Group 1 - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce volatility through well-priced options [1] - Ready Capital Corporation (NYSE: RC) is identified as a potential value trap, trading at a substantial discount to tangible book value within the mortgage REIT sector [2] - Trapping Value, with over 40 years of combined experience, focuses on generating options income while emphasizing capital preservation [3] Group 2 - The Covered Calls Portfolio is designed for lower volatility income investing with a focus on capital preservation [2] - The Enhanced Equity Income Solutions Portfolio aims to generate yields of 7-9% while minimizing volatility [1] - The fixed income portfolio targets securities with high income potential and significant undervaluation compared to peers [2]

Financial Data and Key Metrics Changes - The fourth quarter GAAP losses per common share were $1.90, while distributable earnings showed a loss of $0.03. Excluding realized losses on asset sales, distributable earnings were $0.23 per common share, representing a 7.1% return on average stockholders' equity [32] - Book value per share decreased to $10.61 from $12.59 in the prior quarter, primarily due to an increase in combined CECL and valuation allowances and a shortfall on dividend coverage from earnings [40] - The combined provision for loan loss and valuation allowance increased by $253.8 million, with an additional $242.7 million in CECL reserves primarily due to non-core assets [38] Business Line Data and Key Metrics Changes - The small business lending segment experienced significant growth, with fourth quarter originations of $350 million, capping a record year of $1.2 billion, including $1.1 billion of SBA loans [21][22] - The core portfolio contracted by $1.3 billion, with new production limited to $485 million, resulting in an 840 basis points contribution to distributable ROE before realized losses [15] Market Data and Key Metrics Changes - The CRE loan portfolio totaled $7.2 billion, split into 83% core and 17% non-core assets, with a contractual yield of 8% and a 93% pay rate [13] - 60-day plus delinquencies in the core portfolio were only 2%, with an average risk rating of 2.2% [14] Company Strategy and Development Direction - The company has implemented aggressive actions to reset the balance sheet, including a $284 million combined CECL and valuation allowances, marking 100% of non-performing loans to current values [9] - The strategy involves bifurcating the CRE portfolio into core and non-core assets to enhance transparency and track asset management strategies [12] - The company expects to originate between $1 billion and $1.5 billion of new production in lower middle market CRE loans in 2025 [15] Management's Comments on Operating Environment and Future Outlook - Management indicated that the fourth quarter concluded a year of mixed results, with expectations for recovery in net interest margins and ROE in 2025 [8][29] - The company anticipates that the recovery to a 10% stabilized core return will be supported by the liquidation of the non-core portfolio and growth in the small business lending segment [23][28] Other Important Information - The company has a $150 million share repurchase program to enhance shareholder returns [11] - Liquidity remains strong with $185 million of unrestricted cash, expected to improve with upcoming liquidity events [41] Q&A Session Summary Question: Will cash earnings cover the new dividend level? - Management expects to cover the dividend approximately 1.5 times over the course of the year, with earnings ramping up as the year progresses [46] Question: What is the rationale behind the UDF acquisition? - The acquisition is viewed as highly accretive on an EPS basis, with confidence in the credit profile of the acquired assets [78] Question: How does the company plan to address upcoming maturities? - The company plans to use projected cash flow and liquidity to address maturities, with a preference to access markets for larger debt issuances [73] Question: What are the credit trends in the SBA business? - The company has seen strong credit trends, with 60-plus delinquencies at a moderate level of 2.8% [89]

Ready Capital Corporation (NYSE:RC) Q4 2024 Earnings Conference Call March 3, 2025 8:30 AM ET Company Participants Andrew Ahlborn - CFO Thomas Capasse - CEO Adam Zausmer - Chief Credit Officer Conference Call Participants Crispin Love - Piper Sandler Douglas Harter - UBS Jade Rahmani - KBW Stephen Laws - Raymond James Christopher Nolan - Landenburg Thalmann Operator Greetings, and welcome to Ready Capital Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. ...

For the quarter ended December 2024, Ready Capital (RC) reported revenue of $50.05 million, down 4.7% over the same period last year. EPS came in at $0.23, compared to $0.26 in the year-ago quarter.The reported revenue represents a surprise of -9.72% over the Zacks Consensus Estimate of $55.44 million. With the consensus EPS estimate being $0.21, the EPS surprise was +9.52%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Ready Capital (RC) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.52%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.23 per share when it actually produced earnings of $0.25, delivering a surprise of 8.70%.Over the last four quarter ...

