Ready Capital Loss Narrows as 2026 Debt Plan Advances

The Tip Desk · November 6, 2026 · 4 min read

GAAP loss narrowed to 40 cents a share as the company retired $350 million of 4.50% notes and issued $225 million of 10.00% 2031 paper.

Ready Capital Corporation (RC), a multi-strategy real estate finance company, reported a GAAP loss of 40 cents a share for the quarter ended September 30, 2026, after a 63-cent loss in the prior quarter and 1.25 a share two quarters earlier.

Chairman and Chief Executive Officer Thomas Capasse said that following the scheduled repayment of the company’s November notes, Ready Capital will have retired all of its 2026 corporate maturities, a milestone that drove the company’s activities over the last year. He said immediate priorities now turn to bringing distributable earnings and free cash flow to breakeven and resolving the remaining legacy non-performing commercial loan portfolio.

Distributable loss was 53 cents a share, versus 47 cents in the second quarter and 1.00 a share in the first quarter. Distributable loss before realized losses was 21 cents a share, versus 24 cents and 33 cents a share in those earlier periods.

Net interest income before provision for loan losses was $1 thousand, down from $10.52 million a year earlier. Interest income fell to $83.83 million from $137.49 million; interest expense fell to $83.83 million from $126.97 million. The provision for loan losses was $12.66 million, versus $37.98 million a year earlier. Net realized loss on financial instruments and real estate owned was $16.81 million, versus $160.40 million a year earlier. Valuation recovery on loans held for sale was $12.88 million, versus $178.23 million a year earlier. Servicing income, net of amortization and impairment, was $6.12 million. Total non-interest expense was $77.65 million. Net loss attributable to Ready Capital Corporation was $66.15 million. Dividends declared were $0.01 a share, versus $0.125 a year earlier.

In the LMM Commercial Real Estate segment, net interest income after provision was a $16.76 million loss. Small Business Lending posted $4.10 million of net interest income after provision.

The company issued $225.0 million of 10.00% Senior Secured Notes due 2031 and retired the entire $350.0 million 4.50% Senior Secured Notes in September 2026. Total loan originations were $303.4 million, including $132.9 million of LMM CRE loans and $109.3 million of SBA 7(a) loans, versus $278.8 million in the second quarter. Loan repayments were $363.4 million and sales $298.5 million. The total loan portfolio was $4.1 billion.

Book value was $6.44 a share as of September 30, 2026, versus $6.83 at June 30. Cash was $157 million and unencumbered assets $606 million, versus $124 million and $690 million at June 30. Total leverage was 2.8x and recourse leverage 1.5x, versus 3.0x and 1.7x.

Beginning with the second-quarter presentation, the company reclassified its CRE portfolio from a core/non-core framework to a performing/non-performing framework. Performing CRE carry value was $1.12 billion across 98 loans; non-performing carry value was $833 million across 42 loans; total CRE carry value was $1.95 billion. Performing current status improved to 96.5% from 95.7% in the second quarter, and 30–59 days past due declined to 3.5% from 4.3%. Accrual status improved to 85.6% from 84.6%. Performing CRE historical levered yield was 11.5% in the third quarter, versus 10.1% in the second quarter.

Non-performing CRE carry value ended at $833 million from $846 million at the start of the quarter, with $93 million of exits, $99 million of new 60+ day loans and $19 million of write-downs. The company said it expects $58 million of non-performing CRE exits in the fourth quarter of 2026, $10 million in the first quarter of 2027, $46 million in the second quarter of 2027 and $719 million in the third quarter of 2027 and beyond.

Real estate owned carry value was $581 million across 22 assets, including $386 million of Portland mixed-use property, $124 million operate-to-sell, $60 million in the sell category and $11 million under contract. At the Portland Ritz-Carlton, 52 condominium units had been sold, 39% completion, versus 50 units and 38% at June 30. Hotel occupancy increased 18% year-over-year to 58% and Room RevPAR increased 35% to $271, versus a 10% occupancy increase to 52% and a 20% RevPAR increase to $244 at June 30.

The SBA portfolio carry value was $1.55 billion across 8,086 loans. Quarter sales proceeds were $46 million on Large loans at a 10.3% premium, $38 million on Small/micro at an 11.4% premium and $62 million on working capital at a 1.1% premium.