RC - Earnings call transcript Q4 2021 | Ready Capital Corporation

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Operator

0:05 Greetings, and welcome to Ready Capital Corporation’s Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. 0:31 I would now like to turn the conference over to your host, Andrew Ahlborn, Chief Financial Officer. you. Thank

begin. may You

Andrew Ahlborn

operator, on morning, us the you, those this thanks of you call and Thank and good to morning. X:XX for joining

within results Federal useful with you evaluating in our meaning risks measures detailed the are SEC measures relying reconciliation as a to results operating performance. be be in results can expect. over Tom available and X:XX information, earnings and the release refer in financial them. found of of comments filings could for GAAP. Therefore, comparable of could that on will most should quarter materially numerous accordance our more directly our Executive company’s Chief in turn forward-looking X:XX Relations prepared XXXX supplemental Some isolation These considered section the cause from and During in that be actual we today subject can now to caution of operating it differ will our Laws. Securities interpreting in Ready Investor A substitute the Capital will which or GAAP you not impact a I statements which measures, the the Capasse. uncertainties and call, website. measure to should these We believe of non-GAAP Officer, our fourth Such for to is we statements discussion condition. future exercise be risks the the we to our our discuss financial what

Tom Capasse

and banner in fourth and today. year quarter's another thanks capped Andrew. for growth. Thanks, originations joining The everyone, Capital X:XX for earnings, Ready call morning, results Good the

securitization in credit the the CRE -- multi-strategy platforms through leader in expansion a CREIT offerings and one most build continued strategic CREITs of and acquisitions. origination to product continue in in the space We as industry diversified and

standpoint. balance or X:XX supported originated only $X.X a platform quarter, fourth of Now solid exceeded which production liquidity and both we by of loans, balance was from in in both a a cost commercial which small financing XXXX. SBC has but lending not improved record, and the annual rock is record XXXX also Our total quarterly sheet, a billion

than originations billion, growth the X:XX lending were X:XX business, year, a merchant some in total affordable more and million, XXXX. to and I capping real $XXX our representing quarter growth. acquisitions equalled SBA million billion. multifamily factors cash channels, production, double estate X.Xx which loan like remarkable small residential total housing over In X(a) $XX.X to would $X.X reached our contributed our $XXX SBC volume total fourth XXXX. transaction Combined originations record of a equity the For highlight with XXXX loans advance, XXXX business of

and full financing stabilization the brokers. sponsors life pivot markets is sponsors with as First of offering, to broader from provides model portion SBC move. which differentiated with allows across our properties property and also product cycle the economics larger to us of capture construction to as us develop a It This move an to relationships stabilization. our allows

$XX million XX% quarter, of LTV product, as to This lead acquisitions. billion, $X.X the and XX% supplemented For XX%. a loans lending, in in was yield. million average is with comprising and multifamily our with originated an we fixed And transitional retained $XX rate CMBS priced of

Freddie continue X:XX ROEs. government-sponsored to obtained SBA closed the and SBL be on for barriers Mac of a high sale the in will and growing Second fixed business, the CMBS lending ownership the for million Express recession-proof In closed new Our gain entry USDA quarter our prime largest rollout a which focus we with programs. programs, income we million to share our lender. climbed in and to is $X and the of We quarter including which lender gain we provide businesses, originated fifth which year loan small SBA rate as sixth the license. $XXX market and have in largest X:XX XXXX we'll

closed manager hires processes full-time senior billion tight largest evident CLO the issues, These realigning common including our $X.X affordable we largest to outpacing tax Stone franchise inception, of our capital capital Red date, and record billion of transactions XX business $X.X of in In M&A the issued quarter. a strategy billion, ranking Finally, focus we In spreads and million as loan improve names capital. in million the to added and Mac originated XX% exempt merger production sales accretive XXXX. quarter equity have in or on issuance, X:XX market. Fourth we disciplined we XXXX. traditional sales, In of the partnerships. is $XXX lender in equity to employees production human the nearly focus cement and market quarter, is Freddie real fourth with CLO mosaic including to $XXX volume equity the is XXXX, when signing with credit quarter, and the in comprising share our versus our Compared securitization we strategic in the the with the SBC a mREIT national secondary across acquired a growth M&A front-end issuance. Third increased X:XX and growth $XXX credit including the fourth X:XX issuer in efficient to rates. CMBS in preferred the housing strategies of million bellwether business Our pull-through Since our estate million we continue base. second head in $X credit, front-end a XX through equity support underwrote significantly XXXX, $XXX fifth a on our growth credit. processing

