Financial Performance - Net income available to common stockholders was $18 million, or $0.12 per diluted share[10] - Distributable Earnings reached $36 million, or $0.26 per diluted share[10] - The company declared common stock dividends of $0.25 per share, resulting in a dividend yield of 10.2%[10] Loan Portfolio - The total loan portfolio amounted to $8.6 billion with a weighted-average unlevered all-in yield of 7.8%, with 98% in first mortgages and 96% floating rate[10] - New loan commitments totaled $2.0 billion year-to-date, with $1.4 billion funded at close, and $1.4 billion in Q2, with $916 million funded at close[10] - Loan repayments and sales amounted to $724 million year-to-date, with $631 million in Q2[10] Capitalization and Liquidity - The company ended the quarter with a total common equity book value of $1.7 billion[10] - Total liquidity at the end of the quarter was $208 million, including $182 million in cash and $26 million available leverage[10] - A new $750 million Term Loan B due June 2030 was refinanced, bearing interest at SOFR + 3.25%[10] Real Estate Owned (REO) - Total REO held for investment had a net equity of $444 million, comprised of Brooklyn Multifamily Development ($289 million), D C Hotel ($85 million), and Atlanta Hotel ($70 million)[21] - Nine units at 111 West 57th Street closed, generating ~$170 million of net sales proceeds, ~$141 million of which reduced ARI's basis[23] Foreign Exchange Risk Mitigation - The company reported a total foreign loan capital stack of $4.307 billion, with $3.267 billion offset by local currency denominated secured debt arrangements[52] - The net equity of foreign loans was $1.041 billion[53]

Core Viewpoint - A class action lawsuit has been filed against Broadmark Realty Capital Inc. regarding the merger with Ready Capital Corporation, alleging misleading statements in the proxy statement used to solicit shareholder support for the merger [1][5]. Group 1: Lawsuit Details - The lawsuit claims that the proxy statement contained false or misleading statements and failed to disclose significant financial distress among borrowers in Ready Capital's portfolio due to high interest rates [5]. - It is alleged that an oversupply of multifamily properties limited the ability of Ready Capital borrowers to raise rents necessary to cover growing debt costs [5]. - A major development project acquired during the merger, valued at approximately $500 million, faced catastrophic setbacks including cost overruns and construction delays [5]. - The lawsuit asserts that Ready Capital's expected credit loss reserves were materially understated, impacting financial projections related to earnings and dividends [5]. Group 2: Participation Information - Individuals who held Broadmark common stock as of the merger date may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm for more information [3][6].

Core Insights - Annaly Capital Management, Inc. (NLY) reported second-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, exceeding the Zacks Consensus Estimate of 72 cents and up from 68 cents in the same quarter last year [1][9] - The average yield on interest-earning assets improved to 5.42% from 5.17% year-over-year, while the net interest spread increased to 1.47% from 1.24% [3][9] - The company's book value per share (BVPS) declined to $18.45 from $19.25 year-over-year, raising concerns about its financial health [4][9] Financial Performance - Net interest income (NII) for the quarter was $273.2 million, missing the Zacks Consensus Estimate by 33.5%, compared to $53.6 million in the prior-year quarter [2] - Total assets at the end of the second quarter reached $112.1 billion, reflecting a 6.7% increase from the previous quarter [2] - The economic capital ratio decreased slightly to 14.3% from 14.4% year-over-year [4] Key Ratios - The average economic costs of interest-bearing liabilities rose to 3.94% from 3.90% in the prior-year quarter [3] - The weighted average actual constant prepayment rate increased to 8.7% from 7.4% year-over-year [4] - Economic leverage remained stable at 5.8X as of June 30, 2025, unchanged from the previous year [4] Return Metrics - Annaly generated an annualized EAD return on average equity of 14.86% in the second quarter, up from 13.36% in the same quarter last year [5]

Core Viewpoint - Starwood Property Trust has successfully completed the acquisition of Fundamental Income Properties for approximately $2.2 billion, enhancing its portfolio and cash flow stability for shareholders [1][2]. Company Overview - Starwood Property Trust is a leading diversified finance company focused on real estate and infrastructure sectors, having deployed $108 billion of capital since inception and managing a portfolio worth $27.5 billion across debt and equity investments [4]. Acquisition Details - The acquisition of Fundamental is expected to provide a stable and growing cash flow stream, aligning with Starwood's strategic growth and leveraging existing strengths in the net lease space [2]. - Barry Sternlicht, Chairman and CEO, emphasized the cultural and operational fit of Fundamental's team with Starwood, highlighting the opportunity for growth in the net lease sector [2]. Advisory Information - BofA Securities acted as the sole financial advisor to Starwood Property Trust, while Wells Fargo, Evercore, and Stephens served as financial advisors to Brookfield Asset Management [3].

