Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Ready Capital Corporation Third Quarter 2022 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.

I would now like to turn the conference over to your host, Andrew Ahlborn, Chief Financial Officer. Please go ahead, sir.

Andrew Ahlborn

good those and the you operator, call. you, morning of to on Thank

could comments forward-looking are will meaning of materially could today Some our to results be risks uncertainties federal differ laws. cause you operating actual numerous discussion exercise filings for SEC what of and should you securities statements Such to and of Therefore, our risks in interpreting future relying statements more to we subject from detailed impact on and financial that the condition. expect. caution them. results the that We the our refer within a

A During or the performance. we discuss a comparable directly website. Investors financial quarter supplemental our with as in be operating be the these our in GAAP These earnings useful be found measure of information, which release GAAP. our to third Ready non-GAAP not call, substitute available believe for can Capital we and company's prepared of our will evaluating the results in measures can isolation XXXX the accordance measures in in most reconciliation should which section measures, is considered the

to Tom also by Credit on Zausmer, today's and call, joined Chief we Officer. Ready are Capital's, myself Adam addition In

to I Tom Chief will it now Capasse. turn over Officer, Executive

Tom Capasse

Thanks, today. Andrew. for you Good call morning, everyone, joining the and thank

Ready first led dive we has recession. the XXXX, quarter historic posture late to the into rate in velocity a since increases defensive Before the the event backdrop, numbers, on a pivot observations macro the of Fed's to few Capital

economic liquidity, earnings diversified in multifamily Ready model believe and credit, in environment. affords value our Capital's we book However, and business a stressed focused strength sector

recourse cash assets, million as $X leverage ReadyCap liquidity, of low had of $X.X price duration Further, only available secured billion within X/XX, in our to million in additional including at assets unencumbered rate, First, an in by capacity. volatility. floating short billion in X.Xx warehouse terms of $XXX and and and X% X:X critically target primarily repo debt subject total is short-term $XXX is is of

mark-to-market of is is debt Additionally, only maturity to of warehouse our lines subject the and average XX% two years. our

with balance Finally, corporate billion the April near-term maturities of XXXX. laddered and due are the $X.X after August in XX% XXXX debt outstanding and modest

Second is credit.

focus US buy positive market lower average housing recession, multifamily, XXX% which to mortgage the will versus to sector benefit niche. ratio rent to calculus lower and XX-year our current a prior doubling of the which X% and on CRE affordable XXX% even historical vacancy rent to our Our rates is in in XX% growth middle from to tilted comprise the support multifamily will rent. This has increased in rates a shock from affordability, mortgage rent The today. portfolio particularly

X.X% for in X.X% of and from In exposure terms loss of business our currently net credit an which credit loan is segment, team forecast portfolio, adequately XX to our equity, are recession, be This as office. modest. would to reserved. equate to diversification. delinquencies notably total of approximately exposure X% largest we X.X%, increase no a small of event only loans segment a and CBD portfolio represents versus In differentiator the group such, peer The the big we have the

average balance. allocation $X.X office X% portfolio is a our only Our with of million

Third is book value.

$X.XX growth September the declines To as accretion. XXXX in a Given X% value. application actually we million per book ReadyCap XX% $XX.XX X.X with the the of CECL, well to XX% view per value since factors, contrasts sector the in This our been evaluating first write-downs Post preservation of two REIT given has stable in as book value of C-REITs We has return. hallmark the end, metric increased liquidity, year-to-date significant approximately ReadyCap's with COVID shares to book value book CBD strength residential since as the repurchased office share share. of that exposure. quarter key XX, and first resulting

yield. Finally, dividend

As quarters stimulus a from decline we've expect be to been communicating of for coming due mortgage banking. XXX core real with by over few These lending point the distressed to declines COVID revenue the in runoff PPP environment the and and estate. normalize quarters, will in in basis earnings moderated the we current to XXX a activity acquisition increase ROE commercial for the

on XX.X% which peer group two in value, last excess the is of and dividend covered yield ReadyCap average. years, has a Over average paid of the book

peer more continuing we As premium, of expect to we levels deliver albeit quarters. to a group capable be pre-COVID to similar look forward, at model our business

normalized Our dividend the Board quarter go-forward fourth is the ensure of Directors distributable dividend by earnings. covered realign in plans to our to

Now volume down was quarter-over-quarter reflecting lending at CRE $XXX industry XX% trends, million.

