Ready Capital ( (RC) ) has released its Q4 earnings. Here is a breakdown of the information Ready Capital presented to its investors.
Ready Capital Corporation is a multi-strategy real estate finance company based in New York, specializing in originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans. The company operates in the real estate finance sector with a focus on small business and commercial real estate lending.
In its latest earnings report, Ready Capital Corporation announced a challenging fourth quarter of 2024, marked by a GAAP loss per common share from continuing operations of $(1.80). Despite the losses, the company declared a quarterly cash dividend of $0.125 per share for the first quarter of 2025.
Key financial highlights include a total of $436 million in LMM commercial real estate originations and $348 million in Small Business Lending loan originations during the fourth quarter. The company also entered into a merger agreement to acquire United Development Funding IV and repurchased approximately 5.8 million shares of its common stock.
The company faced challenges in its multi-family lending business due to higher rates and inflationary pressures, but its Small Business Lending segment showed significant origination growth. Ready Capital has taken steps to stabilize its balance sheet by reserving for non-performing loans and adjusting its dividend to align with anticipated cash earnings.
Looking ahead, Ready Capital’s management remains focused on stabilizing its financial position and positioning the company for future growth. By addressing non-performing loans and reinvesting in higher-yielding originations, the company aims to enhance its net interest margin and resume growth in book value and dividends.