculating the Company's NAV, the operating costs and expenses paid by the Adviser on the Company's behalf through the Operating Expense Commencement Date will not be deducted as an expense until reimbursed by the Company.

After the Operating Expense Commencement Date, the Company will reimburse the Adviser, as applicable, for any operating expenses that it incurs on the Company's behalf as and when incurred. The reimbursements may be paid, at the Adviser’s election, as applicable, in cash or Class E shares, or any combination thereof.

As of September 30, 2026 and December 31, 2025, amounts payable to the Adviser and its affiliates for advanced operating expenses incurred on the Company’s behalf were approximately $2.0 million and $0.5 million, respectively, and are presented within due to related parties on the Company’s consolidated balance sheets. For the three and nine months ended September 30, 2026, the Adviser elected not to seek reimbursement of approximately $0.8 million of overhead expenses previously allocated to the Company during prior periods, which the Company recorded as a reduction of general and administrative expenses in the current period. After giving effect to that reduction, the Company recognized approximately $(0.3) million and $1.5 million, respectively, of such expenses in general and administrative expenses on the consolidated statements of operations. As of September 30, 2026, no payments have been made and the full advanced balance remains payable to the Adviser.

Organization, Offering Expenses and Shareholder Servicing Fees — Organization and offering expenses include, without limitation, costs incurred in connection with the Company's formation and offering activities, such as underwriting and placement-related costs, legal, accounting and tax fees, printing and filing fees, marketing and distribution expenses, transfer


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

agent and subscription processing costs, and other out-of-pocket costs related to structuring, organizing and offering the Company's shares. There is no cap on organization and offering expenses.

The Adviser advances all of the Company’s organization and offering expenses through the earlier of (i) the date that the Company’s aggregate NAV is at least $200.0 million and (ii) the first anniversary of the date on which the Company first calculates NAV, which is December 1, 2026. The Company will reimburse the Adviser for all such advanced expenses ratably over the 60 months following the date on which the Adviser stops advancing organization and offering expenses per the prior sentence. Thereafter, the Company will reimburse the Adviser for any organization and offering expenses as and when incurred. The reimbursements may be paid, at the Adviser’s election, in cash or Class E shares, or any combination thereof. Subsequent to September 30, 2026, the Company and the Adviser amended the Advisory Agreement to modify the terms governing the advancement and reimbursement of organization and offering expenses. See Note 14 for further details.

As of September 30, 2026 and December 31, 2025, amounts payable to the Adviser and its affiliates for advanced organization and offering expenses incurred on the Company’s behalf were approximately $2.7 million, and are included in due to related parties on the Company’s consolidated balance sheets. For the three and nine months ended September 30, 2026, the Company did not recognize any organization and offering expenses related to costs incurred by the Adviser or its affiliates on the Company’s behalf.

Shareholder servicing fees (“Shareholder Servicing Fees”) represent ongoing fees paid in connection with the distribution of certain classes of the Company's shares and related shareholder services. These fees are calculated based on the NAV of the applicable shares, recognized as incurred and payable monthly in arrears. Accrued and unpaid Shareholder Servicing Fees are included in due to related parties on the consolidated balance sheets. Refer to Note 10 for additional information.

Organization expenses are expensed as incurred and are included in general and administrative expenses on the consolidated statements of operations. Offering expenses and Shareholder Servicing Fees are charged to shareholders' equity as a reduction of additional paid-in capital on the consolidated statements of changes in shareholders' equity.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses for current accounts receivable and current contract assets under FASB Accounting Standards Codification 606—Revenues from Contracts with Customers. The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company adopted this ASU on January 1, 2026 on a prospective basis and the adoption did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), and in January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This standard requires public companies to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The new standard, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact on its consolidated financial statements upon adoption.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies interim disclosure requirements and the applicability of Topic 270. This ASU is effective for the Company on January 1, 2028, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The Company is an emerging growth company and has elected not to use the extended transition period for adopting new or revised accounting standards; accordingly, the Company adopts such standards on the effective dates applicable to public companies.

3. INVESTMENTS IN LOANS

Residential Transition Loans

The following tables summarize residential transition loans, at fair value by loan type:


	September 30, 2026
	Carrying Value		% of Carrying Value		Loan Count	% of Loan Count		Weighted Average Asset Yield		Weighted Average Original Life (Months)	Weighted Average Loan Balance to Value/After Repair Value(1)
Construction	$	206,040	45.8	%	73	35.6	%	7.7	%	12	64.0	%
Bridge	175,319		39.1	%	69	33.7	%	8.0	%	10	62.2	%
Renovation	67,572		15.1	%	63	30.7	%	7.8	%	9	68.1	%
	$	448,931	100.0	%	205	100.0	%	7.8	%	11	63.9	%

(1)Bridge loans use weighted average loan balance to value. Construction and renovation loans use weighted average loan balance to after repair value.


	December 31, 2025
	Carrying Value		% of Carrying Value		Loan Count	% of Loan Count		Weighted Average Asset Yield		Weighted Average Original Life (Months)	Weighted Average Loan Balance to Value/After Repair Value(1)
Construction	$	50,879	28.8	%	26	22.4	%	8.2	%	10	63.4	%
Bridge	94,728		53.7	%	51	44.0	%	8.0	%	10	66.1	%
Renovation	30,977		17.5	%	39	33.6	%	7.8	%	10	68.2	%
	$	176,584	100.0	%	116	100.0	%	8.0	%	10	65.7	%

(1)Bridge loans use weighted average loan balance to value. Construction and renovation loans use weighted average loan balance to after repair value.

See Note 5 regarding the financing of RTLs.

The following table summarizes the activity of residential transition loans, at fair value on the consolidated balance sheets:









Balance at December 31, 2025	$	176,584
Acquisition and funding activities(1)	302,163
Construction/interest holdbacks and draws(1)	94,520
Repayments and sales(1)	(125,244)
Fair Value Adjustments due to:
Realization of cash flows	(72)
Other factors	980
Balance at September 30, 2026	$	448,931

(1)Activity in these line items may include amounts processed through the Company’s servicer settlement process. Amounts due to or from the servicer represent activity that occurred but had not yet settled in cash as of period-end. During the nine months ended September 30, 2026, the Company settled $7.8 million of prior-period funding activity and has $2.1 million due to the servicer for funding activities.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in residential transition loans, at fair value on the consolidated balance sheets:


	September 30, 2026						December 31, 2025
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	444,983	$	447,540	$	2,557	$	175,990	$	176,584	$	594
90+	1,400		1,391		(9)		—		—		—
Total	$	446,383	$	448,931	$	2,548	$	175,990	$	176,584	$	594

Residential Mortgage Loans

The following table summarizes residential mortgage loans, at fair value:


	Carrying Value		Loan Count	Weighted Average Yield		Weighted Average Life (Years)	Weighted Average Loan Balance to Value
September 30, 2026	$	214,359	484	6.3	%	8.6	72.1	%
December 31, 2025	$	87,630	172	6.0	%	5.3	73.0	%

See Note 5 regarding the financing of residential mortgage loans.

The following table summarizes the activity of residential mortgage loans, at fair value on the consolidated balance sheets:








Balance at December 31, 2025	$	87,630
Acquisition and funding activities(1)	151,399
Repayments and sales(1)	(21,468)
Fair Value Adjustments due to:
Realization of cash flows(2)	(492)
Other factors	(2,710)
Balance at September 30, 2026	$	214,359

(1)Activity in these line items may include amounts processed through the Company’s servicer settlement process. Amounts due to or from the servicer represent activity that occurred but had not yet settled in cash as of period-end. During the nine months ended September 30, 2026, the Company received $0.4 million related to prior-period repayment activity and is owed $3.2 million from the servicer for repayment activity.

(2)Based on the paydown of the underlying NQMs.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of residential mortgage loans, at fair value on the consolidated balance sheets:


	September 30, 2026						December 31, 2025
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	211,689	$	214,359	$	2,670	$	85,059	$	87,630	$	2,571
90+	—		—		—		—		—		—
Total	$	211,689	$	214,359	$	2,670	$	85,059	$	87,630	$	2,571


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

4. OTHER ASSETS AND OTHER LIABILITIES

The Company's accounts receivable and other assets and accounts payable and other liabilities on the consolidated balance sheets consist of the following:

Accounts Receivable and Other Assets


	September 30, 2026		December 31, 2025
Accrued interest receivable	$	6,094	$	2,338
Accounts receivable	—		2,256
Total Accounts Receivable and Other Assets	$	6,094	$	4,594

Accounts Payable and Other Liabilities


	September 30, 2026		December 31, 2025
Interest payable	$	1,271	$	1,038
Distribution payable	1,389		—
Accrued commissions and fees	3		—
Total Accounts Payable and Other Liabilities	$	2,663	$	1,038

5. SECURED FINANCINGS

Secured Financings

On November 24, 2025, the Company entered into a Master Repurchase Agreement (the “RTL-C Repurchase Agreement”) with Churchill MRA Funding I LLC (“Churchill”) to finance the purchase of RTLs and similar loans. The agreement provides for up to $500.0 million of financing capacity. The Company’s RTL-C Repurchase Agreement does not contain a single stated maturity date. Rather, the agreement provides for an open-ended Funding Period (as defined in the RTL-C Repurchase Agreement) that continues unless terminated by the parties. Churchill may end the Funding Period on 180 days’ notice.

