Ready Capital reveals robust origination activity

Last month, the company closed Ready Capital Mortgage Financing (RCMF) 2022-FL9 LLC, a $754.2 million CRE CLO, officials noted. RCMF consists of 25 first-lien floating rate loans originated or acquired by the company secured by 75 properties comprising 95.7% multifamily, 3.0% self-storage and 1.3% industrial across 13 states.

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“With market conditions growing more challenging for mortgage REITs, the strength of our capital resources gives us a measurable advantage in this environment,” Thomas Capasse, CEO of Ready Capital, said. “Given the robustness of our $1 billion pipeline, we anticipate healthy deal flow for our lending programs into next year.”

The positive earnings report comes on the heels of a merger agreement with MREC Management LLC (dubbed the Mosaic Manager), a $754.2 million CRE collateralized loan obligation consisting of 25 first-lien floating rate loans (secured by 75 properties) originated or acquired by the company.

As part of the deal, Ready Capital agreed to acquire the structured opportunities funds with a focus on construction lending, managed by MREC, which closed in May. Ready Capital at the time said the acquisition was expected to further expand its portfolio to include a diverse portfolio of construction assets with attractive yields resulting in anticipated earnings accretion and reduced leverage profile.