Loan Origination and Portfolio - Ladder Capital has originated $30.3 billion of commercial real estate loans since its inception in October 2008 through March 31, 2025[220]. - The company has acquired $14.6 billion of predominantly investment grade-rated securities secured by first mortgage loans on commercial real estate[220]. - As of March 31, 2025, Ladder Capital held a portfolio of 54 balance sheet first mortgage loans with an aggregate book value of $1.7 billion, with a weighted average loan-to-value ratio of 67.5%[229][230]. - The company owned 149 single tenant net leased properties with an undepreciated book value of $591.5 million, fully leased with 100% rent collection during the three months ended March 31, 2025[237]. - Ladder Capital's CMBS investments totaled $1.5 billion in 105 CUSIPs, with 99.3% rated investment grade as of March 31, 2025[243]. - The weighted average duration of the CMBS investments was 2.9 years, with 59.0% of the collateral located in the top 25 metropolitan statistical areas in the U.S.[245]. Financial Position and Debt - As of March 31, 2025, the company had $2.0 billion of senior unsecured notes outstanding, including $500.0 million due in 2031[250]. - Ladder Capital maintains a $3.7 billion pool of unencumbered assets, primarily consisting of first mortgage loans and unrestricted cash[251]. - The company held $483.1 million of U.S. Treasury securities classified as cash and cash equivalents on its consolidated balance sheet as of March 31, 2025[248]. - As of March 31, 2025, the company had $850.0 million in its Revolving Credit Facility, increased from $725 million on December 20, 2024[252]. - Total debt obligations as of March 31, 2025, amounted to $2.77 billion, with significant components including $2.01 billion in senior unsecured notes[336]. - As of March 31, 2025, the Company had $2.0 billion of senior unsecured notes outstanding, including $287.7 million of 5.25% notes due 2025, $599.5 million of 4.25% notes due 2027, $633.9 million of 4.75% notes due 2029, and $500.0 million of 7.00% notes due 2031[339]. Income and Expenses - The company reported a net interest income of $20.3 million for the three months ended March 31, 2025, a decrease of $6.9 million from the previous quarter[270]. - Interest income decreased by $13.8 million to $64.3 million, while interest expense decreased by $6.9 million to $44.0 million for the same period[270]. - Total other income decreased by $10.5 million to $30.9 million for the three months ended March 31, 2025[270]. - Real estate operating income decreased by $1.6 million during the three months ended March 31, 2025, primarily due to sales that occurred in the previous quarter[279]. - The company recorded a net income of $11.6 million for the three months ended March 31, 2025, down from $16.4 million in the same period of the previous year, reflecting a decrease of $4.9 million[293]. Cash Flow and Investments - The company funded $316.4 million in commercial mortgage loans and purchased $521.8 million in securities during the three months ended March 31, 2025, contributing to a net increase in the securities portfolio of $395.5 million[294]. - Cash and cash equivalents were $479.8 million as of March 31, 2025, down from $1.3 billion at the end of 2024[325]. - The company experienced a net decrease in cash of $812.7 million in Q1 2025, driven by cash used in operating, investing, and financing activities[327]. - Proceeds from the sale of securities provided net cash of $39.9 million for the three months ended March 31, 2025, compared to $4.8 million for the same period in 2024[363]. - The Company had $13.1 million of proceeds from sales of real estate for the three months ended March 31, 2025, with no proceeds from real estate sales in the same period of 2024[364]. Loan Loss Provisions and Allowances - The provision for loan losses for the three months ended March 31, 2025, was $(0.1) million, compared to $5.8 million for the same period in 2024[381]. - The allowance for loan losses as of March 31, 2025, was $52.8 million, unchanged from December 31, 2024[382]. - The company utilizes a current expected credit loss model (CECL) for estimating loan loss provisions, which includes both portfolio-based and asset-specific components[375]. - The company evaluates the financial capability of borrowers and the performance of collateral properties on a loan-by-loan basis, considering factors such as cash flow and liquidation value[378]. Shareholder Distributions and Stock Repurchase - The Company has authorized the repurchase of $100.0 million of its Class A common stock as of April 23, 2025, increasing the remaining authorization from $66.8 million[356]. - The company intends to distribute at least 90% of its taxable income to maintain its qualification as a REIT, with regular quarterly distributions planned[359]. - The company intends to continue declaring regular quarterly distributions to shareholders approximating the REIT's net taxable income, maintaining its REIT status[399]. Market and Economic Conditions - The company’s critical accounting estimates are subject to uncertainty due to changing macro-economic conditions[381]. - The CECL accounting estimate is sensitive to macro-economic conditions and the vintage and location of underlying assets[381].

