Ready Capital: Leverage Vs. Distributions

Summary

  • Ready Capital reported Q2-2023 results with a higher provision for credit losses.
  • Distributable income fell short of actual distributions, again.
  • Q3-2023 should see a further drop and we tell you how we would play this company.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Dice form the words "ready" and "steady".

Fokusiert/iStock via Getty Images

On our last coverage of Ready Capital (NYSE:RC) we spoke about the distribution and its unsustainability over the long run.

The base run-rate for Ready Capital already looks like it cannot keep up with the distribution. We will add another 62

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This article was written by

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Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of RC.PE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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