Q2 2025 Ready Capital Corp Earnings Call Transcript
Key Points
- Ready Capital Corp (RC) completed a significant bulk sale of $494 million in legacy multifamily bridge assets, generating net proceeds of $85 million, which will improve net interest margin.
- The company took ownership of a mixed-use asset in Portland, Oregon, including a Ritz-Carlton Hotel, avoiding a costly foreclosure process and aiming to stabilize the asset quickly.
- Ready Capital Corp (RC) enhanced liquidity by expanding warehouse capacity, supporting loan origination with $221 million in generated liquidity.
- The company plans to reenter the origination market, focusing on high-quality multifamily bridge loans, which are expected to yield 13% to 15%.
- Ready Capital Corp (RC) anticipates modest earnings growth in the second half of 2025, driven by new originations, stabilization of the Portland asset, and increased SBA 7(a) lending volumes.
- Ready Capital Corp (RC) reported a GAAP loss from continuing operations of $0.31 per common share for the second quarter.
- The company experienced a decrease in SBA origination volume due to capital constraints, impacting earnings negatively.
- The Portland asset currently incurs a negative carry of $5.3 million per quarter, affecting overall profitability.
- Ready Capital Corp (RC) faces a significant maturity wall of $650 million in corporate debt through 2026, which may pressure earnings due to higher refinancing costs.
- The company continues to deal with a non-core portfolio that has a negative yield, resulting in financial drag.
Greetings. Welcome to Ready Capital's second quarter 2025 earnings call. (Operator Instructions) As a reminder, today's conference is being recorded.
At this time, I'll now turn the conference over to Andrew Ahlborn, Chief Financial Officer. Andrew, you may 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 a more detailed discussion of the risks that could impact our future operating results and financial condition.
During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in
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