features more this vintage yield premium a XXXX. with underwriting conservative However, to significant a compared

a XX% XX pricing, our SOFR+ spreads of wider despite XX% yields are These Tier terms ROE. on sponsors. even In migrating pivot and credit. volume cash in XXX, the to and points markets basis in a spreads Tier was X strongest to and flow XX% CRE CLO production new levered defensive increased with multifamily of to higher equates which in X

Additionally, stabilized yields while under loan-to-value new to our decreased X%, increased production XX%.

partnerships deals in credit European a in The premium. year. three sourced UK over the million US production yield increased products similar feature basis bridge last across Europe our with the Quarterly closed as $XX executed point a XXX the lending have that via profile loans strategic five

CRE liquidity quarter positions excess strategy levels, stabilize we opportunities to distressed as volumes defense in near harvest lending markets. higher third ROE the secondary for near-term Our

model. a in distressed is post-GFC from banks three balance buyer loans from distressed new billion, and a of we in factor our real acquiring post private top surface $X.X the credit GFC, estate Investment note the XXX-plus small in small balance a recession loans business of funds. We were supply commercial the differentiating

recession. increased quarter, the $X.X of in X% the portfolio outperform X,XXX across A number position In credit billion to to loans. CRE the metrics portfolio a

and Current XX-day XX% portfolio of low at cash in remain the with X.X%. concentrated industrial in of multifamily office. sectors, risk LTVs Weighted XX%, versus lower delinquencies average mixed-use flow

production from the to our increased averaged XX% Pricing is segments. small portfolio earnings XX% Lastly, XXX million, our segment, emerging in loan an split prime our loan Lending $XXX basis rate. XX% perspective, In large plus X(a) Small of and floating points. between Business

cyclical up gains, is in of growth This On expect side, billion quarter from volume but X(a) volume in continued due million of volume as $XXX at we our decline end. loan a our share in projecting small $XX the FY our to X/XX, money pipeline market segment. especially evident in are

drive women-owned in segment, in are loan discussed prior reaching the administration iBusiness Biden SBA As small to quarters, efficiencies have the and the acts micro in which volume as major leveraged policy X(a) our minority business Fintech lending businesses. a sectors, in rebranded of and particularly we for terms small

longer Beyond creating lending another application technology a we scale production, marketing with within value. ecosystem to lending-as-a-service avenue potential creating profit the technologies spin-off the a as own these provides and began for center. our our term separate Teeding shareholder

Our servicing-retained to continues in GMFS rising refinancing strategy. million residential lower declines of mortgage impacted and to GMFS, XX%, remains its volume of profitable points Despite averaging $XXX volume originations be banking business, due XX for with rates compressed quarter. basis by margins the

and evaluate in discussed to initiatives, which strategic continue transactions. we As prior pursue may include quarters,

over to turn Andrew. With that, it I'll

Andrew Ahlborn

average distributable earnings return stockholders' equates million GAAP per to Quarterly equity. $XX.X on were and share Tom. of $X.XX, and a $X.XX common respectively. XX.X% earnings earnings Thanks Distributable

quarterly increased increased to interest million. net million, the X% Absent $XX of XX% income to effects $XXX PPP, with interest income

As rate XX% of floating spread end, average the of is XXX quarter of portfolio an with basis points.

EPS. XX with short-term profitability a an our an basis to each in point basis point warehouse rise to book The expense existing loan both on climb in quarter interest seven average increase continued rates, debt the annual equating was increase financing to increase spreads. in in increases rates throughout movement in The due and $X.XX

loan deterioration in the due for provision totaled loan The million, modeling reserves the performing $X.X our used majority book. with of on a macro losses to increase of assumptions

Included Realized in reduction in is quarter-over-quarter $X.X change Freddie $XX.X two both were averaged to reduction X.X% $X.X as production which in fourth due which the in point from assets, an the up quarter. SBL quarter. were on SBA premiums, as liquidate to million. sale basis million to in the gains $XX.X well related specific a gain XXX non-performing The reserves of Mac $XXX,XXX expect million million we to production office X(a)

residential continued contribution mark-to-market mortgage the declined note XX% PPP, to ventures. totaled Net assets the from retention of small unconsolidated reductions banking joint contribution customers activities $X from to and million, include business of items $X million. employee held processing $XX.X credits income fees our which related Other for within of of million

completed our retained ratios. senior million a and continue levels, the prudent On CRE increasing prioritize deal a $XXX note CLO, the the to and in an balance to low X.XXX% debt expected quarter In limiting managing subsequent yield to end mark-to-market we with unsecured leverage we closed quarter, sheet, million $XXX XXth liquidity teens.