our discipline portfolio has our high-risk kicking a the helping we X.X%. to points XXXX to spreads Capital CLO This X.X% positioned CREIT exceeds financing, the remained in premium with portfolios X.X% sector gains been value. aggressive and of dividend rated in underwriting. in access our Ready billion share rate rating only X discipline Our Now basis and credit As or X have an XX-day offering of Ready SBA off A culture our credit uniquely funded of book ACRE, improvements widening assets market scale without match Further, of and SBA issuer, process yield issuance of at our and credit our regarding rising by $X.X group. to is impact been on dividend our focus on a achieved upcoming rates established delinquency a consistent SBC non-recourse and weeks. have X mREIT product Capital X:XX yield and hallmark plus portfolio peer budgeted of drive XXXX is data-driven X:XX evident risk declined in SBC XX credit to X our and

XX% First, our of was portfolio rate floating at year-end.

points. rate XXXX XX XX% vintage floors basis the comprises floating LIBOR Additionally, of portfolio with averaging CRE

So while At X% ] debt but movements, current asset we from positions basis of of margins, substantial points average as liability will pledged place XXX XX of us structure. our short-term [ benefited only X:XX move is well under repo. rates. with on QSIPs beginning floor upward of Second in lower, pressure short-term more our year-end, comprised a at movements the the pandemic average weighted rates the

proven mosaic our the of are Lastly, significant rate inventory Higher year recession, widening adding sector. fully the rising loans, XX% at Ready is rate resilient preferred XX% current In asset total, model secured debt, macro widening update made equity. yields and as a costs debt funded comprising monetary fixed warehouse competitive transaction. in senior offset on in I debt spread tranches accretion year-end, headway from Capital's we earnings in which through policy. would unsecured by less $XXX rising to from of business is securitization on capital quick hedged. a tightening X:XX to match securing highly corporate also Additionally, portfolio million likely fixed provide securitized want of borrowings, last with and rates X:XX only SBC additional be COVID from risks the

our terms Finally, XXXX. product on heavy outlook, of the mix lending loans of to week approval, start via call, close a $XX million expansion and accretive highlighted we X:XX last bridge SBA February, $X.X Through have have current pipeline with of we're off week in in from in advantage the seamless originated Ready to transitional of of all and furthers billion the transaction products. and to the in SBC shareholder a we strong Pending earnings. loans merger a third March. we in million our Capital's up across As third money to competitive is $XXX mosaic construction expect

servicing loan I'll our to the as that, loan target our turn sale earnings the near-term elevated recognized well quarters continued gain XX% before be are the on over X XX:XX expansion XX% expect PPP over of Andrew. tailwinds via from servicing and ROE with as So in businesses. as a it growth reversion our to to next to portfolio We --

Andrew Ahlborn

sale XX:XX contribution growth outpacing Thanks, distributable Distributable stockholders’ average loan of million earnings banking $X.XX XXXX million our earnings were to to GAAP gain of XX.X of in $X.XX The and share the equity. of of on balance quarterly earnings mortgage reflective earnings income Tom. and to average for $X.XX the a the the PPP, due share continued net equates businesses, return of of GAAP profile and increased return respectively. $X.X earnings revenue. on earnings fundings per Quarterly our loan quarter. from are was payoffs a and stockholders’ XX:XX effects on to residential XX.X% million. $X.XX $XX.X share $XXX per equity. to normalization $XX.X or PPP Net-interest the absent related distributable XX.X% from million and per Covering dividend $X.XX Distributable earnings sheet, equating respectively. our $X.XX billion income and is full