On November 24, 2025, the Company entered into a Master Repurchase Agreement with Wells Fargo Bank, National Association (the “TRS-W Repurchase Agreement”) to finance the purchase of RTLs and NQMs. The agreement provides for up to $500.0 million of financing capacity with a termination date of November 24, 2028.

On March 18, 2026, the Company entered into an uncommitted revolving Futures Margin Finance Agreement (the “Margin Finance Facility”) with Macquarie Bank Limited (“MBL”), under which MBL may in its sole discretion advance up to $1.5 million, including accrued interest, to fund initial margin on the Company’s exchange-traded futures account. Advances bear interest at Secured Overnight Financing Rate (“SOFR”), subject to a floor of zero, plus 2.00% per annum, are secured by that account and mature on March 18, 2031, subject to MBL’s right to demand repayment on thirty calendar days’ notice and either party’s right to terminate the agreement at any time. The Margin Finance Facility was first drawn on September 11, 2026.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following tables summarize secured financings, at fair value:


	September 30, 2026
									Collateral(1)
Debt Obligations/Collateral	Outstanding Face		Carrying Value / Fair Value		Final Stated Maturity	Rate	Weighted Average Rate		UPB		Fair Value		Weighted Average Life (Years)
Secured Financings:
RTL-C Repurchase Agreement	$	160,723	$	160,723	Open-ended(2)	SOFR + 2.3%	5.9	%	$	211,173	$	212,114	0.5
TRS-W Repurchase Agreement	350,732		350,732		11/24/2028	SOFR + 1.6%	5.3	%	446,898		451,175		4.5
Margin Finance Facility	1,489		1,489		3/18/2031	SOFR + 2.0%	5.6	%	N/A		1,500		N/A
Secured Financings, at Fair Value	$	512,944	$	512,944					$	658,071	$	664,789

(1)Secured financing balances may include paydowns that have not settled and are held in restricted cash. Restricted cash is not included in loan fair value.

(2)No stated contractual maturity; terminable by either party in accordance with the agreement.


	December 31, 2025
									Collateral
Debt Obligations/Collateral	Outstanding Face		Carrying Value / Fair Value		Final Stated Maturity	Rate	Weighted Average Rate		UPB		Fair Value		Weighted Average Life (Years)
Secured Financings:
RTL-C Repurchase Agreement	$	135,182	$	135,182	Open-ended(1)	SOFR + 2.3%	6.1	%	$	175,990	$	176,584	0.8
TRS-W Repurchase Agreement	71,902		71,902		11/24/2028	SOFR + 1.6%	5.4	%	85,059		87,630		5.3
Secured Financings, at Fair Value	$	207,084	$	207,084					$	261,049	$	264,214

(1)No stated contractual maturity; terminable by either party in accordance with the agreement.

6. DERIVATIVES AND HEDGING

The Company enters into economic hedges, including exchange-traded interest rate futures, to hedge a portion of its interest rate risk exposure on its floating-rate secured financings. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. The Company’s credit risk with respect to economic hedges is the risk of default by its counterparty resulting from the counterparty’s inability or unwillingness to make contractually required payments.

The Company's futures positions are intended to hedge a portion of the interest rate risk on its floating-rate secured financings, which bear interest at a spread over SOFR and had an aggregate outstanding principal amount of $512.9 million as of September 30, 2026. The aggregate notional amount of the positions as of September 30, 2026 was $203.0 million, or approximately 40% of outstanding floating-rate secured financings. The Company uses derivative instruments, including exchange-traded interest rate futures, as economic hedges to hedge a portion of its interest rate risk exposure on its floating-rate financings. These instruments are not designated as hedges for accounting purposes. The Company does not use derivative instruments for speculative purposes or to hedge its investments in loans.

The futures contracts mature in September 2029 and December 2029. The Company expects to continue to hold the positions against its floating-rate secured financings as those financings are repaid, refinanced or replaced.

Amounts or obligations owed by or to the Company are subject to the right of setoff with the counterparty. As part of executing these trades, the Company has entered into agreements with its clearing broker that govern the transactions made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. The Company’s futures positions are transacted through a futures commission merchant and cleared through a registered derivatives clearing organization. Trading authority over the Company’s futures account is held by the Adviser, which has been appointed as advisor and attorney-in-fact with respect to the account. See Notes 5, 7 and 10.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The Company's derivative instruments are carried at the full fair value of the open positions. Daily changes in value are reflected as open trade equity at the Company's clearing broker and are not settled in cash until a position is closed.

The following tables summarize derivative assets, at fair value and the unrealized gain on derivatives:


	September 30, 2026		December 31, 2025
Notional Amount(1)	$	203,000	$	—
Carrying Value / Fair Value	$	1,103	$	—

(1)Represents $203 million notional of Eris SOFR swap futures with weighted average maturities of 38 months as of September 30, 2026.


	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
Unrealized gain on derivatives	$	1,103	$	1,103

7. FAIR VALUE MEASUREMENTS

Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). The Company holds a variety of assets and liabilities, certain of which are not publicly traded or that are otherwise illiquid. Significant judgment and estimation go into the assumptions that drive the fair value of these assets and liabilities. Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material.

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The Company follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table presents the carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis as of September 30, 2026 and December 31, 2025. It excludes cash and cash equivalents and other short-term receivables and payables for which the carrying value approximates fair value due to their short-term nature and are classified within Level 1.


	September 30, 2026								December 31, 2025
	Carrying Value / Fair Value		Level 1		Level 2		Level 3		Carrying Value / Fair Value		Level 1		Level 2		Level 3
Assets:
RTLs	$	448,931	$	—	$	—	$	448,931	$	176,584	$	—	$	—	$	176,584
NQMs	214,359		—		—		214,359		87,630		—		—		87,630
Derivative assets	1,103		1,103		—		—		—		—		—		—
Total Assets	$	664,393	$	1,103	$	—	$	663,290	$	264,214	$	—	$	—	$	264,214

Liabilities:
Secured financings	$	(512,944)	$	—	$	(512,944)	$	—	$	(207,084)	$	—	$	(207,084)	$	—
Total Liabilities	$	(512,944)	$	—	$	(512,944)	$	—	$	(207,084)	$	—	$	(207,084)	$	—

The following tables summarize the changes in the Company’s Level 3 financial assets measured at fair value on a recurring basis:


	RTLs		NQMs		Total
Balance at June 30, 2026	$	380,209	$	199,490	$	579,699
Acquisition and funding activities	112,184		27,196		139,380
Paydowns	(44,155)		(10,002)		(54,157)
Fair Value Adjustments due to:
Realization of cash flows	(17)		(244)		(261)
Other factors	710		(2,081)		(1,371)
Balance at September 30, 2026	$	448,931	$	214,359	$	663,290
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$	690	$	(2,201)	$	(1,511)


	RTLs		NQMs		Total






Balance at December 31, 2025	$	176,584	$	87,630	$	264,214
Acquisition and funding activities	396,683		151,399		548,082
Paydowns	(125,244)		(21,468)		(146,712)
Fair Value Adjustments due to:
Realization of cash flows	(72)		(492)		(564)
Other factors	980		(2,710)		(1,730)
Balance at September 30, 2026	$	448,931	$	214,359	$	663,290
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$	1,020	$	(2,733)	$	(1,713)

Residential Transition Loans

The Company classifies RTLs as Level 3 in the fair value hierarchy. Performing and non-performing RTLs are valued using an income approach through pricing models to forecast cash flows with inputs such as default rates, prepayment speeds and discount rates and may include adjustments based on consensus pricing (broker quotes).

Significant increases (decreases) in default rates, loss severity assumptions or discount rates, in isolation, would result in a significantly lower (higher) fair value measurement. Generally, a change in default rate assumptions is accompanied by a directionally similar change in loss severity assumptions.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes certain information regarding the ranges and weighted averages of significant inputs (weighted by fair value) used in valuing RTLs, at fair value classified as Level 3:


	Fair Value		Discount Rate	Prepayment Rate	Default Rate	Loss Severity
September 30, 2026	$	448,931	7.0% – 10.0% (7.8%)	40.0%	1.0%	15.0%
December 31, 2025	$	176,584	7.6% – 8.7% (8.0%)	50.0%	1.3%	25.0%

Residential Mortgage Loans

Residential mortgage loans, at fair value are typically pooled together by the originator and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. NQMs are loans that do not meet the qualified mortgage rules per the Consumer Financial Protection Bureau. Residential mortgage loans, at fair value are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans, (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics, (iv) internal pricing models to forecast loan level cash flows using inputs such as default rates, prepayment speeds and discount rates or (v) consensus pricing (broker quotes) or historical sale transactions for similar loans. As these prices are derived from market observable inputs combined with management’s best estimate, the Company classifies these valuations as Level 3 in the fair value hierarchy.