Core Insights - Ready Capital Corporation reported a GAAP loss per common share from continuing operations of $(1.80) for the quarter ended December 31, 2024, and a distributable loss per common share of $(0.03) [1][26] - The company declared a quarterly cash dividend of $0.125 per share for the quarter ending March 31, 2025, to align with anticipated cash earnings and preserve capital for reinvestment [1][12] - The company experienced mixed results in 2024, with strong performance in the Small Business Lending segment but challenges in the multi-family lending sector due to higher rates and inflation [2][6] Financial Performance - For the fourth quarter, the company reported LMM commercial real estate originations of $436 million and Small Business Lending loan originations of $348 million, including $315 million of SBA 7(a) loans [6] - The total originations for the year amounted to $2.4 billion, with $1.1 billion from SBA 7(a) loans [6] - The book value per share was reported at $10.61 as of December 31, 2024 [6] Strategic Actions - The company has taken decisive actions to stabilize its balance sheet by fully reserving for all non-performing loans in its commercial real estate portfolio, which is expected to improve net interest margins over time [2] - A new stock repurchase program was approved, authorizing the repurchase of up to $150 million of the company's common stock [5] - The company entered into a definitive merger agreement to acquire United Development Funding IV, enhancing its capital solutions for residential real estate developers [6] Dividend Information - The quarterly cash dividend of $0.125 per share is payable on April 30, 2025, to shareholders of record as of March 31, 2025 [12] - Additional dividends were declared for the Series C and Series E Preferred Stocks, payable on April 15 and April 30, 2025, respectively [12] Subsequent Events - On February 21, 2025, the company closed a private placement of $220 million in Senior Secured Notes due 2028, intended for debt repayment and general corporate purposes [7]

Exhibit 99.1 READY CAPITAL CORPORATION REPORTS FOURTH QUARTER 2024 RESULTS AND DECLARES FIRST QUARTER 2025 DIVIDENDS - GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(1.80) - - DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.03) - - DISTRIBUTABLE EARNINGS PER COMMON SHARE BEFORE REALIZED LOSSES OF $0.23 - - DISTRIBUTABLE RETURN ON AVERAGE STOCKHOLDERS' EQUITY BEFORE REALIZED LOSSES OF 7.1% - - DECLARED A QUARTERLY CASH DIVIDEND OF $0.125 PER SHARE OF COMMON STOCK AND OPERATING PARTNERSHIP UNIT FOR THE ...

Core Viewpoint - NexPoint Advisors has submitted a competing proposal to UDF IV's Board ahead of the Special Meeting scheduled for March 4, 2025, to vote on the merger with Ready Capital, urging the Board to postpone the meeting for a month to evaluate their proposal [1][3]. Proposal Details - NexPoint's proposal offers superior economic terms compared to the Ready Merger, including enhanced balance sheet distributions and full entitlement to Contingent Value Rights (CVR) loan proceeds [2]. - The proposal includes a higher pre-closing dividend for shareholders and 100% recovery of net principal and interest on CVR loans, contrasting with the Ready Merger's terms which allow Ready Capital to recover $13.3 million net before shareholders receive 60% of additional recoveries [2]. - NexPoint plans to cease indemnification payments for the imprisoned management team and recover improperly advanced legal fees, distributing 100% of net recoveries to shareholders [2]. Governance and Engagement - NexPoint criticizes UDF IV's Board for a lack of engagement and urges them to consider their proposal in line with fiduciary duties, highlighting governance failures at UDF IV [3]. - Shareholders are encouraged to refrain from voting until the Board has fully assessed NexPoint's proposal and engaged in discussions [3]. Additional Information - NexPoint has established a website for shareholders to receive updates regarding UDF IV, the Ready Merger, and competing proposals [4].

Group 1 - Analysts project Ready Capital (RC) will announce quarterly earnings of $0.21 per share, a decline of 19.2% year over year [1] - Revenues are expected to reach $55.44 million, an increase of 5.5% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of projections [1] Group 2 - Analysts forecast 'Servicing income, net' to reach $5.67 million, suggesting a change of +22.9% year over year [3] - 'Total non-interest income (loss)' is projected to be $41.61 million, indicating a change of -30.7% year over year [4] - 'Other income' is expected to be $17.50 million, reflecting a change of -62.4% from the prior-year quarter [4] - The average prediction for 'Interest income' is $227.69 million, pointing to a change of -9% from the year-ago quarter [4] Group 3 - Shares of Ready Capital have returned +0.6% over the past month, compared to the Zacks S&P 500 composite's -2.3% change [4] - Ready Capital holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [4]

Core Viewpoint - Ready Capital Corporation announced the closing of a private placement of $220 million in Senior Secured Notes with a 9.375% interest rate due in 2028, which are fully guaranteed by the company and its subsidiaries [1][2]. Group 1: Financial Details - The private placement raised an aggregate principal amount of $220 million [1]. - The Notes have a fixed interest rate of 9.375% and are due in 2028 [1]. - The net proceeds from the private placement will be used to repay existing indebtedness and for general corporate purposes [2]. Group 2: Company Overview - Ready Capital Corporation is a multi-strategy real estate finance company that focuses on originating, acquiring, financing, and servicing commercial real estate loans [5]. - The company specializes in loans backed by various types of commercial real estate, including multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans [5]. - Ready Capital is headquartered in New York and employs approximately 500 professionals nationwide [5].