distributable quarter-over-quarter of activity additional do to of quarter. quarters. Unrealized from due million at sale XX% from Freddie to in consistent As reduction billion in at generated higher revenue XX% revenue The production certain on securities appreciation income margins of future X.X% net book a points. remained activity variable XX% Mac sale $X.X income. the and primarily investments sale in million XX% MSR, a sell remain and margins, to million stabilized for Freddie from million XX:XX decision in our bolstered to declined a anticipate million, Red of basis banking continue Red the to held investment gain the million, $X.X million. we loans servicing we operations Stone not Realized a consistent to the revenue coupon the non-PPP XX:XX of backed strip. to the of which Gains $X.X be of reduction the segment, well a As were X(a) $XX.X SBA, $X.X the lower had declined reduction activity of declined and $X.X sales Operating portfolio resulted to mortgage was in and primarily XX% sheet. average $X.X of as fees. further decreased mortgage reduction SBA points lower XX:XX revenue Mac source of activity $X.X the in In by for quarter on earnings, the balance of expected due total from banking and an SPL we IO both revenue a appreciation in positions. $XX.X basis which million of Total weighted $X.X upcoming stability increased sale was due quarter gains sale will mortgage produced quarter-over-quarter XXX from and in Gains XX million. quarter-over-quarter, value quarter-over-quarter and Stone end, average expenses the our in loan residential as professional compensation an due by include

related outperformance to to likely continues PPP income the the in earnings to million over $XX.X contributor the remain significant fees our quarters. As add I the of net external This to stated to income considering few a to effects payable quarter manager. totaled next and after previously, tax which is

fees. of of we of had As into earnings million against reserves million year-end, $XX.X those revenue remaining accreted deferred $XX.X and to be

notes, to measures via several including last liquidity million the of original of raising $XXX of in of the the quarter senior million remained. $XXX As corporate five-year fund This $XXX On set. front, included we notes million the our X.X% $XX XX.X% portfolio equity ATM. and X.X% senior unsecured increasing opportunity of in incremental took week, seven-year million XX:XX secured capital

is higher facility As and leverage times. recourse norms volumes securitization PPPL that recourse both is the was that, of was CLO leverage our total The the cycle. X.X X in high line the December and With for which historical lending of absent merger. the by driven X.X the quarter times expected Recourse mosaic to the upcoming will leverage, and leverage XX, offering norm than equity open questions. from historical to January, closing to secondary additional XX:XX our ratios in times are revert CRE, we due of the our primarily

Operator

we very with XX:XX [Operator ahead. Piper first our much. conducting Crispin Love from you question Thank Instructions] At We session. question-and-answer have will Sandler. of this the go Please time, a be line

Crispin Love

Thanks and morning, XX:XX and Andrew. Good Tom

So drivers (ph) And elevated space? type our originations and any recent as the of and just just up slowdown speak seeing you financing forward billion activity of XXXX, in been in kind then and what $X.X year. it of going results bridge strong also to space? Bruce multifamily you've driven full crushed as the demand that of expect some the what then by the X.X%, definitely Can expectations with the fourth to bridge be quarter. And not in the expectations given in key keep kind you for do we here saw the that the Or would you levels the of to be XXXX? might kind of able in have but

Tom Capasse

focusing then, in or the specifics broad Yes. growth But lot I'll we're market you observation. broadly, And terms of on a -- not multifamily. of at make suburban I'll speaking, look XX:XX the can necessarily Adam, you in Thanks, multifamily comment CBD. the tactically been make locations, generally some in maybe Chris. if post-pandemic has of a how on

second on our is the with status linkage obtained largely in because again So SBL license, the And Freddie our -- focus other Mac obviously we've fifth capitalized points. factor on we where price largest smaller that lender we XXXX.

