Ready Capital Reports Q2 2025 Results with Strategic Asset Sales and Share Repurchases
TL;DR
Ready Capital's strategic asset liquidation and reinvestment in multifamily bridge loans positions investors for stronger returns as profitability is restored.
Ready Capital executed $173M commercial and $359M SBA loan originations, repurchased 8.5M shares, and issued $50M in 9.375% notes due 2028.
Ready Capital's focus on affordable multifamily housing financing helps address housing shortages and supports community development nationwide.
Ready Capital secured a Portland mixed-use property via deed-in-lieu while selling $494M in loans for $85M to optimize its portfolio.
Found this article helpful?
Share it with your network and spread the knowledge!
Ready Capital Corporation reported second quarter 2025 results showing $173 million in lower-to-middle-market commercial originations and $359 million in small business loan originations. The company achieved a book value of $10.44 per share while repurchasing 8.5 million shares at $4.41 each, indicating confidence in its valuation. The issuance of $50 million in 9.375% Senior Secured Notes due 2028 provides additional capital flexibility for ongoing operations.
The company's strategic direction includes significant asset restructuring, highlighted by the sale of its Residential Mortgage Banking segment. Subsequent events included securing ownership of a Portland, Oregon mixed-use property through deed-in-lieu proceedings and selling 21 loans with a $494 million carrying value for $85 million in net proceeds. These moves are part of the company's broader strategy to liquidate underperforming assets and reinvest in its core multifamily bridge portfolio.
Ready Capital's focus on its core business segments, particularly agency multifamily, investor, construction, and bridge loans, along with U.S. Small Business Administration loans under its Section 7(a) program, positions the company for improved operational efficiency. The company's nationwide presence with approximately 500 professionals supports its multi-strategy approach to real estate finance. For additional information about the company's operations and services, visit https://readycapital.com/.
The financial results and strategic initiatives reported by Ready Capital are significant for investors and the commercial real estate finance industry as they demonstrate a company actively restructuring to improve profitability. The share repurchase program at current prices suggests management believes the stock is undervalued, while the asset sales and portfolio refocusing indicate a shift toward more profitable business lines. These developments could signal improved stability and growth potential in the lower-to-middle-market commercial real estate lending sector.
Curated from InvestorBrandNetwork (IBN)