Significant increases (decreases) in prepayment rates, delinquency rates or discount rates, in isolation, would result in a significantly lower (higher) fair value measurement.

The following table summarizes certain information regarding the ranges and weighted averages of significant inputs (weighted by fair value) used in valuing residential mortgage loans, at fair value classified as Level 3:

Fair Value

Discount Rate

Prepayment Rate

Default Rate

Loss Incidence

September 30, 2026

214,359

5.9% – 7.7%

(6.3%)

4.1% – 26.9%

(9.1%)

0.0% – 5.6%

(0.4%)

3.2%

December 31, 2025

87,630

5.6% – 6.9%

(6.0%)

5.8% – 26.9%

(16.8%)

0.0% – 1.6%

(0.4%)

0.1%

Derivative Instruments

The fair value of the Company's interest rate futures is determined using daily settlement prices published by the Chicago Board of Trade. Because the valuation is derived from quoted prices for the identical contract, the Company classifies these instruments as Level 1 within the fair value hierarchy.

Secured Financings

The fair value of secured financings is measured using a discounted cash flow methodology based on observable market interest rates for similar instruments and the remaining contractual maturities of the arrangements. Because these instruments bear interest at floating rates that reprice frequently at market-based spreads, their fair value approximates their outstanding face amount. The Company classifies these valuations as Level 2 within the fair value hierarchy. No change in the fair value of the Company’s secured financings was attributable to instrument-specific credit risk in any period presented, determined as the total change in fair value less the portion attributable to changes in the benchmark interest rate.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

8. VARIABLE INTEREST ENTITIES

In connection with the Company’s activities, the Company uses certain special-purpose entities and pass-through trust structures, R-Home Pass-Through Parent RTL-C LLC (“RTL VIE”) and R-Home Pass-Through Parent TRS-W LLC (“TRS-W VIE”) to acquire, hold and finance RTLs and NQMs. The Company determined these entities are VIEs and concluded it is the primary beneficiary of these trusts as a result of its ability to direct activities that most significantly impact the economic performance and its 100% equity ownership in these trusts. Accordingly, the Company consolidates the RTL VIE and TRS-W VIE in the consolidated financial statements. As a result, the VIEs’ related assets, liabilities and operating results are included as part of the Company’s consolidated financial statements.

The assets of consolidated VIEs may only be used to settle obligations of such entities. Substantially all obligations of the consolidated VIEs are non-recourse to Rithm Perpetual Life Residential Trust, except for customary “bad act” indemnities that are protective in nature.

The following table summarizes the assets and liabilities of each consolidated VIE:


	September 30, 2026				December 31, 2025
	RTL VIE		TRS-W VIE		RTL VIE		TRS-W VIE
Assets:
Residential transition loans, at fair value	$	212,114	$	236,817	$	176,584	$	—
Residential mortgage loans, at fair value	—		214,359		—		87,630
Restricted cash	5,175		43		7,007		—
Accounts receivable and other assets	2,036		4,058		1,420		3,173
Total Assets	$	219,325	$	455,277	$	185,011	$	90,803
Liabilities:
Secured financings, at fair value	$	160,723	$	350,732	$	135,182	$	71,902
Due to (from) related parties	1,662		(2,152)		7,898		(425)
Accounts payable and other liabilities	838		433		704		334
Total Liabilities	$	163,223	$	349,013	$	143,784	$	71,811

9. EQUITY AND EARNINGS PER SHARE

As of September 30, 2026, the Company is authorized to issue an unlimited number of common shares, par value $0.01 per share. In connection with the initial closing of the Private Offering, the Company amended and restated its declaration of trust, which authorizes (i) an unlimited number of common shares of beneficial interest, par value $0.01 per share, including (a) an unlimited number of common shares classified as Class S common shares, par value $0.01 (“Class S”), (b) an unlimited number of common shares classified as Class T common shares, par value $0.01 (“Class T”), (c) an unlimited number of common shares classified as Class D common shares, par value $0.01 (“Class D”), (d) an unlimited number of common shares classified as Class I common shares, par value $0.01 (“Class I”), (e) an unlimited number of common shares classified as Class J common shares, par value $0.01 (“Class J”), (f) an unlimited number of common shares classified as Class J-2 common shares, par value $0.01 (“Class J-2”) and (g) an unlimited number of common shares classified as Class E common shares, par value $0.01 (“Class E”), and (ii) an unlimited number of shares classified as preferred shares. In December 2025, the Company commenced the continuous private offering of its common shares pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder, and other exemptions of similar import in the laws of the states and other jurisdictions in which the offering is being made.

The Adviser may, at its discretion, elect to receive Class E shares in lieu of cash as payment for management fees, primarily to support the Company’s cash management objectives and to align interests; however, the Adviser may have its shares repurchased from time to time. For the three and nine months ended September 30, 2026, the Adviser elected to receive $212.3 thousand in Class E shares or 10,469 Class E shares and $432.9 thousand in Class E shares or 21,380 Class E shares, respectively.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

In order to facilitate the origination or acquisition of the Company’s initial investments, the Sponsor (or an affiliate) has agreed to purchase (in one or more purchases) the lesser of (i) 5% of the Company’s total NAV and (ii) $20.0 million of Class E shares at a price per share equal to the most recently determined NAV of Class E shares. Since inception through September 30, 2026, the Sponsor contributed $6.4 million and as of September 30, 2026 held 319,709 Class E shares.

The share classes have different upfront selling commissions, dealer manager fees and Shareholder Servicing Fees, as well as different management and performance fees.

Share Repurchases

Under the Company’s share repurchase plan, shareholders may request on a monthly basis that the Company repurchase all or any portion of their shares. The Company is not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in the Company’s discretion. In addition, the Company’s ability to fulfill repurchase requests is subject to a number of limitations. As a result, share repurchases may not be available each month. Under the Company’s share repurchase plan, to the extent the Company chooses to repurchase shares in any particular month, it will only repurchase shares as of the opening of the last business day of that month (each such date, a “Repurchase Date”). Notwithstanding the foregoing, shareholders of Class J shares have agreed not to submit their Class J shares for repurchase until the date that is two years from the date of purchase of the applicable Class J shares.

The repurchase price for repurchases will generally be based on the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be repurchased at 95% of the transaction price, reflecting a 5% deduction from that price (an “Early Repurchase Deduction”). The holding period is measured as of the closing date immediately preceding the prospective Repurchase Date. Subject to the Company's ability to meet the applicable REIT tax requirements, the Early Repurchase Deduction may only be waived in the case of repurchase requests arising from the death or qualified disability of the holder and in other limited circumstances.

The aggregate NAV of total repurchases of common shares is limited to no more than 2% of the Company’s aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of the Company’s aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter). Shares purchased by the Adviser or its affiliates or issued to such parties in lieu of cash in respect of the management fee, the performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to the Company are not subject to these repurchase limitations.

Further, the Board may make exceptions to, modify or suspend the Company’s share repurchase plan if it deems in its reasonable judgment such action to be in the Company’s best interest (including to make exceptions to the repurchase limitations or Early Repurchase Deduction, or repurchase fewer shares than such repurchase limitations).

During the three and nine months ended September 30, 2026, no common shares were repurchased pursuant to the Company’s share repurchase plan.

Distributions

The Company considers a variety of factors when determining its distributions, including cash flows from operations, funds available for distribution, NAV and total return, and in any case, generally intends to distribute its net income in a manner intended to satisfy the 90% distribution requirement to comply with the REIT provisions of the Code and to avoid both corporate income tax and the 4% nondeductible excise tax.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following tables detail the net distributions declared for each applicable class of common shares. Class J and Class E shares are not subject to a servicing fee. There were no distributions declared or paid for the same periods disclosed on the equity tables in the prior year.


	Three Months Ended September 30, 2026
	Class J		Class E


Net Distributions Declared per Common Share	$	0.5100	$	0.5100


	Nine Months Ended September 30, 2026
	Class J		Class E


Net Distributions Declared per Common Share	$	1.5300	$	1.5300

Earnings Per Share

The Company computes net income (loss) per common share using the two-class method, as certain unvested restricted share grants of Class E held by the Company’s independent trustees with nonforfeitable dividend rights qualify as participating securities. Under this method, income available to common shareholders is allocated between common shares and participating securities based on dividends declared and their respective rights to share in undistributed earnings as if all earnings for the period had been distributed. Participating securities are not allocated undistributed net losses, as they have no contractual obligation to share in losses. Basic net income (loss) per share per class of common share is computed by dividing net income (loss) allocated to each class of common shares by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the impact of potentially dilutive securities outstanding during the period, including unvested share-based awards, determined using the treasury stock method. Potential dilutive common shares are excluded from the calculation when their effect is anti-dilutive in the period. Unvested awards subject to service vesting conditions are excluded from basic net income per share until such conditions are satisfied.

