Core Insights - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] Company and Industry Summary - The financial researcher highlights a beneficial long position in LADR shares, indicating confidence in the company's future performance [2] - The article aims to provide insights into current events and significant news within the industry, suggesting a proactive approach to identifying investment opportunities [1]

Financial Position - As of December 31, 2024, the company held a portfolio of 53 balance sheet first mortgage loans with an aggregate book value of $1.6 billion and a weighted average loan-to-value ratio of 66.6%[28] - The company owned 151 single tenant net leased properties with an undepreciated book value of $604.9 million, fully leased with an average age of 20 years and a weighted average remaining lease term of 7.6 years[34] - As of December 31, 2024, the estimated fair value of the company's portfolio of CMBS investments totaled $1.1 billion, with 97.6% rated investment grade[38] - The company held $1.1 billion of U.S. Treasury securities classified as cash and cash equivalents on its consolidated balance sheet as of December 31, 2024[42] - The company maintained a $3.8 billion pool of unencumbered assets, primarily consisting of first mortgage loans and unrestricted cash as of December 31, 2024[65] - As of December 31, 2024, the company's mortgage loan receivables held for investment totaled $1.6 billion, with an associated allowance for credit losses of $52.3 million[545] - The allowance for credit losses reflects the company's estimate of current expected credit losses (CECL) on mortgage loan receivables, including unfunded loan commitments, over the life of the loans[545] Investment and Loan Portfolio - The company held a portfolio of 4 mezzanine loans with an aggregate book value of $11.6 million and a weighted average loan-to-value ratio of 72.3%[29] - The company aims to maintain flexibility in its loan portfolio, allowing for contributions to CLOs, selling participation interests, or whole loans[27] - The company executed 16 new term debt agreements during the year ended December 31, 2024, with a carrying amount of $81.9 million, and total mortgage loan financings of $446.4 million[72] - The company has $1.2 billion of committed loan repurchase agreement facilities, with $62.7 million of borrowings outstanding as of December 31, 2024[69] - The company has the option to extend existing facilities, subject to customary conditions, and lenders have discretion over collateral inclusion[70] Revenue and Income - The company recorded a provision for loan loss of $13.9 million and charged off $5.0 million during the twelve months ended December 31, 2024[509] - Distributable earnings for the year ended December 31, 2024, were $153,930,000, a decrease of 8.3% from $167,727,000 in 2023[506] - The company reported a comprehensive income of $116,434 in 2024, compared to $107,657 in 2023, an increase of about 8.2%[565] - Net income attributable to Class A common shareholders increased from $101,125 in 2023 to $108,255 in 2024, representing a growth of about 7.1%[562] - Basic earnings per share rose from $0.81 in 2023 to $0.86 in 2024, an increase of about 6.2%[562] Cash Flow and Liquidity - Cash and cash equivalents increased from $1,015,678 in 2023 to $1,323,481 in 2024, a growth of approximately 30.3%[559] - The total cash, cash equivalents, and restricted cash reported in the consolidated statement of cash flows was $1.35 billion in 2024, compared to $659.60 million in 2022, marking a significant increase of 104.5%[578] - The company had a net increase in cash, cash equivalents, and restricted cash of $270.10 million in 2024, down from $416.34 million in 2023, a decrease of 35.1%[578] - Cash flows from financing activities showed a net outflow of $796.59 million in 2024, compared to a net outflow of $557.77 million in 2023, indicating a 42.9% increase in cash used[578] Regulatory and Compliance - The company is subject to financial covenants, seeking to maintain a debt-to-equity ratio of approximately 3.0:1.0 or below[78] - The company is in compliance with all covenants as of December 31, 2024[83] - Ladder Capital Asset Management LLC is a registered investment adviser under the Investment Advisers Act of 1940, providing advisory services primarily to Ladder-sponsored collateralized loan obligation trusts[89] - The company may face additional regulatory burdens if its investment adviser subsidiary expands its product offerings[533] Employee and Corporate Culture - As of December 31, 2024, Ladder employed 54 full-time employees, with no union representation and a strong employee relations environment[105] - Ladder's corporate culture emphasizes transparency, accountability, and ethical behavior, supported by a flat management structure and open-door policy[107] - The company offers comprehensive healthcare benefits, including mental health services and family leave, to promote employee wellness[112] Accounting and Financial Reporting - The company's internal control over financial reporting was deemed effective as of December 31, 2024, based on the COSO criteria[551] - The consolidated financial statements present fairly the financial position of the company at December 31, 2024, in conformity with U.S. generally accepted accounting principles[539] - The critical audit matter involves the subjective nature of estimating credit losses, which requires significant judgment[546] - The company utilizes distributable earnings as a non-GAAP financial measure to assess operating performance, excluding certain non-cash expenses and unrealized results[497] Market and Economic Factors - The interest rate environment significantly affects the company's net income, with changes in rates impacting both borrowing costs and yields on securities investments[477] - The company's securities investments are subject to fluctuations in estimated fair value primarily due to changes in interest rates[517] - The projected change in net income for a 1.00% decrease in interest rates is a loss of $28,146,000, while a 1.00% increase would result in a gain of $28,576,000[515]

