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Ready CapitalADocument history
Earnings documents stored for RC.
Investor releaseQuarter not tagged2026-05-14Ready Capital Q1 Earnings Call Highlights
MarketBeat
Ready Capital Q1 Earnings Call Highlights
Interested in Ready Capital Corp? Here are five stocks we like better. Ready Capital is in the middle of a balance sheet repositioning plan aimed at raising liquidity, cutting leverage, and cleaning up underperforming commercial real estate assets. Year to date, it has generated $1.4 billion in cash, used part of that to retire $184 million of corporate debt, and expects the plan to continue through four quarters. The first quarter was weak, with a GAAP loss of $1.25 per share and book value falling to $7.43 from $8.79 at year-end. Results were pressured by losses on loan sales, higher CECL reserves, and a sharp drop in recurring revenue as net interest income declined. Management is narrowing the business toward middle-market CRE lending and SBA 7(a) loans, while planning further asset sales and runoff. The company expects leverage to stabilize around 2.5x after the repositioning, and total assets to eventually fall closer to $4 billion. Norwegian Cruise Line Cuts Outlook as Headwinds Build Ready Capital (NYSE:RC) said its first-quarter 2026 results reflected continued pressure from a balance sheet repositioning plan aimed at raising liquidity, reducing leverage and addressing underperforming commercial real estate assets. Chief Executive Officer Thomas Capasse said the company has generated $1.4 billion in cash year to date from loan sales and liquidations, allowing it to pay down more than $1.1 billion of warehouse debt and create $270 million of net liquidity. That liquidity was used in part to retire $184 million of corporate debt. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Comparing 3 Cruise Stocks: Which Has the Most Upside in 2026? Capasse said the company’s liquidity plan, first outlined in the fourth quarter of 2025, is expected to span four quarters. Ready Capital began the year with $650 million of corporate debt across four 2026 maturities. It retired a $117 million, 5.75% senior unsecured bond in February and a $67 million, 6.2% senior unsecured bond in April, leaving $450 million of maturities due in the fourth quarter of 2026. “We are continuing to resolve non- and sub-performing positions to reduce earnings drag and facilitate recycling into current market-yielding opportunities,” Capasse said. He added that Ready Capital is moving toward “a lower leverage, more capital-efficient platform” intended to support lo...
Investor releaseQuarter not tagged2026-05-08Ready Capital: Q1 Earnings Snapshot
Associated Press
Ready Capital: Q1 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — Ready Capital Corporation (RC) on Thursday reported a loss of $201.7 million in its first quarter. The New York-based company said it had a loss of $1.25 per share. Losses, adjusted for non-recurring costs, were 33 cents per share. The real estate investment trust posted revenue of $81.7 million in the period. Its adjusted revenue was -$15.1 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on RC at https://www.zacks.com/ap/RC
Investor releaseQuarter not tagged2026-05-08Ready Capital Corporation Reports First Quarter 2026 Results
GlobeNewswire
Ready Capital Corporation Reports First Quarter 2026 Results
NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended March 31, 2026. “Our first quarter results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital’s financials for long-term success,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Year-to-date we have generated $1.4 billion in cash from loan sales and liquidations to facilitate the repayment of $1.1 billion of asset level financing and $184 million of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the Company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses.” Financial Metrics GAAP loss per common share of $(1.25) Distributable loss per common share of $(1.00) Distributable loss per common share before realized losses of $(0.33) Balance Sheet Repositioning Generated $1.4 billion in cash year-to-date from loan sales and portfolio runoff, paying down over $1.1 billion in asset-level financing and retiring $184 million of corporate debt Sold 48 CRE loans totaling $1.0 billion in unpaid principal balance across four transactions (66% performing, 34% non- and sub-performing) for net proceeds after asset-level financing paydowns of $177 million Retired the 5.75% Senior Unsecured Notes in February 2026 and the 6.20% Senior Unsecured Notes in April 2026, reducing remaining 2026 corporate debt maturities to $450 million Collapsed the Company’s last remaining CLOs, RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12 Portfolio & Credit Total loan originations of $464 million, including $288 million of LMM commercial real estate loans, $110 million of Small Business Administration 7(a) loans and...
