1315_Nareit Testimonials_Capasse_2023-06-13_v2
06/16/2023 | by Diane Rusignola

Thomas Capasse, chairman & CEO of Ready Capital Corporation (NYSE: RC), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Capasse said Ready Capital’s recent acquisition of Broadmark Realty Capital was “transformative” for the REIT.

“The financial benefits are a one-third increase in our capital base,” he said. “And given that Broadmark is unlevered, a 1.5 times reduction in our leverage, as well as a quarter billion dollars of liquidity in a point in the credit cycle where we’ve seen opportunities equal to where we were just after the GFC (Great Financial Crisis).”

Turning toward affordable and middle-income housing, Capasse said there’s been an “epic dislocation” in terms of housing supply and demand following the GFC.

“We’ve purposely directed our direct lending strategy, which began in 2012, at that sector,” he said. “What we like about that market are the fundamentals.”

Capasse added that Ready Capital expects to invest in depressed portfolios that might emerge as a result of recent market turbulence, which is one of the main differentiating factors between the company and other mREITs that only do direct bridge lending.