Welcome to our dedicated page for Ready Capital news (Ticker: RC), a resource for investors and traders seeking the latest updates and insights on Ready Capital stock.
Corporate Overview
Ready Capital Corporation (NYSE: RC) stands as a comprehensive, multi-strategy real estate finance company in the United States. With a focus on the origination, acquisition, financing, and servicing of a wide range of commercial real estate loans, Ready Capital plays a pivotal role in providing capital solutions in its niche market. Its operations are centered on financing products that include small balance commercial loans, Small Business Administration (SBA) loans, and residential mortgage loans. By leveraging its robust platform and technology-driven approaches to underwriting and compliance, Ready Capital has established a reputation for operational discipline and a deep understanding of commercial real estate markets.
Business Segments and Operational Focus
The structure of Ready Capital is built upon diverse yet interrelated business segments that address multiple facets of the real estate finance industry. These include:
- Acquisitions: This segment focuses on purchasing both performing and non-performing small balance commercial loans. The strategy here allows the company to expand its portfolio through strategic asset acquisitions, contributing to a diversified risk profile.
- SBC Originations: In this division, the company originates loans secured by stabilized or transitional investor properties. By utilizing a variety of loan origination channels and practices aligned with industry best standards, Ready Capital tones its expertise in underwriting and servicing commercial real estate investments.
- SBA Originations, Acquisitions and Servicing: Focused on owner-occupied loans guaranteed by the SBA, this segment combines the roles of origination, acquisition, and servicing. The integration of technology in processing these transactions underlines the company’s commitment to regulatory compliance and operational efficiency.
- Residential Mortgage Banking: This segment administers traditional residential mortgages, expanding the company’s footprint into the residential real estate sector. It demonstrates the company’s adaptability in managing different product lines within the broader real estate finance market.
Technological Integration and Compliance
Ready Capital has been known to incorporate sophisticated technological solutions, which streamline the lending process and enhance the customer experience. Its strategic alignment with initiatives such as Lending as a Service (LaaS) platforms and AI-enabled underwriting protocols has allowed the company to deliver technology-enabled solutions that emphasize speed, accuracy, and compliance. Such measures are critical, given the stringent oversight in commercial and SBA lending. This technology-driven approach supports not only operational efficiency but also ensures consistency and rigor in compliance programs—a trait that instills confidence among investors and regulatory bodies alike.
Market Position and Competitive Landscape
Within the competitive realm of real estate finance, Ready Capital differentiates itself through a multi-pronged strategy that balances both the risk and opportunity across different lending segments. The company’s hybrid approach of combining traditional lending with cutting-edge technology enables it to navigate complex market dynamics while addressing the financing needs of a diverse client base. Its competitive edge lies in the ability to manage a varied portfolio that includes both low-to-middle market commercial loans and SBA-guaranteed products. This unique positioning not only supports a balanced revenue stream but also provides strategic flexibility in responding to market shifts and economic cycles.
Operational Excellence and Risk Management
Operational excellence at Ready Capital is underscored by a strong emphasis on due diligence, regulatory compliance, and risk management. The company’s adherence to strict compliance protocols, especially in its SBA and commercial loan segments, reflects its commitment to maintaining industry-leading standards. With robust internal processes and technology integration, Ready Capital effectively navigates the complexities of credit risk and asset performance. This careful orchestration of risk management measures is central to sustaining its reputation as a reliable real estate finance partner for both investors and borrowers.
Partnerships and Strategic Initiatives
Ready Capital’s collaborative efforts with partners in the technology and lending services space further demonstrate its commitment to innovation and scalability. Whether through joint engagements with tech-focused lending service providers or strategic alignments aimed at expanding its loan origination capabilities, the company continually adapts to the evolving landscape of real estate finance. These partnerships underscore a value proposition that integrates advanced technology with deep market insights, aligning with the broader industry trends of digital transformation and enhanced compliance monitoring.
