Ready Capital sold 47 commercial real‑estate loans with an unpaid principal balance of $943 million, generating net proceeds of $177 million after financing paydowns. The portfolio was 68 % performing multi‑family, office and industrial loans and 32 % non‑performing or sub‑performing CRE loans, a move that reduces the company’s legacy CRE exposure and frees cash for future growth.
The company also collapsed its remaining two collateralized loan obligations, RCMF 2023‑FL11 and RCMF 2023‑FL12, which comprised 21 loans totaling $496 million in unpaid principal balance. The collapse was completed on March 25 2026, allowing Ready Capital to retire the CLO structures and simplify its balance sheet.
Ready Capital issued a notice of redemption for its 6.20 % senior unsecured notes due July 2026, with $67 million outstanding. The redemption is scheduled for April 22 2026, using cash generated from the loan sale and CLO wind‑down to reduce debt and improve liquidity.
In addition, the company entered into an off‑balance‑sheet arrangement to sell up to $1 billion in new CRE loan originations, with the first tranche expected to begin in the third quarter. The program is part of a capital‑light strategy that preserves origination revenue while limiting balance‑sheet exposure.
Management explained that the sale, CLO collapse and note redemption are components of a comprehensive balance‑sheet repositioning strategy aimed at generating free cash flow, reducing negative earnings drag from legacy assets, and shifting toward lower‑risk, capital‑light business lines such as SBA lending. CEO Thomas Capasse said the company is advancing this strategy to strengthen liquidity and create a more resilient financial profile.
The combined actions reduce balance‑sheet risk, improve liquidity, and signal a strategic pivot toward more profitable, lower‑risk lending activities. By off‑loading legacy assets and simplifying its capital structure, Ready Capital positions itself to focus on new origination opportunities while maintaining a strong cash position for future investments.
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