RC · Ready Capital Corporation

Ready Capital reported significant Q1 2026 losses driven by balance sheet repositioning to de-lever and generate liquidity ahead of 2026 debt maturities. GAAP net loss was $200 million or $(1.25) per share, with distributable loss of $(1.00) per share after adjustments including $110.6 million realized losses on investments net of tax. Management highlighted year-to-date cash generation of $1.4 billion from $1.0 billion loan sales (48 CRE loans, 66% performing) and portfolio runoff, enabling repayment of $1.1 billion asset-level financing and retirement of $184 million corporate debt, including 5.75% and 6.20% senior unsecured notes. This reduced remaining 2026 corporate maturities to $450 million and collapsed final CLOs (RCMF 2021-FL7, 2023-FL11, 2023-FL12). Book value declined to $7.43 per share, with quarter-end cash at $200 million and $730 million unencumbered assets; leverage improved to 3.0x total and 1.8x recourse. Portfolio challenges included core CRE 60+ day delinquencies rising to 14.8% (largely from sales strategy), total originations of $464 million, and REO exposure at $610 million highlighted by Portland Ritz-Carlton (43/132 units sold). CEO Thomas Capasse noted these actions position the company for profitability resumption via core CRE debt and SBA 7(a) lending post-Q2 large asset sales. A $0.01 per share dividend was declared. Earnings call scheduled May 8, 2026.