Group 1 - Ladder Capital (NYSE: LADR) exceeded Wall Street's consensus EPS estimates for the third fiscal quarter, driven by strong loan originations and growth in its commercial loan portfolio [1] - The company experienced sequential growth in the size of its portfolio [1]

Group 1 - Ladder Capital (NYSE: LADR) exceeded Wall Street's consensus EPS estimates for the third fiscal quarter, driven by strong loan originations and growth in its commercial loan portfolio [1] - The company experienced sequential growth in the size of its portfolio [1]

Company Overview - Ladder Capital Corp (LADR) is a Commercial Real Estate Real Estate Investment Trust (CRE REIT) that has been operating in public markets since 2014 [1] - The company is recognized as one of the better-performing CRE REITs, focusing on the middle market niche [1] Investment Strategy - Binary Tree Analytics (BTA) aims to provide transparency and analytics regarding capital markets instruments and trades, with a focus on Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] - BTA's objective is to deliver high annualized returns while maintaining a low volatility profile [1] Experience and Background - The investment team has over 20 years of experience in the industry, with a background in finance from a top university [1]

Company Overview - Ladder Capital Corp (LADR) is a Commercial Real Estate Real Estate Investment Trust (CRE REIT) that has been operating in public markets since 2014 [1] - The company is recognized as one of the better-performing CRE REITs, focusing on the middle market niche [1] Investment Strategy - Binary Tree Analytics (BTA) aims to provide transparency and analytics regarding capital markets instruments and trades, with a focus on Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] - BTA seeks to deliver high annualized returns while maintaining a low volatility profile [1] Experience and Background - The investment team has over 20 years of experience in the industry, with a background in finance from a top university [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company generated distributable earnings of $32.1 million or $0.25 per share, achieving a return on equity of 8.3% with adjusted leverage of 1.7x [3][10] - The loan portfolio grew by approximately $354 million to $1.9 billion, representing 40% of total assets [4][15] - The securities portfolio totaled $1.9 billion, also representing 40% of total assets, with a weighted average yield of 5.7% [16] Business Line Data and Key Metrics Changes - Loan origination activity accelerated with $511 million of new loans across 17 transactions, marking the highest quarterly origination volume in over three years [3][4] - The real estate portfolio generated $15.1 million in net operating income during the third quarter, primarily consisting of net lease properties with long-term leases [6][16] - The company closed its inaugural $500 million investment-grade bond offering at a rate of 5.5%, which was the tightest new issuance spread in its history [7][10] Market Data and Key Metrics Changes - The company reduced office loan exposure to $652 million, or 14% of total assets, following the full payoff of its third-largest office loan [4][15] - Approximately 50% of the remaining office loan portfolio consists of two well-performing loans secured by prime properties in Miami [4] Company Strategy and Development Direction - The company aims to capitalize on investment opportunities while maintaining prudent credit risk management, expecting fourth-quarter loan originations to exceed third-quarter production [8][20] - The management plans to position the company alongside high-quality peers, including equity REITs, rather than solely within the commercial mortgage REIT space [8][19] - The focus will be on organic growth of the loan portfolio, with expectations of adding $1 billion to $2 billion of assets net on the balance sheet [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit performance and the potential for continued earnings growth [3][8] - The company anticipates favorable market conditions as it heads into 2026, with expectations of a steeper yield curve and more regular contributions to securitizations [20][21] - The management highlighted the importance of maintaining or improving investment-grade ratings to optimize capital management [18][19] Other Important Information - The company maintains $879 million in liquidity, including $49 million in cash and $830 million of undrawn capacity on its unsecured revolver [7][11] - The undepreciated book value per share was $13.71, net of a $0.41 per share CFO reserve [12] - The company declared a $0.23 per share dividend, with a current dividend yield of approximately 8.5% [13][14] Q&A Session Summary Question: Are there any changes in loan origination since obtaining the investment-grade rating? - Management noted a focus on slightly larger transactions and improved stability in financing, leading to more profitable lending opportunities [24] Question: Were there any construction loans or large CapEx projects in the recent origination? - Management clarified that they generally do not write construction loans and that the portfolio remains focused on industrial and multifamily assets [27][28] Question: What is the outlook for growth in the loan portfolio? - Management expects the loan portfolio to grow by approximately $1 billion, driven by a strong origination pipeline and favorable market conditions [34][35] Question: Is improving ROE part of the strategy for the next one to two years? - Management confirmed that the plan includes writing more loans and optimizing the cost of funds, which should positively impact ROE [38] Question: Will the company consider launching a securities fund? - Management indicated that while they have explored this option in the past, their current focus remains on the commercial mortgage business [58][59] Question: How is the New York office equity investment performing? - Management expressed satisfaction with the investment, noting significant leasing progress and plans for potential future involvement in the debt side of the project [61][63]

