RC

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET Chief Executive Officer - Thomas Capasse Chief Financial Officer - Andrew Ahlborn Operator: Greetings, and welcome to the Ready Capital Corporation Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Andrew Ahlborn, Chief Financial Officer. Thank you. You may begin. Andrew Ahlborn: 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 a 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 second 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, Tom Capasse. Thomas Capasse: Thank you, Andrew. Good morning, everyone, and thank you for joining today's call. The second quarter of 2026 demonstrates meaningful progress in our balance sheet repositioning strategy. At this juncture, we do not anticipate further large portfolio sales as our completed sales were successful in both raising liquidity and repositioning legacy assets. We have also completed several important financings and believe that multiple initiatives are coming together to meet our corporate obligations as we build towards sustainable profitability. We have been organizing our work this year around 4 priorities: first, strengthening liquidity to generate free cash flow in excess of our 2026 debt maturities; second, resolving non and subperforming CRE assets to eliminate earnings drag; third, transitioning to a lower-cost business model by divesting noncore business lines and integrating our CRE lending with our external manager Waterfall; and fourth, focusing on growth in our small business SBA 7(a) lending. On liquidity, we are nearing completion of the initiatives we started at the end of 2025. Since our first quarter earnings, we have completed the following actions. First, the sale of our $167 million construction portfolio, generating $64 million of net liquidity and removing $172 million of future funding obligations. Second, the securitization of $158 million of unguaranteed SBA 7(a) loans at a 92% advance priced at SOFR plus 240 basis points. The transaction generated $25 million of net liquidity and $500 million of additional funding capacity for 7(a) production. Third, the disposition of $445 million of CRE assets for net liquidity of $85 million; and fourth, the successful refinance of the Portland Ritz asset into a CPACE loan. These items, together with prior loan sales and portfolio runoff, have generated approximately $1.9 billion of cash that has been used to pay down $1.7 billion of asset level and corporate debt. We now have achieved approximately 81% of our target liquidity objective. Three initiatives to complete the final leg of our liquidity plan are underway: optimizing the financing of approximately $950 million of CRE loans, the sale or financing of our $118 million joint venture position and the second half anticipated runoff of approximately $900 million of CRE loans. Additionally, we continue to evaluate the potential refinance of a portion of the October maturity, which will help to further accelerate earnings recovery as we move into 2027. On the CRE portfolio, following this quarter's actions, the legacy loan book stands at approximately $2.7 billion across 172 positions with an additional $218 million of CMBS exposure. 37% or roughly $1 billion of the loan book comprises sub and nonperforming assets whose current status produces a greater net present value for active asset management on our balance sheet versus sales in the secondary market. We continuously monitor assets to determine the best path forward, maximizing value, which may include sales. The sub and nonperforming loans have an average duration of 11 months, average mark-to-market LTVs of 82% and are marked at 85%. The current equity held in sub and nonperforming loans is $436 million. In our performing loan book, totaling $572 million in equity, levered yields equaled 10.1%. As of quarter end, we had $588 million of REO across 24 properties. The Ritz property remains our largest REO asset, representing 66% of total REO and approximately 22% of quarter end stockholders' equity. We believe our stabilization strategy is working. We now have sold 50 condominium units and have 3 under contract, bringing the sellout to 40% of the total. Sales progress remains consistent with our phased strategy of building momentum toward a full sellout. On the hotel, we continue to realize linear improvement in operating performance. Hotel NOI was $1 million in the quarter. Trailing 12-month occupancy rose 10% to 52%. ADR decreased 4% to $468, and room RevPAR increased 20% to $244 compared to the same period last year. As we move forward, we will determine the optimal path forward for the property, whether that's continued stabilization or monetization. The current earnings drag across our non and subperforming and REO was $0.29 per share in the quarter. In our SBA 7(a) platform, capital constraints at the start of the quarter resulted in second quarter origination volume of $82 million, which is well below production capacity. We've addressed those constraints with the completion of our SBA 7(a) securitization in June, which we believe will provide capital for approximately $500 million of incremental go-forward volume, and we intend to accelerate our capital levels through more frequent SBA 7(a) ABS offerings. Since completing the securitization, we have originated $43 million of 7(a) loans and have a current money-up (sic) [ money-out ] pipeline of $78 million. We expect steady growth towards our annual target of $1.5 billion of originations. Turning to expenses. We are executing a targeted cost optimization program to align our cost structure with our go-forward business model. This includes targeted organizational efficiency initiatives, divestiture of noncore businesses and assets and deeper integration of our CRE lending platform with Waterfall. We expect these initiatives will materially lower our operating expense ratio and improve operating leverage. In summary, we remain equally focused on the completion of our liquidity plan and the action items