Investor Considerations and Company Insights
For investors and market analysts, Ready Capital represents a case study in balancing diversified portfolio management and technological integration within the real estate finance sector. The company’s diversified segments not only provide multiple revenue streams but also reduce the reliance on any one market factor, offering a resilient framework against market volatility. Detailed analysis of its operations reveals a platform designed with a strategic focus on both performance optimization and risk diversification. This combination of operational execution and market-driven strategies contributes to a cohesive narrative about the company’s standing in the industry.
Conclusion
In summary, Ready Capital Corporation embodies a sophisticated approach to real estate finance through its multi-strategy model that spans commercial, SBA, and residential mortgage banking segments. With an emphasis on technological integration, operational excellence, and rigorous compliance, the firm has secured a nuanced competitive position in a multifaceted industry. The company’s business model, underpinned by steady acquisition of diversified loan assets and strengthened by innovative service platforms, presents an informative case for those looking to understand the dynamics of modern real estate finance. This detailed assessment offers clarity on the firm’s operations, strategic focus, and its role within the broader commercial lending and real estate finance sectors, providing a comprehensive perspective for both market participants and industry observers.
Waterfall Asset Management has appointed Keerthi Raghavan as Co-Chief Investment Officer (Co-CIO), where he will work alongside current Co-CIO Brian Rebello to oversee all investment activities. Raghavan, who joined the firm in 2014, currently serves as Partner and Head of ABS Strategy and is a member of the Investment Committee.
The appointment follows the resignation of Patrick Lo, Partner and Co-CIO, after 19 years with the firm. Raghavan brings over 16 years of industry experience, including his previous role as Director for CMBS Credit Trading and Head of CMBS Research at Barclays Capital. His co-lead, Rebello, has been with Waterfall since 2010 and possesses over 25 years of industry experience.
Ready Capital (NYSE: RC) has completed its previously announced acquisition of United Development Funding IV (UDF IV). Under the merger terms, each UDF IV share was converted into 0.416 shares of Ready Capital common stock and 0.416 contingent value rights (CVRs).
The CVRs represent potential additional Ready Capital shares based on cash proceeds from five UDF IV loans over four periods: October 1, 2024 to December 31, 2025, and three subsequent calendar years. The combined entity continues to operate as Ready Capital and maintains its NYSE listing under 'RC'.
Ready Capital is a multi-strategy real estate finance company focusing on lower-to-middle-market commercial real estate loans, including agency multifamily, investor, construction, bridge, and SBA Section 7(a) loans. The company employs approximately 350 professionals nationwide.
NexPoint has issued an urgent update regarding the proposed merger between United Development Funding IV (UDF IV) and Ready Capital (RC), scheduled for shareholder vote on March 4, 2025. Following Ready Capital's concerning Q4 2024 earnings report, RC's stock price plummeted by over 25%, trading as low as $4.78 per share, which translates to $1.99 per UDF IV share under the merger terms.
The steep decline could potentially erase more than $30 million in value for UDF IV shareholders. NexPoint criticizes the UDF IV Board's hasty rejection of their competing proposal on February 28, 2025, and urges the Board to postpone the Special Meeting by one month to properly evaluate both transactions and Ready Capital's financial stability.
Ready Capital (NYSE: RC) reported challenging Q4 2024 results with a GAAP loss per share of $(1.80) and distributable loss per share of $(0.03). The company declared a reduced quarterly dividend of $0.125 per share for Q1 2025.
Key Q4 highlights include $436 million in LMM commercial real estate originations and $348 million in Small Business Lending originations. Book value stood at $10.61 per share. The company repurchased 5.8 million shares at an average price of $7.35.
For full-year 2024, Ready Capital posted a GAAP loss of $(2.52) per share and achieved total LMM and SBL originations of $2.4 billion. The company has taken strategic actions including fully reserving non-performing CRE loans and adjusting dividends to preserve capital for reinvestment and share repurchases.
Subsequently, the Board approved a new $150 million stock repurchase program, and the company closed a $220 million private placement of 9.375% Senior Secured Notes due 2028.