So going But in X in the more broader Adam, can terms what specifically the see those forward? sector you of are overlays. maybe growth you and of that comment what

Adam Zausmer

Yes, sure. XX:XX

United affordable crisis States, certainly, the on the side. I there's think in a housing specifically

And the multifamily acquisition relationships strength propelling that certainly nationwide. the demand. financing of investors lot in really, Our of some market There's a sector. of the top given with activity really

the the multifamily really there's the more in steps properties given lower expenditures to bridge for affordable provides nice help that folks fact some of platform on So for and across a income rehab country. homes these really high-quality, provide void our units, the capital necessary and side

focus Ready and where is in I resemblance think a clients, XXXX I in But should execution Capital the close relationships should production become this specific to propelled this really Our require fairly in in repeat experts the stories we're that in minimal we CapEx. banker the country, assets that So it's sector. business, certainly specifically in pursuing our I as generally it the lighter the of is our XX:XX side think really delivers originations close we fairly We've given firm multifamily speaking, think to multifamily space. the across in growing did specifically known what's this clients, stabilization deliver the bridge year, marketplace, XXXX. strength transitional certainty whether mortgage are direct also our

Tom Capasse

bit example, and thing to handoff there malls, sectors, of this not as add on. CRE well industrial malls retail, properties that other focus a strip that to the for will And ultimately, we additional be again, of is and kind hospitality XX:XX as to smaller but

Crispin Love

Great, thank XX:XX you.

to originations one heard up you that XX? on Should XXXX? follow just make to be XXXX? correctly. say Adam. similar space similar Just you to bridge Can the in that. I sure in want I or

Adam Zausmer

XXXX. XX:XX Oh, sorry. Yes. I'm Similar to

Crispin Love

perfect. Okay, XX:XX

sense. for prepared That ROEs. hit Tom, Thank your a one this makes second bit Okay. in just on question little you then on And me you. And remarks.

you asking mid-teens that when the mid-teens quarter seeing growth of about do to loan seeing with levels of you're that it quarter like X, Or in range second the And that in you the in the next expect back the way, different drift range? is might and or similar originations the expect to a of you've PPP range. just ROEs ROE the past? in this that some kind seems So talked plus XX%

Tom Capasse

would fourth know XXXX on if to I ’XX this of year, XXXX. sorry, XX:XX I quarter to late say third, but. of that don't you want – the come

Andrew Ahlborn

roughly when revenue PPP $XX XX:XX we earnings. low million debt, through in from the Yeah, have still Chris,

the third. carryover that Our into are expectation with probably that in of second and the the first limited is majority quarters, lowest some

So, of year. and is is the think towards back I Tom right the reversion half that the

Crispin Love

question the thank you for you you. XX:XX Great, question Thank for answers. thank – the and

Operator

XX:XX Thank you.

have We JMP the question ahead. with securities. from next line Steve of Please DeLaney go

Steve DeLaney

congratulations Good XX:XX morning Tom Andrew a year. great really and on

income, XXXX? close of the you'll anticipate strong income Just terms curious that distributable into forward year you in be REIT of any because the carrying undistributed do taxable to

Andrew Ahlborn

morning. good Steve, So XX:XX

Steve DeLaney

XX:XX Good morning.

Andrew Ahlborn

entities from earned carryover. that a the and was Based be distributions we gonna up at TRS and the expect income REIT, purposes, to XX:XX on do our workout I PPP fact TRS there's the that limited

Steve DeLaney

XX:XX dollar Okay, comments it thanks, out lays left. thank you. your I X amounts appreciate helpful. is are your Especially way PPP and the very the And slide about that

that expenses. of You net X% component X% revenues? to some say of taxes PPP the is PPP tax that a Does -- the Is that ROE? impact revenue X% also or on a mean there reflect taxes direct is on of

Andrew Ahlborn

XX:XX in impact included the is that when of for So prepared tax. tax was net in we income remarks, or of income the the line described provision tax income the PPP totality item,

Steve DeLaney

when obviously, taxes it on because be that. that, probably to get ROE, coming the the on quarter by that we're true let's your that be ranges would that line, look it? I'm trying gone. the at X% like we seeing PPPs less would numbers of XX% just of or Got PPP XX:XX say touch XX%, So impact revenue tax, than at off

Andrew Ahlborn

XX:XX Correct.

