Ready Capital Corporation · NYSE:RC
Ready Capital — Investor Presentation (March 2025)
27 slides from Ready Capital's investor presentation, Mar 31, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION MARCH 31, 2025
Slide 2: Disclaimer
Disclaimer These materials and any presentation of which they form a part are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to a
Slide 3: Executive Summary
Executive Summary Ready Capital (“RC” or the “Company”) is a non-bank lender to both investors in and owners of lower-to-middle-market (LMM) commercial real estate (CRE) properties with book value of approximately $2.0 billion ■ All-weather investment strategy as a direct lender and acquirer of loan
Slide 4: Business Overview
_ READY CAPITAL. Business Overview
Slide 5: Company Overview
Company Overview Multi-strategy real estate finance company that originates, acquires and services LMM investor and owner occupied commercial real estate loans ■ Acquires and originates LMM loans secured by stabilized or transitional investor properties using multiple loan origination channels; gene
Slide 6: A Successful and Proven Asset Manager
A Successful and Proven Asset Manager WATERFALL ASSETS UNDER MANAGEMENT BY STRATEGY1 20 year Investment record $12.9B $12.9B2 AUM2 AUM 150+ Employees 50+ WATERFALL OVERVIEW Investment professionals ■ SEC-registered credit investment advisor founded in 2005 ■ Top global manager with focus on real est
Slide 7: Proven Acquisition and Integration Track Record
Proven Acquisition and Integration Track Record Ready Capital is an active acquiror in the multi-strategy real estate finance sector, having completed ten transactions since 2014, including four public company mergers Announcement October 31, November October 31, December August 03, November 04, Feb
Slide 8: Market Segment Overview
"READY CAPITAL. Market Segment Overview
Slide 9: Overview of Key Themes by Market Segment
Overview of Key Themes by Market Segment ■ $4.8tn¹ total CRE market value estimate as of 12/31/2024 ■ Retrenchment of banks from LMM CRE market provides increased opportunity ■ Competition for LMM CRE loan asset acquisitions has been limited due to the portfolio LMM Commercial management expertise r
Slide 10: Full Project Life Cycle Lender With Diverse Solutions
Full Project Life Cycle Lender With Diverse Solutions FULL PROJECT LIFE CYCLE LMM COMMERCIAL REAL ESTATE SMALL BUSINESS LENDING Government-backed Small Product Construction Bridge Fixed Rate/CMBS Freddie Mac Business Administration loans and USDA loans Financing for the Freddie Mac SBL Construction
Slide 11: Breakdown of Investment Strategy Economics
Breakdown of Investment Strategy Economics FULL PROJECT LIFE CYCLE LMM COMMERCIAL REAL ESTATE SMALL BUSINESS LENDING Government-backed Small Product Construction Bridge Fixed Rate/CMBS Freddie Mac Business Administration loans and USDA loans WA coupon SOFR + 7.75% SOFR + 4.00% 9.25% 6.50% 11.00% Fee
Slide 12: LMM Commercial Real Estate Overview
LMM Commercial Real Estate Overview OVERVIEW ■ All weather origination platform with ability to allocate capital across 4 products ■ $19.2 billion in originations since the Company’s formation in 2013¹ ■ Supported by 119 staff, including 23 loan officers, with headquarters in New York & Texas and 4
Slide 13: LMM Commercial Real Estate Case Studies
LMM Commercial Real Estate Case Studies Construction Bridge Non-Agency Fixed Rate Freddie Mac SBL Myrtle Avenue Portfolio Name Pico Point Mission Ridge Dixie Downs Refinance Location Los Angeles, CA 90019 Mission Viejo, CA 92691 Ridgeway, NY 11385 Louisville, KY 40216 Loan Purpose Ground-Up Construc
Slide 14: Small Business Lending Overview
