Syndicator Lender Ready Capital Faces Steep Losses

Heavy Losses Prompt Restructuring

Syndicator lender Ready Capital reported a $232M net loss in its latest earnings, marking a continuation of severe losses as it works through troubled commercial real estate loans, reports The Real Deal. Its stock price has fallen over 60% since last year, and the company has reduced its dividend to just $0.01.

The firm is now trying to sell about $1.5B in loans to free up $250M, part of a broader attempt to stabilize its balance sheet. Despite the steep loss, this was a slight improvement over a $314M loss in Q4 2024.

Rising Non-Accruals and Asset Challenges

Ready Capital—once a substantial lender to multi-family syndicators like Tides Equities and GVA—faces elevated exposure to bad debt. Non-accrual loans have surged to 25% of its total portfolio, or $1.3B, up from just 6.3% a year prior. Executives attribute this spike mostly to four or five large loans where borrowers are seeking new financing or trying to sell assets, with little interest in loan modifications. The situation reflects broader stress among apartment syndicators that aggressively expanded during the low-rate era and are now struggling with rising borrowing costs and weakening property values.

The firm is also managing the high-profile Ritz-Carlton tower in Portland, which it took over after a $460M loan default. Only about a quarter of Ritz-Carlton condo units are sold or under contract despite efforts to replace the sales team.

Potential License Sale and Future Moves

Amid mounting losses, Ready Capital is considering selling “non-core assets.” During its earnings call, an analyst raised the possibility of selling its valued government-sponsored enterprise (GSE) license—a move considered by at least one other lender in the market. However, executives did not confirm any plans to sell the license, focusing instead on other asset sales.

Overall, Ready Capital’s book value fell to $8.79 per share, down from $10.28 the prior quarter. The company continues to prioritize liquidity and is repositioning away from distressed assets originated during the pandemic.