Keefe Bruyette has lowered its price recommendation on Ready Capital Corporation (NYSE:RC) to $1.40 from $1.60, while maintaining an Underperform rating on the shares.

The adjustment was announced on May 12, reflecting the financial firm's updated outlook on the multi-strategy real estate finance company.

>>> BTS Launches Global ARIRANG Tour With 23-Song Setlist

Ready Capital focuses on originating, acquiring, financing, and servicing lower-to-middle-market investor and owner-occupied commercial real estate loans.

The company provided updates during its Q1 2026 earnings call regarding ongoing financial adjustments.

Balance Sheet Repositioning Strategy

Chairman, CEO, and Chief Investment Officer Thomas Capasse stated that the company continued to advance its balance sheet repositioning strategy.

This initiative initially commenced during the fourth quarter of 2025.

Capasse noted that the firm generated $1.4 billion in cash through loan sales and liquidations so far this year.

>>> John Travolta Debuts Director-Inspired Style at Cannes Film Festival

The proceeds reduced warehouse debt by more than $1.1 billion and retired $184 million in corporate debt.

Management expects to generate an additional $400 million in liquidity by the end of the year.

This capital will come from the sale and runoff of $2 billion to $2.5 billion in CRE loans and REO assets.

Capasse indicated that current projections show these actions, alongside existing liquidity, will sufficiently address the remaining 2026 debt maturities.

>>> The Rise of High-Leverage and Single-Stock ETFs: Risks and Rewards

The funds are also slated to support future cash flow requirements.

First Quarter Financial Results

CFO and Secretary Andrew Ahlborn reported a GAAP loss from continuing operations of $1.25 per common share during the first quarter.

Distributable earnings reflected a loss of $1 per common share.

Ahlborn added that the distributable earnings loss stood at $0.33 per share after excluding realized losses related to asset sales.

The updated price target and rating reflect Keefe Bruyette's assessment of Ready Capital's ongoing financial adjustments and market conditions.

>>> Boston Pops Launches Two-Night Tribute to Composer John Williams

The company continues to execute its strategy to strengthen its balance sheet and manage debt maturities.