Ready Capital generated $1.4 billion in cash via loan sales and portfolio runoff year-to-date, repaid $1.1 billion in asset-level financing and retired $184 million of corporate debt, including its 5.75% and 6.20% senior unsecured notes. The Company also collapsed its remaining CLOs and initiated a sale process for up to $1.2 billion of performing and non-performing loans as the final phase of its repositioning plan.

The Company reported a GAAP loss per common share of $1.25, a distributable loss of $1.00 per share and a distributable loss before realized losses of $0.33 per share. Management acknowledges the negative impact on earnings and book value from asset sales but expects book value pressure to subside as remaining transactions close.

Total loan originations in the quarter reached $464 million, comprising $288 million of lower-to-middle-market commercial real estate loans, $110 million of SBA 7(a) loans and $28 million of USDA loans. Core portfolio delinquencies over 60 days rose to 14.8%, largely reflecting the impact of strategic loan sales and accelerated liquidations.

At quarter end, Ready Capital held $200 million in cash and $730 million of unencumbered assets, with total leverage of 3.0x and recourse leverage of 1.8x, and book value per share of $7.43. The Portland Ritz-Carlton project saw 43 condominium units sold (74% year-to-date), a 46% hotel occupancy, 1% higher ADR to $482 and 13% RevPAR growth to $221.