needed to return the business to profitability. While we still have steps to complete in order to meet our 2026 corporate obligations, concurrent actions to accelerate resolutions, reduce operating costs and increase capital deployment into new investments that focus on our SBA 7(a) and CRE platforms, position the company for improvement as we move forward. With that said, I'll now turn it over to Andrew for a detailed review of the quarterly results. Andrew Ahlborn: Thanks, Tom. Second quarter earnings and balance sheet reflect the continuation of the repositioning plan Tom described and importantly, a deceleration in the pressures that have weighed on our results. For the quarter, we reported a GAAP loss from continuing operations of $0.63 per common share, an improvement from the $1.25 loss in the first quarter. Distributable earnings were a loss of $0.47 per common share and a loss of $0.24 per common share, excluding realized losses on asset sales compared to losses of $1.33, respectively, in the prior quarters. At quarter end, book value per share was $6.83 versus $7.43 at March 31, a decline of 8.1%, which is a substantial deceleration from the 15.5% and 14.5% per share declines in the 2 prior quarters and reflects the wind down of the loan sale program. The change was primarily due to approximately $0.23 per share of realized losses on asset sales, approximately $0.12 per share of net loan loss provisioning and valuation allowances and the balance from the operating loss in the quarter. The net loss from normal operations was impacted by the following revenue and expense items. On the revenue side, reoccurring revenue was $15.3 million compared to $16.2 million in the prior quarter. The change was driven by an $8.7 million improvement in the net interest loss, offset by a $2 million reduction in gain on sale revenue and a $7.5 million reduction in other reoccurring revenue. The improvement in the net interest loss was due to a $445 million reduction in secured borrowings and continued corporate debt paydown, more than offsetting $4.3 million in lower interest income, which settled at $77.4 million as the CRE portfolio continued to contract. We expect net interest income to continue improving as nonaccrual loans and REO are resolved, asset level and corporate debt are reduced and capital is recycled into current market yields. On the expense side, operating expenses improved to $48.7 million from $67.7 million. This was primarily due to normalization of servicing expenses to $3.4 million from $15.4 million, which previously included $6.7 million of nonrecurring servicer advance reimbursements tied to the first quarter CLO collapses. Additionally, the net loss on the Ritz position improved $1.2 million in the quarter. Other items included in earnings improved $80.2 million quarter-over-quarter to a loss of $68.3 million. The improvement was primarily due to lower realized losses, which equaled $27.9 million and lower loan loss reserves and valuation allowances, which equaled $20.1 million. Regarding liquidity and capitalization, we ended the quarter with $124.1 million of unrestricted cash. Total assets declined to $6.26 billion from $6.31 billion on March 31. Total leverage was 3x, trending towards our 2.5x target, and we held $690 million of unencumbered assets at quarter end. With that, we will open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Crispin Love with Piper Sandler. Crispin Love: First, on meeting the fourth quarter debt maturities, can you share just what else needs to be done to be able to do that? Is it driven by continued sales of loans? And then just how close are you to accomplishing that? And then what are you targeting for the remainder of 2026 as it relates for CRE and ROE (sic) [ REO ] dispositions and runoff? Thomas Capasse: Yes. Just to contextualize that, Crispin, we embarked on a liquidity plan in the fourth quarter. And then through organic liquidity, which is portfolio runoff, and supplemented by loan sales, we raised almost $2 billion, which was used to pay down $1.7 billion of unsecured and -- corporate debt and secured debt. So as of today, we're in the -- what I'd characterize it as the eighth inning. And the only major difference here is that we're -- we are no longer budgeting loan sales at this stage, maybe opportunistically at the loan level here and there as part of an asset management strategy. But the balance of what we're looking at is the optimization of financing on $950 million of performing and nonperforming loans and runoff on $900 million, and a potential sale or financing on a $118 million joint venture position. There's a few other incremental liquidity initiatives, but we're confident that those 3 key drivers, absent any loan sales, which are not currently budgeted, will generate liquidity in excess of the 2026 remaining maturities. Crispin Love: Okay. That's helpful. And then just on the Portland mixed-use property, Tom, I believe you discussed potential monetization for that property. Is that beyond the Ritz kind of hotel and residences? And then can you just discuss the process there and when you might decide if that's the right path for the property? And what are the kind of -- what you need to look at to see if that's the right path? Thomas Capasse: Yes, I'll give a high level, and I'll have Dom, our Chief Credit Officer, comment. But as you may recall, the -- there's 3 components to that mixed-use project. One is the -- obviously, the core is the Ritz-Carlton Hotel, which continues to meet its stabilization target as measured by RevPAR, occupancy, et cetera. And one of the big decisions we made there, which has been very successful is working with Marriott to reduce the ADR to increase occupancy. So that strategy, that is about 50% of the value and that continues to -- continues on a trajectory. The second component, which is about 40% is the condos and we've embarked with Christie's on a 4-phase project going back to earlier -- late last year. We're in Phase 2 now, and we've -- we're