Financial Data and Key Metrics Changes - The company reported distributable earnings of $46.3 million or $0.22 per share for Q4 2025, excluding one-time realized losses of $12.4 million and $7.3 million from reduced tax expenses [24][26] - Total non-performing assets were approximately $1.1 billion, down by over $130 million or 11% from the previous quarter [5][6] - The company estimates that resolving non-performing loans could add back as much as $100 million of income to the annual run rate, equating to about $0.48 per share [4][27] Business Line Data and Key Metrics Changes - The agency platform had a strong fourth quarter with $1.6 billion in origination volume, totaling $5 billion for the year, a 13.5% increase from 2024 [13] - The servicing portfolio grew by 8% in 2025 to over $36 billion, generating predictable annual income of over $128 million [14][31] - The balance sheet lending operation's investment portfolio grew to $12.1 billion, with an all-in yield of 7.08% [32][33] Market Data and Key Metrics Changes - The company is optimistic about the origination volume for 2026, targeting similar levels to 2025, contingent on interest rates and GSE caps [37] - The company noted that the interest rate environment has improved compared to the previous year, which is expected to support growth in origination volume [21] Company Strategy and Development Direction - The company is focused on resolving non-performing and sub-performing loans to improve income rates, with a goal to reduce REO assets to around $250 million-$300 million by the end of 2026 [7][11] - The strategy includes resetting interest rates on current loans to market spreads to ensure positive coverage of debt service [9][10] - The company plans to utilize proceeds from liquidating non-performing assets to buy back stock at a significant discount to book value [11][12] Management's Comments on Operating Environment and Future Outlook - Management believes the worst is behind them regarding delinquencies and is seeing steady progress in asset performance [9][21] - The company is experiencing some additional delinquencies but is optimistic about resolving more than are being added [25][53] - Management expressed confidence in the performance of the SFR book, noting it has not seen any delinquent loans [46] Other Important Information - The company has approximately $120 million left in its buyback plan and has already purchased about $20 million of stock at an average price of $7.40 [12] - The company expects to maintain its dividend in 2026, contingent on the resolution of delinquencies and the return to a stronger run rate of income [55][56] Q&A Session Summary Question: How are you thinking about 2026 GSE originations relative to the $5 billion number? - Management indicated that origination levels will depend on interest rates and GSE caps, expressing comfort in targeting similar levels to 2025 if conditions remain stable [37] Question: Do you expect servicing fee compression to continue into 2026? - Management explained that servicing fee compression is driven by the shift to shorter-term products and the normalization of fees post-COVID, with expectations that compression will level off by the end of the year [38][40] Question: Have you seen any credit issues in your build-to-rent borrowers? - Management reported that the SFR book is performing exceptionally well, with no delinquent loans, and highlighted strong returns on this business [45][46] Question: Can you provide geographic color on delinquent/REO book performance? - Management noted softness in markets like Houston and Atlanta, attributing issues to historical boom-bust cycles and immigration-related factors [48][49] Question: What are your thoughts on maintaining the dividend in 2026? - Management stated that the dividend is evaluated from a long-term perspective, with a focus on resolving delinquencies to restore earnings [55][56]

