- Ready Capital is an mREIT that specializes in small business & multifamily residential loan origination, holding, and trading.
- Recent conference calls suggest that it is in the process of successfully recovering from the full brunt of the COVID-19 impact.
- A look at its history of book value per share paints a less rosy picture of its historical and expected underwriting results. RC trades at a discount for a reason.
- My own valuation of RC shows that the market has overpriced it by about 31%. Do not buy these shares unless we see another fire sale that brings them below 0.641x book value in price.
For further details see:
Ready Capital: A 10% Yield That Is Currently Overpriced By 31%