morning. good and Rick, Thanks,
the minutes financial take announced we discussing greater like detail transaction a I’d to to Before quarterly results, few the in discuss last evening.
loan to a and transitional agreement Specifically, our to similar middle is signed and mortgage listed real commercial with business. estate merger originating Owens specialty we small REIT, focuses excited loans, Mortgage finance definitive market on balance extremely Owens publicly are a REIT own established Realty Inc. have very commercial that
section be presentation Ready merger. transaction a of the will website. have We Capital posted also summary on stock-for-stock This the a Investor
the value. discount assets Owens We market their believe what to fair are value, fair a we at acquiring of
manage we XXXX, this of the We As will by to quarter and expect the first of XXXX will be accretive transaction to end the anticipate our we result, transaction combined close company. a results. the
redeploy from Additionally, sale. assets sale proceeds shareholders many proceeds existing and benefit those this the loans Capital’s will ways. of to we of into Ready principal we that hard assets owns our expect strategy. dispose believe the transaction in We their through their from estate Owens will We anticipate investment real
First, extremely particularly compared which nominal. if the efficient initial to dilution, be value. raise way executed it need any, is will at to we case, when a In to an discount to stock value cost capital, significant will be offering, this a book book believe
share recapture dilution Second, this will per and earnings value within the X book be year. accretive XXXX to
believe asset we we value underwritten in assets, fair to result book in transaction range of market Owens’ Third, of as book X%. values of the of September XX, XXXX. well current asset estate of have adjusted X% Based real initial value the tangible on based this dilution excess these will of and estimate condition their on this value
filed, physical Our our third estimated with a real float reduce range this of issued of and trading our nearly platform higher be shares transactions volume. original which employees. of current current the execute parties review with inspection based value the to commercial tend valued to market expect expand underwriting shares dynamics plan. the and fair including price-to-book increase business low Fifth, a the Sixth, will of basis. assessment provide relatively liquidity XX%, the larger valuation appraisals, growth given we improve and and our on the loans of our condition, market efforts, REITs values of will our capital cap impact transaction under technical review our of Fourth, asset will assessment of estate key on mortgage
In to debt further our increase capital incremental raise scale. to will addition, it allow us
current their be classic win-win cost-effective, will ratios a of we the from expect forward is working benefit. Owens this scale team companies situation to we the shareholders and this look Finally, believe during in OpEx transition, level. where increased We resulting with both reduced will
before on name like touch on the Now financial quarterly to change. results, I I’d comment
rebranded part the all our to to you The all businesses, Corporation exposure of and Capital makeover across we to growth corporate us Capital strategy Ready platform. level value. know, our marketing further month last our of brings shareholder our enhance Ready to at As enabling enhance unify greater to as simplify lending
leader Ready Capital well are mortgage to We to continue a in finance. franchise positioned the develop as
Now to results. financial turn the I’ll third quarter
a steady balance targeted The consecutive For with another. our contribution acquisitions third origination exceeded equity, from our small having multipronged given and, provides operating output from softening with we strategy consistency the platform lenders. support earnings returns results segment our quarter, a further in enhanced our compared diversity earnings this franchise can XX% one in to that greater Strong single business. XX% offset commercial an thesis thus, ahead of the return quarter on returns
gains in and origination sales of loan impacted sales. and offset results were For Mac quarter. of gains Freddie loan positively business on conventional small assets example, administration our volume reduced this partially increases These acquired by
We continue quarter. market of an be following the from including that small to results, underserved reflected highlights in believe a to the dynamic continues third some is balance niche, our commercial space
Through ROE share ROE core share, of were or GAAP GAAP First, basis, per and ROE per $XX.X cumulative ROE first million is year, quarters we GAAP is earnings earned XX.X%. $X.XX XX.X% XX.X%. representing a of of core our the this XX.X%. an three a or On $X.XX
originate to to be SBC Secondly, ability continues our a assets company. our acquire new of strength and
a quarter. public off loans in originated of since million new New million $XX asset loans. although of $XXX We from the acquired additions another were quarter and second quarter last $XXX million, company bit a became the highest we
million originated we $XXX addition, In new loans October. of in