X.X and X.X totaled XX% and and of Total debt. times, ratios equaled recourse times respectively, mark-to-market leverage total debt

addition an flowing the the normal Mosaic merger. related business sheet, to balance we to completed to also update In through items combination accounting the

related either reduction offset provided the by to valuation. were reduction expected included asset. primarily clarity that liquidated of portfolio, million in These changes a $XX has of assets the value were Fee asset a value an information where the in corresponding new or updates contingent the right on equity

of portfolio considerable the per the reduction, XX% we We markets The have broader and portfolio underperforming we made Despite the the half reduced on through make the notwithstanding, levels these reinvestment Since continue business. first progress the expect those to of liquidation to challenging equate at capital to upon earnings $X.XX current we XXXX. as work Mosaic efforts merger, estimate share have progress XX%. that assets. of to by of remains of good

With up line that, for questions. will the we open

Operator

conducting Stephen be Please session. question a go At ahead. with this we line from you. Laws [Operator time, have Thank the first of question-and-answer We will Raymond a Instructions] James.

Stephen Laws

morning. Yes. Good Hi.

purchase, guess of think a the I media. on a resi rates there we I maybe your where outlook are, attention you volumes to of saw a process? is But XX% that the trough we now, where side, in for in do with First, how and level shift, kind believe lot get

Tom Capasse

have Yes, obviously, summer look of topic question. under And equity the universe money an if borrowers rate in the you it's sorry, of at that upper conversation. bottom total refinanceable -- -- big the But last the XXs that mortgages the is Today, north mortgage in -- a that universe, X%. year. it for line it's is a was are the the good refinance,

up if it XX%. get to number rates -- around X% that XXX, wouldn't even And would rallied to

reversal be bottom kind X% quite there's probably at a XX-year, like some level. unless to this in of time that the the below trial, but major So of kind we're going line more the is in desert we're for to

Stephen Laws

opportunity and of is Along great remaining? realigning the we lines returns. about much great generated how income PPP the that, When think dividend,

forward As setting or and your that investment own about look we common in stack capital you this versus available how realigning repurchasing that think something about new in market, do returns dividend, stock you think ratio? in payout new your something

Tom Capasse

Andrew, do to want touch on that? you

Andrew Ahlborn

Yes.

flow of is expectation quarter the The statement. remaining end, of that, as quarter. off that the So was income through fourth rolls the in income $XX of There million to majority

as targeted our historical certainly think, right the Board, I about in XX%. go-forward setting think dividend, the with around we return it of and line

you so, And the dividend return in for it at right level, when those was company, the goals. line look with pre-COVID

we'll to establishing to consistency. with to So, starts triangulate a certainly is see dividend level I that around covered the pre-COVID, what think that thought similar with is some levels that,

Stephen Laws

deployment the And that. no think about quite But trade-off, investment you've late how do framing you then active I I repurchases, for share Thanks I returns quarter-to-date guess, on than think, returns more authorization, there been on increased guess, quarter. last the helpful. active, or new the returns. versus That's

Tom Capasse

Yes.

program only of levels not As it's million. between increase fourth the the repurchases, certainly on produced can the return were you a entirety part company. that think the know, was thought in Board the of quarter those the did money And When The difference in the liquidity today. built the quarter. repurchase trading liquidity of sense. and the repurchase where shares given early made we returns by we the share shares And to at about where the obviously, $XX company, the new invest triangulating also of repurchase, levels in lot but the the

beginning We're half the we existed investment see with maintaining opportunities is to the couple I where year. the months important. part last think, higher levels than those significant significantly as ROEs, look in forward, or of of opportunities at liquidity starting

So, between three it items. will those be a balance

Stephen Laws

Appreciate comments morning. Great. this the

Operator

Thank you.

We from DeLaney have next line Please Steven question Securities. with the go of JMP ahead.

