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In a recent filing with the Securities and Exchange Commission (SEC), Ready Capital (NYSE:RC) Corporation, a Maryland-based real estate investment trust (REIT), announced the effective filing of a new registration statement for the continued offering of its common stock. The new registration statement, which went into effect on March 21, 2025, replaces the previous one from 2022. The company, currently trading at $5.03, offers investors a substantial 9.94% dividend yield and has maintained dividend payments for 10 consecutive years. According to InvestingPro analysis, management has been actively buying back shares, with analysts expecting positive net income growth this year.
This move is part of Ready Capital’s ongoing Common ATM Offering, which allows the company to sell shares of common stock up to an aggregate offering price of $150,000,000. The offering is conducted through JMP Securities LLC, acting as the sales agent, and includes unsold shares from the prior offering under the 2022 registration statement.
The filing of the new registration statement and the accompanying prospectus supplement is a procedural step that enables Ready Capital to maintain the availability of unsold shares for the market. As per SEC regulations, the exhibits associated with this report are incorporated by reference into the new registration statement, although the company clarifies that the information provided does not represent a fundamental change from what has been previously disclosed.
Ready Capital Corporation specializes in real estate and construction financing and operates through various investment vehicles. The company’s common stock is listed on the New York Stock Exchange under the ticker symbol RC, with additional securities including preferred stock and senior notes also traded on the same exchange. With a market capitalization of $825.1 million, the stock has experienced significant volatility, declining 32.26% over the past six months. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, presenting a potential opportunity for value investors.
Investors and stakeholders can find additional details about the offering and the associated legal and tax opinions in the exhibits of the SEC filing, which are part of the public document count for this report. This announcement is based on the information contained in the SEC filing and does not contain any subjective assessment or speculative information regarding Ready Capital Corporation’s market position or future prospects.
In other recent news, Ready Capital Corp. reported a significant earnings miss for the fourth quarter of 2024, with a GAAP loss of $1.90 per share and a distributable earnings loss of $0.03 per share, falling short of the forecasted $0.23. The company also announced a 12% decrease in revenue from core operations, amounting to $91.6 million, and consequently reduced its dividend to $0.125 per share. Amid these developments, Ready Capital issued $220 million in secured notes at a high interest rate of 9.375%, which analysts predict will increase borrowing costs and impact future earnings. Additionally, the company is facing challenges with significant senior note and corporate debt maturities in 2026, totaling $760.9 million.
Analyst firms have responded to these financial results with adjustments in their stock ratings for Ready Capital. Keefe, Bruyette & Woods lowered the price target for the company from $6.25 to $4.00, maintaining an Underperform rating due to concerns about credit issues and the company’s long-term earnings potential. Similarly, Citizens JMP downgraded Ready Capital’s stock rating from ’Market Outperform’ to ’Market Perform’, reflecting cautious sentiment despite the company’s recent advancements in treatment options. These recent developments highlight the various challenges and strategic decisions facing Ready Capital in the current financial landscape.
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