Ready Capital Corporation 9.00% Senior Notes due 2029 Q1 FY2025 earnings call

• Macro backdrop: CRE market recovery affected by tariffs and recession risks, but multifamily sector muted with 1% rent increase in 1Q '25. • Balance sheet repositioning: Initiated defensive posture, stabilized book value per share at $10.61, completed targeted liquidations, closed UDF merger, raised liquidity. • Core portfolio: $5.9 billion core bridge loans, 78% multifamily, 4% 60+ day delinquencies, $312 million modified loans. • Non-core liquidations: Exceeded Q1 targets, liquidated $51 million at 102% premium, expecting further reductions. • Portland asset: Construction project in Portland, marked down to $426 million, working to obtain title and stabilize. • SBA business: Q1 volume $343 million, expects moderation but views SBA policy updates as constructive.

The core CRE loan portfolio is $5.9 billion, comprising 1,400 loans with 78% concentration in multifamily. The non-core bridge loan portfolio was $740 million, with $51 million liquidated in Q1, reducing it to $740 million, and expecting to reduce to ~$270 million in Q2 and $210 million by year-end 2025. The SBA business had first quarter volumes of $343 million.

• Expect non-core portfolio to be reduced to ~$270 million in Q2 and ~$210 million by year-end 2025. • Reinvestment of liquidation proceeds expected to start rebuilding NIM. • SBA volume expected to be below $1.5 billion in 2025 due to policy changes. • Dividend expected to remain current until earnings profile warrants increase.

• Macro environment deterioration could impact performance. • CLOs under pressure with three failing interest coverage tests. • Potential decline in SBA volume in short term due to policy changes. • Uncertainty in refinancing corporate debt with $650 million maturing through 2026.

Q: You highlighted expecting a large portion of the non-core book to pay off in the second quarter. Can you talk about any impact to those expectations on April's volatility and how those conversations are going?

A: Loan sales are in progress with parties through due diligence, in purchase and sale agreements, no material diversion expected.

Q: Can you discuss your current views and philosophy on repurchasing shares versus preserving liquidity?

A: We weigh financial benefits of share repurchases with outstanding debt maturity ladder and need to reestablish net interest income, balancing accordingly.

Q: Are you guys continuing to do repurchases in this quarter?

A: We'll reevaluate post earnings, but liquidity is healthy with initiatives generating cash.

Q: On the Portland asset, will the position be held unlevered? And is there any contemplation of exiting the position?

A: Position is levered, decision to hold is for best economic outcome, plan to sequentially exit components as they stabilize.

Q: On the SBA business, what level of moderation in volumes do you expect? And gain on sale margins?

A: SBA volume expected below $1.5 billion for a couple quarters, gain on sale margins historically around 10% with portfolio mix impact.