Financial Data and Key Metrics Changes - In Q4 2024, Ladder generated distributable earnings of $33.6 million or $0.27 per share, achieving a return on equity of 8.9% [5][20] - For the full year 2024, distributable earnings totaled $153.9 million, delivering a 9.9% return on equity while maintaining low leverage and stable book value [6][20] - As of December 31, 2024, Ladder had $2.2 billion in liquidity, including $1.3 billion in cash and cash equivalents, representing approximately 27% of total assets [10][22] Business Line Data and Key Metrics Changes - The loan portfolio stood at $1.6 billion with a weighted average yield of 9.3% and minimal future funding commitments of only $35 million [12] - In Q4, Ladder originated six loans totaling $129 million, primarily focusing on multifamily and industrial properties [14] - The real estate portfolio generated $13.2 million in net rental income during Q4 and $56.3 million for the full year 2024 [16] Market Data and Key Metrics Changes - Ladder's loan portfolio paid down significantly, with $1.7 billion in proceeds from loan payoffs across 61 loan positions in 2024, marking the highest annual payoffs in the company's history [13] - The securities portfolio totaled $1.1 billion with a weighted average unlevered yield of 6%, primarily comprised of AAA-rated securities [17][30] Company Strategy and Development Direction - Ladder aims to enhance its capital structure and is focused on becoming an investment-grade company, which is expected to strengthen its market position and lower funding costs [11][26] - The company plans to deploy its substantial liquidity prudently as transaction volumes rebound and commercial real estate markets stabilize [19][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating opportunities in a recovering market while maintaining a disciplined approach to risk and growth [19][43] - The management noted that the current economic environment presents challenges but also opportunities for strategic investments [37][41] Other Important Information - Ladder's adjusted leverage remained modest at 1.4 times, with 77% of its asset base unencumbered [11] - The company repurchased $26 million in principal value of its 2025 bonds in Q4 2024 [25][34] Q&A Session Summary Question: Opportunities in CMBS conduit business - Management sees potential to increase CMBS conduit originations as regional banks pull back, creating opportunities for Ladder [46][47] Question: CECL reserve levels - Management plans to maintain the current CECL reserve level, indicating it is adequate to cover potential losses in the loan portfolio [49][51] Question: Impact of tightening yields on origination pipeline - Management acknowledges tightening credit spreads but emphasizes that interest rates remain high, affecting the types of properties they are willing to lend on [55][56] Question: Growth of loan book in 2025 - Management is optimistic about growing the loan book by $1 billion in 2025, targeting an unlevered return of around 8.5% [72][82] Question: Strategic partnerships in agency servicing - Management is open to exploring partnerships in agency servicing but currently has no discussions underway [98][104]

This presentation contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans and objectives of Ladder Capital Corp and its subsidiaries (collectively, "Ladder Capital," "Ladder," "LADR," or the "Company"). Any statement concerning future events or expectations, express or implied, is a forward-looking statement. Words such as "may," "will," "seek," "should," "expect," "anticipate," "project," "estimate," "intend," "continue," or "believe" or ...

Ladder Capital (LADR) Q4 2024 Earnings Call February 06, 2025 10:00 AM ET Company Participants Pamela McCormack - Founder & PresidentPaul Miceli - CFOBrian Harris - Founder and CEOJade Rahmani - Managing DirectorThomas Catherwood - MD & REITs Equity ResearchSteve Delaney - Director of Mortgage Operator Good morning and welcome to Ladder Capital Corp's Earnings Call for the Fourth Quarter of twenty twenty four. As a reminder, today's call is being recorded. This morning, Ladder released its financial results ...