Steven DeLaney

able times. not challenging in in and you seeing CLO Tom very Congrats to mean, see morning, a it's were Good that these get FL-XX Andrew. Excited solid world. I the much on to quarter off.

mortgage XXX per basis loans teens That's said spread the you on that's source. let's my on curious, just I say low table. those average data and commercial points. Well, was Your was that. alert

it loans comment this of should so originations, would you do pipeline FLXX the about basis is, is, question spread, be we has and appears far at you Thanks. that? pipeline think points XXX, Your led I look your XXX-ish basis guess, in in be plus average my XXX what market, re-pricing probably you be can with possible FLXX points. low-teens? to could to some executed from new – learned guess, with of I possibly of be your How

Tom Capasse

one middle think market with to on of Waterfall, – external hallmarks of pricing loan we're the Well, in the we're the capital very markets. of transitional But lower Cap – Ready bridge the market. I'll manager attuned to defer maybe I the is transitional very support – the in to the Adam comment

our they Adam, we were CLOs. We've spread XXX. – XXX. the at pre-rate pre-COVID they're I'm it more Those in was the yield So based were over what XXX re-priced cycle, printing the sorry, the XXX – which Today, for about execute daily for around AAA probably been industry. we at CRE, tranches to retained the on can

zone mind, quarter that's re-priced probably spread area. we probably the XX% for impact were the to first an were production on more the before credit product, products, in So we've side for bridge the opposed the IRR where spreads – with to in in that on in in we that the the our securitized achieve as XX-plus

So it's points core widened product, XXX XXX on our ROE. basis to terms in of

Steven DeLaney

that its just that quick of you. about product one there And FLXX up follow-up, XX% your given multifamily. there mix Freddie Q-series any question. or last in crank That's reactivate encouraging. shelf, is reading collateral my for program, to and one. trying We've was Thank fit That's you? been

Tom Capasse

Adam, you that? take want to

Adam Zausmer

what's certainly We're the all across contributing folks Sure. multifamily we to originations also contribute our Freddie of product talking about products acquisition shelf new and regarding that strategy. through interesting to then And of shelf. the Yeah. our that our some is can Q

nice So alternative we avenues CLO that, think that a both but this could to in the exploring certainly be market. we're space,

Steven DeLaney

Thank Great. comments. you all for your

Tom Capasse

Steven. Thank,

Operator

you. Thank

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

Christopher Nolan

quarter? the the Andrew, guys. Hey, was in what PPP revenues

Andrew Ahlborn

On a net basis, it was $XX million.

Christopher Nolan

understand, the is on it? a of going Is Right. assessment be comments, lower And it of Tom's the also I you're ROE that targeting to a dividend resi. – absence realignment, given fair PPP and

Tom Capasse

I targets COVID would that, XX% PPP, is the stimulus to magnitude of right the lower say line is are certainly so pre with return the where were that in than we range. all due just where historical in but target programs, the running

Christopher Nolan

sheet fourth quarter we to should then so on to cash for And rise? Okay. and forth, balance expect continue

Andrew Ahlborn

what is here of advantage in to position of, numerous the Yes. believe secondary a we to levels in priorities take increase we're to the be, sure opportunities markets. make Certainly, one liquidity will

of little is time. in of bit or liquidity any general, is, a So given greater in the X% flux. those is opportunities But expectation at equity stockholders' the timing at

Christopher Nolan

Okay. Final question.

comments the -- mark-to-market was in down of to sheet we think a expect with What in borrowings balance borrowings. reduction I area that? that should to the with go respect the

Andrew Ahlborn

majority The warehouse debt. some are, credit to the are we or majority as into -- I'd certainly, the CLO, that Well, only. mark-to-market on by limited. -- of CRE, move sheet, certainly next help say, of balances balance non-marked either into lines warehouse securitized our say, the liabilities all transfer our Yes. our mark

drive activities will the that so, it And those reduction. really be

Christopher Nolan

Okay. Thank you.

Operator

you. Thank

go Sandler. Piper next the question Crispin ahead. of have line Please, the from Love We with

Crispin Love

Thanks. Tom Andrew. Good and morning,

have as the I the on follow-up realigning a So, actually well. dividend

curious could if So give more little just there. just you a detail

from Looking and the quarter, interest forward expect just that covering core in are earnings tailwinds or, does you $X.XX in fourth through I loan flowing mean guess, or here, potential income? you some in acquisitions decrease level, increases that confident the considering rate dividend a

Andrew Ahlborn

you level book most in $XX.XX that XX% around a if at setting a that on right repurchase dividend target. of mean, the target, value dividend is XX% certainly post I look scenario. around a $X.XX applies $XX.XX likely today target, that a yield Yes. and share excess

that is dividend setting going forward? the the expectation factor XX% return the of So targeted is driving

Crispin Love

or the in issues has affordability pull Thanks, then, meaningfully, you sense. home are currently? to Okay. What given continue popular or a broadly. back to Andrew. costs for demand debt more asset do seeing ownership, bit And demand the home just borrowers? rates market several the makes that expect just That class multifamily the But single-family market given been cap over here could a compared little you in quarters. last for It's