TranscriptFY2026 Q12026-05-08FY2026 Q1 earnings call transcript
Earnings source - 51 paragraphs
FY2026 Q1 earnings call transcript
Greetings. Welcome to Ready Capital's First Quarter 2026 Earnings Call. At this time, all participants are in listen-only mode. The question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to Andrew Ahlborn, Chief Financial Officer. Thank you. You may now begin.
Thank you, operator, and good morning to those of you on the call. Some of our comments today will be forward-looking statements within the meaning of the Federal Securities laws. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for more detailed discussion of the risks that could impact our future operating results and financial condition. During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance.
These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our first quarter 2026 earnings release and our supplemental information, which can be found in the Investors section of the Ready Capital website. I will now turn it over to Chief Executive Officer, Thomas Capasse.
Thank you, Andrew. Good morning, everyone, and thank you for joining today's call. The first quarter of 2026 represents ongoing progress in our balance sheet repositioning strategy initiated in the fourth quarter of 2025. First, year to date, we have generated $1.4 billion in cash from loan sales and liquidations. These proceeds have facilitated the paydown of over $1.1 billion in warehouse debt and generated $270 million in net liquidity, which was utilized to retire $184 million of corporate debt. Second, we are continuing to resolve non- and sub-performing positions to reduce earnings drag and facilitate recycling into current market-yielding opportunities. Third, we are transitioning the business model toward a lower leverage, more capital-efficient platform that positions the company for long-term sustainable earnings growth.
As we stated in the fourth quarter of 2025, our liquidity plan is projected to span four quarters. We are confident it is the right approach to reset the company's platform for success in the future. We began the year with $650 million of corporate debt across four different 2026 maturities. Given the company's current cost of funds and performance of the legacy portfolio, we made the decision to de-lever the balance sheet with aggressive asset management focused primarily on loan sales. We retired our $117 million, 5.75% senior unsecured bond in February and our $67 million, 6.2% senior unsecured bond in April, leaving $450 million across our fourth quarter 2026 maturities. Year to date, we have generated liquidity from two primary sources.
First, the sale of 48 loans with total unpaid principal balance of approximately $1 billion across four transactions for a net liquidity of $177 million. These sales consisted of 66% performing and 30% non- and sub-performing loans. Second, portfolio runoff of $550 million provided $93 million in net liquidity. As we look forward, our liquidity plan contemplates an incremental $400 million liquidity from the sale and runoff of $2 billion-$2.5 billion of CRE loans and REO assets through year-end. Based on current projections, we believe these remaining actions, along with current liquidity, are sufficient to retire our remaining 2026 maturities and satisfy the future cash flow needs of the business.
Post completion of our liquidity plan and the payment of our fourth quarter debt maturities, we believe that the remaining legacy CRE portfolio will total approximately $2 billion. We anticipate this will include $800 million to $900 million of sub- and non-performing loans and REO assets, which we believe have a better net present value via exit from aggressive asset management strategies versus sale at current market discounts. This sub-portfolio of non- and sub-performing assets has a current quarterly earnings drag of approximately $0.06 per share with cash outflows of $9.3 million per quarter. Furthermore, we expect the anticipated long-term benefits of our repositioning plan will be a reset balance sheet to allow for future earnings growth and a more conservative leverage profile anticipated to stabilize around 2.5x.
Upon the expected second quarter completion of the final CRE loan pool sale contemplated in our liquidity plan, we anticipate the material book value pressure that the company has experienced in the past several quarters will be substantially behind us. We also expect several changes to the business model that we will discuss in greater detail in subsequent quarters. First, we intend to focus our investment activity on allocations to CRE sectors where we see best relative value. We expect average investment size to double relative to our historical average of $17 million. Similarly, we expect that our financing strategy will be more opportunistic and less securitization driven. Each change is intended to help scale the business with a more efficient operational footprint and allow us to be flexible in pursuing market opportunities.
