Ready Capital Q1 loss widens on loan sales and debt paydown

Ready Capital

07/05/2026 22:35

Overview

Company posted net loss of $200 mln for Q1 as loan sales and liquidations weighed on earnings

U.S. real estate lender's Q1 GAAP loss per share widens amid balance sheet repositioning

Ready Capital generated $1.4 bln in cash from loan sales and liquidations to pay down debt

Outlook

Company expects large-scale asset sales to close by end of Q2 2026

Ready Capital anticipates book value pressure will subside after asset sales

Company has initiated sale process for up to $1.2 bln of loans as final repositioning phase

Result Drivers

BALANCE SHEET REPOSITIONING - Company said Q1 results reflect ongoing execution of its plan to de-lever and generate liquidity in excess of 2026 debt maturities, resulting in negative impacts on earnings and book value

LOAN SALES AND LIQUIDATIONS - Ready Capital generated $1.4 bln in cash from loan sales and portfolio runoff, facilitating repayment of $1.1 bln of asset-level financing and $184 mln of corporate debt

HIGHER DELINQUENCIES - 60+ day core delinquencies rose to 14.8% of the core CRE portfolio, mainly due to loan sales and accelerated liquidations as part of the repositioning strategy

Company press release: ID:nGNX5bVt3L

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$1.25
Q1 Net Income
-$200.09 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 Corp is $2.00, about 7.4% below its May 7 closing price of $2.16

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.)