Core Viewpoint - Ladder Capital (LADR) reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.32 per share a year ago [1][2] Financial Performance - The company achieved revenues of $68.62 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 13.79% and up from $60.53 million year-over-year [3] - Ladder Capital has consistently exceeded consensus EPS estimates over the last four quarters [2][3] Market Performance - Since the beginning of the year, Ladder Capital shares have increased by approximately 0.5%, while the S&P 500 has gained 3.1% [4] - The current Zacks Rank for Ladder Capital is 4 (Sell), indicating expected underperformance in the near future [7] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $62.8 million, and for the current fiscal year, it is $1.17 on revenues of $264.15 million [8] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [7] Industry Context - The REIT and Equity Trust industry, to which Ladder Capital belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Performance - For Q4 2024, Ladder Capital Corp reported GAAP income before taxes of $33.0 million and diluted EPS of $0.25, while for the full year, GAAP income before taxes was $110.9 million with diluted EPS of $0.86[1]. - Distributable earnings for Q4 2024 were $33.6 million, or $0.27 of distributable EPS, and for the full year, distributable earnings totaled $153.9 million, equating to $1.21 of distributable EPS[1]. - After-tax distributable earnings for the year ended December 31, 2024, were $151,799,000, down from $167,231,000 in 2023[28]. - Distributable EPS for the year ended December 31, 2024, was $1.21, down from $1.34 in 2023[25]. - The company reported income before taxes of $33,040,000 for the three months ended December 31, 2024, an increase from $28,463,000 in the previous quarter[25]. - Distributable earnings for the three months ended December 31, 2024, were $33,583,000, compared to $37,668,000 for the previous quarter[25]. - The effective tax rate used for non-GAAP measures may differ materially from the actual tax rate[32]. Liquidity and Capital Structure - The company maintained a strong liquidity position with an upsized $850 million corporate revolving credit facility, allowing focus on new investment opportunities[2]. - Total assets as of December 31, 2024, were $4.85 billion, a decrease from $5.51 billion in 2023[13]. - Debt obligations decreased to $3.14 billion in 2024 from $3.78 billion in 2023, reflecting a reduction in leverage[13]. Income and Expenses - Net interest income for Q4 2024 was $27.2 million, down from $38.4 million in Q3 2024, while total other income for the same quarter was $41.4 million[16]. - The total GAAP depreciation and amortization for the year ended December 31, 2024, was $32,327,000, compared to $29,914,000 in 2023[26]. - The company recorded a provision for loan loss of $3.1 million for the three months ended September 30, 2024[27]. - The company recognized a charge-off of allowance for credit losses of $5,023,000 during the three months ended September 30, 2024[27]. Shareholder Returns - Dividends per share for Class A common stock remained stable at $0.23 for Q4 2024, consistent with the previous quarter[16]. - The company must annually distribute at least 90% of its REIT taxable income to maintain its REIT status[30]. - The company has declared regular quarterly distributions to shareholders approximating the REIT's net taxable income[30]. Management and Strategy - The management team and board collectively own over 11% of Ladder's equity, aligning their interests with shareholders[7]. - The company plans to continue its middle market business model, which has shown success through significant loan payoffs and overall strong credit performance[2]. Non-GAAP Measures - Distributable earnings and EPS do not reflect certain cash charges considered non-indicative of ongoing operations[32]. - Other companies in the industry may calculate non-GAAP financial measures differently, limiting comparability[32].

Core Insights - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] Group 1 - The researcher highlights a beneficial long position in LADR shares, indicating confidence in the company's future performance [2] - The article aims to provide readers with research and investment opportunities within the industry [1] Group 2 - The content does not provide specific financial data or performance metrics related to any companies or sectors [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36299 Ladder Capital Corp (Exact name of registrant as specified in its charter) Delaware 80-0925494 (Sta ...

Core Insights - The article discusses the investment positions held by the analyst in specific companies, indicating a long position in STWD, LADR, and BXMT, which suggests a positive outlook on these stocks [1] Group 1 - The analyst expresses personal opinions on the stocks mentioned, emphasizing that these views are independent and not influenced by external compensation [1] - There is a clear distinction made regarding the lack of business relationships with the companies whose stocks are discussed, reinforcing the objectivity of the analysis [1] - The article highlights that past performance is not indicative of future results, a common disclaimer in investment analysis [1]