Steve DeLaney

Okay, needed I to I what try, that's verified. XX:XX just

Andrew Ahlborn

thing one There's in Yeah. there. XX:XX other

which for quarter. impacted look you at gross by advisory on the that shown that is is roughly EPS are that's fees, item the if impact also $X.XX line The other slide, investment the

Steve DeLaney

– you fixed rate And, it? multifamily. mentioned Okay. Got Thanks. XX:XX fixed Tom,

you sort Just plan own? issuers? would curious, of forward you that, as Or you own that to, a with you'd where issuing be other create of your CMBS in private move do established your on with more operating shell label conduit product, fashion be

Tom Capasse

given our – CMBS loans with -- obviously, at would the participating point, on we our however, not own, our I probably, smaller… mean, issuers? we're other And act other contributing, XX:XX to pipeline, are this averse current

Steve DeLaney

Yes. XX:XX

Tom Capasse

a XX:XX And have of we identity. specific so more

But own capital participating yeah, of currently, optimizing consider that would we just shell. to have the, four will open turn because brand, the our if inventory with We outstanding you another we're execution, have and we shelves terms in CMBS. of markets including

Steve DeLaney

XX:XX Adam. Well, obviously, there's, go ahead

Adam Zausmer

XX:XX clarify Yeah, to we mean, on Hey, hey, originated we done on our, X you Steve, started the securitizations Adam. we've this just QX expect it's mean, And year in – I QX expect rate our that majority be another a have well, by as the I product, market, to fixed and, rate in XXXX on shell date. and with those of will know, we on be Ready shell to fixed Capital. assets the of – we deal, the so

Steve DeLaney

XX:XX bridge new or to that's be at Well, looking lending can multifamily you've last of fixed over done the year property been owners some for this borrowers allow fixed. looking for all the been point that

So great yourself appreciate I morning. opportunity. that for job strategically on comments this positioning your

Andrew Ahlborn

Thanks, Steve. XX:XX

Operator

XX:XX Thank you.

of from with question the Rahmani next have We KBW. Jade line

Jade Rahmani

the Mae big GSEs around Stone size, license the with year. joint if some color focus the give platform. other affordable product both a much. affordable perhaps Fannie this know very I there's space? the Thanks dust can aims housing that XX:XX or that's work lenders and was opportunities average business pursue characterizes others of to ventures for some the any you deal the Red focus seeing? that, a Maybe update looking is I if in a housing types of an wondering and on

Tom Capasse

affordability we're qualifies exempt the just a affordable one, kind of Obviously, the now SBA XX:XX GSE part squarely take in on ESG backdrop, side, on this of SBL product you firm. Yes. a because we tax lender. let as have Adam, that's a ball adds the the is and as speaking, I'll terms big to fairway that. generally of scorecard our the of But very a but focus in

you volume business the just So X strategy, the that was on maybe, Stone what to what tax the briefly. and for Adam, exempt we terms XXXX One in Red budgeted originations secondly, things in overall and how versus acquisition at the just on see the refresh comment what prospects in XXXX. aspect is operates? of And

Adam Zausmer

platform, multifamily -- we opportunities that XX:XX year, license stabilize. of strong the TEBS working in small forward for have for will And working licenses, that and we've our is agency you a we Freddie. XXXX, beneficial working in had year. which their XXXX. partners yes, income government we participate those support Again, XX:XX XXXX base. space. Certainly, on have JV as et and which of That up perspective, exceed Yes, acquired But be sure. was the and Stone The housing lenders of clients low those folks August, $XXX strategic our million tax platform very have a we in year. the Red tremendous from volume around move pipeline. credit tremendous north as somewhere municipalities volumes investor pretty loans Red From going originated of certainly, assets Stone of with of know, certainly extremely acquisition think, housing into earlier, slightly that when we that of $XXX again, affordable bright that cetera, then program the originated them. products above with perspective, XXXX, a significant And agency bridge balance of million. quality folks amount the the as to that they've the believe from a Certainly, previous momentum, future these exits JVing, projections expect I In a in platform our we with north come a at other somewhere the had acquired platform, that from has given as since they we side. going terms lot lack discussed I

