The following is a summary of the Ready Capital Corporation (RC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ready Capital reported a decrease in book value per share from $14.10 to $13.43 due to valuation allowance on loans held for sale.

• The company's operating costs improved 2% to $71 million.

• Its total portfolio of $9.4 billion includes approximately 1,800 loans.

• Distributable earnings per share were $0.29.

• Levered yield in the portfolio remained flat quarter-over-quarter at 11.5%.

Business Progress:

• The company plans to increase the levered ROE current yield by reallocating low-yield assets from the M&A portfolio.

• A strategic rebuilding of the business portfolio is planned to provide additional liquidity for capital solutions.

• Ready Capital Corporation also plans to reduce its office sector exposure to 3.3% of the portfolio.

• The company is revamping its financing strategy and considering changing its servicer or moving it in-house.

• In efforts to clear under-performing assets, a 10% revenue target increase is targeted.

• The company plans to sell off loans held for sale in the next three months and reposition the resulting capital into new originations or refinanced existing loans.

• Ready Capital Corporation maintains its repurchase of shares plans, indicating high returns at current levels.

• The pending sale of GMFS is anticipated and expected to be completed within the next three to four months.

• Recovery in the latter half of 2024 is expected through initiatives such as fast-tracking strategic bulk sales and lean towards more flexible managed structures for its securities.

More details: Ready Capital IR

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