Approximately 9,750 unvested shares for the three and nine months ended September 30, 2026 were excluded from the basic per share computations as their vesting is contingent upon achievement of a service requirement which had not been met during the period.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the basic and diluted earnings per share calculations:


	Three Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,	Nine Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,
	2026			2025		2026		2025
Net Income by Class of Common Share:
Class J basic and diluted	$	4,245		$	—	$	8,232	$	—
Class E basic and diluted	234			—(1)		447		—(1)

Weighted Average Number of Common Shares Outstanding:
Class J basic and diluted	7,491,418			—		5,965,039		—
Class E basic	382,073			100		286,578		100
Effect of dilutive Class E unvested shares	9,750			—		9,750		—
Class E diluted	391,823			100		296,328		100

Net Income per Common Share:
Class J basic and diluted	$	0.57		$	—	$	1.38	$	—
Class E basic	0.61			0.04		1.56		0.04
Class E diluted	0.60			0.04		1.51		0.04

(1)Amount is presented as zero as it is less than one thousand.

10. RELATED PARTY TRANSACTIONS

A party is considered to be related to the Company if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners, management and trustees, as well as members of their immediate families or any other parties with which the Company may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

The components of due to related parties of the Company on the consolidated balance sheets were as follows:


	September 30, 2026		December 31, 2025
Due to (from) servicer	$	(490)	$	7,473
Due to Adviser, net	5,256		3,612
Shareholder Servicing Fees payable	594		30
Trustee fee payable	19		19
Due to Related Parties	$	5,379	$	11,134

Upfront Selling Commissions and Dealer Manager Fees — The Company does not charge upfront selling commissions, origination fees or dealer manager fees directly with respect to Class S, Class T, Class D, Class J or Class J-2 shares. However, financial intermediaries may charge subscribers transaction or placement fees, including upfront selling commissions, in amounts that vary by share class and intermediary, subject to maximum thresholds. Specifically, Class S and Class T shares may be subject to aggregate upfront fees of up to 3.5% of the transaction price, Class D shares up to 1.5% of the net offering price and Class J and Class J-2 shares up to 2.0% of the transaction price. If a dealer manager is engaged, it may also charge upfront dealer manager fees, provided that total fees do not exceed the stated maximums per share class. No upfront selling commissions, dealer manager fees, or similar placement fees are paid with respect to purchases of Class I or Class E shares, or shares of any class acquired pursuant to the Company’s distribution reinvestment plan.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

For the three and nine months ended September 30, 2026, certain Class J shareholders were charged $0.1 million and $0.9 million of selling commissions, respectively. These selling commissions were borne by the applicable shareholders and were not expenses of the Company; accordingly, they are not reflected in the Company’s consolidated financial statements.

Management Fee

Class S, Class T, Class D, Class I, Class J and Class J-2 shares will pay a management fee equal to 1.25% of NAV per annum (less any Shareholder Servicing Fees), payable monthly in arrears. The payment of a management fee to the Adviser for the Class E shareholders will be waived by the Adviser; provided that the Adviser may, in its discretion, reinstate management fees of any Class E shareholder who is no longer an employee, officer or director at the Sponsor or its affiliates.

Any management fee is calculated and paid to the Adviser on a class-by-class basis, based on the NAV of each applicable class of the Company’s shares. In calculating the Adviser’s management fee, the Company will use the NAV before giving effect to accruals for the management fee, performance fee, Shareholder Servicing Fees payable to a dealer manager, if any, or distributions payable on the Company’s shares.

All or a portion of the management fee may be paid, at the Adviser’s election, in cash or Class E shares. The Adviser may elect to receive Class E shares primarily for the Company’s cash management purposes and alignment of interest, but may have its shares repurchased from time to time. For the three and nine months ended September 30, 2026, the Adviser elected to receive $212.3 thousand and $432.9 thousand, respectively, in Class E shares.

For the three and nine months ended September 30, 2026, the Company incurred approximately $236.7 thousand and $564.5 thousand, respectively, of management fees, which are recorded in management fees on the consolidated statements of operations.

Shareholder Servicing Fees

The Company pays Shareholder Servicing Fees with respect to certain classes of its common shares at annual rates of 0.85% for Class S and Class T, 0.25% for Class D, and up to 0.625% for Class J and Class J-2, based on the NAV of the applicable shares. Fees attributable to Class J and Class J-2 are capped at 50% of the aggregate management and shareholder servicing fees for those classes and reduce the management fees otherwise payable to the Adviser on a dollar-for-dollar basis. Class I and Class E are not subject to Shareholder Servicing Fees.

For the three and nine months ended September 30, 2026, the Company incurred approximately $236.7 thousand and $564.5 thousand, respectively, of Shareholder Servicing Fees, which are recorded as a reduction of shareholders’ equity, on the consolidated statements of changes in shareholders’ equity.

Performance Fee — Pursuant to the terms of the Advisory Agreement, the Adviser became entitled to earn a performance fee upon the effectiveness of the Company's Registration Statement on Form 10. The performance fee is accrued monthly and payable quarterly (or part thereof that the Advisory Agreement is in effect) in arrears. The performance fee is an amount, not less than zero, equal to 12.5% of Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on adjusted capital (as defined below), equal to 1.25% per quarter (the “hurdle rate”), or an annualized hurdle rate of 5.0%. As a result, the Adviser does not earn a performance fee for any quarter until Core Earnings for such quarter exceeds the hurdle rate of 1.25%.

Once Core Earnings in any quarter exceeds the hurdle rate, the Adviser shall be entitled to a “catch-up” fee equal to the amount of Core Earnings in excess of the hurdle rate, until Core Earnings for such quarter exceeds a percentage of adjusted capital equal to the hurdle rate divided by 0.875 (or 1 minus 0.125) for such quarter (i.e., approximately 1.429% quarterly, or 5.714% annually, of adjusted capital). Thereafter, the Adviser is entitled to receive 12.5% of Core Earnings.

The performance fee may be paid, at the Adviser’s election, in cash or Class E shares, or any combination thereof. Following the effectiveness of the Company's Registration Statement on Form 10, the payment of the performance fee to the Adviser for the holders of Class J shares and Class E shares was waived by the Adviser.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

For purposes of the performance fee, “adjusted capital” means cumulative net proceeds generated from sales of the Company’s Class S, Class T, Class D, Class I and Class J-2 shares (including proceeds from the distribution reinvestment plan) reduced for distributions from non-liquidating dispositions of the Company’s investments paid to the Company’s Class S, Class T, Class D, Class I and Class J-2 shareholders and amounts paid to the Company’s Class S, Class T, Class D, Class I and Class J-2 shareholders for share repurchases pursuant to the Company’s share repurchase plan.

Because the performance fee is calculated based on Core Earnings, the Adviser may be entitled to a performance fee even if shareholders experience a decline in NAV per share in the relevant month.

For purposes of calculating the performance fee, “Core Earnings” means: the net income (loss) attributable to holders of the Company’s Class S, Class T, Class D, Class I and Class J-2 shares, computed in accordance with GAAP, including realized gains (losses) not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) the performance fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, (v) one-time events pursuant to changes in GAAP and (vi) certain non-cash adjustments and certain material non-cash income or expense items, in each case after discussions between the Adviser and the Company’s independent trustees and approved by a majority of the Company’s independent trustees.

For the three and nine months ended September 30, 2026, no performance fees were earned.

Adviser Authority Over Derivative Trading — In connection with the Company’s futures trading program, the Company appointed the Adviser as its advisor and attorney-in-fact with full trading authority over the Company’s exchange-traded futures account. The Adviser is a registered commodity trading advisor or operates pursuant to an available exemption.

Acquisition Expense Reimbursement — The Company reimburses the Adviser for out-of-pocket expenses in connection with the selection, acquisition, origination, financing and management of investments, whether or not such investments are made. The reimbursements may be paid, at the Adviser’s election, in cash or Class E shares, or any combination thereof.

For the three and nine months ended September 30, 2026, no acquisition expenses were reimbursed.

Fees or Reimbursements for Other Services — The Sponsor or its affiliated service providers may be retained to provide services to the Company or entities through which investments are held by the Company that would otherwise be performed for the Company or such entities by third parties. Any fees, compensation and costs payable to the affiliated service providers in connection with services provided by such affiliated service providers that (i) do not exceed market rates, as determined by the Adviser to be appropriate under the circumstances or (ii) are approved by a majority of the Company's trustees, including a majority of the Company's independent trustees, will not offset or otherwise reduce the management fee or otherwise be shared with the Company.

