Ready Capital Corporation Announces Growth in Origination Activity and Expanded Access to Capital

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) reported strong performance in Q2 2022 with total origination of $1.2 billion in commercial real estate and small business lending. The Bridge lending platform originated $839 million, while small business lending reached $129 million with significant efficiency gains. The company enhanced liquidity by closing a $754.2 million CRE CLO and a $276.8 million fixed rate securitization. CEO Thomas Capasse highlighted a $1 billion pipeline, indicating a positive outlook despite challenging market conditions.

Positive

• Total origination reached $1.2 billion in Q2 2022.
• Bridge lending platform led with $839 million originated.
• Small business lending segment produced $129 million.
• Closed $754.2 million CRE CLO, enhancing liquidity.
• Maintained a $1 billion pipeline for future deals.

Negative

• None.

Recent Securitizations add to Liquidity and Balance Sheet Strength

NEW YORK, July 12, 2022 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced robust origination activity for its commercial real estate and small business lending platforms during the second quarter of 2022, supported by successful capital raising and securitization activity. 

During the quarter, Ready Capital originated an aggregate $1.2 billion in commercial real estate and small business lending volume. Within commercial real estate, the Company's Bridge lending platform led the way with $839 million originated, while volume was also strong for its Freddie Mac Small Balance Loan (SBL), Bridge-to-Small-Balance Agency and CMBS programs which generated $229 million during the quarter. In the Company's small business lending segment, SBA 7(a) production totaled $129 million. This included $18 million of loans under $350,000 continuing rapid volume growth and increased efficiency through the implementation of front-end technology investments made in 2021. In addition to the foregoing, Ready Capital's Red Stone subsidiary originated $153 million for the quarter. Red Stone provides acquisition, development and permanent financing for affordable housing in conjunction with taxable and tax-exempt bond financing.

The Company has simultaneously maintained its focus on the strength and liquidity of its capital base, enabling continued origination activity through the coming quarters. In June, the Company closed Ready Capital Mortgage Financing (RCMF) 2022-FL9, LLC, a $754.2 million CRE CLO. RCMF 2022-FL9 consists of 25 first-lien floating rate loans originated or acquired by the Company. The loans are secured by 75 properties comprised of multifamily (95.7%), self-storage (3.0%) and industrial (1.3%) across 13 states.

The recent CRE CLO followed on the success of Ready Capital Mortgage Trust 2022-7, a $276.8 million fixed rate securitization that closed in April. The Company also sold senior notes in April, providing an additional $120 million in aggregate capital.   

"With market conditions growing more challenging for mortgage REITs, the strength of our capital resources gives us a measurable advantage in this environment," said Thomas Capasse, CEO of Ready Capital. "Given the robustness of our $1 billion pipeline, we anticipate healthy deal flow for our lending programs into next year."

About Ready Capital Corporation

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including multifamily agency, stabilized and bridge financing, as well as government guaranteed business loans. Ready Capital and its affiliates also provide alternative lending, construction lending, and low-income housing finance as well as residential mortgages. Headquartered in New York, Ready Capital employs more than 600 lending professionals nationwide. The company is externally managed by Waterfall Asset Management, LLC.

Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Ready Capital Media Relations
PR@readycapital.com

 

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SOURCE Ready Capital Corporation

FAQ

What were Ready Capital's origination figures for Q2 2022?

Ready Capital reported total origination of $1.2 billion in Q2 2022.

What is the significance of the recent CRE CLO closed by Ready Capital?

The recent CRE CLO of $754.2 million enhances Ready Capital's liquidity and supports ongoing origination activity.

How has the small business lending segment performed in Q2 2022 for Ready Capital?

The small business lending segment produced $129 million in loans during Q2 2022.

What did CEO Thomas Capasse say about the company's future outlook?

CEO Thomas Capasse indicated a positive outlook with a $1 billion pipeline and healthy deal flow anticipated.

What are the main lending platforms contributing to Ready Capital's performance?

The main lending platforms include the Bridge lending platform and the Freddie Mac Small Balance Loan program.