Ready Capital Corporation · NYSE:RC
Ready Capital — Q1 2025 Earnings Presentation
24 slides from Ready Capital's earnings presentation, May 8, 2025
Slide 1: Supplemental Financial Data Q1 2025
SUPPLEMENTAL FINANCIAL DATA Q1 2025
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 2025 Results
3 First Quarter 2025 Results ■ Net income from continuing operations1 of $0.47 per common share ■ Distributable losses2 of $(0.09) per common share ■ Distributable earnings before realized losses3 of $0.00 per common share ■ Declared dividend of $0.125 per common share Performance ■ Total loan portf
Slide 4: CRE Portfolio Review
4 CRE Portfolio Review QTD INVESTMENT ROLL ($ in billions) COUNT10 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD CORE 1,415 6.07B 72M 5.88B 4.1% 2.37 8.4% 6.7% NON-CORE 64 0.94B 194M 0.74B 40.9% 4.21 2.2% 1.3% PORTLAND MIXED-USE 2 0.57B 135M 0.43B 100.0% 5.00 0.1% —%
Slide 5: CRE Core Portfolio Overview
5 CRE Core Portfolio Overview LOAN PRODUCT11 RISK RATINGCOLLATERAL MODIFICATION STATUS HISTORICAL LEVERED YIELD 11.4% 12.8% 12.0% 10.8% 11.1% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 0% 5% 10% 15% QUARTERLY PORTFOLIO CREDIT MIGRATION Bridge 73% Fixed rate 14% Construction 7% Other 6% Multi-family 74%
Slide 6: CRE Non-Core Portfolio Overview
6 CRE Non-Core Portfolio Overview25 ASSET MANAGEMENT STRATEGY NON-CORE EXIT TIMELINE Bridge 57% Construction 42% Fixed rate 1% LOAN PRODUCT RISK RATINGCOLLATERAL Multi-family 53%Mixed use 38% Other 9% 2 4% 3 33% 5 63% STRATEGY LOAN COUNT CARRY VALUE (%) Operate/develop to facilitate sale 9 45% Activ
Slide 7: Real Estate Owned Exposure
7 Real Estate Owned Exposure # OF ASSETS CARRY VALUE OPERATE TO SELL 7 $71M SELL 22 $147M TOTAL 29 $218M Land 42% Multi-family 28% Mixed use 20% Lodging 6% Office 4% Collateral Texas 33% California 17%Colorado 12% Oregon 13% Other 25% Geography 195,020 5 32,336 (6,977) (2,346) 218,038 Beginning Bala
Slide 8: Portland OR, Mixed-Use
8 Portland OR, Mixed-Use • 2019: Mosaic Real Estate Credit (Mosaic) originated a $460MM senior mortgage for the construction of The Ritz-Carlton, Portland • March 2022: RC acquires loan through its merger with Mosaic which became distressed due to the pandemic impact on the Portland economy and Spon
Slide 9: Small Business Lending Portfolio Review
9 Small Business Lending Portfolio Review* QTD SALES BY PROGRAM PROGRAM COUNT22 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD LARGE 1,856 1.16B 19M 1.12B 1.9% 1.69 9.1% 8.7% SMALL/MICRO 5,279 219M 11M 206M 1.3% 1.23 10.5% 8.6% USDA 5 3M — 3M —% 1.90 13.1% 13.1% WORKI
Slide 10: Quarterly Investment Activity
$98.1 $157.3 $70.6 $23.5 $28.9 $5.3 $18.5 $211.9 $39.1 $156.2 $99.1 $157.1 $200.4 $10.7 $197.2 $217.3 $354.8 $314.5 $343.3 $38.5 $2.8 $2.7 $46.4 $31.2 $41.4 Bridge Fixed Rate/CMBS Construction Freddie Mac SBA USDA Working Capital Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 0 200 400 600 800 1,000 10 Quarterly Inv
Slide 11: Earnings Profile