For the three and nine months ended September 30, 2026, $0.9 million and $1.8 million, respectively, of expenses were reimbursed to the Adviser and affiliates of the Adviser.

Trustee Compensation — The Company compensates each of its independent trustees with an annual retainer of $130.0 thousand, consisting of $65.0 thousand paid in equal $16.3 thousand quarterly installments in cash or vested Class E shares, or a combination thereof, at the election of the trustee, and $65.0 thousand in the form of an annual grant of restricted Class E shares, which will generally be scheduled to vest one year from the date of grant, subject to the trustee’s continued service through the vesting date. Additionally, the Chair of the Audit Committee receives an additional annual retainer of $15.0 thousand, and the other members of the Audit Committee receive an additional annual retainer of $10.0 thousand, in each case paid in equal quarterly installments in cash or vested Class E shares, or a combination thereof, at the election of the Audit Committee member. The Company does not pay its trustees additional fees for attending Board or committee meetings, but it reimburses each of its trustees for reasonable out-of-pocket expenses incurred in attending Board and committee meetings. The Company's trustees who are affiliated with the Adviser do not receive additional compensation for serving on the Company's Board or committees thereof.

The Company's Board has adopted the Rithm Perpetual Life Residential Trust Independent Trustee Compensation Plan (the “Trustee Plan”), which governs the payment of annual retainers and equity awards to its independent trustees. The Trustee Plan includes an initial share authorization of 500,000 Class E shares and provides for equity awards in the form of restricted share awards. The Company's Board serves as the administrator of the Trustee Plan.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

On December 1, 2025, as a portion of the annual compensation of the independent trustees, the Company granted each independent trustee an award of 3,250 restricted Class E shares (9,750 shares in aggregate), with a total grant date fair value of $65.0 thousand ($195.0 thousand in aggregate). The awards are scheduled to vest on the one-year anniversary of the grant date.

For the three and nine months ended September 30, 2026, $106.3 thousand and $318.8 thousand, respectively, of Trustee compensation has been recognized.

11. DEPENDENCE ON EXTERNAL ADVISER

The Company is dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company’s common shares, acquisition and disposition decisions and certain other responsibilities. In the event that the Adviser and/or its affiliates are unable or unwilling to provide such services, the Company would be required to find alternative service providers.

12. COMMITMENTS AND CONTINGENCIES

Litigation — The Company is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. The Company is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible.

The Company is, from time to time, subject to inquiries by government entities. The Company currently does not believe any of these inquiries would result in a material adverse effect on the Company’s business.

Indemnifications — In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on its experience, the Company expects the risk of material loss to be remote.

Capital Commitments — As of September 30, 2026, the Company had outstanding capital commitments related to investments in the following investment types:

•Residential Transition Loans — As of September 30, 2026, the Company had commitments to fund additional advances on existing loans up to $219.1 million. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before the Company funds the commitments.

13. SEGMENT REPORTING

The Company operates through one operating and reportable segment. The Company’s chief operating decision makers (“CODMs”) are its Chief Executive Officer and Chief Financial Officer. The Company concluded that it has a single operating segment, as this reflects how the CODMs allocate resources and assess performance under the Company's “one-firm approach,” which includes operating collaboratively across products with a single expense pool. Net income (loss) is the primary measure of segment operating performance used by the CODMs to evaluate segment results. The Company’s, and therefore the single segment’s, primary source of revenues is interest income generated from the investments in loans. The Company generates all of its revenues in the United States. The significant expense categories that are regularly reviewed by the CODMs are presented in the Company’s consolidated statements of operations and include interest expense.

14. SUBSEQUENT EVENTS

These financial statements include a discussion of material events that have occurred subsequent to September 30, 2026 through the issuance of these financial statements. Events subsequent to that date have not been considered in these financial statements.


RITHM PERPETUAL LIFE RESIDENTIAL TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Capital Raise Activity

Since October 1, 2026, the Company issued the following shares, including shares issued under the Company's distribution reinvestment plan:


	Number of Shares Issued	Gross Proceeds
Class J Shares	188,874	$	3,805
Class E Shares	8,258	168
Total	197,132	$	3,973

Distributions

Since October 1, 2026, the Company declared the following distributions per share:

Declaration Date

Record Date

Class J Shares

Class E Shares

Payment Date

October 30, 2026

0.1700

November 20, 2026

Entry into Amendment No. 1 to the Advisory Agreement

On November 9, 2026, the Company and the Adviser entered into Amendment No. 1 (the “Amendment”) to the Advisory Agreement to extend the period during which the Adviser is required to advance Organization and Offering Expenses (as defined in the Advisory Agreement), thereby deferring the commencement of the Company’s reimbursement of those expenses. As amended, this period continues through the later of (i) the date on which the Company’s aggregate NAV is at least $200.0 million and (ii) December 1, 2027, the second anniversary of the date on which the Company first calculated NAV. The Company does not currently anticipate additional advances of such expenses during the extension period. Previously advanced expenses will remain reimbursable in 60 equal monthly installments following the end of the advancement period. All other terms of the Advisory Agreement remain unchanged.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed under Part I, Item 1A. “Risk Factors” in the 2025 Form 10-K.

OVERVIEW

We are a Maryland statutory trust formed on July 31, 2025. We are externally managed by the Adviser, an affiliate of the Sponsor. Our investment strategy is to invest primarily in North America in asset-based finance opportunities. We are initially focusing on RTLs and NQMs and may also invest across a range of other assets and investment types, including, but not limited to, investments in new origination loans, including scratch-and-dent loans, non-performing loans and reperforming loans, closed-end second loans, manufactured housing loans, synthetic and/or credit risk transfers, consumer loans, equity and other securities, including collateralized loan obligation securities and other collateralized products, and other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the Investment Company Act of 1940, as amended, and the rules thereunder. Such investments may take the form of debt securities, warrants, options, other derivative instruments and other asset types, including equity-linked securities and, on an opportunistic basis, equity securities.

Our primary investment objectives are to:

•provide shareholders current income in the form of regular, stable cash distributions;

•preserve and protect invested capital, by focusing on high quality real assets with an emphasis on current cash flow;

•aim to capture yield and/or capital appreciation while managing downside risk by acquiring assets where downside protection is the asset itself;

•mitigate downside risk through appropriate loan to value ratios with meaningful borrower equity; and

•provide a diversified investment alternative for shareholders seeking to allocate a portion of their long-term investment portfolios to credit-focused real estate assets with lower volatility than listed public real estate companies.

We may not achieve our investment objectives. See Part I, Item 1A. “Risk Factors” in the 2025 Form 10-K.

We are structured as a privately placed, non-listed, perpetual-life REIT, and therefore our securities are not listed on a national securities exchange and, as of the date of this Form 10-Q, there is no plan to list our securities on a national securities exchange. We are organized as a holding company and conduct our business primarily through our subsidiaries. We elected to be taxable as a REIT under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2025.

As such, we are generally not subject to U.S. federal corporate income tax on that portion of our REIT taxable income that is distributed to shareholders if we distribute at least 90% of our REIT taxable income to our shareholders by prescribed dates and comply with various other requirements.

Our Board at all times has oversight responsibility for governance, financial controls, compliance and disclosure with respect to us. Pursuant to the Advisory Agreement, we have delegated to the Adviser the authority to source, evaluate and monitor our investment opportunities and make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our Board. However, the Adviser is at all times subject to supervision, direction and management through our Board and will have only such functions and authority as our Board delegates to it.

We are not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting real estate generally, that may be reasonably anticipated to have a material impact on either capital resources or the revenues or income to be derived from investments in our target assets, other than those referred to in the 2025 Form 10-K under Part I, Item 1A. “Risk Factors.”

Q3 2026 HIGHLIGHTS

Fundraising

•In connection with our private offering of our common shares (the “Private Offering”) pursuant to the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the “Securities Act”), the Company sold an aggregate of 926,361 common shares (the “Shares”) for aggregate consideration of approximately $18.8 million (inclusive of upfront selling commissions of $0.1 million) during the three months ended September 30, 2026. The offer and sale of the Shares were exempt from the registration provisions of the Securities Act by virtue of Section 4(a)(2) and Rule 506 of Regulation D promulgated thereunder. The 926,361 common shares consisted of 926,361 Class J common shares, par value $0.01 per share (the “Class J shares”), sold for an aggregate consideration of approximately $18.8 million (inclusive of upfront selling commissions of $0.1 million). No Class E common shares, par value $0.01 per share (the “Class E shares”), were sold during the quarter.

Distributions

•Declared monthly net distributions totaling $4.0 million for the three months ended September 30, 2026.