Financial Data and Key Metrics Changes - In Q1 2025, the company generated distributable earnings of $25.5 million, or $0.20 per share, with a return on equity of 6.6% and adjusted leverage of 1.4 times [5][21] - As of March 31, 2025, the company's liquidity stood at $1.3 billion, including $480 million in cash and cash equivalents, with 83% of total assets unencumbered [10][21] - The company's total gross leverage was 1.83 times, with 72% of debt comprised of unsecured corporate bonds [22][24] Business Line Data and Key Metrics Changes - The company originated $329 million in new loans and acquired $521 million in AAA securities in Q1 2025, totaling over $800 million in investment activity [7][12] - The loan portfolio as of March 31, 2025, was $1.7 billion, representing 38% of total assets, with a weighted average yield of 8.7% [11][28] - The real estate portfolio generated $12.2 million of net operating income during Q1 2025, primarily consisting of net leased properties [15][30] Market Data and Key Metrics Changes - 74% of new loan originations in Q1 2025 were backed by multi-family or industrial assets [13][50] - The company expects muted payoffs for the remainder of the year due to strong payoffs achieved in 2024 [13] Company Strategy and Development Direction - The company aims to redeploy liquidity generated from loan payoffs into new loans that better reflect current market conditions [6][9] - The strategy includes a shift towards unsecured debt as the primary funding source, with a focus on maintaining a robust balance sheet and high credit ratings [10][11][24] - The company is prepared to navigate market volatility and capitalize on opportunities with the best risk-adjusted returns [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the potential for market volatility and uncertainty but remains optimistic about the company's liquidity and balance sheet strength [8][9] - The company anticipates attractive opportunities arising from the current economic environment, particularly in conduit securitizations [40] Other Important Information - The company has a CECL reserve of $52 million, which is deemed sufficient to cover potential losses in the loan portfolio [14][28] - The company repurchased $20 million in principal value of unsecured bonds during Q1 2025 and declared a $0.23 per share dividend [26][27] Q&A Session Summary Question: Regarding origination activity and spreads - The company noted that the blended spread of 394 basis points was influenced by market volatility, with expectations for continued opportunities in the high 300s range [44][49] Question: Expectations for origination pace - Management expects origination to exceed the pace set in Q1 2025, despite some slowdown in securitizations due to market volatility [56][61] Question: Long-term views on the net lease portfolio - The company is open to holding or selling properties based on market conditions, with no active attempts to sell but willing to grow the portfolio [63][67] Question: Outlook on interest rates and their impact - Management anticipates a steeper yield curve, with expectations for the 10-year treasury yield to rise, which could create opportunities for the company [72][77] Question: Asset allocation and future mix - The company does not have a fixed game plan for asset allocation but aims to maintain liquidity while adjusting to market conditions [90][92]

Financial Performance - Ladder Capital reported distributable earnings of $25.5 million, resulting in a distributable EPS of $0.20 and an after-tax distributable ROAE of 6.6%[9] - The company declared a Q1 2025 cash dividend of $0.23 per LADR share, representing a 9.0% annual dividend yield[9] - Net interest income was $20.3 million for Q1 2025[42] Balance Sheet & Liquidity - Total liquidity exceeded $1.3 billion, including $480 million in unrestricted cash and cash equivalents, and an undrawn corporate revolving credit facility[7, 9] - The company's investment assets and unrestricted cash totaled $4.6 billion, including $1.7 billion in senior secured first mortgage loans (38% of total), $892 million in CRE equity (20%), and $1.5 billion in securities (32%)[7, 9] - Unencumbered assets totaled $3.7 billion, representing 83% of total assets, with 85% comprised of cash, first mortgage loans, and investment grade securities[7, 9, 34] Loan Portfolio - New loan originations amounted to $329 million, leading to a $138 million growth in the loan portfolio[7] - The weighted average spread on new balance sheet loans was 394 basis points[7] - The loan portfolio totaled $1.7 billion with a weighted average loan-to-value (LTV) of 67%[7, 15] Capital Structure - 72% of total debt was comprised of unsecured corporate bonds[9, 33] - The adjusted leverage ratio was 1.4x, or 1.2x net of cash[7, 9, 33] - 98% of debt is non-mark-to-market[7, 9, 33]

