Core Points - Lument Finance Trust, Inc. reported a GAAP net loss of $1.7 million, or $0.03 per share, for the first quarter of 2025 [1] - The company reported distributable earnings of $4.0 million, or $0.08 per share, for the same period [1] - A conference call is scheduled for May 13, 2025, to discuss the financial results and provide a business update [2] Financial Performance - The reconciliation of GAAP to non-GAAP information shows a net income attributable to common shareholders of $(1,707,526) for the three months ended March 31, 2025 [10] - Adjustments included unrealized losses on mortgage servicing rights of $22,518 and unrealized provisions for credit losses of $5,697,661, leading to distributable earnings of $4,021,203 [10] - The weighted average shares outstanding were 52,309,887, resulting in distributable earnings per share of $0.08 [10] Company Overview - Lument Finance Trust is focused on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans [11] - The company emphasizes middle-market multi-family assets and is externally managed by Lument Investment Management LLC [11]

- GAAP EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $0.47 -- DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.09) -- DISTRIBUTABLE EARNINGS PER COMMON SHARE BEFORE REALIZED LOSSES OF $0.00 - NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported f ...

Core Viewpoint - Ready Capital Corporation is facing increased scrutiny from investors due to two securities class-action lawsuits that question its financial reporting and have led to a significant decline in its stock price [1][5]. Group 1: Lawsuits and Allegations - The second lawsuit, Goebel v. Ready Capital Corporation, alleges an expanded class period from August 8, 2024, to March 2, 2025, representing investors who acquired Ready Capital common stock during this timeframe [2][3]. - The lawsuits accuse Ready Capital and its executives of violating federal securities laws by misleading investors about the company's credit metrics and downplaying issues in its commercial real estate loan portfolio [3][4]. - The Goebel complaint highlights that investors were misled about the company's financial health, with a shocking fourth-quarter net loss of $1.80 per share and a full-year loss of $2.52 per share for 2024, attributed to a $284 million reserve for underperforming loans [4]. Group 2: Market Reaction and Financial Impact - Following the announcement of the financial losses, Ready Capital's shares plummeted nearly 27%, significantly impacting shareholder equity and raising concerns about the company's risk management practices [5]. - The company's book value also experienced a sharp decline, further indicating financial distress [4]. Group 3: Investigation and Findings - Hagens Berman, a law firm, is actively investigating Ready Capital's financial disclosures during the class period and is encouraging affected investors to come forward [6][7]. - The investigation aims to determine if Ready Capital intentionally obscured the severity of its non-performing loans, which were not accurately reflected in its financial reporting [7]. - Key findings suggest that the company's performance improvement initiatives did not adequately address the risks in its commercial real estate portfolio, contradicting the CEO's assurances about stabilizing credit metrics [7].

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that it has filed a lawsuit against Ready Capital Corporation (NYSE: RC) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Ready Capital, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/ready-capital-corporation. Investors have until May 5, 2025, to ask the Court to be a ...

Core Viewpoint - A lawsuit has been filed against Ready Capital Corporation and its senior executives for potential violations of federal securities laws, focusing on misrepresentation of the company's financial health due to non-performing loans [1][2][4]. Company Overview - Ready Capital is a real estate finance company that specializes in originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans, small business administration loans, and other real estate-related investments [3]. Allegations - The lawsuit alleges that the defendants misrepresented the impact of significant non-performing loans in Ready Capital's commercial real estate portfolio, which were adversely affecting the company's financial performance and were unlikely to be collectible [4]. - It is claimed that these non-performing loans were not accurately reflected in the company's current expected credit loss (CECL) or valuation allowances, leading to materially false and misleading financial results [4]. Financial Impact - On March 3, 2025, Ready Capital announced a financial charge of $382 million, which included $284 million related to CECL and valuation allowances on non-performing loans, and a reduction in its dividend to $0.125 per share [5]. - Following this announcement, Ready Capital's stock price fell nearly 27%, from $6.93 per share on February 28, 2025, to $5.07 per share on March 3, 2025 [6].

