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Ready Capital Corporation Reports Fourth Quarter 2024 Results and Declares First Quarter 2025 Dividends
RCReady Capital (RC) GlobeNewswire·2025-03-03 12:36

Core Insights - Ready Capital Corporation reported a GAAP loss per common share from continuing operations of (1.80)forthequarterendedDecember31,2024,andadistributablelosspercommonshareof(1.80) for the quarter ended December 31, 2024, and a distributable loss per common share of (0.03) [1][26] - The company declared a quarterly cash dividend of 0.125pershareforthequarterendingMarch31,2025,toalignwithanticipatedcashearningsandpreservecapitalforreinvestment[1][12]−Thecompanyexperiencedmixedresultsin2024,withstrongperformanceintheSmallBusinessLendingsegmentbutchallengesinthemulti−familylendingsectorduetohigherratesandinflation[2][6]FinancialPerformance−Forthefourthquarter,thecompanyreportedLMMcommercialrealestateoriginationsof0.125 per share for the quarter ending March 31, 2025, to align with anticipated cash earnings and preserve capital for reinvestment [1][12] - The company experienced mixed results in 2024, with strong performance in the Small Business Lending segment but challenges in the multi-family lending sector due to higher rates and inflation [2][6] Financial Performance - For the fourth quarter, the company reported LMM commercial real estate originations of 436 million and Small Business Lending loan originations of 348million,including348 million, including 315 million of SBA 7(a) loans [6] - The total originations for the year amounted to 2.4billion,with2.4 billion, with 1.1 billion from SBA 7(a) loans [6] - The book value per share was reported at 10.61asofDecember31,2024[6]StrategicActions−Thecompanyhastakendecisiveactionstostabilizeitsbalancesheetbyfullyreservingforallnon−performingloansinitscommercialrealestateportfolio,whichisexpectedtoimprovenetinterestmarginsovertime[2]−Anewstockrepurchaseprogramwasapproved,authorizingtherepurchaseofupto10.61 as of December 31, 2024 [6] Strategic Actions - The company has taken decisive actions to stabilize its balance sheet by fully reserving for all non-performing loans in its commercial real estate portfolio, which is expected to improve net interest margins over time [2] - A new stock repurchase program was approved, authorizing the repurchase of up to 150 million of the company's common stock [5] - The company entered into a definitive merger agreement to acquire United Development Funding IV, enhancing its capital solutions for residential real estate developers [6] Dividend Information - The quarterly cash dividend of 0.125pershareispayableonApril30,2025,toshareholdersofrecordasofMarch31,2025[12]−AdditionaldividendsweredeclaredfortheSeriesCandSeriesEPreferredStocks,payableonApril15andApril30,2025,respectively[12]SubsequentEvents−OnFebruary21,2025,thecompanyclosedaprivateplacementof0.125 per share is payable on April 30, 2025, to shareholders of record as of March 31, 2025 [12] - Additional dividends were declared for the Series C and Series E Preferred Stocks, payable on April 15 and April 30, 2025, respectively [12] Subsequent Events - On February 21, 2025, the company closed a private placement of 220 million in Senior Secured Notes due 2028, intended for debt repayment and general corporate purposes [7]