Ready Capital Corporation (RCC) is a publicly-traded mortgage real estate investment trust (REIT) that focuses on originating, acquiring, financing, and managing small balance commercial loans. RCC invests primarily in real estate loans secured by first mortgages, and may also invest in mezzanine loans secured by second mortgages.
The 5.75% Series A Cumulative Redeemable Preferred Stock of RCC is a fixed-rate perpetual security that pays a quarterly dividend to investors. As a preferred stock, it has priority over the company's common stock in terms of dividend payments and asset distribution in the event of a liquidation.
RCC's focus on small balance commercial loans sets it apart from other commercial mortgage REITs that tend to concentrate on larger loans. The company aims to provide financing to underserved markets and borrowers who may not be able to obtain financing from traditional sources. RCC's lending platform is supported by proprietary technology and underwriting processes that help it to efficiently underwrite and manage its loan portfolio.
Investing in RCC's preferred stock may be attractive to investors seeking fixed-income securities with a relatively high yield. However, like all investments, RCC's preferred stock carries risks, including interest rate risk, credit risk, and liquidity risk. It is important for investors to conduct their own research and consult with a financial professional before making any investment decisions.
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