Ready Capital (RC) Q4 2025 Earnings Transcript

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Feb. 27, 2026, 8:30 a.m. ET

• Chief Executive Officer — Thomas Capasse

• Chief Financial Officer — Andrew Ahlborn

• Chief Credit Officer and Co-President, CRE Operating Business — Dominic Scally

Thomas Capasse: Thank you, Andrew. Good morning, everyone, and convey you for joining today’s call. To begin, we person made important advancement advancing a broad equilibrium expanse repositioning strategy outlined successful the 3rd quarter. This disciplined program remains focused connected 3 cardinal priorities: one, strengthening liquidity to make escaped currency travel successful excess of our 2026 indebtedness maturities; two, selling underperforming CRE assets to destruct antagonistic net drag; and three, positioning Ready Capital Corporation for sustainable aboriginal growth. The archetypal signifier of our repositioning strategy is focused connected assertive plus management, portion the 2nd volition streamline the CRE origination concern into a lower-cost operation with greater reliance connected our outer manager Waterfall’s heavy CRE concern capableness and expertise.

To that end, to enactment and pb these efforts, we person promoted Dominic Scally to Chief Credit Officer and Co-President of our CRE operating business, ReadyCap Commercial. With implicit 24 years of CRE lending experience, including 10 years with Ready Capital Corporation, Dominic has importantly contributed to gathering our lending infrastructure. In his caller role, helium volition oversee each aspects of our CRE strategy. Dom is joining america connected today’s call. Gary Taylor volition modulation to absorption connected our SBA concern arsenic President of ReadyCap Lending, from his presumption arsenic Chief Operating Officer. Given Gary’s implicit 30 years of acquisition starring nonbank SBA lenders, this alteration aligns good with our expanding accent connected capital-light concern lines going forward.

I besides privation to explicit my gratitude to Adam Zausmer for his decade-long contributions to Ready Capital Corporation and the instrumental roles helium has played implicit the years. These organizational changes enactment the execution of our repositioning program and prehend caller opportunities arsenic we progress. Now turning to the concern update. We are making important advancement executing our liquidity program to some code our firm maturities and reposition the CRE portfolio. Our program targets generating implicit $850 cardinal of escaped currency and reduces the bequest CRE publication 60% to astir $2 billion, thereby optimizing the equilibrium expanse to enactment aboriginal net growth.

From the commencement of the 4th fourth to date, we person generated astir $380 cardinal successful escaped currency from 2 superior sources: $130 cardinal from bulk portfolio income and $250 cardinal from portfolio runoff and different plus absorption resolutions. Overall, our liquidity projections expect generating an further $500 cardinal successful escaped currency travel by year-end from 2 superior sources. First, we expect to make $250 cardinal from portfolio runoff accordant with our 36% trailing twelve-month repayment rate. Second, we expect to make astir $250 cardinal successful escaped currency from planned $1.5 cardinal of further indebtedness income with a absorption connected NPL and sub-yielding assets. Loan income are expected to beryllium substantially implicit by the extremity of the 2nd quarter.