Investments

•The Company acquired $66.8 million of RTLs, including $0.4 million of accrued interest during the three months ended September 30, 2026. The acquisition of the RTLs was financed with borrowings of $46.9 million. In addition, the Company funded $45.8 million of draws and received $44.2 million of paydowns.

•The Company acquired $27.4 million of NQMs, including $0.2 million of accrued interest during the three months ended September 30, 2026. The acquisition of the NQMs was financed with borrowings of $21.8 million. In addition, the Company received $10.0 million of paydowns.

INVESTMENT PORTFOLIO

Summary of Portfolio

The following table summarizes RTLs, at fair value on the consolidated balance sheets by loan type (dollars in thousands):


	September 30, 2026
	Carrying Value		% of Carrying Value		Loan Count	% of Loan Count		Weighted Average Asset Yield		Weighted Average Original Life (Months)	Weighted Average Loan Balance to Value/After Repair Value(1)
Construction	$	206,040	45.8	%	73	35.6	%	7.7	%	12	64.0	%
Bridge	175,319		39.1	%	69	33.7	%	8.0	%	10	62.2	%
Renovation	67,572		15.1	%	63	30.7	%	7.8	%	9	68.1	%
	$	448,931	100.0	%	205	100.0	%	7.8	%	11	63.9	%

(1)Bridge loans use weighted average loan balance to value. Construction and renovation loans use weighted average loan balance to after repair value.

The following table summarizes residential mortgage loans, at fair value on the consolidated balance sheets (dollars in thousands):


	Carrying Value		Loan Count	Weighted Average Yield		Weighted Average Life (Years)	Weighted Average Loan Balance to Value
September 30, 2026	$	214,359	484	6.3	%	8.6	72.1	%

RESULTS OF OPERATIONS

The following table summarizes the changes in our results of operations for the three months ended September 30, 2026 compared to the three months ended June 30, 2026. The Company was formed on July 31, 2025, with operations commencing concurrently with the initial closing of our Private Offering on December 1, 2025. Therefore, there were no meaningful operations during the three months ended September 30, 2025. Our results of operations are not necessarily indicative of our future performance.




	Three Months Ended
(dollars in thousands)	September 30, 2026		June 30, 2026		QoQ Change
Revenues
Interest income	$	13,410	$	11,239	$	2,171
Total Revenues	13,410		11,239		2,171
Expenses
Interest expense	(7,113)		(5,932)		(1,181)
General and administrative expenses	(770)		(1,617)		847

Management fees	(237)		(198)		(39)
Financing and other fees	(282)		(199)		(83)
Total Expenses	(8,402)		(7,946)		(456)
Other Income (Loss)
Realized and unrealized gain (loss) on residential transition loans, at fair value	693		(85)		778
Realized and unrealized loss on residential mortgage loans, at fair value	(2,325)		(506)		(1,819)
Realized and unrealized gain on derivatives	1,103		—		1,103
Total Other Income (Loss)	(529)		(591)		62
Net Income and Comprehensive Income	$	4,479	$	2,702	$	1,777

Interest Income

Interest income was $13.4 million for the three months ended September 30, 2026, an increase of $2.2 million, compared to $11.2 million for the three months ended June 30, 2026. The increase was primarily driven by additional investments in RTLs and NQMs, which resulted in higher interest income.

Interest Expense

Interest expense was $7.1 million for the three months ended September 30, 2026, an increase of $1.2 million, as compared to $5.9 million for the three months ended June 30, 2026. The increase was primarily driven by increased borrowings on secured financings in connection with additional investments in RTLs and NQMs, along with increasing floating rate interest rates.

General and Administrative Expenses

General and administrative expenses were $0.8 million for the three months ended September 30, 2026, a decrease of $0.8 million, as compared to $1.6 million for the three months ended June 30, 2026. The decrease was primarily attributable to the Adviser’s election not to seek reimbursement for a portion of overhead expenses.

Realized and unrealized loss on residential mortgage loans, at fair value

Realized and unrealized loss on residential mortgage loans, at fair value was $2.3 million for the three months ended September 30, 2026, a decrease of $1.8 million, as compared to $0.5 million for the three months ended June 30, 2026. The decrease was primarily attributable to higher interest rates, which negatively affected the fair value of the Company’s residential mortgage loans.

Unrealized Gain on Derivatives

We recognized a gain of $1.1 million on derivative instruments for the three months ended September 30, 2026. The entire amount is unrealized. The gain resulted primarily from an increase in market interest rates over that period.

NAV AND NAV PER SHARE CALCULATION

Our net asset value (“NAV”) per share is calculated for each of our share classes by our fund administrator, HedgeServ Corporation (our “fund administrator”). Our Board, including a majority of our independent trustees, may replace our fund administrator with another party, including the Adviser, if it is deemed appropriate to do so. The Adviser is responsible for reviewing and confirming our NAV per share and overseeing the process around the calculation of our NAV per share, in each case, as calculated by our fund administrator.

Each class of our common shares will have an undivided interest in our assets and liabilities, other than class-specific shareholder servicing fees, management fees and performance fees. In accordance with the valuation guidelines, and based on the NAV determined by the Adviser, our fund administrator will calculate our NAV per share for each class as of the last calendar day of each month. Because Shareholder Servicing Fees, management fees and performance fees allocable to a specific class of shares will only be included in the NAV calculation for that class, the NAV per share for our classes of shares may differ.

The monthly NAV for each class of shares is based on the NAVs of our investments, the addition of any other assets (such as cash on hand) and the deduction of any other liabilities (including accrued performance fees and the deduction of any shareholder servicing fees specifically applicable to such class of shares). Shareholder servicing fees (“Shareholder Servicing Fees”) represent ongoing fees paid in connection with the distribution of certain classes of the Company's shares and related shareholder services. These fees are calculated based on the NAV of the applicable shares, recognized as incurred and payable monthly in arrears. Shareholder Servicing Fees are charged to shareholders' equity as a reduction of additional paid-in capital on the consolidated statements of changes in shareholders' equity. At the end of each month, before taking into consideration repurchases or class-specific expense accruals for that month, any change in our aggregate NAV (whether an increase or decrease) is allocated among each class of shares based on each class’s relative percentage of the previous aggregate NAV plus issuances of shares that were effective on the first calendar day of such month. The NAV calculation is available generally within 15 calendar days after the end of the applicable month. Changes in monthly NAV may include, without limitation, accruals of our net portfolio income, interest expense, the management fee, the performance fee, distributions, unrealized/realized gains and losses on assets, any applicable organization and offering expenses and any expense reimbursements. Changes in monthly NAV may also include material non-recurring events occurring during the month. On an ongoing basis, the Adviser will adjust the accruals to reflect actual operating results and the outstanding receivable, payable and other account balances resulting from the accumulation of monthly accruals for which financial information is available.

The operating costs and expenses and organizational and offering expenses which are advanced by the Adviser to be reimbursed by us will not be included in such calculations until reimbursed to the Adviser.

The Adviser advances all our organization and offering expenses incurred through the later of (i) the date that our aggregate NAV is at least $200 million and (ii) the second/ anniversary of the date on which we first calculate NAV, which is December 1, 2027, and the Adviser has agreed to advance certain of our operating costs and expenses through December 1, 2026. We will reimburse the Adviser for all such advanced costs and expenses ratably over the 60 months following the end of such advancements. For purposes of calculating our NAV, the organization and offering expenses and operating costs and expenses advanced by the Adviser will not be deducted as an expense until reimbursed by us (however such expenses may be amortized in order to mitigate these effects). After the end of such advancements, we will reimburse the Adviser for any organization and offering expenses and operating costs and expenses it incurs on behalf of us as and when incurred.

Following the aggregation of the NAVs of our investments, the addition of any other assets (such as cash on hand) and the deduction of any other liabilities (in each case, as calculated by the Adviser), our fund administrator incorporates any class-specific adjustments to NAV, including additional issuances and repurchases of shares and accruals of class-specific management fees, performance fees and Shareholder Servicing Fees. The declaration of distributions will reduce the NAV for each class of our shares in an amount equal to the accrual of our liability to pay any such distribution to our shareholders of record of each class. NAV per share for each class of shares is calculated by dividing such class’s NAV at the end of each month by the number of shares outstanding for that class at the end of such month.

