Ready Capital Completes Balance Sheet Repositioning and Debt Reduction
Ready Capital (RC) has announced the substantial completion of its balance sheet repositioning and liquidity plan. Following a period of defensive cash conservation that included dividend cuts and book value write-downs, the real estate finance company has successfully repaid $649 million in corporate debt. This strategic shift aims to move the company from capital preservation toward earnings recovery. The company is pivoting its strategy by scaling its SBA 7(a) small business lending program, which saw a 33% increase in originations this quarter. Additionally, management is moving away from selling distressed commercial real estate loans at steep discounts, opting instead to stabilize nonperforming loans and REO properties to protect asset values. Future focus will remain on expense reduction and potential divestitures of noncore businesses.
Topics: debt repayment earnings report liquidity plan SBA loans small business lending
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