Slide 1: Supplemental Financial Data Q3 2024
SUPPLEMENTAL FINANCIAL DATA Q3 2024
Slide 2: Disclaimer
2 Disclaimer This presentation contains statements that constitute “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the
Slide 3: Third Quarter 2024 Results
3 Third Quarter 2024 Results ■ Net loss from continuing operations1 of $(7.5) million, or $(0.07) per common share ■ Distributable earnings2 of $(42.5) million, or $(0.28) per common share ■ Distributable earnings before realized losses3 of $46.6 million, or $0.25 per common share ■ Declared dividen
Slide 4: Segment returns on equity and levered yield
GAAP ROE (2) Distributable ROE (2) Segment Levered Yield (1) Distributable Levered Yield (1) Equity Allocation Q3'24 Q2'24 Q3'24 Q2'24 LMM Commercial Real Estate 10.2 % 10.5 % 90.2 % 15.5 % 12.2 % 15.8 % 12.1 %Small Business Lending 75.1 % 75.1 % 8.0 % Corporate leverage, net of non-earning assets 2
Slide 5: Diversified, Complementary, & Scalable Platforms
60% 10% 11% 1% 5% 13% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending 5 Diversified, Complementary, & Scalable Platforms PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) 1. Assets include loans, MBS, servicing assets, JV investments, real estate owned, and purcha
Slide 6: Quarterly Investment Activity
$90.7 $8.8 $98.1 $157.3 $70.6 $5.3 $18.5 $373.7 $288.0 $156.2 $99.1 $157.1 $128.6 $152.2 $197.2 $217.3 $439.7 Bridge Fixed Rate/CMBS Construction Freddie Mac SBL Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 $0 $400 $800 6 Investment Portfolio Originations 1. Origination volumes are based on fully committed amounts
Slide 7: LMM Commercial Real Estate
• Liquidation and payoffs of $809 million, including $169 million of assets acquired in the Broadmark Merger • LMM money up pipeline of $730 million, including $67 million funded in October 7 LMM Commercial Real Estate 1. Excludes joint venture investments and preferred equity investments 2. Gross o
Slide 8: Small Business Lending
8 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE(1) WA LTV(2) WA COUPON FIXED/FLOAT 60+ DAYS PAST DUE(5) 5,903 $1.34B $1.32B 99.5% 10.5% 0.7 / 99.3% 2.9% CURRENT QUARTER HIGHLIGHTS 1. Gross of general reserves 2. Loan-to-value (LTV) is calculated by dividing the current unpaid
Slide 9: Loan Portfolio Composition
69% 11% 5% 4% 11% Multi-family Mixed-use Retail Office Other Investments 9 Loan Portfolio Composition 1. Calculated on UPB PROPERTY TYPE1 GEOGRAPHY1 LMM Commercial Real Estate 22% 21% 10%7% 40% Retail Lodging Eating Place Doctors Other Small Business Lending 21% 10% 8% 7%6% 48% Texas California Ariz
Slide 10: Loan Portfolio – Risk Rating
10 Loan Portfolio – Risk Rating BUCKET 1: Very Low Risk of Loss: New origination or current with strong credit metrics (LTV/DSCR/DY). No expected losses. BUCKET 2: Low Risk of Loss: Current with maturity > 6 months. Lower credit metrics with possibility of inclusion on CREFC watchlist. No expected l
Slide 11: LMM CRE Loan Portfolio - Migration
11 LMM CRE Loan Portfolio - Migration CONTRACTUAL STATUS (1) TOTAL Q1’24 Q2’24 Q3’24 CURRENT 87.8% 92.8% 91.4% 30+ DAYS PAST DUE 2.3% 0.9% 1.4% 60+ DAYS PAST DUE 9.9% 6.3% 7.2% RC ORIGINATED Q1’24 Q2’24 Q3’24 CURRENT 89.9% 94.4% 92.6% 30+ DAYS PAST DUE 2.2% 0.4% 1.2% 60+ DAYS PAST DUE 7.9% 5.2% 6.2%
Slide 12: Financial Flexibility
12 Financial Flexibility UNENCUMBERED ASSET POOL HIGHLIGHTS CORPORATE DEBT MATURITY PROFILE ($ in millions) 14% 35% 16% 10% 4% 21% Unrestricted cash Securities Loans Servicing rights REO Other Assets • Diversified unencumbered asset pool of $1.3 billion, including $181 million of unrestricted cash •
Slide 13: Debt - Leverage
13 Debt - Leverage • Total leverage of 3.3x • Recourse leverage ratio of 1.0x • 60% of secured borrowings subject to non-recourse or limited recourse terms Recourse Leverage by Reporting Segment(1) ($ in millions) 1. Recourse leverage by reporting segment is based on the segment recourse debt balanc
Slide 14: Financial Snapshot
14 Financial Snapshot ($ in thousands, except share data) Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost(3) Levered Yield LMM CRE $ 8,822,789 9.0 % $ 6,136,340 8.5 % 10.2 % SBL $ 595,743 35.5 % $ 356,922 9.0 % 75.1 % Total $ 9,418,532 10.7 % $ 6,493,262 8.5 %
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: Balance Sheet by Quarter
16 Balance Sheet by Quarter (in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Assets Cash and cash equivalents $ 165,731 $ 138,532 $ 166,004 $ 226,286 $ 181,315 Restricted cash 31,498 30,063 24,915 29,971 31,331 Loans, net 4,150,251 4,020,160 3,400,481 3,444,879 3,555,928 Loans, held
Slide 17: Statement of Operations by Quarter
17 Statement of Operations by Quarter (In thousands, except share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Interest income $ 248,711 $ 250,130 $ 232,354 $ 234,119 $ 226,537 Interest expense (189,788) (197,591) (183,805) (183,167) (175,572) Net interest income before (provision for) recovery of
Slide 18: Distributable Earnings Reconciliation by Quarter
18 Distributable Earnings Reconciliation by Quarter The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision- making, in
Slide 19: Ready Capital
” READY 85. CAPITAL.