Jade Rahmani

the question Thank environment. on for you A much. lending Tom, just XX:XX very current

genesis of couple of around been the period well through as CMBS a of You've lengthy cycles the market. as

bank in in think first for was risk loss the on nonbank there I increased the surge Just of fourth that. And rankings in space And what's all, driven on lending? loan the being your some perspective the that on environment, quality prior quarter, wondering looking today's perspective could you're pull the if of just banks to seeing cycles? your what's cause done modestly back, today versus credit, originations

Tom Capasse

XX:XX Yes.

that. our SBC, guess, bank, and then I market One in small the say, there's definitely the market. is broadly now balance, share subsector, ways CMBS balance I the X seeing by Just, market overall conduits. increase you're the to large answer generally, right in versus the an would

as I in percentage a was think total XXXX of originations CMBS around XX%, maybe. upper teens

actually a that the the that lending. in to of seeing portfolio to And expect in by to pullback CMBS driven terms a CMBS. from One the We increase things. is maybe competitiveness the that XX% banks secondly, a environment, definitely lot zone. rate X – relative bridge -- is of away particular – side in from not but on there's incrementally – credit, in dramatic, of And we're rising

-- below far haven't as we're stabilized -- in we least sorry, at appraised a then values. our as just which in typically the And not definitely LTVs $XX comments. loan, the component, broad or yield, million, terms coverage are ratio is CMBS debt credit that the market metrics debt So XX:XX -- as credit on significant X I'm the of in those in niche, decline seeing actual and is service

of this kind will vintage in on with early this XXXXs. probably vintage saw vintage XXXX and par what will more XXXX the be you So

know. don't I So

in credit, increase expect into penetration -- continue an with nonbank a on environment of which greater with originations. benign – relatively with to a more we have We XXXX

Jade Rahmani

XX:XX Appreciate Thank commentary. you. the

Tom Capasse

Jade. thanks, Yes, XX:XX

Operator

Thank you. XX:XX

We with Hayes question have the of ahead. from next line go BTIG. Please Tim

Timothy Hayes

ROE ROEs. update the could you is an on I guys. questions get morning, and year half back level we your been we some where income then if know the into just with PPP get dividend good asked Hey, with kind to respect And XX:XX from But have that? comfort target just the the of subsides. around of as

Tom Capasse

take XX:XX want Andrew, to that? do you

Andrew Ahlborn

Yes. XX:XX

the I and the I in to target coverage And to terms to dividend, continues post of what think on. of I think Board effects we’re the is will So of the today, earnings I evaluate. support the focused is continue where XX% XX% dividend the profile

on return But dividend next to our what than profile the is certainly, based that the Moving over are. future going of earnings projections. quarters, future be couple targets higher

Timothy Hayes

sorry Thanks last labeled it. were can think quarter previously that, kind loans there that Andrew. and other. quarter I as been What a in you category -- maybe Got just then this And if originations it's had be just of related for any I described those? missed in sorry I And were what to, if -- to a loans of the kind but and fourth some think just just quarter, I M&A I anything, or XX:XX don't acquisitions that's believe close if bonehead. in land I

Andrew Ahlborn

XX:XX all. volumes origination are from the quarter. this Those No, not at Stone Red

Timothy Hayes

are was origination you. comfortable in or year term? volumes you've type on the us any updated for you this Makes curious XX:XX of then at the comments Okay. Red at I in just Stone. guidance your sense. least this time given And Got giving And some previously kind of outlook -- near if resi. for

Tom Capasse

to do terms comment of Andrew, in you want XX:XX budget? our

Andrew Ahlborn

we mean, January originated down Tim, levels. around million. to -- we're I XX:XX volumes Yes. sort was In of normalized $XXX seeing come

mark, in at reductions our XXXX. so XX% that the we -- were XX%, billion is where from expectation $X And in

Timothy Hayes

Okay. XX:XX you. Got

So sorry, a just an XX% thinking 'XX? XX% on year-over-year annual basis, to reduction in

Andrew Ahlborn

XX:XX Correct.