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a GAAP net loss of $35 million, or negative $0.53 per share, with a book value per share of $13.84 [3] - The distributable loss was $3 million, primarily due to taking ownership of the West Hollywood property, while prior to realized losses, distributable earnings were $16 million, or $0.24 per share [3][4] - A cash dividend of $0.25 was paid for the second quarter [4] Business Line Data and Key Metrics Changes - Originations in the quarter totaled $211 million, consisting of two loans secured by industrial and multifamily properties [7] - The company had two full repayments and six partial repayments totaling $450 million, with projections of nearly $1 billion in incremental repayments for the second half of the year [7] - The Life Science sector represented 12% of the portfolio, with six assets located in top Life Science markets [10] Market Data and Key Metrics Changes - The real estate credit market has seen a recovery in transaction activity and loan demand, with significant opportunities in the loan pipeline [5] - Competition has returned, with most lenders active in the market, leading to a compression of loan spreads back to pre-tariff levels [21] - The company is diversifying its portfolio geographically into Europe and creating more duration through CMBS investments [8] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and has an active pipeline in the European loan market, anticipating new originations by year-end [8] - The strategy includes a focus on high-quality assets and stabilized properties, with a goal to maximize shareholder value through proactive portfolio management [16][17] - The company is evaluating capital allocation between share buybacks and loan origination, with a robust liquidity position of $757 million available [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the lending opportunities, citing healthy fundamentals across most property types and a decrease in construction starts, which may lead to stronger rental growth [6] - The management team is actively managing the watch list and REO assets, with plans for condo sellouts and other developments expected to generate capital [11][12] - The company anticipates a more favorable market environment for rental increases and property values due to reduced supply and increased tenant demand [34][68] Other Important Information - The company downgraded a Boston Life Science asset and a Chicago office loan due to market deterioration, with plans to extend the loans [9][10] - The REO portfolio represents approximately $352 million of pro forma equity, which could generate over $0.12 per share per quarter on distributable earnings [14] Q&A Session Summary Question: Can you talk about the level of ROEs and loan spreads in the current market? - Management indicated that the pipeline is robust, with loan spreads compressing back to pre-tariff levels, and ROEs are in the mid-11s to end of the 13s range [19][24] Question: What kind of originations do you expect in the second half? - Management expects to actively originate loans to match the anticipated $1 billion in repayments, with no significant near-term maturities on the radar [25][27] Question: Can you provide insight into the 2026 maturity wall? - Management noted that many maturities are being pulled forward, and they expect to see less credit issues around maturities as the market remains active [31][36] Question: What is the timeline for repatriating capital from the REO portfolio? - Management provided a timeline for various assets, indicating that some could be repatriated within 12 to 18 months, while others may take longer [78][85]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a GAAP net loss of $35 million, or negative $0.53 per share, with a book value per share of $13.84 as of June 30, 2025 [3] - The distributable loss was $3 million, primarily due to taking ownership of the West Hollywood property, while prior to realized losses, distributable earnings were $16 million, or $0.24 per share [3][4] - A cash dividend of $0.25 was paid for the second quarter [4] Business Line Data and Key Metrics Changes - Originations in the quarter totaled $211 million, consisting of two loans secured by industrial and multifamily properties [7] - The company had two full repayments and six partial repayments totaling $450 million, with projections of nearly $1 billion in incremental repayments over the second half of the year [7] - The company downgraded a Boston Life Science asset from a four-rated loan to a five-rated loan and a Chicago office loan from a three-rated loan to a four-rated loan due to market deterioration [8][9] Market Data and Key Metrics Changes - The real estate credit market has seen a recovery in transaction activity and loan demand, with significant opportunities in the loan pipeline [5] - Competition has returned, with most lenders active in the market, leading to attractive lending opportunities driven by the ability to lend on reset values below replacement costs [6] - The Life Science sector represents 12% of the portfolio, with 60% of the assets being newly constructed and purpose-built properties targeting larger pharmaceutical tenants [10] Company Strategy and Development Direction - The company is focusing on diversifying its portfolio geographically into Europe and creating more duration through CMBS investments [7] - An active pipeline in the European loan market is anticipated, with new originations expected by the end of the year [7] - The company aims to maximize shareholder value through proactive management of the portfolio and capital allocation across share buybacks and loan origination [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the lending opportunity remaining highly attractive despite competition, with healthy fundamentals across most property types [6] - The company is closely monitoring leverage ratios and expects to match repayments with new originations [26] - Management noted that many borrowers are pulling financing forward to buy time for asset recovery, indicating a positive outlook for rental increases and property values [33] Other Important Information - The company repurchased $20 million of KREF stock in Q2 at a weighted average price of $9.21, with nearly $40 million repurchased over the last three quarters [15] - At quarter-end, the company had $757 million of liquidity available, including $108 million in cash and $620 million of undrawn corporate revolver capacity [16] Q&A Session Summary Question: Can you talk about the level of ROEs and loan spreads in the current market? - Management indicated that the pipeline is robust, with ROEs in the mid-11s to end of the 13s, and loan spreads have compressed back to pre-tariff levels [20][25] Question: What kind of originations do you expect in the second half? - Management expects to actively originate loans to match the anticipated $1 billion in repayments, with no significant near-term maturities on the radar [26][27] Question: Can you provide insight into the 2026 maturity wall? - Management noted that many maturities are being pulled forward, and they expect less credit issues around maturities as most problems have already surfaced [30][34] Question: How do you differentiate between refinancing and extensions? - The majority of refinancings are new credits, while modifications and extensions are less common, indicating a focus on new opportunities [39] Question: What is the timeline for repatriating capital from the REO portfolio? - Management provided a timeline for various assets, indicating that some could see capital repatriation within 12 to 18 months, while others may take longer [79][87]