NexPoint has submitted a competing proposal to UDF IV's Board of Trustees, challenging the planned merger with Ready Capital (RC). The proposal offers improved shareholder economics compared to the Ready Merger scheduled for March 4, 2025.
Key advantages of NexPoint's proposal include:
- Higher pre-closing dividend through enhanced balance sheet distributions
- 100% shareholder entitlement to CVR loan proceeds (vs. Ready's complex structure with shareholder benefits)
- Intent to recover improper indemnification payments with 100% of net recoveries going to shareholders
NexPoint, a major shareholder, will not vote at the March 4 Special Meeting and urges a one-month postponement for proper proposal evaluation. The company calls for shareholders to withhold voting until the UDF IV Board fully assesses their proposal.
Ready Capital (NYSE: RC) announced the closing of a private placement of $220.0 million in aggregate principal amount of 9.375% Senior Secured Notes due 2028 through its indirect subsidiary ReadyCap Holdings, on February 21, 2025.
The Notes are senior secured obligations backed by first-priority liens on specific assets and guaranteed by Ready Capital and several subsidiary entities. The company plans to use the net proceeds to repay existing debt and for general corporate purposes.
Piper Sandler & Co. served as the placement agent, with Alston & Bird LLP and Ropes & Gray LLP providing legal counsel. The Notes and Guarantees are not registered under the Securities Act and cannot be offered or sold in the US without registration or applicable exemption.
NexPoint Real Estate Opportunities announced plans to submit a competing proposal against the proposed merger between United Development Funding IV (UDF IV) and Ready Capital (RC). NexPoint is urging UDF IV's Board to postpone the March 4, 2025 Special Meeting by 30 days to April 4, 2025, allowing proper review of competing proposals while maintaining the April 15 merger deadline.
NexPoint expressed significant concerns about the Ready Merger, citing questionable shareholder economics and disproportionate benefits to UDF IV insiders. The current deal structure would have UDF IV shareholders receive considerable RC stock, which has experienced declining operating cash flow and distribution cuts. The merger agreement includes extensive indemnification provisions that could limit shareholders' ability to seek repayment of misused funds.
NexPoint is deferring its vote and encourages shareholders to withhold or withdraw their votes to compel the Board to properly review any competing proposals.
Ready Capital (NYSE: RC) has scheduled the release of its fourth quarter and full year 2024 financial results before the NYSE opens on Monday, March 3, 2025. The company will host a webcast and conference call at 8:30 a.m. Eastern Time on the same day to discuss the financial results and provide a business update.
The webcast will be accessible through the Investor Relations section of Ready Capital's website. A conference call option is available by dialing 877-407-0792 (domestic) or 201-689-8263 (international). A replay will be available until March 17, 2025, accessible via the website or by dialing 844-512-2921 (domestic) or 412-317-6671 (international) with pin number 13750356.
Ready Capital (NYSE: RC) has announced a new stock repurchase program authorized by its Board of Directors. The program allows for the repurchase of up to $150.0 million of the company's common stock. As a multi-strategy real estate finance company, Ready Capital focuses on originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans.
The repurchases can be executed through various channels, including open market, privately negotiated transactions, and under Rule 10b5-1 and Rule 10b-18 plans. Management will determine the timing and volume of repurchases based on market conditions, share price, legal requirements, and other factors.
Ready Capital (NYSE:RC) has announced its fourth quarter 2024 dividend declarations. The company will pay a quarterly cash dividend of $0.25 per share of common stock and Operating Partnership unit for Q4 2024, payable on January 31, 2025, to shareholders of record as of December 31, 2024.
Additionally, the company declared dividends on its preferred stocks: $0.390625 per share for Series C Preferred Stock and $0.40625 per share for Series E Preferred Stock, both payable in January 2025. Ready Capital is a multi-strategy real estate finance company focusing on lower-to-middle-market commercial real estate loans, including agency multifamily, investor, construction, bridge, and SBA Section 7(a) loans.
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