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]

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 [4][12] - The loan portfolio grew by approximately $354 million to $1.9 billion, representing 40% of total assets [5][17] - The company maintained $879 million in liquidity, including $49 million in cash and $830 million of undrawn capacity on its unsecured revolver [10][14] 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 [5][6] - 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 [19] - 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 [7][19] Market Data and Key Metrics Changes - Office loan exposure was reduced to $652 million, or 14% of total assets, following the full payoff of a $63 million office loan [5][6] - 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 Ladder's history [8][9] Company Strategy and Development Direction - Ladder aims to capitalize on investment opportunities while maintaining prudent credit risk management, with expectations for fourth quarter loan originations to exceed third quarter production [10][11] - The company plans to position itself alongside high-quality peers, including equity REITs, rather than solely within the commercial mortgage REIT space [11][12] - The focus will be on organic growth of the loan portfolio, with expectations of significant growth in the coming year [23][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the balance sheet and the ability to deliver strong, stable returns for shareholders across market cycles [11][12] - The company anticipates that the yield curve will steepen next year, which could lead to more regular contributions to securitizations [23] - Management noted that the quality of borrowers remains strong, with no new loans added to nonaccrual in the third quarter [18][51] Other Important Information - The company repurchased $1.9 million of common stock in the third quarter, with a total of $9.3 million repurchased year-to-date [14][15] - The dividend declared was $0.23 per share, with a current dividend yield of approximately 8.5% [15][16] Q&A Session Summary Question: Are there any changes in origination strategy since obtaining the investment grade rating? - Management indicated they are looking at slightly larger transactions and noted improved stability in financing [26][27] Question: Is there growth expected in the $1.9 billion loan portfolio? - Management expects the loan portfolio to grow by approximately $1 billion, driven by a strong origination quarter and a larger revolver [41][42] Question: Will improving ROE be part of the strategy in the next one to two years? - Management confirmed that the plan is to write more loans and improve ROE through better capital allocation [45][46] Question: What is the outlook for the office equity investment made? - Management expressed satisfaction with the investment, noting it has performed well and is expected to be a long-term hold [78][80]

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]

Financial Performance - For the quarter ended September 30, 2025, Ladder Capital Corp reported GAAP income before taxes of $20.1 million and diluted earnings per share (EPS) of $0.15[1] - Distributable earnings for the same period were $32.1 million, translating to a distributable EPS of $0.25[1] - Interest income increased to $71.8 million, up from $62.7 million in the previous quarter, while interest expense rose to $44.0 million[14] - Net interest income after provision for loan loss reserves was $27.8 million, compared to $21.6 million in the prior quarter[14] - Distributable earnings for the three months ended September 30, 2025, were $32,055,000, compared to $30,925,000 for the three months ended June 30, 2025, reflecting an increase of 3.7%[23] - After-tax distributable earnings for the same period were $31,184,000, up from $28,935,000, representing a 7.7% increase[24] - Distributable EPS for the three months ended September 30, 2025, was $0.25, compared to $0.23 for the previous quarter, indicating an increase of 8.7%[23] Capital Structure - Total assets as of September 30, 2025, were $4.69 billion, a decrease from $4.85 billion at the end of 2024[12] - Total liabilities decreased to $3.19 billion from $3.31 billion at the end of 2024[12] - The company maintained a conservative capital structure with an investment grade credit rating of Baa3 from Moody's and BBB- from Fitch[7] - Average shareholders' equity for the three months ended September 30, 2025, was $1,499,298,000, slightly down from $1,509,642,000 in the previous quarter[24] Dividend Policy - Dividends per share of Class A common stock remained stable at $0.23[14] - The company intends to continue declaring regular quarterly distributions to shareholders approximating the REIT's net taxable income to maintain REIT status[26] Loan Origination and Investments - The company achieved its highest quarterly loan origination volume in over three years and successfully closed a $500 million investment grade bond offering[2] - Ladder Capital has deployed over $49 billion of capital across the real estate capital stack since its founding in 2008[6] - Conduit loans are first mortgage loans on stabilized, income-producing commercial real estate properties intended for third-party CMBS securitizations[20] - The company’s conduit business includes mortgage loans made to third parties and may also include loans secured by real estate owned in its real estate segment[20] Tax and Financial Reporting - The estimated corporate tax expense for the three months ended September 30, 2025, was $871,000, compared to $1,990,000 for the previous quarter[23] - The company recognized adjustments for unrealized provision for loan losses and real estate impairment, with realized losses recognized in the period of asset sale or when deemed non-recoverable[22] - The company’s non-GAAP financial measures should not be considered as substitutes for GAAP measures, highlighting the limitations of such measures[25]

Core Points - Ladder Capital Corp will release its third quarter 2025 results on October 23, 2025, before market opening [1] - A conference call and webcast for investors will be held at 10:00 a.m. Eastern Time on the same day to discuss the financial results [1] - Access to the conference call can be made by dialing (877) 407-4018 for domestic calls or (201) 689-8471 for international calls [1]

Core Points - Ladder Capital Corp announced a third quarter 2025 dividend of $0.23 per share of Class A common stock [1] - The cash dividend is scheduled to be paid on October 15, 2025, to stockholders of record as of September 30, 2025 [1] - Ladder is a publicly listed, investment grade-rated commercial real estate finance company with a diversified nationwide platform [1]

Core Insights - Ladder Capital (NYSE: LADR) exceeded distributable EPS expectations for its second fiscal quarter, driven by strong performance in its core lending business [1] - The company reported no new provisions for credit losses during the quarter, indicating a stable credit environment [1] Financial Performance - The mortgage REIT demonstrated solid operational results, contributing to its ability to beat EPS expectations [1] - The absence of new credit loss provisions suggests effective risk management and a healthy lending portfolio [1]

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 keen interest in growth buyouts and value stocks, indicating a strategic focus on identifying lucrative investment opportunities within these categories [1]. - There is a strong emphasis on the current events and significant news surrounding the industry, suggesting that staying informed is crucial for making sound investment decisions [1].