RC - Ready Capital: It Isn't Ready Yet

2024-05-20 11:10:48 ET

Summary

• Ready Capital's share price is at its lowest since COVID, at a large discount to book value.
• The company is transitioning its focus to commercial real estate lending and government-backed small business loans, but the success of that still remains to be seen.
• The company's Q1 results showed a decrease in distributable earnings that did not fully cover the dividend, indicating potential challenges ahead.
• A successful 2024 therefore entails rolling weak assets into better loans and ample buybacks at discounts to book.

Ready Capital ( RC ) is a mortgage REIT that both originates and acquires real estate mortgages. Their share price has drifted downward and is currently some of the lowest it's been since COVID....

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