We intend to simplify our business model through increased integration with our external manager, Waterfall Asset Management, and to refocus on two core businesses, middle market CRE debt investing and SBA 7(a) lending. During this period of constrained investing, we can generate fee income in lieu of net interest margin by originating for Waterfall, where we have funded $172 million year to date, and for third parties, including through our new $1 billion flow arrangement. In the future, as we recycle legacy assets to generate liquidity for CRE investing, we expect that a combination of our right-sized CRE operations in concert with allocation from Waterfall's CRE desk will result in a lower operating expense ratio. We intend to increase capital allocation to our small business lending platform, which we expect to represent 20% of the company's capital going forward.
Sequentially, we believe that the high relative ROE of this business will lead to earnings recovery over the period that the legacy CRE portfolio is recycled into new vintage CRE investments. Historically, the small business platform has provided 300 to 500 basis points of core ROE alongside the CRE net interest margin. I would also like to provide an update on two additional items. First, the St. Regis property remains our largest single equity allocation, representing 18% of quarter and stockholders' equity. On the condominiums, we have sold 43 units and have additional four units under contract, which would bring our total sellout to 36% of the 132 total units. The average selling price of the 32 condos sold year to date was $745 per square foot compared to $900 per square foot for all condos sold.
This is a deliberate pricing strategy designed to drive momentum towards a full sellout at higher average prices. The hotel's occupancy increased 5% year-over-year to 46%, marking steady progress towards our 60% target. This increased occupancy, along with a 1% increase in ADR to $482, resulted in a 13% increase in RevPAR to $221. Separately, lower SBA 7 originations in the first quarter reflected the prioritization of capital to debt repayment, limiting new SBA deployment to existing warehouse capacity. We anticipate that will change with the pending launch of our $158 million SBA 7 securitization.
We expect second quarter securitization to generate capacity for $500 million of incremental go-forward volume, resulting in the second half of the year climbing towards historical production levels, which were $1.1 billion in 2024. We continue to take deliberate steps to enhance liquidity and strengthen the platform. Specifically, we have generated 67% of our target liquidity and begun to streamline business lines to reduce operating costs in conjunction with greater integration with our external manager, Waterfall Asset Management. There's certainly more work ahead, but we are encouraged by the progress made to date and remain focused on disciplined execution. With that said, I'll now turn it over to Andrew Ahlborn for a detailed review of the quarterly results.
The first quarter earnings and balance sheet reflect the continued effects of the repositioning plan outlined in Tom's remarks. For the quarter, we reported a GAAP loss from continuing operations of $1.25 per common share. Distributable earnings were a loss of $1.00 per common share and $0.33 per common share excluding realized losses on asset sales. At quarter end, book value per share was $7.43 versus $8.79 at year-end. The change was primarily due to a $0.42 per share loss on loan sales settled in the quarter, a $0.47 per share loss on additional CECL reserves and valuation allowances, and a $0.36 per share loss from operations. The net loss from normal operations was impacted by the following revenue and expense items.
On the revenue side, reoccurring revenue was $16.2 million compared to $41.5 million in the prior quarter. The change is driven by a $28.5 million reduction in net interest income, offset by a $3 million increase in other income. The decline in interest income was primarily impacted by the following items. First, the liquidation of approximately $1.8 billion of loans across the last two quarters resulted in a $16.5 million quarter-over-quarter reduction in net interest income. Second, a $5.4 million reduction in cash receipts on loans currently on nonaccrual, the majority of which was driven by two loans totaling $230 million that are scheduled for second quarter liquidations. Third, the timing delay between liquidation of assets and the preceding paydown of corporate debt.
We expect net interest income to be negative as we move through this transition period, with improvement coming from the continued reduction in nonaccrual loans and REO, the reduction of both asset level and corporate debt financing, and the recycling of capital back into market yields. Over this period, we expect a greater percentage of revenue to come from gain on sale and fee revenue. On the expense side, operating expenses increased $7.8 million quarter-over-quarter to $67.7 million.