Tom Capasse

Well, widening we're reduction the in seeing do make the the one just volume, it. then multifamily in comment broader at XX% space observation Adam is occur on transaction spreads, to to definitive I'll bit zone. and a which that But X% price in with a is what leading reductions trades

go negative that lower down. going with and Now, the has -- cap that than and It that that on to is and points. thing have urban larger prices a of reprice. balance leverage, a i.e., to have much pain lot will But lot cost are the has key to locations do price rent the is debt of higher to be the so-called rates the -- the of here

small middle desirable that Our -- is and market post -- lower also is focus income, pandemic. better of just benefits the more more workforce, our and given balance affordable, suburban locations

of gap time they've adding in the affordability of in has months, and which is at manager gapped in housing, three residential been terms took, out increase out i.e., then The the that four in it we XX biggest affordability. in the months track external -- those years. markets the So brutalize by

think quoted XXX%. buy we it's was as ratio. to the rent the but going it's sector that our running make at more on at long-winded cap in versus rates that, mortgage the a your anyway if impact recession, muted there's the Anyway, So and way versus a the question, to and rent lot therefore, space. we multifamily returns answer will decision broader about XXX%, it to rent Today, with be

Crispin Love

helpful. All Tom. Thanks

Just from one question last me.

seeing opportunities assets is in how selling assets it the non-core or other opportunities or loan there you're acquisitions. loan acquisitions, on banks CRE that Just are whether

how -- yet, at looking or look picked up Just opportunity loan it? recession investment in a or set acquisitions in we the moving curious your towards as doesn't you've detail, looking like just at but activity you're

Tom Capasse

Yeah. our to that a It's just the a end was next is we're but what definitely two days big question committee assets posted -- seeing we're some at extent the But this year. for definitely quarter of going the into into on of ago. investment potential funnels distressed for first few year,

One, are in particular, banks capital have, where the CRE we large on not of regulators to starting XXX, -- they a as press X surprisingly, is very recession. exceeds that to the do typically as that them Tier ratio entering

So with creative transfers and banks actual they're we're more financing. or approach seller sales credit seeing getting us portfolio for risk

few we a those. on of bid So actually

channel will And increase. the so that that's bank

to But it. to assets those them the going interesting XXX to over at in the credit to start-ups loan and buy lot the they're there's We make They other aren't were CLOs, of in be a CRE opportunity one in trying a in is and track funds markets way going a the market. do boom bridge capital private discount. transitional funds,

desk that ample will half the of think trading So year. attracting the next we things investment two provide going those into capacity are first our

Crispin Love

my Thank you, I questions. appreciate taking Tom.

Tom Capasse

You bet.

Andrew Ahlborn

Thanks Crispin.

Operator

you. Thank

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

ahead. go Just

Jade Rahmani

of help don't calls, to capital some credit be in category out? mortgage help pretty values, financing seeing with Are Follow-up transitional opportunities mortgage that seems of with and lines, comment or Thanks REITs trading the lending. I at There's space? in REIT price-to-book to that know, distress off number a low that beginning needing, about very much. could get loans be the on commercial rescue to play last you M&A margin

Tom Capasse

a high potholes on a we office in more like, – that's good of a on It's like market Jade, But -- other -- in Yeah, lending train there's wreck interesting. a seeing the moving hard and time, This single-family particular question. slow aren't money example, for liquidity it's homes. credit crunch.

few time, credit I seen the mREIT lot the and all bleed -- capitulation of it's a REIT but think word, said, -- but we've of learned there's But this that of we're sector I know lesson, is a there. them don't yes, being seeing for really M&A its a if the There's you Ready sector, strategically, first to right yes, in preliminary capital secondarily, raising. conversations as around But know, next of Cap. M&A definitely in then I first year. look increase like terms say, we transactions there's accretive of for would half Mosaic. shareholders and the And be, And things at going their more material

Jade Rahmani

loan And already would space of the that you or foothold venture has? Ready outside small Capital the

Tom Capasse

I turtle think we're hair. the of the than more

there's little we commercial the [ph], fintech middle stick-- the ahead we're to of -- space and consider, been and of we'll that our market to on bit curve a which stick obviously, automatic example, lending might revitalization in doing SBA on. go into we the So for Europe, so whole side application a of whole bridge upstream small the we've

than our answer we're So I lending think your business. to likely not real core commercial would stick more to estate question,

