Ready Capital Corporation · NYSE:RC
Ready Capital — Q1 2024 Earnings Presentation
19 slides from Ready Capital's earnings presentation, May 9, 2024
Slide 1: Supplemental Financial Data Q1 2024
SUPPLEMENTAL FINANCIAL DATA Q1 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: First Quarter 2024 Results
3 First Quarter 2024 Results Net loss from continuing operations1 of $ (75.6) million, or $ (0.45) per common share Distributable earnings2 of $54.0 million, or $0.29 per common share Declared dividend of $0.30 per common share Earnings / Dividends Return on Equity from continuing operations
Slide 4: Return on Equity
4 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 5: Diversified, Complementary, & Scalable Platforms
5 Diversified, Complementary, & Scalable Platforms 61% 9% 12% 1% 5% 12% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $37,224 $1,967 $18,033 $3,308 $1,838 $23,327 $0 $10,000 $20,000 $30,000 $40,000 Bridge Fixed r
Slide 6: Investment Portfolio Originations
6 Investment Portfolio Originations $110.2 $123.1 $90.7 $8.8 $98.1 $4.0 $3.9 $5.3 $19.4 $276.9 $384.6 $373.7 $288.0 $156.2 $92.3 $120.8 $128.6 $152.2 $197.2 $0 $400 $800 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Bridge Fixed Rate/CMBS Construction Freddie Mac Acquired SBA $502.8 $632.4 $593.0 $449.0 $456.8 1. O
Slide 7: LMM Commercial Real Estate
• Liquidation and payoffs of $461 million, including $50 million of assets acquired in the Broadmark Merger • LMM money up pipeline of $528 million, including $165 million funded in April • Transfer of $655 million of delinquent loans into held-for-sale 10.9% 10.2% 9.1% 9.1% 8.2% 0.6% 1.3% 1.7% 0.7%
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) 3,922 $1.23B $1.21B 90.4% 10.4% 0.8 / 99.2% 1.1% CURRENT QUARTER HIGHLIGHTS 19.5% 20.9% 21.2% 19.7% 18.1% 20.8% 22.7% 22.5% 24.4% 32.1% 0% 15% 30% 45% Q1 2023 Q2 2023 Q3 202
Slide 9: Loan Portfolio Composition
9 Loan Portfolio Composition 23% 22% 7% 10% 38% Small Business Lending Lodging Retail Eating Place Doctors Other 1. Calculated on UPB and excludes assets offset by guaranteed loan financing liabilities 69% 9% 5% 5% 12% LMM Commercial Real Estate Multi-family Mixed-use Retail Office Other Investments
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 TOTAL Q4’23 Q1’24 CURRENT 88.8% 87.8% 30+ DAYS PAST DUE 1.7% 2.3% 60+ DAYS PAST DUE 9.5% 9.9% RC ORIGINATED Q4’23 Q1’24 CURRENT 92.1% 89.9% 30+ DAYS PAST DUE 1.3% 2.2% 60+ DAYS PAST DUE 6.6% 7.9% M&A Q4’23 Q1’24 CURRENT 62.2% 72.8% 30+ DAYS PAST DUE 4.7% 3.1% 60
Slide 12: Financial Flexibility
12 Financial Flexibility 12% 33% 26% 7% 4% 18% $1.4B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $120 $761 $100 $110 $36 $0 $200 $400 $600 $800 2024 2025 2026 2027 2028 2029 and beyond CORPORATE DEBT MATURITY PROFI
Slide 13: Debt - Leverage
13 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings <0.1x 2.0x 0.5x 0.4x 0.5x Debt Balance Leverage Ratio • Total leverage of 3.4x • Recourse leverage ratio of 0.9x • Majority of secured borrowings subject to non-recourse o
Slide 14: Financial Snapshot
14 Financial Snapshot Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield LMM CRE $ 9,663,964 8.4% $ 6,790,137 8.3% 8.7% SBA $ 460,196 25.5% $ 276,527 9.1% 50.2% Total $ 10,124,160 9.2% $ 7,066,664 8.4% 11.2% Book Equity Value Metrics Common Stoc
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: Balance Sheet by Quarter
_ READY CAPITAL. Balance Sheet by Quarter 429112023 ‘Cash and cash equivalents s s9e63 $s 197651 $ 165731 $ 138522 $ 166,006 Restricted cash 43736 29,178 31.498 30,063 24915 Loans, net 3,123,051 367,588 4,150.25 4,020,160 3,400,481 ‘Loans, hed for sale 116879 104.496 81,599 $84,072 Mortgage-backed s
Slide 17: Statement of Income by Quarter
17 Statement of Income by Quarter
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, inc
Slide 19: Slide 19