Financial Data and Key Metrics Changes - The company reported distributable earnings of $46.3 million or $0.22 per share for Q4 2025, excluding one-time realized losses of $12.4 million and $7.3 million from reduced tax expenses [24][26] - Total non-performing assets were approximately $1.1 billion, down by over $130 million or 11% from the previous quarter [5][6] - The company estimates that non-performing loans are creating a temporary drag of $80 million-$100 million annually, translating to about $0.40-$0.48 per share [27][29] Business Line Data and Key Metrics Changes - The agency platform had a strong Q4 with $1.6 billion in origination volume, totaling $5 billion for the year, a 13.5% increase from 2024 [13] - The servicing portfolio grew by 8% in 2025 to over $36 billion, generating predictable annual income of over $128 million [14][31] - The balance sheet lending operation's investment portfolio grew to $12.1 billion, with an all-in yield of 7.08% [32][33] Market Data and Key Metrics Changes - The company is optimistic about the origination volume for 2026, targeting similar levels to 2025, contingent on interest rates and GSE caps [37] - The company noted that the interest rate environment has improved compared to the previous year, which is expected to support growth in origination volume [21] Company Strategy and Development Direction - The company aims to resolve non-performing loans to improve income, estimating an addition of $100 million to annual run rate income as these loans are resolved [4][5] - The strategy includes resetting interest rates on current loans to market spreads to enhance performance and reduce future loss risks [9][10] - The company plans to continue its buyback program, having purchased approximately $20 million of stock at an average price of $7.40, which is 64% of book value [12] Management's Comments on Operating Environment and Future Outlook - Management believes the worst is behind them regarding delinquencies and is seeing steady progress in stabilizing properties [21][53] - The company is focused on resolving legacy issues and growing new business volumes, with a clear path to resolving the majority of delinquent assets in the coming quarters [10][35] - Management expressed confidence in the performance of the single-family rental (SFR) book, which has shown strong returns and no delinquent loans [46] Other Important Information - The company has approximately $120 million left in its buyback plan and is actively evaluating this strategy [12] - The agency business generates about 50% of net revenues, with a significant portion occurring before daily operations begin [14] Q&A Session Summary Question: How are you thinking about 2026 GSE originations relative to the $5 billion number? - Management indicated that 2026 origination levels will depend on interest rates and GSE caps, expressing comfort in targeting similar levels to 2025 if conditions remain stable [37] Question: Do you expect servicing fee compression to continue into 2026? - Management explained that servicing fee compression is driven by changes in loan products and expects this dynamic to level off towards the end of the year [38][40] Question: Have you seen any credit issues in your build-to-rent borrowers? - Management reported that the SFR book is performing exceptionally well, with no delinquent loans, and highlighted strong institutional backing for the sponsors [45][46] Question: Can you provide geographic color on delinquent/REO book performance? - Management noted softness in markets like Houston and Atlanta, attributing issues to historical boom-bust cycles and immigration-related factors [48][49] Question: What are your thoughts on maintaining the dividend in 2026? - Management stated that the dividend is evaluated from a long-term perspective, with a focus on resolving delinquencies to restore earnings [56][58]

- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(1.46) -- DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.43) -- DISTRIBUTABLE LOSS PER COMMON SHARE BEFORE REALIZED LOSSES OF $(0.09) - NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported fina ...

Performance was characterized by a shift toward capital efficiency, highlighted by a re-REMIC transaction that reduces mark-to-market repo financing and is expected to be significantly accretive to annual cash available for distribution. Management is intentionally avoiding 'AI scare-trade' assets, instead focusing on residential and self-storage sectors where AI integration is viewed as a margin enhancer rather than a threat of obsolescence. Life science performance is driven by 'first-to-fill' asset ...

NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (the “Company”) today announced the appointment of Dominick Scali as Chief Credit Officer of the Company and Co-President of ReadyCap Commercial, LLC, the Company’s commercial real estate lending business. Mr. Scali has been a Managing Director and Co-Head of Bridge Lending with the Company since 2015. Prior to that, he was head of credit and underwriting for Doral Bank’s national bridge lending platform and held positions in c ...

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose to $89.9 million in 2025 from $72.5 million in 2024, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [8] - The NexPoint storage portfolio finished 2025 at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [19] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [7] - The self-storage industry is experiencing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year [18] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [11] - The strategy includes actively managing the B-Pieces portfolio to unlock value and improve capital efficiency, with plans to refinance remaining unsecured notes in the first half of 2026 [10][9] - The company is optimistic about the multifamily sector, expecting positive rent inflection in the second half of 2026 due to structural demand and a decline in new market rate deliveries [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that CAD is a better indicator of dividend coverage than EAD [27] - The company anticipates a leveling off of credit loss provisions in 2026, with no significant problem areas in the portfolio [38] - There is optimism regarding life sciences leasing activity, driven by demand from AI companies needing purpose-built lab spaces [42] Other Important Information - The board declared a dividend of $0.50 per share for Q1 2026, which is 1.06 times covered by cash available for distribution [4] - The company raised $60.5 million in gross proceeds from a Series B preferred stock offering [5] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management indicated that while EAD is below CAD, they believe CAD is a better indicator for dividend coverage and sustainability, and they feel well-positioned for future dividend sustainability [26][28] Question: Areas of portfolio excitement and impact of regulations - Management is particularly focused on life sciences and build-to-rent assets, believing there will be continued demand for capital in these areas despite proposed regulations [30][32] Question: Provision for credit loss and expectations - Management explained that one-third of the $12 million provision was a general reserve, with expectations for it to level off in 2026 [38] Question: Characteristics driving positive performance in life science projects - The Alyfe Park project is noted for its purpose-built characteristics and strategic location, which have driven leasing activity despite broader market challenges [39][41] Question: Details on loans made in the quarter - Management provided details on loans funded, including a $22.5 million loan at an 11% coupon, emphasizing a selective approach to investment opportunities [47]