Financial Data and Key Metrics Changes - The company generated distributable earnings of $32.1 million or $0.25 per share, achieving a return on equity of 8.3% with adjusted leverage of 1.7 times [3][10] - The loan portfolio grew by approximately $354 million to $1.9 billion, representing 40% of total assets [4][15] - The securities portfolio totaled $1.9 billion, also representing 40% of total assets, with a weighted average yield of 5.7% [16] Business Line Data and Key Metrics Changes - Loan origination activity accelerated with $511 million of new loans across 17 transactions, marking the highest quarterly origination volume in over three years [3][4] - The real estate portfolio generated $15.1 million in net operating income during the third quarter, primarily consisting of net lease properties with long-term leases [6][16] - The company closed its inaugural $500 million investment-grade bond offering at a rate of 5.5%, which was the tightest new issuance spread in its history [7][10] Market Data and Key Metrics Changes - The company reduced office loan exposure to $652 million, or 14% of total assets, following the full payoff of its third-largest office loan [4][15] - Approximately 50% of the remaining office loan portfolio consists of two well-performing loans secured by prime properties in Miami [4] Company Strategy and Development Direction - The company aims to capitalize on investment opportunities while maintaining prudent credit risk management, expecting fourth-quarter loan originations to exceed third-quarter production [8][20] - The management plans to focus on organic growth of the loan portfolio, with expectations to increase the loan portfolio to around $3.4 billion [34][41] - The company is positioning itself alongside high-quality peers, including equity REITs, rather than solely within the commercial mortgage REIT space [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the company's investment-grade balance sheet and disciplined use of unsecured debt, which positions it well for future growth [8][11] - The company anticipates that the yield curve will steepen next year, potentially leading to more regular contributions to securitizations [20] - Management noted that the current market conditions favor the company's business model as it heads into 2026 [21] Other Important Information - The company maintains $879 million in liquidity, including $49 million in cash and $830 million of undrawn capacity on its unsecured revolver [7][11] - The company repurchased $1.9 million of common stock in the third quarter, with a total of $9.3 million repurchased year-to-date [12][13] Q&A Session Summary Question: Are there any changes in origination strategy post investment-grade rating? - Management indicated a focus on slightly larger transactions and better quality assets, with no wholesale changes in strategy [24] Question: Any construction loans or large CapEx projects in the recent origination? - Management clarified that there were no construction loans in the recent portfolio, focusing instead on industrial and multifamily assets [27] Question: What is the growth outlook for the $1.9 billion loan portfolio? - Management expects the loan portfolio to grow by approximately $1 billion, with a strong origination quarter leading to increased activity [34] Question: Is improving ROE part of the strategy for the next one to two years? - Management confirmed that the plan includes writing more loans and optimizing the capital structure to improve ROE [38] Question: Will the company consider launching a securities fund? - Management acknowledged past considerations but emphasized a focus on the commercial mortgage business over residential [60] Question: How is the New York office equity investment performing? - Management reported positive developments in the investment, with the building now over 90% leased [63][66]