11 Earnings Profile Balance (in thousands) Annualized ROE Contribution Recurring Revenue: Net interest income $ 14,642 3.3% Gain on sale, net of variable costs 20,105 4.6% Other recurring revenue 14,313 3.3% Total recurring revenue $ 49,060 11.2% Operating Expenses: Employee compensation & benefits
Slide 12: Operating Segment Contribution
12 Operating Segment Contribution23 LMM CRE TOTAL OPERATING EXPENSES EQUITY ALLOCATION24 EPS CONTRIBUTION RECURRING REVENUE DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES12 ON ALLOCATED EQUITY DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES12 CORPORATE & OTHER SMALL BUSINESS LENDINGCORE NON-CORE & REO $6.6
Slide 13: Book Value per Share
13 Book Value per Share $10.61 $0.14 $(0.125) $(0.10) 0.11 $(0.02) $10.61 Q4'24 GAAP BVPS UDF IV Dividends Shortfall on dividend coverage Share Repurchases Other Q1'25 GAAP BVPS $9.00 $10.00 $11.00
Slide 14: Capitalization
14 Capitalization Debt Balance ($ in millions) Leverage Ratio PPPLF $15 0.0x Securitized Debt Obligations $2,574 1.3x Non-Recourse Secured Borrowings $1,592 0.8x Recourse Secured Borrowings $1,121 0.6x Corporate Debt $1,489 0.7x UNENCUMBERED ASSET POOL 20% 41% 14% 6% 19% Unrestricted cash Loans Serv
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: GAAP ROE and Distributable ROE by Segment
GAAP ROE Distributable ROE Segment Levered Yield Distributable Levered Yield Equity Allocation Q1'25 Q4'24 Q1'25 Q4'24 LMM Commercial Real Estate 4.6 % 5.5 % 87.0 % 10.3 % 15.8 % 11.1 % 15.1 %Small Business Lending 49.1 % 49.1 % 12.8 % Corporate leverage, net of non-earning assets 0.1 2.7 0.6 2.4 Gr
Slide 17: LMM CRE Loan Portfolio - Migration
17 LMM CRE Loan Portfolio - Migration CONTRACTUAL STATUS (5) CORE Q2’24 Q3’24 Q4’24 Q1’25 CURRENT 94.0% 94.8% 96.4% 93.8% 30-59 DAYS PAST DUE 0.9% 1.1% 1.6% 2.1% 60+ DAYS PAST DUE 5.1% 4.1% 2.0% 4.1% NON-CORE Q2’24 Q3’24 Q4’24 Q1’25 CURRENT 87.2% 75.5% 75.4% 37.3% 30-59 DAYS PAST DUE 0.7% 2.9% 0.7%
Slide 18: Financial Snapshot
18 Financial Snapshot ($ in thousands, except share data) Investment Type Average Carrying Value Gross Yield Average Debt Balance Debt Cost Levered Yield LMM CRE $ 7,508,045 6.5 % $ 5,081,577 7.4 % 4.6 % SBL $ 722,289 28.1 % $ 365,962 7.7 % 49.1 % Total $ 8,230,334 8.4 % $ 5,447,539 7.4 % 10.3 % Boo
Slide 19: Balance Sheet by Quarter
19 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
Slide 20: Statement of Operations by Quarter
20 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
Slide 21: Distributable Earnings Reconciliation by Quarter
21 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 22: Loan Portfolio – Risk Rating Criteria
22 Loan Portfolio – Risk Rating Criteria 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 e
Slide 23: Footnotes
23 Footnotes 1 . Before income attributable to participating shares of $2.2 million and non-controlling interest of $2.0 million 2 . Before income attributable to participating shares of $2.2 million and non-controlling interest of $2.0 million. Refer to the “Distributable Earnings Reconciliation by
Slide 24: Ready Capital
” READY 85. CAPITAL.