Financial Data and Key Metrics Changes - The company reported distributable earnings of $57.3 million or $0.28 per share, and $0.31 per share excluding one-time realized losses from the sale of REO assets [19] - The return on equity (ROE) for the first quarter was approximately 10% [19] - The company anticipates distributable earnings guidance of $0.30 to $0.35 per quarter for 2025 [19][20] Business Line Data and Key Metrics Changes - In the balance sheet lending platform, the company originated $370 million of new bridge loans in the first quarter, with a target of $1.5 billion to $2 billion for 2025 [13] - The agency business had a slow first quarter, producing $6 million in originations and $731 million in loan sales, maintaining strong margins of 1.75% [25] - The investment portfolio grew to $11.5 billion at March 31, with an all-in yield of 7.85% [26] Market Data and Key Metrics Changes - The company experienced a significant backup in long-term rates, creating headwinds for originations [7] - The delinquency rate decreased by 20% to $654 million as of March 31 compared to $819 million at December 31 [22] - The average cost of debt decreased to approximately 6.82% at March 31 from 6.88% at December 31 [28] Company Strategy and Development Direction - The company is focused on resolving REO assets and delinquencies, viewing 2025 as a transitional year [18] - A transformational deal was announced with a $1.1 billion repurchase facility to finance assets in existing CLO vehicles, enhancing liquidity and efficiency [4][5] - The company aims to leverage the securitization market to drive higher returns on capital and increase future earnings [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the current rate environment is volatile and unpredictable, impacting the ability to forecast future earnings [8] - There is optimism regarding a potential reduction in interest rates, which could positively affect agency volumes and earnings [9] - The company is actively working to reposition underperforming assets and improve occupancy and net operating income (NOI) over the next 12 to 24 months [11] Other Important Information - The company has taken back approximately $197 million of REO assets and expects to see these assets grow to between $400 million and $500 million [52] - The average balance on debt facilities was down to approximately $9.4 billion for the first quarter compared to $9.7 billion in the fourth quarter [28] Q&A Session Summary Question: What is the outlook for net growth in the Bridge portfolio in 2025? - Management expects net growth in the Bridge portfolio, targeting $1.5 billion to $2 billion in new business while managing runoff effectively [33] Question: What were the primary weaknesses in the 2022 and 2023 vintages? - Management highlighted that the multifamily sector experienced a long period of growth without corrections, leading to poor performance due to economic factors and management issues [39][41] Question: What is the current cash and liquidity situation? - The company has approximately $325 million in cash and liquidity, with plans to enhance leverage and grow liquidity through the securitization market [48][49] Question: What is the expected trajectory for NPLs and REO? - Management anticipates NPLs to decrease and REO to increase to between $400 million and $500 million, focusing on repositioning these assets [52][54] Question: What is the book value at the end of the quarter? - The book value was reported at $11.98 at the end of the quarter [76]

