Ready Capital reports Q4 GAAP loss of $1.46 per share

Overview

• Real estate finance firm's Q4 GAAP loss per share was $1.46

• Company reported a net loss of $232.6 mln for Q4

• Company completed acquisition of United Development Funding IV

• CEO Thomas Capasse stated the company is executing a liquidity plan to meet obligations and reposition equity away from Covid-vintage production

Outlook

• Company focuses on improving liquidity and financial stability

• Ready Capital is repositioning equity away from Covid-vintage production

Result Drivers

• LOAN ORIGINATIONS - Originations included $235 mln in LMM commercial real estate and $140 mln in small business lending, including SBA and USDA loans

• ASSET SALES - Completed sale of 34 loans with unpaid principal balance of $855.3 mln and retired senior unsecured note

Company press release: ID:nGNXWHkZ6

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "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 $2.50, about 53.4% above its February 26 closing price of $1.63

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