Financial Data and Key Metrics Changes - Ladder generated distributable earnings of $32.1 million or $0.25 per share, achieving a return on equity of 8.3% with adjusted leverage of 1.7 times [3][10] - The loan portfolio grew by approximately $354 million to $1.9 billion, representing 40% of total assets [4][14] - The company maintained $879 million in liquidity, including $49 million in cash and $830 million of undrawn capacity on its unsecured revolver [8][11] Business Line Data and Key Metrics Changes - Loan origination activity accelerated with $511 million of new loans across 17 transactions, marking the highest quarterly origination volume in over three years [3][4] - The securities portfolio totaled $1.9 billion, with a weighted average yield of 5.7%, of which 99% was investment-grade and 96% was AAA-rated [15] - The real estate portfolio generated $15.1 million in net operating income during the third quarter, primarily consisting of net lease properties with long-term leases [5][15] Market Data and Key Metrics Changes - The company successfully closed its inaugural $500 million investment-grade bond offering at a rate of 5.5%, representing the tightest new issuance spread in Ladder's history [6][10] - As of quarter end, 75% of Ladder's debt consisted of unsecured corporate bonds, with a weighted average remaining term of four years [10][11] Company Strategy and Development Direction - Ladder aims to capitalize on investment opportunities while maintaining prudent credit risk management, expecting fourth quarter loan originations to exceed third quarter production [8][9] - The company plans to position itself alongside high-quality peers, including equity REITs, rather than solely within the commercial mortgage REIT space [8][9] - The focus will be on organic growth of the loan portfolio, with expectations of adding $1 billion to $2 billion of assets net on the balance sheet [32][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit performance and the quality of assets being originated, indicating a favorable lending environment [40] - The company anticipates that the yield curve will steepen next year, which could lead to more regular contributions to securitizations [19] - Management noted that the stock price has been affected by broader market concerns around private credit, but they believe the dividend remains stable and the asset base continues to improve [13][19] Other Important Information - Ladder's undepreciated book value per share was $13.71, net of a $0.41 per share CFO reserve [12] - The company repurchased $1.9 million of common stock in the third quarter, with $91.5 million remaining outstanding on its stock repurchase program [12] Q&A Session Summary Question: Are there any changes in origination strategy post investment-grade rating? - Management indicated they are looking at slightly larger transactions and noted improved stability in financing, leading to more profitable outcomes [22][23] Question: Is there growth expected in the $1.9 billion loan portfolio? - Management expects the loan portfolio to grow by approximately $1 billion, with a strong origination quarter leading to increased borrower interest [30][32] Question: Will improving ROE be part of the strategy in the next one to two years? - Management confirmed that the plan includes writing more loans and optimizing the capital structure to improve ROE [35][36] Question: Are there plans to launch a securities fund? - Management acknowledged past considerations for launching a securities fund but emphasized a focus on the commercial mortgage business over residential [57][59] Question: How is the New York office equity investment performing? - Management reported positive developments in the investment, with the building now over 90% leased and plans for further similar investments [61][63]

Ladder Capital (NYSE:LADR) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Speaker0Good morning and welcome to Ladder Capital Corp. Earnings Call for the 2025. As a reminder, today's call is being recorded. This morning, Ladder released its financial results for the quarter ended 09/30/2025. Before the call begins, I would like to call your attention to the customary Safe Harbor disclosure in our earnings release regarding forward looking statements.Today's call may include forward looking statements and ...

Financial Performance - Distributable Earnings for Q3 2025 were $32.1 million, resulting in a Distributable EPS of $0.25 and an after-tax Distributable ROAE of 8.3%[10] - The company declared a Q3 2025 cash dividend of $0.23 per LADR share, representing an annual dividend yield of 8.4%[10] - Undepreciated book value per share was $13.71, net of a $0.41 per share CECL allowance[10] Balance Sheet & Capital Structure - Total liquidity stood at $879 million, including $830 million of undrawn capacity on the unsecured corporate revolver[8, 10] - The company's capitalization is comprised of 92% non-mark-to-market financing & book equity, with 88% of debt being non-mark-to-market[10, 36] - Unsecured debt accounts for 75% of total financing[8, 10, 36] - The adjusted leverage ratio is 1.7x[8, 10, 36] - The company has $3.9 billion of unencumbered assets, with 88% comprised of cash, first mortgage loans, and investment grade securities[8, 10, 38] Investment Portfolio - Investment assets & unrestricted cash totaled $4.9 billion, including $1.9 billion in first mortgage loans (40%), $960 million in CRE equity (19%), and $1.9 billion in securities (40%)[7, 10] - New loan originations in Q3 2025 reached $511 million, the largest quarterly origination volume in over three years[7, 10] - The company closed an inaugural investment grade corporate bond issuance of $500 million senior unsecured notes due 2030 at a 5.50% coupon[8, 10]