Financial Data and Key Metrics Changes - The company reported distributable earnings of $57.3 million or $0.28 per share, and $0.31 per share excluding one-time realized losses from the sale of two REO assets [19][12] - The return on equity (ROE) for the first quarter was approximately 10% [19] - The company anticipates distributable earnings guidance of $0.30 to $0.35 per quarter for 2025 [19][12] Business Line Data and Key Metrics Changes - The balance sheet lending platform originated $370 million in new bridge loans during the first quarter, with a target of $1.5 billion to $2 billion for 2025 [13][14] - The agency business had a slow first quarter, producing $6 million in originations and $731 million in loan sales, maintaining strong margins of 1.75% [25] - The investment portfolio grew to $11.5 billion at March 31, with an all-in yield of 7.85% [26] Market Data and Key Metrics Changes - The company experienced a significant backup in long-term rates, creating headwinds for originations [7][8] - The delinquency rate decreased by 20% to $654 million as of March 31, compared to $819 million at December 31 [22] - The average cost of debt decreased to approximately 6.82% at March 31 from 6.88% at December 31 [28] Company Strategy and Development Direction - The company is focused on resolving REO assets and delinquencies, viewing 2025 as a transitional year [18][12] - The strategy includes leveraging efficiencies in the securitization market and maintaining strong banking relationships to drive future earnings [5][7] - The company aims to reposition underperforming assets to increase occupancy and net operating income (NOI) over the next 12 to 24 months [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is characterized by volatility and uncertainty, particularly regarding interest rates [8][9] - There is optimism about potential rate reductions, which could positively impact agency volumes and earnings [9][12] - The management believes that the company is well-positioned to grow earnings and dividends again in 2026 if current challenges are addressed [12][18] Other Important Information - The company has successfully modified $38 million of loans and brought $39 million of loans back to performing status [10] - The company expects REO assets to increase to between $400 million and $500 million, with plans to aggressively manage and reposition these assets [52][54] - The book value at the end of the quarter was reported at $11.98 [77] Q&A Session Summary Question: What is the outlook for the Bridge portfolio growth in 2025? - Management expects net growth in the Bridge portfolio, targeting $1.5 billion to $2 billion in new business, with runoff projected between $1.5 billion to $3 billion depending on interest rates [32][33] Question: What were the primary weaknesses in the 2022 and 2023 vintages? - Management indicated that the multifamily sector experienced a long period of growth without corrections, leading to poor performance due to rising rates, economic vacancy issues, and increased competition from inexperienced entrants [39][41] Question: What is the current liquidity situation and expectations for NPLs and REO? - The company has $325 million in cash and liquidity, with expectations for REO to rise to between $400 million and $500 million, while NPLs are projected to decrease as assets are repositioned [48][54] Question: How much of the reported income was non-cash? - The company reported $15.3 million of PIK (payment-in-kind) interest during the quarter, which is a moving number based on loan modifications and performance [66] Question: What is the company's stance on stock buybacks? - Management emphasized the importance of liquidity and will evaluate stock buybacks based on market conditions and opportunities for capital growth [78]

Group 1 - The article highlights Blackstone Mortgage Trust (NYSE: BXMT) as a noteworthy real estate finance company that originates senior loans [1] - Binary Tree Analytics (BTA) aims to provide transparency and analytics in capital markets, focusing on CEFs, ETFs, and Special Situations, with a goal of delivering high annualized returns and low volatility [1] Group 2 - The author has a beneficial long position in BXMT shares through various financial instruments [2]

NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (the “Company”) today announced that the Company will release its first quarter 2025 financial results after the New York Stock Exchange closes on Thursday, May 8, 2025. Management will host a webcast and conference call on Friday, May 9, 2025 at 8:30 a.m. Eastern Time to provide a general business update and discuss the financial results for the quarter ended March 31, 2025. Webcast:The Company encourages use of the webcast du ...

Core Viewpoint - Annaly Capital Management, Inc. reported strong adjusted earnings for the first quarter of 2025, with a notable increase in average yield on interest-earning assets, although there was a decline in book value per share. Financial Performance - Adjusted earnings available for distribution (EAD) per average share were 72 cents, exceeding the Zacks Consensus Estimate of 71 cents and up from 64 cents in the same quarter last year [1] - Net interest income (NII) was $219.9 million, missing the Zacks Consensus Estimate by 46.2%, compared to a negative NII of $6.45 million in the prior-year quarter [2] - Total assets at the end of the first quarter were $105.1 billion, reflecting a 1.5% increase from the previous quarter [2] Yield and Margins - The average yield on interest-earning assets (excluding premium amortization adjustment) was 5.23%, up from 4.87% in the prior-year quarter [3] - The average economic costs of interest-bearing liabilities increased to 3.88% from 3.78% year-over-year [3] - Net interest spread (excluding PAA) improved to 1.35%, up from 1.09% in the prior-year quarter, while the net interest margin (excluding PAA) rose to 1.69% from 1.43% [3] Book Value and Capital Ratios - Book value per share (BVPS) was $19.02 as of March 31, 2025, down 3.6% from $19.73 in the prior-year quarter [4] - The economic capital ratio remained stable at 14.6% compared to the prior-year quarter [4] - Economic leverage increased to 5.7X from 5.6X year-over-year [4] Return on Equity - Annaly generated an annualized EAD return on average equity of 14.43%, an increase from 12.63% in the prior-year quarter [5] Strategic Outlook - The company's first-quarter results were bolstered by rising average yield and total assets, with prudent asset selection expected to drive future performance [6] - However, the decline in book value per share raises concerns, and achieving solid returns may face challenges due to increasing market uncertainties [6]