Ready Capital Posts $234M Q4 Loss, Originates $375M Loans, Sells $855M Portfolio
Ready Capital recorded a GAAP Q4 loss of $234.2 million ($1.46 per share) and an adjusted loss of $0.09 per share on $124 million revenue. The REIT originated $375 million of loans, sold $855.3 million of loans and retired its 5.75% note to improve liquidity.
1. Fourth Quarter Financial Results
Ready Capital reported a GAAP loss of $234.2 million, or $1.46 per share, in the fourth quarter. Adjusted loss amounted to $0.09 per share on $124 million of revenue, with non-recurring items excluded to yield $13.1 million in adjusted revenue.
2. Loan Originations and Portfolio Sales
The company originated $235 million of lower-to-middle-market commercial real estate loans and $140 million of small business loans, including $84 million of SBA 7(a) and $18 million of USDA loans. It sold $855.3 million of loans and retired its 5.75% senior unsecured note due February 2026.
3. Liquidity and Balance Sheet Actions
Book value stood at $8.79 per share as of December 31. Management executed a liquidity plan focused on debt repayment and repositioning equity away from Covid-vintage production to strengthen the balance sheet.
4. Leadership Restructuring
Dominick Scali was appointed Chief Credit Officer and Co-President of the commercial lending unit, while David Cohen was elevated to Co-President. Gary Taylor stepped down as COO, Matt Cohen became Head of Operations and CTO, and Adam Zausmer departed as Chief Credit Officer.