The following table provides a breakdown of the major components of our total NAV, a non-GAAP measure, as of September 30, 2026 (amounts in thousands):


Components of NAV	September 30, 2026
Residential transition loans, at fair value	$	448,931
Residential mortgage loans, at fair value	214,359
Cash and cash equivalents	4,783
Restricted cash	5,681
Accounts receivable and other assets	6,094
Derivative assets, at fair value	1,103
Secured financings, at fair value	(512,944)
Due to related parties	(604)
Accounts payable and other liabilities	(2,663)
NAV	$	164,740

The following table reconciles generally accepted accounting principles (“GAAP”) shareholders’ equity per our consolidated balance sheet to our NAV as of September 30, 2026 (amounts in thousands):


	September 30, 2026
Shareholders’ equity	$	159,965
Adjustments:
Prepaid share-based compensation	33
Organization expenses advanced by Adviser(1)	2,741
Operating expenses advanced by Adviser(2)	2,001
NAV	$	164,740

(1)This represents the unamortized amount of organization expenses and offering costs advanced by the Adviser. The Adviser had agreed to advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and Shareholder Servicing Fees) through the later of (i) the date that our aggregate NAV is at least $200.0 million and (ii) the second anniversary of the date on which we first calculate NAV, which is December 1, 2027. The Company will reimburse the Adviser for all such advanced expenses ratably over the 60 months following the date on which the Adviser stops advancing organization and offering expenses per the prior sentence. Thereafter, the Company will reimburse the Adviser for any organization and offering expenses as and when incurred.

(2)This represents the unamortized amount of operating expenses advanced by the Adviser. The Adviser had agreed to advance operating expenses on behalf of the Company through the earlier of (i) the date that our aggregate NAV is at least $200.0 million and (ii) the first anniversary of the date on which we first calculate NAV, which is December 1, 2026. Operating expenses incurred after the first anniversary of the initial closing of our Private Offering will be paid by the Company and deducted as an expense for NAV as incurred.

The following table provides a breakdown of our total NAV and NAV per share by class, both non-GAAP measures, as of September 30, 2026 (amounts in thousands, except share and per share data):


NAV per share	Class J Shares		Class E Shares		Total
NAV	$	156,691	$	8,049	$	164,740
Number of outstanding shares	7,777,301		395,936		8,173,237
NAV per share	$	20.1472	$	20.3299

DISTRIBUTIONS

Beginning in January 2026, we have declared monthly distributions for each class with outstanding common shares, which have generally been paid 20 days after month-end. Each class of our common shares received the same aggregate net distribution of $1.5300 per share for the nine months ended September 30, 2026.

The following table details the total net distributions for each of our share classes through September 30, 2026:


Record Date	Class J		Class E
January 30, 2026	$	0.1700	$	0.1700
February 27, 2026	0.1700		0.1700
March 31, 2026	0.1700		0.1700
April 30, 2026	0.1700		0.1700
May 29, 2026	0.1700		0.1700
June 30, 2026	0.1700		0.1700
July 31, 2026	0.1700		0.1700
August 31, 2026	0.1700		0.1700
September 30, 2026	0.1700		0.1700
Total	$	1.5300	$	1.5300

The following table summarizes our distributions declared for the nine months ended September 30, 2026 (amounts in thousands):


	Nine Months Ended September 30, 2026
Distributions:	Amount		Percentage
Payable in cash	$	5,497	57	%
Reinvestable in shares	4,087		43	%
Total Distributions	$	9,584	100	%

Sources of Distributions:
Cash flows from operating activities	$	9,455	99	%
Interest receivable	129		1	%
Total Sources of Distributions	$	9,584	100	%

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

We believe we have sufficient liquidity to operate our business, with $4.8 million of immediate liquidity as of September 30, 2026, which is comprised of cash and cash equivalents. Aside from cash flows from operations, we obtain incremental liquidity through the sale of our common shares.

We expect to generate cash primarily from (i) the net proceeds of our continuous Private Offering, (ii) cash flows from our operations, (iii) existing borrowing facilities and any financing arrangements we may enter into in the future and (iv) any future offerings of our equity or debt securities. We may also generate incremental liquidity through the sale of our loan investment assets.

Our primary uses of cash will be for (i) the acquisition of our target assets in accordance with our investment guidelines or ongoing advances related to those initial acquisitions, (ii) the cost of operations (including the management fee and performance fee), (iii) debt service of any borrowings, (iv) periodic repurchases, including under our share repurchase plan, and (v) cash distributions (if any) to the holders of our shares to the extent authorized and declared.

Capital Resources

Repurchase Agreement Facilities

On November 24, 2025, the Company entered into the Master Repurchase Agreement (the “RTL-C Repurchase Agreement”) with Churchill MRA Funding I LLC (“Churchill”), to finance the purchase of RTLs and similar loans as more particularly described in the RTL-C Repurchase Agreement. The RTL-C Repurchase Agreement provides for up to $500.0 million of financing capacity (the “RTL-C Facility”).

Advances under the RTL-C Repurchase Agreement accrue interest at a per annum rate based on term Secured Overnight Financing Rate (“Term SOFR”) plus a pricing spread (as defined in the RTL-C Repurchase Agreement). The maturity date of

the RTL-C Facility is any date on which the Funding Period (as defined in the RTL-C Repurchase Agreement) has expired and no transactions are then outstanding or six months after the date on which the Funding Period has expired. Churchill may end the Funding Period on 180 days’ notice.

In connection with the RTL-C Repurchase Agreement, the Company provided a Guaranty (the “RTL-C Guaranty”), under which the Company provides guarantees for losses for certain “bad acts.” The RTL-C Guaranty may become full recourse to the Company upon the occurrence of certain events as described in the RTL-C Guaranty.

On November 24, 2025, the Company entered into the Master Repurchase Agreement (the “TRS-W Repurchase Agreement”) with Wells Fargo Bank, National Association, to finance the purchase of RTLs and NQMs as more particularly described in the TRS-W Repurchase Agreement. The TRS-W Repurchase Agreement provides for up to $500.0 million of financing capacity (the “TRS-W Facility”).

Advances under the TRS-W Repurchase Agreement accrue interest at a per annum rate based on an index approximating the behavior of Term SOFR plus a pricing spread (as defined in the TRS-W Repurchase Agreement). The maturity date of the TRS-W Facility is November 24, 2028.

In connection with the TRS-W Repurchase Agreement, the Company provided a Guaranty (the “TRS-W Guaranty”), under which the Company provides guarantees for losses for certain “bad acts.” The TRS-W Guaranty may become full recourse to the Company upon the occurrence of certain events as described in the TRS-W Guaranty.

The RTL-C Repurchase Agreement, TRS-W Repurchase Agreement, RTL-C Guaranty and TRS-W Guaranty contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type.

As of September 30, 2026, we had outstanding indebtedness of $512.9 million, all of which was incurred under the RTL-C Facility, TRS-W Facility and Margin Finance Facility.

CASH FLOWS

The following table provides a breakdown of the net change in our cash and cash equivalents and restricted cash:


	Nine Months Ended September 30,		For the Period of July 31, 2025 (date of formation) through September 30,
	2026		2025
Beginning of period — cash and cash equivalents and restricted cash	$	7,645	$	—

Cash flows provided by operating activities	9,455		—(1)
Cash flows used in investing activities	(407,960)		—
Cash flows provided by financing activities	401,324		2
Net Increase in Cash and Cash Equivalents and Restricted Cash	2,819		2

End of Period — Cash and Cash Equivalents and Restricted Cash	$	10,464	$	2

(1)Amount is presented as zero as it is less than $1 thousand.

Operating Activities

Cash flows provided by operating activities were $9.5 million and were primarily driven by interest income from our investments in RTLs and NQMs.

Investing Activities

Cash flows used in investing activities were $408.0 million and were related to purchases of RTLs and NQMs.

Financing Activities

Cash flows provided by financing activities were $401.3 million and were related to borrowings under our secured financings of $421.1 million and new subscriptions for common shares of $100.2 million, partially offset by $115.2 million of secured financing repayments and $4.7 million of cash distributions.

RECENT ACCOUNTING DEVELOPMENTS

See Note 2 of our consolidated financial statements in this Quarterly Report on Form 10-Q.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting estimates are those that require us to make significant judgments, estimates or assumptions that affect amounts reported in our financial statements or the notes thereto. We base our judgments, estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable and prudent. Actual results may differ materially from these estimates. Our critical accounting estimates are described in the Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Form 10-K. There have been no material changes to those estimates during the nine months ended September 30, 2026. See Note 2 to our consolidated financial statements included in this report for a description of our accounting policies.

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 2026, the Company had commitments to fund additional advances on existing RTL loans up to $219.1 million.

INTEREST RATE RISK MANAGEMENT

We finance a substantial portion of our loan portfolio with floating-rate secured financings that bear interest at a spread over SOFR. An increase in short-term interest rates increases our interest expense on those financings and, to the extent not offset by increases in income on our investments or gains on our economic hedging instruments, may reduce or adversely affect our net interest income and our net asset value.

