Ready Capital reports Q1 distributable EPS ($1.00), consensus (20c)

Reports Q1 distributable loss per common share before realized losses of (33c). Reports Q1 book value $7.43 per share. “Our Q1 results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital’s (RC) financials for long-term success,” said CEO Thomas Capasse. “Year-to-date we have generated $1.4B in cash from loan sales and liquidations to facilitate the repayment of $1.1B of asset level financing and $184M of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses.”