The change was primarily due to a $6.7 million increase in non-recurring advance payments made to servicers upon the collapse of our remaining CLOs and a $3.9 million decrease in the tax benefit. Regarding RC's liquidity and capitalization, we remained active in repositioning our liabilities. First quarter activities included collapsing three CLOs totaling $900 million of collateral, the addition of a new $500 million CRE warehouse facility, and the renewal of an additional two facilities. Current total leverage is 3x. We ended the quarter with $200 million of liquidity and $730 million of unencumbered assets. With that, we will open the line for questions.
Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question at this time, please press star one from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. Our first question is from the line of Jade Rahmani with KBW. Please proceed with your questions.
Thank you very much. Where do you expect balance sheet total assets to end after you're done with the, you know, planned asset sales? What size balance sheet do you expect Ready Capital to have?
Andrew, you wanna touch on the pro forma?
Yeah. The total assets, as Tom said in his remark, we expect another $2 billion-$2.5 billion reduction in the loan portfolio. Based on, you know, current total assets of roughly $6.3 billion, we'd expect that number to come down closer to $4 billion.
Okay. Do you have a range of pro forma book value per share you expect the $2 and a half billion further reduction to result in?
Well, we're not providing guidance at this.
Yeah.
Yeah. Go ahead, Andrew.
Yeah. What I would say is, you know, the change in book value between the first quarter and where we end up in the second quarter base is gonna be highly dependent on, you know, how much of that $2.5 billion we end up selling to cover, you know, the remaining liquidity needs to get through the 2026 maturities. There's a little bit of variability based on the execution of those, you know, upcoming trades.
The remaining $800 million to $900 million of subperforming loans, that's not including any of the REO.
That includes
Yes.
That includes the REO portfolio.
Yeah.
Oh, that includes the Portland REO?
That's correct.
Just lastly, in other assets of $466 million, do you have the balance of deferred tax assets and tax receivables? My worry is that there's write-down risk for those assets as the recoverability, in earnings, you know, is reduced, driven by ongoing operating losses and the lack of, you know, earnings to materialize those deferred tax assets.
Yeah. The current deferred tax asset on the balance sheet is a little over $200 million. It's $201.6 million. The tax receivable is $16.7. What I would say is, you know, there is a heavy focus on growing the SBA business. As Tom mentioned, it's really been limited by, you know, the existing warehouse capacity. As that opens up, I would expect that business to return towards, you know, profitability more similar to where we were running in 2024. We do think that deferred tax asset has value, but certainly we are aware of the magnitude.
Yeah. I mean, just to add to Andrew's remarks, there's a clear path forward for earnings recovery and earnings sequentially over a relatively short period of time, you know, led by the SBA small business, which has historically thrown off around 300-500 basis points of ROE. Secondly, there will be Opex reductions consistent with the simplification of the business model. Thirdly, the remaining non-performing assets post the final tranche of the loan sales is a relatively small pool of assets to include the RISC, which is experiencing positive, you know, financial momentum. That is about a two year underlying duration of those assets is probably about a year and a half.
Okay. Thank you very much.
Okay. Thank you. As a reminder, to ask a question, you may press star one from your telephone keypad. The next question is from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.
Hey, guys. I wanna preface just saying that you're skiing down some very difficult terrain, and I gotta give you kudos for navigating this so far. The non-performers for the overall portfolio increased materially quarter-over-quarter. Can you give some color as to why the core CRE portfolio deteriorated?
Yeah. I'll let Dom get into some of the details, but I will say that the to some extent, the legacy book traditional metrics, like 60+, are becoming not irrelevant, but less of a metric on loan quality because when we look to do a sale of assets, if it's subperforming with a, you know, relative, let's say, low single-digit debt yield, we won't, we'll purposely execute asset management strategies which improve the secondary market price of that sale, i.e., not providing additional modifications, et cetera. That creates a roll rate that amplifies the additional impact of the denominator effect, which is the sale of the sale of performing loans. Dom, maybe just touch on that as well.
