Company Name: Ready Capital Corporation

Stock Symbol: RC

Industry: Mortgage Real Estate Investment Trust (REIT)

Sector: Real Estate

Employees: Approximately 500

Fly High Status: Not in the Portfolio 

Recent Sentiment (last update 11/30/24):

Ready Capital Corp (NYSE:RC) has recently demonstrated strong performance in its small business lending operations, achieving a record 440 million in quarterly originations, which marks the highest earnings contribution from this platform in the company's history. However, despite this success, RC reported a GAAP loss of 0.07 per share and a distributable earnings loss of 0.28 for the third quarter. This loss reflects timing differences in valuation allowances and realized losses, highlighting the financial challenges RC is facing.

The company also saw a 6% decline in its originated portfolio, with slight increases in 60-day plus delinquencies, suggesting difficulties in credit migration. Additionally, RC's merger and acquisition portfolio decreased by 17% and continued to exhibit a high delinquency rate of 16%, underscoring persistent risks. Moreover, RC's ongoing exit from residential mortgage banking, pending agency approval for the sale of its platform, and a decrease in book value per share due to CECL reserves and net realized losses further complicate its financial stability. These issues combined with our lowered earnings projection and very likely dividend cuts has us currently replacing RC in our Fly High Investing portfolio.

Company Summary:

Ready Capital Corporation (RC) is a publicly traded Mortgage Real Estate Investment Trust (REIT) that focuses on originating, acquiring, financing, and managing small balance commercial (SBC) loans. The company's primary objective is to generate attractive risk-adjusted returns through a combination of dividends and capital appreciation.

RC invests in a diversified portfolio of real estate-backed loans, including SBC loans, bridge loans, and commercial mortgage-backed securities (CMBS). The company's strategy involves leveraging its extensive origination platform and robust underwriting process to identify high-quality lending opportunities. RC’s focus on small balance commercial loans provides exposure to a niche market segment with significant growth potential and relatively higher yields compared to larger commercial loans.

Managed by Waterfall Asset Management, LLC, Ready Capital Corporation benefits from the deep expertise and extensive industry experience of its management team.

URLs:

Ready Capital Corporation Website

Ready Capital Corporation LinkedIn

Summary:

Ready Capital Corporation operates as a Mortgage REIT focusing on small balance commercial loans and other real estate-backed investments.

Reminder: past performance is not indicative of how an investment will perform in the future, before making any investment decisions based on this information, and/or the information contained on the website, refer to the TERMS OF SERVICES.

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