Timothy Hayes

XX:XX morning. comments. Appreciate for That’s it the me Okay. this

Operator

Thank XX:XX you.

go question Please with We the ahead. Ladenburg of Nolan Thalmann. line Christopher have from next

Christopher Nolan

XX:XX my Most asked. questions Hey, been of guys. have

their are you're growth seeing such in they of For seeing Adam, given your multifamily what seeing such rents? though, revenue clients demand, strong sort annual that are

Adam Zausmer

the the generally, when board, mean forma underwrite I we upfront. Yes. XX:XX across pro

are across think XXXX in. I on a call in where growth are pro least anywhere basis. XX% certainly, upfront it at rents. we seeing exceeding generally the board, XX% from in multifamily market, But XX% that think we it seeing that from these underwriting, forma underwrite to But anywhere operators are assets the certainly, I on we're from to XX% depending which the

Christopher Nolan

you're affordable So one multifamily these housing, annually? Is in increase for XX:XX between if correct? facilities, operating seeing of that they're and rents XX% XX%

Tom Capasse

similar XX% -- the our rents the Well, Adam, in by side, just that Adam, just I of to think, probably kind differentiate, we're think just rents, less. generally XX:XX are the XX%. But that affordable in in I nature, to in non-affordable, balance to large their up

don't You same the downside. upside see or

were those digits. more high like So single

Adam Zausmer

And we're growth. point, rents clarification those post-rent just I were was for the XX:XX Yes. XXXX, year to seeing XX% a XX% and specifically mean, where that really a in

Christopher Nolan

XX:XX to of loss. a for but their used a recipe in I they consumer your housing as are the we're I is where a any any phenomenon the are sort And that a Okay. not then be. you follow-up rent seeing great supply, is mean, a not is stabilization, of at sheets seeing And question this there -- as balance terms in guess of is rent some markets? point, of control crunch

Adam Zausmer

I depending we're municipalities conservative a seeing -- there on the taking them form making pull it's extent located, extent certainly where stabilized, units, and mean a XX:XX these that much I cetera, that I we're if basis. really market, are market, But the have nothing it's obviously, of mean controlled, right? converting are some much back not asset more units market to regulator. properties it's for sure et that No. that conservative to those the we're market is whether to looking certainly mean, on rent at significant. regulation,

Tom Capasse

not -- they but in XX:XX the -- look that income with macro over somewhat ratio that's plus Yes. consistent XX% you're ratio great as at flag dramatic by renters consumed to in increase the at. the increase keeping And MSA that wage have that keeping of their the definitely terms regulatory pace of with of red sector the of kind be not risk, And of in a seeing rents. in the, due That's given growth rent. least

and mid-singles went not that wages up to dramatic XX%, – by increase over in over percentage rents XX% population of So high is singles are XX say, there's a income up still – if of total contributing rent. their that

Christopher Nolan

XX:XX Final question.

or stabilization For of sort Section your percentage your of X have units affordable like some housing, what something would like that? government

Adam Zausmer

XX%, somewhere Yes, north XX%, XX%. XX:XX yes, of between

Christopher Nolan

Great. XX:XX

Thank you. Okay.

Adam Zausmer

XX:XX Sure.

Operator

to call have you, you. to the of Capasse I'd Thank session. XX:XX reached question-and-answer the Ladies sir. for we And to like gentlemen, turn end closing remarks. and back the Tom Over

Tom Capasse

through your a recession call. hope in growth again business a continue to and another acquisitions we, growth the earnings to second year Thank next I improve COVID after you. core XX:XX to and and appreciate look organic in And Thank record our and time we accretive and our you, year, forward everybody.

Operator

conference. gentlemen, you. Thank today's concludes and XX:XX this Ladies

You at participation. may lines time. your Thank disconnect this for you your

Ready Capital (RC) 25 Feb 222021 Q4 Earnings call transcript