Sure. Good morning. Just to stress what Tom was referencing, I think the designation with core and non-core as we work through this liquidity strategy is likely to become less relevant. Just to sort of give you some summary information. If you look at Q4 quarter end compared to Q1 quarter end, I think we're up about eight percentage points. As we identify assets for sale to generate liquidity, some of those assets will be and have been performing assets, just keep that in mind. I'd say the breakout of that increase would be a third sort of credit migration with a few assets sort of moving to sort of a workout stage. The majority of that is predominantly situated with sort of a denominator effect as we sell through some of the performing loans.
Okay. I guess, Andrew Ahlborn, what does all of the changing or deteriorating credit metrics and everything else mean for the reserve allowance going forward, and where do you see leverage ratios once this transition is over?
Yeah. We had an additional provision of a little under $71 million in the quarter. You know, as we sell through this remaining portfolio, you know, as Tom mentioned, the amount of loans on the book, and particularly loans that are non- and sub-performing is going to be fairly limited. You know, somewhere between $300 million and $400 million, and only across, you know, 30 or so line items. We have pretty, you know, good line of sight into how those assets are going to perform. You may see, you know, marginal increases in reserving around those.
I think the biggest, you know, change that is or effect that is remaining in the book is just the execution of the sales on the $2 billion-$2.5 billion portfolio. Leverage, you know, we expect to stabilize around 2.5x.
Great. Tom, you mentioned less securitization. Does that mean less 7(a) securitization?
No, I think the SBA securitizations are very liquid, and there's a lot of demand in the ABS market. That was more of a reference to the CRE CLOs with a focus on the single sector, in this case, historically multifamily. 'Cause what's very important to understand is that, you know, kind of the third leg sequentially of the reboot of the earnings is gonna come from recycling of these remaining and it's very finite number of REO and NPL assets that have a negative drag of about two points currently on ROE.
We will, we are integrating our operations, our current origination team, et cetera, with the external manager who has very large investment capacity around a broad array of, you know, CRE sectors, and we look at best relative value along the lines of, you know, becoming sector agnostic. Then to specifically answer your question, many times those transactions are funded with non-recourse bank debt which matches maturity of the underlying loans, which in turn are, you know, probably at most three-year exposure, if you look at the external managers, you know, trailing five-year track record and types of investments.
I think that, but what's important to understand is once you free up equity from an NPLs resolution, which we have finite plans for the small number of line items, that's immediately accretive because we could, rather than building an origination pipeline, we are able to immediately get an allocation of that investment from the external manager, which is immediately accretive. You know, right now they're those investments are running in the low to upper teens, probably in that 14 handle. Anyways, that's just to answer your question, that's how our view is with respect to the positioning of a more, if you will, a more conservative positioning of the liability management relative on a secured basis.
Great. Thank you.
Thank you. At this time, I'll turn the floor back to management for closing comments.
We appreciate everybody's time and focus on this call, and we look forward to the second quarter earnings call, whereas as we continue to execute and complete our liquidity plan.
Thank you. Ladies and gentlemen, you may now disconnect your lines at this time. We thank you for your participation, and have a wonderful day.