Jade Rahmani

a but lot media also especially lack price new declines, high of limiting of be of for the the home the inventory do on that I a necessarily -- volume about there's factor home markets, mortgage a on home most velocity know side, in home big and a not side could What markets reports on prices? rate, expect you high-growth the existing X.X% there's transactions. the had

of that for you what framework, prices? expect in home would kind So

Tom Capasse

time Jade, lot the spent this. has external manager a of in

XX% the prices this like you the distressed Case-Shiller, look residential. typically affordability the kind the from that back of fact what is the and gone, think where to affordability out, would is demand because but with to tail. inventory is on of at no and also post-GFC in it and historically so knock if non-QM line system the what of that the own normally mortgage hit finance we a to out our because And -- of -- you gapping home sales. relation this down and supply XX% prices you have is buy We I models, -- going in bottom risk lot at XXs, the rules, head, distressed peak drives tail really, there other -- And low subprime the increased pointed is --

finally, locked roughly And of XX% US LTV XX the have on into below over are less fixed rate of the – all homeowners a them the – rate. half and an than mortgage three points below current

a thereafter. way XXXX, our was three in years it of X% long down X% up saying X% is X% prices winded then for projection for the So home to and to

material sorry, XX%. given markets benefited – those Idaho, a of the pandemic boom that boom that of default, being Boise, one declines impact mortgage have the the ones So upwards of pandemic factors, credit on migration caveat like all won't experience could that baby from price those

of lot there a news. SKU be So it's can –

but look more to markets, that's at broader local forecast. our got You macro

Jade Rahmani

and volumes, terms maybe you Laws CRE in Thank quarter, expecting – pretty fourth question, what perhaps would asked but first you overall, a very you quarter lending expect much. or or And light Stephen of the think pickup in volumes? the overall then second are I

Tom Capasse

your do Adam, want on there? you views comment Yeah, to

Adam Zausmer

Yeah. Sure.

opportunities. on credit We're to the into being of capital deploying less So discipline and this we're focus higher-yielding maintaining advantage certainly volatile more only types. taking environment certainly environment asset selective in and

QX, we million under close QX. what estate just of is to million in executed which commercial $XXX expect roughly real $XXX to We in

Jade Rahmani

much. very you Thank

Tom Capasse

Sure. Thanks Jade.

Operator

of you. question BTIG. Thank ahead. The from line final Please Eric Hagen go comes from the

Eric Hagen

question. thanks. on whether the stability any you're Hey meaningful you warehouse And have morning lines Good the have on way? in any maybe for for on anticipating of thanks CLOs, you taking can you for sheet? loans a just follow-ups. Maybe my funding and costs On couple balance comment changing conditions that

what in how like then is to target rate much. operating and in the with are target and you you're do in domestically yourselves of look a there? LTV And Europe? assets relative very see something capital that you you'd eventually And what terms think you much investment like cap that And such? snapshot Europe the of making Thank borrower targeted in quality can

Tom Capasse

the Adam, question. maybe and sorry, product your kind on touch on UK versus the then Yes, credit our in touch the profile the the bridge Love here? maybe funding -- -- Adam, we're of Andrew, maybe of I'm originating

Andrew Ahlborn

Yes.

So, see points. warehouse today. In said did roughly as in average $X capacity billion lines Tom roughly quarter, the still spreads basis increase you remarks, available in third XX his of

I what think rates as and finding in levels is basis is are XX from lines we're line XX with fairly are to rolling, anywhere advance moving previous staying points. pricing

think cost in roll. of certainly, and we think slight increase today, our as to lines a going you're very But see attractive pipeline. So, where capacities still those returns I loans pricing fund given we're ample

Adam Zausmer

Adam. And then is this hey, --

the jurisdictional see of partners European with navigate so can deals to on certainly located the shortage expertise material on similar housing where we So question, we're and when our definitely in a gateway in there's local on cities we US. to focusing in easier rely really interested in Dublin, is opportunities geographic areas Europe, the the framework like legal in what

there US. So also focused are And that types multi-family hedge with against asset property United We're affordable opportunistically tends we sector, be to good shortage self-storage and as we're the less volatile similar leases, other to classes housing, as assets. a again, are on in focus similarly said, at there looking quality, such duration on say, that industrial of States. certainly and focused we're on specifically which shorter where have serve lending inflation, how a in I'd the really

Eric Hagen

That's very it. you Thank guys helpful. much. Got

Adam Zausmer

Thanks.

Operator

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

Tom Capasse

look We call to thank next earnings everybody forward quarter for year. their the continued support and fourth

Operator

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

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

Ready Capital (RC) 8 Nov 222022 Q3 Earnings call transcript