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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