Investor releaseQuarter not tagged2026-05-02Ready Capital Corporation Announces First Quarter 2026 Results and Webcast Call
GlobeNewswire
Ready Capital Corporation Announces First Quarter 2026 Results and Webcast Call
NEW YORK, May 01, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (the “Company”) today announced that the Company will release its first quarter 2026 financial results after the New York Stock Exchange closes on Thursday, May 7, 2026. Management will host a webcast and conference call on Friday, May 8, 2026 at 8:30 a.m. Eastern Time to provide a general business update and discuss the financial results for the quarter ended March 31, 2026. Webcast: The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Dial-in: The conference call can be accessed by dialing 877-407-0792 (domestic) or 201-689-8263 (international). Replay: A replay of the call will also be available on the Company’s website approximately two hours after the live call through May 22, 2026. To access the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international). The replay pin number is 13759490. About Ready Capital Corporation Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs over 400 professionals nationwide. Contact Investor Relations Ready Capital Corporation 212-257-4666 [email protected]
Investor releaseQuarter not tagged2026-03-14Ready Capital Corporation Declares First Quarter 2026 Dividends
GlobeNewswire
Ready Capital Corporation Declares First Quarter 2026 Dividends
NEW YORK, March 13, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE:RC) (the “Company”) announced that its Board of Directors declared a quarterly cash dividend of $0.01 per share of common stock and Operating Partnership unit for the quarter ended March 31, 2026. This dividend is payable on April 30, 2026, to shareholders of record as of the close of business on March 31, 2026. Additionally, the Company announced that its Board of Directors declared quarterly cash dividends on its 6.25% Series C Cumulative Convertible Preferred Stock (the “Series C Preferred Stock”), and its 6.50% Series E Cumulative Redeemable Preferred Stock (the “Series E Preferred Stock”). The Company declared a dividend of $0.390625 per share of Series C Preferred Stock payable on April 15, 2026, to Series C Preferred stockholders of record as of the close of business on March 31, 2026. The Company declared a dividend of $0.40625 per share of Series E Preferred Stock payable on April 30, 2026, to Series E Preferred stockholders of record as of the close of business on March 31, 2026. About Ready Capital Corporation Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 450 professionals nationwide. Contact Investor Relations 212-257-4666 [email protected] Media Relations [email protected]
Investor releaseQuarter not tagged2026-03-01Ready Capital Q4 Earnings Call Highlights
MarketBeat
Ready Capital Q4 Earnings Call Highlights
Ready Capital is executing a two‑phase balance‑sheet repositioning to generate more than $850 million of free cash and shrink its legacy CRE book by about 60% to roughly $2 billion, having generated ~$380 million in Q4 and targeting an additional ~$500 million by year‑end via runoff and ~$1.5 billion of loan sales. Q4 financials showed a GAAP loss of $1.46 per share and a distributable loss of $0.43, with book value down to $8.79 from $10.28 after a $173 million increase in valuation allowances and CECL reserves; loans on nonaccrual rose to 27%. Management announced leadership changes, a targeted 25% reduction in operating costs and a shift to increase capital allocation to capital‑light small business lending to 20% (from 10%), even as SBA originations fell about 50% to $84 million due to a prior government shutdown. Interested in Ready Capital Corp? Here are five stocks we like better. Why Are Amphenol, Royal Caribbean, and Freeport Insiders Selling? Ready Capital (NYSE:RC) executives said the company made “significant progress” in the fourth quarter advancing a comprehensive balance sheet repositioning strategy first outlined in the third quarter, with management emphasizing liquidity generation, disposition of underperforming commercial real estate (CRE) assets, and steps aimed at positioning the platform for sustainable future growth. CEO Thomas Capasse said the company’s plan is organized around three priorities: (1) strengthening liquidity to generate free cash flow in excess of 2026 debt maturities, (2) selling underperforming CRE assets to eliminate negative earnings drag, and (3) positioning the company for sustainable growth. He described a two-phase approach, with an initial focus on aggressive asset management followed by a streamlining of the CRE origination business into a lower-cost structure with greater reliance on the external manager, Waterfall. → Diamondback Sees Resilient Demand Despite Cautious Guidance Royal Caribbean Is Cruising Toward a New All-Time High Capasse said the plan targets generating more than $850 million of free cash and reducing the legacy CRE portfolio by 60% to approximately $2 billion. From the start of the fourth quarter through the call date, management said it generated about $380 million of free cash, including $130 million from portfolio sales and $250 million from portfolio runoff and other asset management re...