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose by $17.4 million to $89.9 million for 2025, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [8] - The NexPoint storage portfolio finished 2025 at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [19] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [7] - The self-storage industry is facing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year [18] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [11] - The company is optimistic about the multifamily sector, expecting positive rent inflection in the second half of 2026 due to structural demand and a decline in new market rate deliveries [16] - The company is actively pursuing opportunities in build-to-rent assets, with a pipeline consisting of various investments across multifamily, life sciences, and self-storage [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that cash available for distribution is a better indicator of coverage than earnings available for distribution [27] - The company anticipates that the demand for life sciences and residential properties will continue to grow, driven by demographic trends and advancements in health and wellness [16][42] - Management believes that the regulatory environment will create opportunities in the build-to-rent sector, particularly if institutional buyers face limitations [32] Other Important Information - The company raised $60.5 million in gross proceeds from a Series B preferred stock offering and launched a Series C preferred stock at 8% [5][9] - The company refinanced $36.5 million in unsecured notes with a new $45 million offering at 7.875%, positioning itself well in a declining interest rate environment [9] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management noted that EAD is slightly below CAD, but CAD is viewed as a better indicator for dividend coverage, and they feel well-positioned for future sustainability [27][28] Question: Areas of portfolio excitement and impact of regulations - Management is focused on life sciences and build-to-rent assets, believing there are significant opportunities in these sectors despite potential regulatory changes [31][32] Question: Provision for credit loss and future expectations - Management indicated that the recent provision for credit loss was conservative and expects it to level off in 2026 [38] Question: Characteristics driving positive performance in life science projects - The Alyfe Park project is purpose-built and well-located, which has driven leasing activity despite challenging market dynamics [40][41] Question: Details on loans made in the quarter - Management provided details on loans, including a $22.5 million loan at 11% and emphasized a focused approach to investment selection [48]

Walker & Dunlop (NYSE:WD) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsGreg Florkowski - EVP & CFOKelsey Duffey - SVP of Investor RelationsMatthew Hurwit - VP in Equity ResearchWilly Walker - Chairman and CEOConference Call ParticipantsJade Rahmani - Managing Director and Equity Research AnalystSteve Delaney - Managing Director and Senior Equity AnalystOperatorGood day, welcome to the Q4 2025 Walker & Dunlop, Inc. Earnings Call. Today's conference is being recorded. At this time, ...

Walker & Dunlop (NYSE:WD) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsGreg Florkowski - EVP & CFOKelsey Duffey - SVP of Investor RelationsMatthew Hurwit - VP in Equity ResearchWilly Walker - Chairman and CEOConference Call ParticipantsJade Rahmani - Managing Director and Equity Research AnalystSteve Delaney - Managing Director and Senior Equity AnalystOperatorGood day, welcome to the Q4 2025 Walker & Dunlop, Inc. earnings call. Today's conference is being recorded. At this time, ...

Walker & Dunlop (NYSE:WD) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker4Good day, welcome to the Q4 2025 Walker & Dunlop, Inc. earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kelsey Duffey. Please go ahead.Speaker2Thank you, Cynthia. Good morning, everyone. Thank you for joining Walker & Dunlop's fourth quarter and full year 2025 earnings call. I have with me this morning our Chairman and CEO, Willy Walker, and our CFO, Greg Florko ...