During the video interview with Nareit, Capasse discussed the recent acquisition of Broadmark Realty Capital and called the acquisition “transformative” for the company. Watch the full video interview.
Summary of Nareit REITweek: 2023 Investor Conference video with Thomas Capasse
“The financial benefits are a one-third increase in our capital base,” Capasse 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).”
“Epic dislocation” for housing supply and demand
Capasse also said there’s been an “epic dislocation” in terms of housing supply and demand following the GFC when asked about affordable and middle-income residential housing.
“We’ve purposely directed our direct lending strategy, which began in 2012, at that sector,” the chairman said. “What we like about that market are the fundamentals.”
Future investments for Ready Capital
Thomas Capasse also stated 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.