Investor releaseQuarter not tagged2026-02-28Ready Capital (RC) Q4 2025 Earnings Transcript
Motley Fool
Ready Capital (RC) Q4 2025 Earnings Transcript
Image source: The Motley Fool. Feb. 27, 2026, 8:30 a.m. ET Chief Executive Officer — Thomas Capasse Chief Financial Officer — Andrew Ahlborn Chief Credit Officer and Co-President, CRE Operating Business — Dominic Scally Thomas Capasse: Thank you, Andrew. Good morning, everyone, and thank you for joining today’s call. To begin, we have made significant progress advancing a comprehensive balance sheet repositioning strategy outlined in the third quarter. This disciplined plan remains focused on three key priorities: one, strengthening liquidity to generate free cash flow in excess of our 2026 debt maturities; two, selling underperforming CRE assets to eliminate negative earnings drag; and three, positioning Ready Capital Corporation for sustainable future growth. The first phase of our repositioning strategy is focused on aggressive asset management, while the second will streamline the CRE origination business into a lower-cost structure with greater reliance on our external manager Waterfall’s deep CRE investment capacity and expertise. To that end, to support and lead these efforts, we have promoted Dominic Scally to Chief Credit Officer and Co-President of our CRE operating business, ReadyCap Commercial. With over 24 years of CRE lending experience, including 10 years with Ready Capital Corporation, Dominic has significantly contributed to building our lending infrastructure. In his new role, he will oversee all aspects of our CRE strategy. Dom is joining us on today’s call. Gary Taylor will transition to focus on our SBA business as President of ReadyCap Lending, from his position as Chief Operating Officer. Given Gary’s over 30 years of experience leading nonbank SBA lenders, this change aligns well with our increasing emphasis on capital-light business lines going forward. I also want to express my gratitude to Adam Zausmer for his decade-long contributions to Ready Capital Corporation and the instrumental roles he has played over the years. These organizational changes support the execution of our repositioning plan and seize new opportunities as we progress. Now turning to the business update. We are making significant progress executing our liquidity plan to both address our corporate maturities and reposition the CRE portfolio. Our plan targets generating over $850 million of free cash and reduces the legacy CRE book 60% to approximately $2 billion,...
Investor releaseQuarter not tagged2026-02-28Ready Capital Corp (RC) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
GuruFocus.com
Ready Capital Corp (RC) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
This article first appeared on GuruFocus. Free Cash Generated: Approximately $380 million from portfolio sales and runoff. Book Value Decline: 14% per share in the fourth quarter. GAAP Loss: $1.46 per common share from continuing operations. Distributable Earnings Loss: $0.43 per common share, $0.09 excluding realized losses on asset sales. Recurring Revenue: $41.5 million, down from $47.3 million in the prior quarter. Operating Expenses: Increased by $7.4 million to $59.9 million. Realized Losses on Asset Sales: $29 million. Nonaccrual Loans: 27% of the portfolio at year-end. Free Cash Position: Under $200 million available. Warning! GuruFocus has detected 3 Warning Signs with RC. Is RC fairly valued? Test your thesis with our free DCF calculator. Release Date: February 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ready Capital Corp (NYSE:RC) has made significant progress in its liquidity plan, generating approximately $380 million in free cash from portfolio sales and asset management resolutions. The company is targeting an additional $500 million in free cash flow by year-end, which will help address corporate maturities and reposition the CRE portfolio. Ready Capital Corp (NYSE:RC) is focusing on a comprehensive balance sheet repositioning strategy to strengthen liquidity and eliminate negative earnings drag from underperforming CRE assets. The company plans to reduce its legacy CRE book by 60% to approximately $2 billion, optimizing the balance sheet for future earnings growth. Ready Capital Corp (NYSE:RC) is committed to its SBA business, which is a high ROE segment, and plans to increase capital allocation to this area, highlighting its growth potential. Ready Capital Corp (NYSE:RC) reported a GAAP loss from continuing operations of $1.46 per common share for the fourth quarter. The company's book value declined 14% per share in the fourth quarter, primarily due to increased valuation allowances and CECL reserves. Operating expenses increased by $7.4 million quarter-over-quarter, driven by higher compensation expenses, legal fees, and a reduction in the tax benefit. The percentage of loans placed on nonaccrual increased significantly, totaling 27% at year-end, which could impact future earnings. The impact of last year's government shutdown resulted in a 50% decline in SBA 7(a) originat...