in $X capacity short-term This transitional balance factor liquidity. loans lending investment additional $XX is reinvestment represents platform, purchase $XX depreciating exclusively securitization commercial between stark a Now with compressed included our those the of liquidity increased basis conduit competition This a balance channel leading underscores large mortgage bank. regional focused originated in that in interest with Ready space our prepayments on where and acquired in the contrast intense of small REITs the an was on inaugural a of has million loans, resulted million margins. subordinate million, an forward-flow at exceeds other Capital for and key
Third, pipelines of both $XXX and nearly million are segments loans. SBC strong new in totaling SBA
approximately seasoned hired team is accretive Ready X% versus in prior XX one-off the the loans and book increased the see On securitization only the due to our over universe, administration million $XX.XX. year, the that transactions. This loans mortgage the stability risks. collapse REIT pipeline value business other to we this months. differentiating sourced a to beginning million Of mark-to-market broader of Capital $X.XX small Northwest, Pacific performing is Fourth, legacy SBA in note opportunities the a acquisitions fact to side, another since assets we as continue in numerous of quarter, $XXX volatile in to environment. the subject of $XX are business book our of underscores value factor for rate our This adjusted pricing which
so majority in our retention again segment, our which assets in quarter and expect rising mortgage mark-to-market to Our rate increased rate taxable Further, and subject of mortgage this environment. and allows the servicing are residential a value our therefore rights to would to we match is portfolio in rate do continue XX% floating is interest subsidiary not REIT funded risk. of structure earnings
$X.X a of Lastly, market. with in X.X%, basis over debt XXX Capital strong. transaction residential since of in securitizations week, commercial a proceeds collapsing This Ready our securities more a Capital’s had advance current common which this securitization totaling acquisition with legacy Ready transaction. Earlier the swap. completed we is XX% access highlights to legacy million billion $XXX XX points transaction securitized business remains of an mortgage-backed niche the in priced This markets XXXX. rate now coupon
markets, observations now balance offer continue the the in continue correlated. show me on Trends market which strength. property relevant the of a SBC track which to housing Let are highly market, to small prices few commercial
positive – from increases the to marking in and CRE large with property X% SBC As dwellers supply. business SBC the year-to-date X% balance reduced balance of tighter retail, as low gain the a which historic registration business and July, increased crisis markets, through major the the full a years prices results a are XX% of lending. is trend quarter is in small SBC balance X.X% quarters SBC one in peak, recovery balance absorption Also turned. annualized commercial and The and apartment market, This housing for SBC which for negative construction XX and the behind commercial bank since of consecutive post-crisis with small real lending rate. curtailing X.X% rent housing positive the retail. four large experiential net demand nature surprise big Record third bucks estate highlights Meanwhile, respectively. vacancy the credit cycle a finance, construction through occupants small reflected year-over-year
goal housing, this from commercial As commercial a material of small have with with increased expect suppresses market accounting the XX% with fragmented the decline $XXX we XX% a overtly top with in origination. the this under oversupply-driven scarcity as prices, of but billion to backdrop, rate To fourth administration we traditional avoiding prices. slowing put a year. supply price the exceeding of correction originations The small full perspective, loans for all lenders projections X%. cyclical billion longer-term demand, highly market departure appreciation business just of year in balance X.X% remains Against current excluding $XX for XX consecutive share balance in small a
we loan grow the credit of strong market, Given without volumes the new our believe our compromising can standards. size we origination
points. rates quarter’s small in Freddie in last of XX% starting new decline Mac million applications on the mentioned in basis Freddie increased multi-family second new loans I or in $XX resulted when reduction middle XX the quarter this As loan experienced call, quarter. a Freddie the This balance
million New million our reduced grown XX, up when XX did July. $XX has of up $XX of end points rates basis Freddie as pipeline October from subsequently at to Freddie the loan applications pick and
more million, we Freddie, from had the product this On side, XX% conventional competitive and up million $XXX $XX the quarter much quarter. record originations fixed or positive with rate previous our became of
XA originations Our history. loan topped first quarter small time business the in our million $XX this for administration
SBA While softened as and the the our got last a pipeline remains strong, it slightly down number bit is overall has from closer. elections quarter
announcing starting financial those summer we’re and Rick have sales addition, results. we decline to rebound. premiums to bottomed our starting did it hand are off In a to I’ll discuss this see now in slight but premium