Financial Performance - The company reported a net loss of $354 million, or ($053) per diluted share, which includes a CECL provision of $50 million, or ($074) per diluted share[9, 10] - Distributable loss was ($29) million, or ($004) per diluted share, including a realized loss of $20 million, or ($030) per diluted share[9, 10] - Book Value per Share (BVPS) is $1384, which includes a CECL allowance of $174 million, or ($264) per share as of June 30, 2025, representing 300 basis points of loan principal balance[9] Portfolio Activity - Originated and funded $211 million and $210 million, respectively, relating to two floating-rate loans[9] - The company's loan portfolio is predominantly senior, totaling $58 billion, with a weighted average unlevered all-in yield of 76%[8, 9] - Multifamily and industrial assets represent 62% of the loan portfolio[8, 9] - Received $450 million in loan repayments and funded $20 million for existing loans[9] - The company collected 100% of interest payments[9, 21] Liquidity and Capitalization - Available liquidity is $757 million, including $108 million of cash and $620 million of undrawn capacity on the corporate revolver[8, 9] - Diversified financing sources total $82 billion, with $32 billion of undrawn capacity[8, 9, 34] - 78% of secured financing is fully non-mark-to-market, with the remaining balance marked-to-credit only[8, 9, 35] - Repurchased 2 million shares at an average price of $921 per share, totaling $20 million[9]

NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (with its affiliates, "Ready Capital" or the "Company"), a multi-strategy real estate finance company that originates, acquires, finances, and services investor and owner-occupied commercial real estate loans, today announced that it has secured ownership of Block 216 Tower, a mixed-use Project (the "Project") located in downtown Portland, Oregon. Ready Capital acquired the construction loan on the Project through its 2022 merg ...

Core Viewpoint - A class action lawsuit has been filed against Broadmark Realty Capital Inc. for alleged securities fraud and unlawful business practices related to a merger [2][3]. Group 1: Lawsuit Details - The lawsuit claims that Broadmark's proxy statement for the merger contained false or misleading statements and failed to disclose critical financial distress among borrowers in Ready Capital's portfolio due to high interest rates [3]. - It is alleged that an oversupply of multifamily properties in Ready Capital's markets limited borrowers' ability to raise rents to cover growing debt costs [3]. - A significant development project acquired during the merger, valued at approximately $500 million, faced catastrophic setbacks, including cost overruns and construction delays [3]. - The lawsuit asserts that Ready Capital's Current Expected Credit Loss reserves and expected credit losses were materially understated, impacting financial projections regarding Distributable Earnings per share, dividends per share, and book value per share [3]. Group 2: Legal Representation - Pomerantz LLP, a firm recognized for its expertise in corporate, securities, and antitrust class litigation, is representing the class in this lawsuit [4].

Financial Performance - Net interest income was $70.8 million[10] - Net income available to common stockholders was $56.8 million, or $0.36 per diluted share[10] - Operating Earnings excluding realized loss on investments and interest rate swap was $59.0 million, or $0.38 per diluted share[10] - A common stock dividend of $0.35 per share was declared for Q2 2020, resulting in a 92% payout ratio[10] Capitalization and Liquidity - Current liquidity stood at $511 million[10] - The debt-to-equity ratio was 1.7x[10] - Unencumbered loan assets were $1.0 billion[10] - The company repurchased 5.5 million shares of common stock for $43.8 million at a weighted average price of $7.96 per share[10] Loan Portfolio - The total loan portfolio amounted to $6.4 billion[10] - The weighted average unlevered all-in yield was 6.7%[10] - 95% of loans have floating interest rates[10] - 90% of US floating-rate loans have in-the-money LIBOR floors[10]