on target in terms of both pricing and number -- actually ahead of schedule on a number of units sold. With those under contract plus what we've sold, we're at about 40% at this stage. And then finally, there's the office, which is about, I think, 26% occupied, which we're continuing to look at -- we're getting some tenant traffic there, but that's only 10%. So all of that together is we have a very aggressive plan for -- which is on or ahead of target. And so that will lead -- to answer your question, that will lead to a decision to monetize it at some point in the next -- in the coming quarters. Operator: [Operator Instructions] our next question comes from the line of Jade Rahmani with KBW. Jade Rahmani: Can you say more about the $118 million joint venture investment? What is that exactly? Thomas Capasse: Yes. Jade, that was historically, Ready Cap had purchased equity interests in CRE equity from the external manager who had a strategy around accessing those investments at a very cheap levels in the context of the fair value options on CMBS deals. So that was, in turn, converted into a -- fund was raised around that strategy and Ready Cap converted its interest in those CRE equity investments into an investment in the fund. So it's essentially an LP interest in a Waterfall-managed CRE fund, which is currently unencumbered. Jade Rahmani: Okay. But I assume that the underlying investments have leverage on them? Or do they not? Thomas Capasse: Yes, they're just traditional CRE equity investments. There's about 30 line items in the portfolio. Jade Rahmani: So this can be levered, this investment? Thomas Capasse: Yes. It's a straight-up LP interest in a fund that's in its harvest period. So it's very short duration. And so there's -- as you probably know, there's a whole growth area in the banking industry and nonbanks with these fund finance -- fund financing on LP interest as well as a secondary market for sale. So that's what we've been evaluating in the context of this being a good asset that's unlevered. Jade Rahmani: And the $2.7 billion CRE loan book, how much leverage, both secured and unsecured, is currently on that portfolio? Thomas Capasse: Andrew, do you want to comment? Andrew Ahlborn: Yes. So on the asset-level side, to the extent not securitized, average advance rates there are in the low 60s. So the majority of that book is levered with the exception of the unencumbered portfolio, which on the loan side is roughly $300-or-so million. And then on the securitized side, it's really -- given all the CLOs have been collapsed, it's really limited to our legacy fixed-rate product as well as some of the small-balance commercial loans we bought at the start of the company. So typically, the warehouse leverage advance rates are in the low 60s. Jade Rahmani: But in aggregate, that doesn't include the corporate leverage. So the 60s advance rate goes up, including the corporate leverage. So what's the total leverage that you would associate with that $2.7 billion portfolio? Andrew Ahlborn: Yes. So on the corporate leverage on the secured side, the majority of that secured debt is sort of equity pledges of entities throughout the structure. The majority or a good portion of that equity is in CRE assets. So that's really how it's done. It's not a direct pledge of that CRE collateral. Jade Rahmani: So I mean, just from my vantage point as an outsider looking at this, it seems challenging to raise $450 million of equity capital in order to pay off the upcoming maturities. So I'm surprised to hear that the loan asset sale program has been -- that you're not going to be doing that. I would have thought you'd continue to do that as a way to make sure you meet these maturities. Thomas Capasse: Jade, I think the -- I totally understand the comment, but what we constantly evaluate is the discount for sale in the secondary market versus on-balance sheet strategies. And we're talking about, obviously, a smaller number of line items now. The $1 billion nonperforming portfolio, for example, is down to 44 assets. So it's very finite. And so we have very strong -- away from loan sales, we have very strong financing counterparties. There's a lot of liquidity available for these assets. So what we've done is we've focused on optimization of the existing remaining legacy book as an alternative to loan sales, and that is generating that plus cash on hand and the other liquidity initiatives that we've talked about or the runoff on the portfolio. Those 3 items will have enough cash to pay off the debt with a comfortable margin. Jade Rahmani: Okay. And so post all of this, do you think the company can get back to profitability based on its existing capital base, whatever that will look like after all of these remaining actions are effectuated? Thomas Capasse: Yes. And it's a very straightforward answer. As you know, the -- in one shade of gray or another, many in the sector are undertaking this exercise. But with respect to Ready, it's the -- the first is the recycling of the legacy book, which is $2.7 billion, and we've changed the characterization of the portfolio, performing, nonperforming to enable analysts and investors to track the success there. But I do point out that the duration of that book is -- the $1 billion of nonperforming is only 11 months. So it's a very quick runoff and 44 assets. The other component of the legacy book, obviously, is the 24 REO units, of which the Ritz is the largest. And those have very defined relatively short duration runoff, too. So the big part, but the first leg of the stool on the reboot of the earnings is the runoff of the legacy book, which we're highly confident that it is short duration and will be realized. And we're also looking at joint ventures and other ideas, quasi-securitizations to accelerate that effort. The second thing is obviously the -- now that we've fixed the liquidity and warehouse line structure in our SBA business, that is obviously highly profitable. And that will be the ramp in originations there will be the second leg of the stool. And finally, OpEx. We expect through 3 approaches. One is just a natural reduction in staffing and vendors associated with the portfolio runoff; two, the second thing being divestiture of ancillary businesses, all of which are in flight; and the third is integration with the external manager's CRE lending businesses to source investments. Those 3 things will result in a targeted 25% to 35% reduction in OpEx. So those are the 3 legs of the stool, the runoff of the legacy book, focus on the -- and doubling down on the SBA business and the OpEx rightsizing in that context, which will enable us to return to profitability. Operator: Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Capasse for any final comments. Thomas Capasse: We appreciate everybody's time today and look forward to next quarter in terms of final updates on our repositioning plan. Thank you, everybody. Have a good day. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ready Capital (RC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Ready Capital Corp? Here are five stocks we like better. Ready Capital narrowed its quarterly loss, reporting a GAAP loss of $0.63 per share versus $1.25 in the first quarter, while book value per share fell 8.1% to $6.83. The company has completed about 81% of its liquidity plan through asset sales, loan securitization and debt repayment, with remaining efforts focused on financing $950 million of CRE loans, monetizing a $118 million joint venture stake and collecting expected loan runoff. Management is targeting a return to profitability by resolving legacy CRE assets, expanding SBA 7(a) originations toward a $1.5 billion annual goal and cutting operating expenses by 25% to 35%. MarketBeat Week in Review – 06/22 - 06/26 Ready Capital (NYSE:RC) said its second-quarter results reflected continued progress in a balance sheet repositioning plan, including portfolio sales, debt paydowns and new financing initiatives, as the company works to meet remaining 2026 debt maturities and return to sustainable profitability. Chief Executive Officer Thomas Capasse said the company does not expect to pursue additional large portfolio sales after completed transactions raised liquidity and repositioned legacy assets. Instead, Ready Capital plans to rely on financing optimization, loan runoff and a potential transaction involving a joint venture investment to complete its liquidity plan. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Carnival's Second Quarter: Is the Stock Still Complicated? Chief Financial Officer Andrew Ahlborn said Ready Capital reported a GAAP loss from continuing operations of $0.63 per common share in the second quarter, improving from a $1.25 loss in the first quarter. Distributable earnings were a loss of $0.47 per share, or a loss of $0.24 per share excluding realized losses on asset sales. Book value per share declined 8.1% sequentially to $6.83 at June 30 from $7.43 at March 31. Ahlborn said the decline was slower than the 15.5% and 14.5% per-share declines reported in the prior two quarters, respectively, and reflected the winding down of the loan-sale program. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Royal Caribbean’s Best Quarter Ever Still Leaves a Big Question The book value change included approximately $0.23 per share in realized losses on asset sales and approximately $0.12 per share in net loan-loss provisions and valuation allowances, with the remainder attributable to the quarter's operating loss. Recurring revenue totaled $15.3 million, compared with $16.2 million in the prior quarter. The company cited an $8.7 million improvement in net interest loss, partly offset by a $2 million decline in gain-on-sale revenue and a $7.5 million reduction in other recurring revenue. Interest income declined $4.3 million to $77.4 million as the commercial real estate portfolio contracted. → No Hangover: Revisiting Microsoft One Week After Earnings Operating expenses fell to $48.7 million from $67.7 million in the first quarter. The decline primarily reflected servicing expenses normalizing to $3.4 million from $15.4 million, after the prior quarter included nonrecurring servicer-advance reimbursements associated with CLO collapses. Capasse said the company has achieved about 81% of its liquidity target. Since the first-quarter call, Ready Capital completed a sale of a $167 million construction portfolio, producing $64 million of net liquidity and removing $172 million in future funding obligations. The company also securitized $158 million of unguaranteed SBA 7(a) loans at a 92% advance rate and pricing of SOFR plus 240 basis points. The transaction generated $25 million of net liquidity and provided $500 million of additional funding capacity for SBA 7(a) production, according to management. Ready Capital disposed of $445 million of CRE assets for $85 million of net liquidity. It refinanced the Portland Ritz asset through a C-PACE loan. Prior loan sales and portfolio runoff generated about $1.9 billion of cash, which the company used to repay $1.7 billion of asset-level and corporate debt. Management identified three remaining components of the liquidity plan: optimizing financing on roughly $950 million of CRE loans, selling or financing a $118 million joint venture position, and capturing anticipated second-half runoff of about $900 million of CRE loans. Capasse said the company is also evaluating a refinance of part of its October maturity. During the question-and-answer session, Capasse said the company is no longer budgeting broad loan sales, though it could sell individual loans opportunistically as part of asset management. He said management expects the remaining liquidity initiatives to generate cash in excess of its remaining 2026 maturities. At quarter-end, Ready Capital had $124.1 million of unrestricted cash, $690 million of unencumbered assets and total leverage of three times, moving toward its target of 2.5 times. Total assets were $6.26 billion, compared with $6.31 billion at the end of the first quarter. The legacy CRE loan book stood at approximately $2.7 billion across 172 positions, along with $218 million of CMBS exposure. About 37% of the loan book, or roughly $1 billion, consisted of subperforming and nonperforming assets. Capasse said management believes active balance-sheet management offers greater net present value for those assets than secondary-market sales in their current condition. The subperforming and nonperforming loans had an average duration of 11 months, average mark-to-market loan-to-value ratios of 82%, and were marked at 85%, according to the company. Ready Capital held $436 million of equity in those loans. Its performing loan book represented $572 million of equity and generated a leverage yield of 10.1%. The company also held $588 million of real estate owned, or REO, across 24 properties. The Ritz property accounted for 66% of REO and about 22% of quarter-end stockholders' equity. Capasse said 50 condominium units had been sold and three more were under contract, bringing sales to 40% of total units. For the Ritz hotel, quarterly net operating income was $1 million. Trailing 12-month occupancy rose 10% to 52%, while average daily rate declined 4% to $468. Revenue per available room increased 20% year over year to $244. Management said it will determine whether continued stabilization or monetization is the best path for the property in coming quarters. The company said nonperforming, subperforming and REO assets produced an earnings drag of $0.29 per share during the quarter. Ready Capital originated $82 million of SBA 7(a) loans during the second quarter, a level Capasse said was constrained by available capital. Following the June securitization, the company originated $43 million of SBA loans and had a current pipeline of $78 million. Management expects the added financing capacity to support a ramp toward its annual SBA 7(a) origination target of $1.5 billion. The company said it intends to use more frequent SBA asset-backed securities offerings to support that growth. Capasse also outlined plans to reduce operating expenses through organizational efficiency measures, divestitures of noncore businesses and assets, and deeper integration of the CRE lending platform with external manager Waterfall. He said the company is targeting a 25% to 35% reduction in operating expenses through those efforts, portfolio runoff and consolidation of CRE lending activities. Capasse said Ready Capital's path back to profitability depends on resolving and recycling the legacy portfolio, expanding its SBA business after addressing funding constraints, and lowering its cost base. Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors. Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ready Capital Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. GAAP Loss from Continuing Operations: $0.63 per common share, an improvement from the $1.25 loss in the first quarter. Distributable Earnings: Loss of $0.47 per common share, or a loss of $0.24 per common share excluding realized losses on asset sales. Book Value per Share: $6.83 at quarter end, down 8.1% from $7.43 at March 31. Reoccurring Revenue: $15.3 million, compared to $16.2 million in the prior quarter. Net Interest Loss: Improved by $8.7 million, driven by a $445 million reduction in secured borrowings and continued corporate debt paydown. Interest Income: $77.4 million, down $4.3 million as the CRE portfolio contracted. Operating Expenses: $48.7 million, down from $67.7 million, primarily due to normalized servicing expenses of $3.4 million. Realized Losses on Asset Sales: $27.9 million in the quarter. Loan Loss Reserves and Valuation Allowances: $20.1 million, lower quarter-over-quarter. Unrestricted Cash: $124.1 million at quarter end. Total Assets: $6.26 billion, down from $6.31 billion on March 31. Total Leverage: 3 times, trending towards the 2.5 times target. SBA 7(a) Origination Volume: $82 million in the second quarter, with $43 million originated since the June securitization. Hotel NOI: $1 million in the quarter, with trailing 12-month occupancy up 10% to 52% and room RevPAR up 20% to $244. Warning! GuruFocus has detected 2 Warning Sign with RC. Is RC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Completed significant balance sheet repositioning, generating approximately $1.9 billion in cash and paying down $1.7 billion in debt, achieving 81% of the liquidity target. Improved quarterly GAAP loss from continuing operations to $0.63 per share from $1.25 in the prior quarter, indicating a deceleration in financial pressures. Successfully securitized $158 million of unguaranteed SBA 7(a) loans, providing $500 million in additional funding capacity for future production. Ritz-Carlton asset stabilization is progressing, with 40% of condominium units sold and hotel RevPAR up 20% year-over-year. Executing a cost optimization program targeting a 25% to 35% reduction in operating expenses through divestitures and integration with Waterfall. Reported a GAAP loss from continuing operations of $0.63 per share and a distributable earnings loss of $0.47 per share for the quarter. Book value per share declined 8.1% to $6.83, driven by realized losses on asset sales and loan loss provisions. SBA 7(a) origination volume was only $82 million in the quarter, well below production capacity due to capital constraints. The legacy CRE loan book includes $1 billion in sub- and non-performing assets, with an earnings drag of $0.29 per share from these and REO. The Ritz-Carlton property remains a significant risk, representing 22% of stockholders' equity, with the office component only 26% occupied. Q: Can you share what else needs to be done to meet the fourth quarter debt maturities, and how close are you to accomplishing that? What are you targeting for the remainder of 2026 for CRE and REO dispositions and runoff?A: Thomas Capasse, CEO, stated that the company is in the "eighth inning" of its liquidity plan. Having raised nearly $2 billion to pay down $1.7 billion in debt, they are no longer budgeting large-scale loan sales. The remaining plan relies on three key drivers: optimizing financing on $950 million of CRE loans, the sale or financing of a $118 million joint venture position, and the anticipated runoff of approximately $900 million in CRE loans. He expressed confidence that these initiatives will generate liquidity in excess of the 2026 remaining maturities. Q: Can you say more about the $118 million joint venture investment? What is that exactly?A: Thomas Capasse, CEO, explained that this is an LP interest in a Waterfall-managed CRE fund, which was created from converting equity interests in CRE investments. The fund is currently in its harvest period with a short duration and is unencumbered. The company is evaluating options for this asset, including fund finance projects or a secondary market sale. Q: Post all of this, do you think the company can get back to profitability based on its existing capital base?A: Thomas Capasse, CEO, gave a straightforward "yes" and outlined a three-legged strategy. First, the rapid runoff of the legacy book, which includes a $1 billion non-performing portfolio with an average duration of only 11 months and 24 REO properties. Second, ramping up originations in the highly profitable SBA 7(a) business, which now has the capital to grow towards its $1.5 billion annual target. Third, a targeted 25% to 35% reduction in operating expenses through staffing reductions, divestiture of ancillary businesses, and deeper integration with the external manager. Q: On meeting the fourth quarter debt maturities, is it driven by continued sales of loans?A: Thomas Capasse, CEO, clarified that while they may make opportunistic loan-level sales as part of asset management, they are not budgeting for large portfolio sales. The focus is on optimizing financing for the remaining $950 million in loans and generating liquidity from portfolio runoff, which they believe will be sufficient to meet all obligations. Q: Just on the Portland mixed-use property, can you discuss the process there and when you might decide if that's the right path for the property?A: Thomas Capasse, CEO, detailed the three components of the Ritz mixed-use project. The Ritz-Carlton Hotel (50% of value) is meeting stabilization targets with a successful strategy to lower ADR and increase occupancy. The condos (40% of value) are ahead of schedule, with 40% sold or under contract. The office component (10%) is only 26% occupied. He stated that the aggressive plan is on or ahead of target, which will lead to a decision to monetize the property in the coming quarters. Q: The $2.7 billion CRE loan book, how much leverage, both secured and unsecured, is currently on that portfolio?A: Andrew Ahlborn, CFO, stated that on the asset-level side, average advance rates are in the low 60s for the majority of the book, with roughly $300 million of the loans being unencumbered. The securitized side is limited to legacy fixed-rate products and small-balance commercial loans, with warehouse leverage advance rates also in the low 60s. Q: From my vantage point, it seems challenging to raise $450 million of equity capital to pay off upcoming maturities. I'm surprised to hear the loan asset sale program is not going to be continued.A: Thomas Capasse, CEO, acknowledged the concern but explained that the company constantly evaluates the discount for sale in the secondary market versus on-balance sheet strategies. With the non-performing portfolio now down to just 44 assets, they have strong financing counterparties and ample liquidity available. They have focused on optimizing the existing legacy book's financing as an alternative to loan sales, which, combined with cash on hand and portfolio runoff, will provide enough cash to pay off the debt with a comfortable margin. Q: Can you provide more detail on the progress of the Ritz property and its current earnings drag?A: Thomas Capasse, CEO, noted that the Ritz property remains the largest REO asset, representing 66% of total REO and approximately 22% of stockholders' equity. The stabilization strategy is working, with 50 condominium units sold and three under contract, bringing sellout to 40%. The hotel's NOI was $1 million in the quarter, with trailing 12-month occupancy rising 10% to 52% and RevPAR increasing 20% to $244. The current earnings drag across all non-performing, sub-performing, and REO assets was $0.29 per share in the quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, Aug. 06, 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 June 30, 2026. “Our second quarter results demonstrate continued progress on our balance sheet repositioning plan with the pace of book value reduction decelerating and earnings pressure narrowing,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Although there is still work to be done, we are encouraged by the progress made, remain focused on meeting our fourth quarter debt maturities, and are increasingly looking towards restarting growth through our core CRE debt investing and SBA 7(a) lending business.” Financial Metrics GAAP loss per common share of $(0.63) Distributable loss per common share of $(0.47) Distributable loss per common share before realized losses of $(0.24) Balance Sheet Repositioning Generated $1.4 billion in cash year-to-date from loan sales and portfolio runoff, paying down over $1 billion in asset-level financing and retiring $184 million of corporate debt Retired the 6.20% Senior Unsecured Notes in April 2026 Securitization of $158.2 million of unguaranteed SBA 7(a) loans at a 92% advance priced at SOFR + 2.4%; the transaction generated $24.6 million of net liquidity and $500 million of additional funding capacity for 7(a) production Portfolio & Credit Total loan originations of $278.8 million, including $155.9 million of LMM commercial real estate loans and $82.1 million of Small Business Administration 7(a) loans Capitalization Book value of $6.83 per share of common stock as of June 30, 2026 Ended the quarter with $124 million in cash and $690 million of unencumbered assets; total leverage of 3.0x with recourse leverage of 1.7x Portland Ritz Sold 50 Ritz-Carlton branded condominium units to date totaling 38% completion Hotel occupancy increased 10% year-over-year to 52% along with a 4% decrease in ADR to $468 resulted in a 20% increase in RevPar to $244 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 distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses. The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size. Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance. To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years. The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings. U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above. Webcast and Earnings Conference Call Management will host a webcast and conference call on Friday, August 7, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended June 30, 2026. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. 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. To Participate in the Telephone Conference Call: Dial in at least five minutes prior to start time. Domestic: 1-877-407-0792International: 1-201-689-8263 Conference Call Playback: Domestic: 1-844-512-2921International: 1-412-317-6671Replay Pin #: 13761020 The playback can be accessed through August 21, 2026. Safe Harbor Statement This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. 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. Headquartered in New York, New York, the Company employs over 400 professionals nationwide. ContactInvestor Relations Ready Capital Corporation212-257-4666 [email protected] Additional information can be found on the Company’s website at www.readycapital.com.

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 long-term earnings growth. → MP Materials Is Quietly Building a Rare Earth Powerhouse 5 Baby Boomer Stock Favorites Now Trading at a Discount Capasse said Ready Capital’s year-to-date liquidity has come from two primary sources: the sale of 48 loans with approximately $1 billion of unpaid principal balance across four transactions, producing $177 million of net liquidity, and $550 million of portfolio runoff, producing $93 million of net liquidity. The loan sales consisted of 66% performing loans and 30% non- and sub-performing loans, according to management. Looking ahead, Capasse said the company’s plan contemplates an additional $400 million of liquidity from the sale and runoff of $2 billion to $2.5 billion of commercial real estate loans and real estate owned assets through year-end. He said current projections indicate those actions, together with current liquidity, should be sufficient to retire the remaining 2026 maturities and meet future cash flow needs. → Micron Investors Face a High-Stakes Moment After the Latest Rally After completion of the liquidity plan and repayment of fourth-quarter debt maturities, Ready Capital expects its remaining legacy CRE portfolio to total about $2 billion. Capasse said that portfolio is expected to include $800 million to $900 million of sub- and non-performing loans and REO assets. Management believes those assets have better net present value through “aggressive asset management strategies” rather than sales at current market discounts. Capasse said that sub-portfolio currently creates a quarterly earnings drag of approximately $0.06 per share and cash outflows of $9.3 million per quarter. He said the company expects leverage to stabilize around 2.5 times after the repositioning plan is completed. Chief Financial Officer Andrew Ahlborn said Ready Capital reported a GAAP loss from continuing operations of $1.25 per common share for the first quarter. Distributable earnings were a loss of $1.00 per common share, or a loss of $0.33 per common share excluding realized losses on asset sales. Book value per share was $7.43 at quarter-end, down from $8.79 at year-end. Ahlborn said the decline was primarily due to a $0.42 per share loss on loan sales settled during the quarter, a $0.47 per share loss from additional CECL reserves and valuation allowances, and a $0.36 per share loss from operations. Recurring revenue was $16.2 million, compared with $41.5 million in the prior quarter. Ahlborn said the decline was driven by a $28.5 million reduction in net interest income, partly offset by a $3 million increase in other income. The lower net interest income reflected the liquidation of approximately $1.8 billion of loans over the past two quarters, reduced cash receipts on nonaccrual loans and timing differences between asset liquidations and corporate debt paydowns. “We expect net interest income to be negative as we move through this transition period,” Ahlborn said, citing expected improvement from reductions in nonaccrual loans and REO, lower asset-level and corporate debt financing, and the recycling of capital into market yields. Operating expenses increased $7.8 million from the prior quarter to $67.7 million. Ahlborn said the increase was primarily due to $6.7 million of non-recurring advance payments made to servicers after the collapse of the company’s remaining CLOs and a $3.9 million decrease in tax benefit. Ready Capital ended the quarter with $200 million of liquidity and $730 million of unencumbered assets. Ahlborn said first-quarter liability actions included collapsing three CLOs totaling $900 million of collateral, adding a new $500 million CRE warehouse facility and renewing two additional facilities. Current total leverage was 3 times. Capasse said Ready Capital intends to simplify its business model through greater integration with external manager Waterfall Asset Management and a renewed focus on two core areas: middle-market CRE debt investing and SBA 7(a) lending. During a period of constrained investing, Capasse said the company can generate fee income in place of net interest margin by originating loans for Waterfall, where it has funded $172 million year to date, and for third parties, including through a new $1 billion flow arrangement. Capasse said Ready Capital expects to focus future investment activity on CRE sectors where it sees the best relative value, with average investment size expected to double from its historical average of $17 million. He also said the company expects its financing strategy to be “more opportunistic and less securitization driven,” referring later in the call to CRE CLOs rather than SBA securitizations. Ready Capital also plans to increase capital allocation to its small business lending platform, which Capasse said is expected to represent 20% of company capital going forward. He said the platform has historically provided 300 to 500 basis points of core return on equity alongside CRE net interest margin. Capasse said lower SBA 7(a) originations in the first quarter reflected the prioritization of capital toward debt repayment, which limited new SBA deployment to existing warehouse capacity. He said the pending launch of a $158 million SBA 7(a) securitization is expected to generate capacity for $500 million of incremental go-forward volume. Management expects SBA production in the second half of the year to move toward historical levels. Capasse cited 2024 production of $1.1 billion. In response to a question from KBW’s Jade Rahmani about deferred tax assets, Ahlborn said Ready Capital had a deferred tax asset of $201.6 million and a tax receivable of $16.7 million. He said management believes the deferred tax asset has value, while acknowledging its magnitude, and pointed to expected growth in the SBA business as warehouse capacity opens. Capasse also provided an update on the St. Regis property, which he said remains Ready Capital’s largest single equity allocation at 18% of stockholders’ equity. The company has sold 43 condominium units and has four additional units under contract, which would bring the sellout to 36% of the 132 total units. The average selling price for the 32 condos sold year to date was $745 per square foot, compared with $900 per square foot for all condos sold. Capasse described the pricing as a deliberate strategy to build momentum toward a full sellout at higher average prices. Hotel occupancy rose 5% year over year to 46%, while average daily rate increased 1% to $482 and revenue per available room rose 13% to $221. During the question-and-answer session, Ladenburg Thalmann analyst Christopher Nolan asked about an increase in non-performing assets. Capasse said traditional metrics such as loans 60-plus days delinquent are becoming less central as Ready Capital executes asset sales and asset-management strategies intended to improve sale prices. Chief Credit Officer Dominick Scali said part of the increase reflected credit migration, but the majority was tied to a denominator effect as the company sold performing loans. Ahlborn said Ready Capital recorded an additional provision of just under $71 million in the quarter. He said future reserve changes could include marginal increases on remaining non- and sub-performing loans, but the larger remaining effect is expected to be tied to execution of planned sales in the $2 billion to $2.5 billion portfolio. When asked about the company’s eventual size, Ahlborn said total assets, currently about $6.3 billion, are expected to decline closer to $4 billion after the planned loan portfolio reduction. Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors. Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ready Capital Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

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 $28 million of United States Department of Agriculture loans 60+ day core delinquencies increased to 14.8% of the core CRE portfolio at quarter end. The large majority of this increase reflects the impact of loan sales as part of our balance sheet repositioning strategy and aggressive asset management strategies to accelerate liquidations Capitalization Book value of $7.43 per share of common stock as of March 31, 2026 Ended the quarter with $200 million in cash and $730 million of unencumbered assets; total leverage of 3.0x with recourse leverage of 1.8x Portland Ritz Sold 43 Ritz-Carlton branded condominium units to date (74% year-to-date) with an additional 4 units under contract or reservation agreement which represents 36% sell out of 132 original inventory Hotel occupancy increased 5% year-over-year to 46% along with a 1% increase in ADR to $482 resulted in a 13% increase in RevPar to $221 Subsequent Events Initiated a sale process for up to $1.2 billion of performing and sub- and non-performing loans as the last phase of the balance sheet repositioning plan 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 distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses. The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size. Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance. To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years. The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings. U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above. Webcast and Earnings Conference Call Management will host a webcast and conference call on Friday, May 8, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2026. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. 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. To Participate in the Telephone Conference Call: Dial in at least five minutes prior to start time. Domestic: 1-877-407-0792 International: 1-201-689-8263 Conference Call Playback: Domestic: 1-844-512-2921 International: 1-412-317-6671 Replay Pin #: 13759490 The playback can be accessed through May 22, 2026. Safe Harbor Statement This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. 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. Headquartered in New York, New York, the Company employs over 400 professionals nationwide. Contact Investor Relations Ready Capital Corporation 212-257-4666 [email protected] Additional information can be found on the Company’s website at www.readycapital.com.