Ready Capital (RC) investor relations material

Executive summary

• Generated $1.4 billion in cash from loan sales and liquidations year-to-date, supporting deleveraging and coverage of 2026 debt maturities.

• Ongoing repositioning strategy aims to reduce leverage, resolve non- and sub-performing positions, and transition to a more capital-efficient platform, with a focus on LMM commercial real estate and small business lending.

• Completed the disposition of the Residential Mortgage Banking segment in 2025; results are excluded from continuing operations.

• Acquired United Development Funding IV (UDF IV) in March 2025, resulting in a significant bargain purchase gain in the prior year.

• Large-scale asset sales are expected to close by the end of Q2 2026, after which book value pressure should subside and growth is anticipated to resume in core CRE debt investing and SBA 7(a) lending.

Financial highlights

• GAAP loss per common share was $(1.25) for Q1 2026; distributable loss per share was $(1.00); distributable loss before realized losses was $(0.33) per share.

• Net loss from continuing operations was $200.1 million, compared to net income of $82.4 million in Q1 2025.

• Book value per share declined to $7.43 from $10.61 at year-end 2025, driven by losses on loan sales, CECL reserves, and operations.

• Recurring revenue was $16.2 million, down from $41.5 million in the prior quarter, mainly due to a $28.5 million reduction in net interest income.

• Operating expenses increased $7.8 million quarter-over-quarter to $67.7 million, primarily due to non-recurring advance payments to servicers.

Outlook and guidance

• Liquidity plan is on track, with 67% of target liquidity achieved and remaining 2026 maturities at $450 million.

• Remaining large-scale asset sales are expected to close by the end of Q2 2026, with anticipated easing of book value pressure and a lower-leverage platform positioned for renewed growth.

• Management expects continued macroeconomic uncertainty, with persistent inflation, interest rate volatility, and geopolitical risks impacting results.

• Focus remains on liquidity management, deleveraging, and adapting capital allocation to market conditions.

• Initiated a sale process for up to $1.2 billion of performing and non-performing loans as the final phase of the repositioning plan.