To hedge a portion of that exposure, we have entered into short positions in exchange-traded interest rate futures that provide economic exposure equivalent to paying a fixed rate and receiving a floating rate indexed to SOFR. As of September 30, 2026, we held three-year Eris SOFR swap futures contracts with an aggregate notional amount of $203.0 million, or approximately 40% of the $512.9 million of floating-rate secured financings outstanding on that date. Increases in SOFR that raise our interest expense on our floating-rate secured financings are expected to be offset in part by gains on the futures positions, and decreases in SOFR that lower our interest expense are expected to be offset in part by losses on the positions.

The contracts mature in September 2029 and December 2029, with a weighted average remaining term of 38 months as of September 30, 2026. We expect to continue to hold the positions against our floating-rate secured financings as those financings are repaid, refinanced or replaced. To the extent our floating-rate borrowings decline below the notional amount of the positions, a portion of the positions would no longer correspond to an underlying borrowing.

Effect on Reported Results — Our derivative instruments are economic hedges that are not designated as hedges for accounting purposes. As a result, gains and losses in the fair value of the position are recognized in our results of operations in the period in which they occur, while the interest expense the positions are intended to offset is recognized over the terms of our floating-rate secured financings as the interest expense accrues. Our reported results in any period will therefore reflect the full effect of changes in interest rates on the futures position without a corresponding offset in the same period and may be more volatile than our underlying economic exposure. This effect reverses over the life of the positions and the related financings.

Risks Not Addressed by the Positions — The positions hedge a portion of the interest rate risk on our floating-rate secured financings. They do not manage credit spread risk on our loan investments, changes in the fair value of our loans resulting from changes in interest rates, prepayment risk or the risk that the credit spread over SOFR on our financings increases. They are also subject to basis risk to the extent the index or tenor of the positions does not correspond exactly to the index or repricing of those financings. The positions are also subject to initial margin requirements, which may increase on short notice and require us to post additional cash. Margin we post is collateral and does not settle our positions, which settle in cash only when closed.

SUBSEQUENT EVENT HIGHLIGHTS

Capital Raise Activity

Since October 1, 2026 through the date of this Quarterly Report on Form 10-Q, the Company issued the following shares, including shares issued under the Company's distribution reinvestment plan (amounts in thousands except share data):


	Number of Shares Issued	Gross Proceeds
Class J Shares	188,874	$	3,805
Class E Shares	8,258	168
Total	197,132	$	3,973

Distributions

Since October 1, 2026 through the date of this Quarterly Report on Form 10-Q, the Company declared the following distributions per share:

Declaration Date

Record Date

Class J Shares

Class E Shares

Payment Date

October 30, 2026

0.1700

November 20, 2026

Entry into Amendment No. 1 to the Advisory Agreement

On November 9, 2026, the Company and the Adviser entered into the Amendment to the Advisory Agreement to extend the period during which the Adviser is required to advance Organization and Offering Expenses (as defined in the Advisory Agreement), thereby deferring the commencement of the Company’s reimbursement of those expenses. As amended, this period continues through the later of (i) the date on which the Company’s aggregate NAV is at least $200.0 million and (ii) December 1, 2027, the second anniversary of the date on which the Company first calculated NAV. The Company does not currently anticipate additional advances of such expenses during the extension period. Previously advanced expenses will remain reimbursable in 60 equal monthly installments following the end of the advancement period. All other terms of the Advisory Agreement remain unchanged.

The description above is qualified in its entirety by reference to the copy of the Amendment, which is filed as Exhibit 10.1 to this quarterly report on Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we are not required to provide the information required under this item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. The Company’s disclosure controls and procedures are designed to provide reasonable assurance that information is recorded, processed, summarized and reported accurately and on a timely basis. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the most recent quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Neither we nor the Adviser is currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us or the Adviser. From time to time, we or the Adviser may be a party to certain legal and regulatory proceedings in the ordinary course of business.

ITEM 1A. RISK FACTORS

For information regarding factors that could affect our results of operations, financial condition and liquidity, see the risk factors discussed in Part I, Item 1A. “Risk Factors” section in the 2025 Form 10-K filed with the Securities and Exchange Commission. For the quarter ended September 30, 2026, there were no material changes to the risk factors disclosed under Part I, Item 1A. “Risk Factors” of our 2025 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

During the three months ended September 30, 2026, we sold equity securities that were not registered under the Securities Act as described below. As described in Note 10, “Related Party Transactions,” to our consolidated financial statements, the Adviser may elect to receive its management fee in cash or Class E shares. During the three months ended September 30, 2026, the Adviser elected to receive its management fees in Class E shares and we issued 10,469 unregistered Class E shares to the Adviser in satisfaction of the management fees totaling $212.3 thousand for the period from May through July 2026. This issuance to the Adviser was made pursuant to Section 4(a)(2) of the Securities Act.

During the three months ended September 30, 2026, the Company issued 926,361 Class J shares and no Class E shares for aggregate net proceeds of approximately $18.8 million (inclusive of upfront selling commissions of $0.1 million). During the three months ended September 30, 2026, the Company issued 81,600 Class J shares and 913 Class E shares for aggregate net proceeds of approximately $1.7 million as part of the distribution reinvestment plan. The offer and sale of these shares were exempt from the registration provisions of the Securities Act, pursuant to Section 4(a)(2) and Regulation D thereunder.

Share Repurchase Plan

Under the Company’s share repurchase plan, shareholders may request on a monthly basis that we repurchase all or any portion of their shares. The Company is not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in the Company’s discretion. In addition, the Company’s ability to fulfill repurchase requests is subject to a number of limitations. As a result, share repurchases may not be available each month. Under the Company’s share repurchase plan, to the extent the Company chooses to repurchase shares in any particular month, it will only repurchase shares as of the opening of the last business day of that month (each such date, a “Repurchase Date”). Notwithstanding the foregoing, shareholders holding Class J shares have agreed not to submit their Class J shares for repurchase until the date that is two years from the date of purchase of the applicable Class J shares.

The repurchase price for repurchases will generally be based on the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be repurchased at 95% of the transaction price, reflecting a 5% deduction from that price (an “Early Repurchase Deduction”). The holding period is measured as of the closing date immediately preceding the prospective Repurchase Date. Subject to our ability to meet the applicable REIT tax requirements, the Early Repurchase Deduction may only be waived in the case of repurchase requests arising from the death or qualified disability of the holder and in other limited circumstances.

The aggregate NAV of total repurchases of common shares will be limited to no more than 2% of the Company’s aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of the Company’s aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter). Shares purchased by the Adviser or its affiliates or issued to such parties in lieu of cash in respect of the management fee, the performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to the Company are not subject to these repurchase limitations.

Further, our Board may make exceptions to, modify or suspend the Company’s share repurchase plan if it deems in its reasonable judgment such action to be in the Company’s best interest (including to make exceptions to the repurchase limitations or Early Repurchase Deduction, or repurchase fewer shares than such repurchase limitations).

During the three months ended September 30, 2026, no common shares were repurchased pursuant to the Company’s share repurchase plan.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) Entry into Amendment No. 1 to the Advisory Agreement

The description above is qualified in its entirety by reference to the copy of the Amendment, which is filed as Exhibit 10.1 to this quarterly report on Form 10-Q.

ITEM 6. EXHIBITS


Exhibit Number						Exhibit Description
3.1						Certificate of Trust of the Company, dated July 28, 2025 (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 10 filed on October 1, 2025 and incorporated by reference herein)
3.2						Amended and Restated Declaration of Trust of the Company, dated as of November 18, 2025 (filed as Exhibit 3.2 to the Company’s Registration Statement on Form 10 filed on November 25, 2025 and incorporated by reference herein)
3.3						Bylaws of the Company (filed as Exhibit 3.3 to the Company’s Registration Statement on Form 10 filed on November 25, 2025 and incorporated by reference herein)
4.1						Distribution Reinvestment Plan of the Company (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 10 filed on November 25, 2025 and incorporated by reference herein)
4.2						Share Repurchase Plan of the Company (filed as Exhibit 4.2 to the Company’s Registration Statement on Form 10 filed on November 25, 2025 and incorporated by reference herein)












10.1*						Amendment No. 1 to the Advisory Agreement between the Company and RCM GA Manager LLC, dated as of November 9, 2026
10.2						Advisory Agreement between the Company and RCM GA Manager LLC, dated as of November 18, 2025 (filed as Exhibit 10.1 to the Company’s Registration Statement on Form 10 filed on November 25, 2025 and incorporated by reference herein)
31.1*						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101						The following information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Changes in Shareholders’ Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)



*			Exhibit filed herewith.
**			Exhibit furnished herewith.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	RITHM PERPETUAL LIFE RESIDENTIAL TRUST
Date: November 10, 2026
	By:	/s/ Michael Nierenberg
	Name: Michael Nierenberg Title: Chief Executive Officer and Co-Chief Investment Officer, Trustee

Date: November 10, 2026
	By:	/s/ Nicola Santoro, Jr.
	Name: Nicola Santoro, Jr. Title: Chief Financial Officer and Chief Accounting Officer