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Ready Capital posts Q3 loss as realized investment losses weigh

Ready Capital posts Q3 loss as realized investment losses weigh


Overview

  • U.S. real estate lender posted Q3 GAAP loss per share of $0.40, distributable loss per share $0.53

  • Company retired all 2026 corporate maturities, shifting focus to cash flow breakeven and legacy loans

  • Total loan originations for Q3 were $303.4 mln, including $132.9 mln in LMM CRE loans


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • CORPORATE DEBT RETIREMENT - Co said retiring all 2026 corporate maturities was a key focus during the qtr, shifting priorities to cash flow and legacy loan resolution

  • REALIZED LOSSES ON INVESTMENTS - Qtr results included $53.9 mln in realized losses on sale of investments, weighing on distributable earnings


Company press release: ID:nGNXvqgRs


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.40

Q3 Net Loss

$62.19 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy."

  • Wall Street's median 12-month price target for Ready Capital Corporation is $1.25, about 16.8% above its November 5 closing price of $1.07


Reuters Recommended Reads

  • Nov 4 - Granite Point Mortgage Trust Q3 loss widens on credit provisions, REO impairment

  • Nov 3 - Claros Mortgage Trust posts Q3 net loss

  • Nov 3 - Redwood Trust Q3 loss widens


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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