Investor releaseQuarter not tagged2026-02-27Ready Capital: Q4 Earnings Snapshot
Associated Press Finance
Ready Capital: Q4 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — Ready Capital Corporation (RC) on Thursday reported a loss of $234.2 million in its fourth quarter. The New York-based company said it had a loss of $1.46 per share. Losses, adjusted for non-recurring costs and to account for discontinued operations, came to 9 cents per share. The real estate investment trust posted revenue of $124 million in the period. Its adjusted revenue was $13.1 million. For the year, the company reported a loss of $228.9 million, or $1.44 per share. Revenue was reported as $55 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on RC at https://www.zacks.com/ap/RC
Investor releaseQuarter not tagged2026-02-27Ready Capital Corporation Q4 2025 Earnings Call Summary
Moby
Ready Capital Corporation Q4 2025 Earnings Call Summary
Management is executing a comprehensive plan to generate over $850 million in free cash flow to address 2026 debt maturities and reduce the legacy CRE book by 60%. The strategy shifts the business toward a lower-cost structure with a 25% reduction in operating costs and increased reliance on external manager Waterfall's investment capacity. Capital allocation is being doubled from 10% to 20% for the high-ROE, capital-light SBA lending segment to drive sustainable future earnings. The 14% decline in book value was primarily driven by a $173 million increase in valuation allowances and CECL reserves as resolution timelines for nonperforming loans were shortened. Management attributed the 50% decline in SBA originations to the impact of the prior year's government shutdown, which curtailed industry-wide volume. The sharp increase in nonaccrual loans to 27% reflects a strategic decision to cease modifications and extensions rather than a shift in underlying credit migration. Stabilization of the Ritz Portland property is progressing through a phased condo sales strategy and a hotel management pivot toward higher occupancy over ADR. The company expects to generate an additional $500 million in free cash by year-end, split equally between portfolio runoff and planned $1.5 billion in loan sales. Loan sales targeting nonperforming and sub-yielding assets are expected to be substantially complete by the end of the second quarter. Management targets a 1.0x reduction in leverage to 2.5x upon completion of the repositioning, allowing for increased cash flow allocation toward growth. The liquidity plan is designed to provide cash significantly exceeding the $517 million in debt maturities due in the second half of 2026. A fourth SBA securitization is anticipated in the second quarter to support the growth of the small business lending segment into 2026. The Ritz property remains the largest single equity allocation at 16% of stockholders' equity, representing a significant concentration risk during stabilization. Continued execution of the liquidity plan may result in additional book value pressure as more loans are identified for sale at potential market discounts. The quarterly negative earnings drag from sub-performing loans and REO assets is currently estimated at $0.08 per share. Organizational changes include the promotion of Dominic Scally to oversee CRE strategy...
Investor releaseQuarter not tagged2026-02-27Ready Capital Corporation Reports Fourth Quarter 2025 Results
GlobeNewswire
Ready Capital Corporation Reports Fourth Quarter 2025 Results
- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(1.46) - - DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.43) - - DISTRIBUTABLE LOSS PER COMMON SHARE BEFORE REALIZED LOSSES OF $(0.09) - NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended December 31, 2025. “We continue to execute on our liquidity plan with a focus on meeting our corporate obligations and repositioning the Company's equity away from Covid-vintage production”, said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “The equity drawdown associated with these actions is significant but represents an important step toward addressing the financial pressure experienced since the onset of the commercial real estate cycle. We believe the execution of our plan will improve our liquidity profile and support greater financial stability going forward.” Fourth Quarter Highlights LMM commercial real estate originations of $235 million Small Business Lending (“SBL”) loan originations of $140 million, including $84 million of Small Business Administration 7(a) loans and $18 million of United States Department of Agriculture loans Book value of $8.79 per share of common stock as of December 31, 2025 Full Year Highlights Total originations of $1.8 billion across all products Completed the acquisition of United Development Funding IV, a real estate investment trust providing capital solutions to residential real estate developers and regional homebuilders Completed the sale of GMFS, our Residential Mortgage Banking business Secured ownership and control of the Portland, OR mixed-use asset via a consensual deed-in-lieu arrangement Subsequent Events Completed the sale of 34 loans with an unpaid principal balance of $855.3 million Retired the remaining outstanding amount on the 5.75% Senior Unsecured Note due February 2026 Use of Non-GAAP Financial Information In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributab...