Ready Capital Corporation's Q1 2025 Performance Insights
Ready Capital Corporation Reports First Quarter Results
- GAAP EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $0.47 -
- DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.09) -
- DISTRIBUTABLE EARNINGS PER COMMON SHARE BEFORE REALIZED LOSSES OF $0.00 -
NEW YORK (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a prominent multi-strategy real estate finance entity focused on lower-to-middle-market commercial loans, has unveiled its financial results for the first quarter.
During a challenging macroeconomic landscape characterized by market volatility, tariff complications, and waning consumer confidence, Thomas Capasse, the Chairman and CEO, expressed confidence in the company's strategy to navigate these turbulent waters. He emphasized the continued efforts to recalibrate the company’s financial foundation to ensure profitability moving forward.
First Quarter Highlights
Ready Capital has made notable strides this quarter:
- LMM commercial real estate originations reached $79 million.
- Small Business Lending (SBL) made significant contributions with loan originations amounting to $387 million, including a remarkable $343 million in Small Business Administration 7(a) loans.
- The company declared and distributed a dividend of $0.125 per share.
- Book value was reported at $10.61 per share as of March 31, 2025.
- Successful acquisition of United Development Funding IV, enhancing capital support for housing development.
- Engaged in a stock repurchase program, acquiring approximately 3.4 million shares at an average price of $5.02 per share.
- Closed a private placement of $220 million in aggregate principal with 9.375% Senior Secured Notes maturing in 2028.
Following Developments
A significant step occurred on April 16, 2025, as ReadyCap Holdings expanded its financial framework by issuing an additional $50 million in 9.375% Senior Secured Notes due 2028, utilizing the proceeds primarily for debt repayment.
Financial Performance Review
This report includes additional measurements beyond U.S. GAAP, notably distributable earnings, which the company defines as net income modified to exclude certain unrealized gains and losses pertaining to specific mortgage-backed securities not retained by Ready Capital as part of its origination business.
These financial metrics aim to offer investors enhanced clarity regarding the operational and financial insights generated by the management. Understanding these numbers is crucial for evaluating the company's performance, especially in determining dividends.
As a real estate investment trust (REIT), Ready Capital is obligated to distribute a mandated minimum percentage of its taxable income to stockholders each year, underscoring its commitment to shareholder returns.
In terms of significant financial metrics, the company's net income for the quarter stands at $81,965, alongside a total book value showing the robustness of its operational foundation.
Webcast and Conference Call Invitation
Management plans to host a webcast and conference call, offering insights and discussing financial outcomes for the recent quarter, giving all participants a chance for real-time engagement. This presentation aims to clarify the company's trajectory in the current economic landscape.
Contact Information
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Frequently Asked Questions
1. What were Ready Capital's key financial highlights for Q1 2025?
Ready Capital reported LMM commercial real estate originations of $79 million and SBL loan originations of $387 million, with a GAAP EPS of $0.47.
2. How did the company respond to market challenges?
The company is focusing on balancing its financial metrics and guarantees profitability through strategic decisions and adjustments to its balance sheet.
3. What was the dividend declared by Ready Capital?
The company declared a dividend of $0.125 per share in cash.
4. What financial instruments were recently issued by Ready Capital?
ReadyCap Holdings recently issued additional 9.375% Senior Secured Notes worth $50 million due in 2028, primarily for debt repayment.
5. How can investors engage with the company for future updates?
Investors can join the webcast and conference call scheduled after the earnings release, ensuring they stay informed about developments.
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