Small Business Lending Overview OVERVIEW ■ A leading provider of capital to small businesses through 7(a) loans and USDA loans ■ #1 non-bank and #5 overall 7(a) lender¹ ■ 1 of 20 non-bank Small Business Administration 7(a) license holders; acquired from CIT in 2014 ■ 2.8% market share with 3% 3-year
Slide 15: Small Business Lending Case Study
Small Business Lending Case Study SBA 7(a) USDA Working Capital Name The Club at Wellington Chateau Lake Placid WC Welding Location Wellington, FL 33414 Lake Placid, NY 12946 Cadiz, OH 43907 Loan Purpose Debt Refinance USDA Business & Industry Refinance/Equipment Purchase Business Assisted Living Fa
Slide 16: Key Credit Highlights
Key Credit Highlights
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition PORTFOLIO BREAKDOWN (BY TOTAL ASSETS)1 Q1 REVENUE BREAKDOWN ($MM)1,2 PORTFOLIO KEY METRICS3 ($ in thousands) LOAN TYPE SEGMENT UPB CARRY VALUE WA RISK RATING GROSS YIELD CASH YIELD 60+ DAYS PAST DUE5 Bridge LMM CRE $5,189,108 $4,971,722 2.77 7.4 % 6.3 % 9.6 % Fixed Rate LM
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition LMM CRE GEOGRAPHIC LOCATION1 LIEN POSITION OF TOTAL PORTFOLIO1 LMM CRE COLLATERAL TYPE1 SMALL BUSINESS LENDING COLLATERAL TYPE1 1.) Calculated based on Carrying Value 18
Slide 19: LMM CRE Loan Portfolio - Migration
LMM CRE Loan Portfolio - Migration CONTRACTUAL STATUS (5) RISK RATING (5) CORE Q2’24 Q3’24 Q4’24 Q1’25 CORE Q2’24 Q3’24 Q4’24 Q1’25 CURRENT 94.0% 94.8% 96.4% 93.8% 30-59 DAYS PAST 1&2 74.6% 71.8% 67.7% 55.0% 0.9% 1.1% 1.6% 2.1% DUE 60+ DAYS PAST DUE 5.1% 4.1% 2.0% 4.1% 3 19.9% 23.3% 28.1% 37.4% NON-
Slide 20: Loan Portfolio Composition
Loan Portfolio Composition HIGHLIGHTS CASH ON BALANCE SHEET ($MM) ■ Diversified unencumbered asset pool of $1.0b, including $206m of unrestricted cash ■ 1.2x unencumbered assets to unsecured debt ■ $1.8b in available warehouse borrowing capacity across 15 counterparties AVAILABLE WAREHOUSE BORROWING
Slide 21: Financial Flexibility (Cont'd)
Financial Flexibility (Cont'd) Debt Balance Leverage Ratio ($ in millions) PPPLF $15 0.0x OVERVIEW ■ Total leverage of 3.3x ■ Recourse leverage ratio of 1.0x ■ 60% of secured borrowings subject to non-recourse or limited recourse terms Securitized Debt $2,574 1.3x Obligations UNENCUMBERED ASSET POOL
Slide 22: Historical Balance Sheet
Historical Balance Sheet ■ Ready Capital has grown its balance sheet substantially over its history, with its total assets grown at a 19% CAGR from 2017 to March 31, 2025 ■ Debt is comprised of a well diversified mix of corporate borrowings and securitizations ■ Ready Capital’s equity has grown over
Slide 23: Additional Financial Information
APPENDIX Additional Financial Information
Slide 24: Balance Sheet by Quarter
Balance Sheet by Quarter (in thousands) 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Assets Cash and cash equivalents $ 166,004 $ 226,286 $ 181,315 $ 143,803 $ 205,917 Restricted cash 24,915 29,971 31,331 30,560 39,603 Loans, net 3,400,481 3,444,879 3,555,928 3,378,149 4,354,017 Loans, held fo
Slide 25: Statement of Operations by Quarter
Statement of Operations by Quarter (In thousands, except share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Interest income $ 232,354 $ 234,119 $ 226,537 $ 203,965 $ 154,967 Interest expense (183,805) (183,167) (175,572) (153,911) (140,466) Net interest income before (provision for) recovery of loa
Slide 26: Distributable Earnings Reconciliation by Quarter
Distributable Earnings Reconciliation by Quarter (In thousands, except share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Income (loss) $ (74,167) $ (34,201) $ (7,279) $ (314,751) $ 81,965 Reconciling items: Unrealized (gain) loss on MSR - discontinued operations $ — $ 7,219 $ — $ 33,175 $ 8,95
Slide 27: SHEE’ READY
SHEE’ READY JRE CAPITAL.