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ladder Capital, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $51.2 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 10.64%. This compares to year- ago revenues of $69 million. The company has topped consensus revenue estimates three times over the last four quarters. This quarterly report represents an earnings surprise of -9.09%. A quarter ago, it was ...

Financial Data and Key Metrics Changes - In Q1 2025, the company generated distributable earnings of $25.5 million or $0.20 per share, achieving a return on equity of 6.6% with adjusted leverage of 1.4 times [4][14] - As of March 31, 2025, the company had $1.3 billion in liquidity, with 83% of its asset base unencumbered and 72% of its debt comprised of unsecured corporate bonds [6][7] - The carrying value of the securities portfolio increased by 37% from year-end to $1.5 billion, with a weighted average yield of 5.67% [19] Business Line Data and Key Metrics Changes - The loan portfolio stood at $1.7 billion, representing 38% of total assets, with a weighted average yield of 8.7% [8] - New loan originations in Q1 totaled $329 million, with 74% backed by multifamily or industrial assets [9][24] - The real estate portfolio generated $12.2 million of net operating income during the first quarter, primarily consisting of net leased properties [11][20] Market Data and Key Metrics Changes - The company noted that the current macroeconomic environment is characterized by persistent interest rate volatility and geopolitical uncertainty, impacting commercial real estate demand [12][13] - The company expects to see more attractive lending opportunities as acquisitions become more common and newly built multifamily units come off construction loans [22][23] Company Strategy and Development Direction - The company is focused on redeploying liquidity generated from loan payoffs into new loans at lower reset basis, reflecting current market conditions [5] - The strategy includes a shift towards unsecured debt as the primary funding source, aiming for potential investment-grade ratings [8][17] - The company plans to maintain a disciplined approach to capital deployment, prioritizing higher-yielding loans over securities [25][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility due to substantial liquidity and a robust balance sheet [6][13] - The company anticipates an increase in loan originations for the remainder of 2025, despite potential slowdowns in certain areas [39][44] - Management highlighted the importance of being well-capitalized to capitalize on opportunities that arise from market fluctuations [13][81] Other Important Information - The company repurchased $20 million in principal value of unsecured bonds during the first quarter and declared a $0.23 per share dividend [16][18] - The CECL reserve remained at $52 million, which management believes is sufficient to cover potential losses [10][19] Q&A Session Summary Question: What was the origination activity in the quarter? - The company noted that the blended spread was wide, with opportunities arising from market volatility and special situations [30][31] Question: Do you expect originations to maintain or exceed the pace generated in the first quarter? - Management expects originations to exceed the first quarter pace [39] Question: How are you thinking about the net lease portfolio longer term? - The company is open to selling properties but is not actively managing to sell; they are prepared to hold assets [45][49] Question: What is the outlook for the ten-year treasury yield? - Management anticipates the ten-year yield will rise due to the U.S. deficit, projecting it could reach around 4.75% in six months [57] Question: How do you protect against interest rate risk when adding CMBS? - The company hedges with swaps and focuses on floating rate instruments to mitigate volatility [63]

Financial Performance - For the quarter ended March 31, 2025, Ladder Capital Corp reported GAAP income before taxes of $10.7 million and diluted earnings per share (EPS) of $0.09[1] - Distributable earnings for the same period were $25.5 million, translating to a distributable EPS of $0.20[1] - Income before taxes for Q1 2025 was $10,717,000, a decrease from $33,040,000 in Q4 2024[25] - Distributable earnings for Q1 2025 were $25,452,000, compared to $33,583,000 in Q4 2024, reflecting a decline of approximately 24%[25] - Distributable EPS for Q1 2025 was $0.20, down from $0.27 in Q4 2024, indicating a decrease of about 26%[25] - After-tax distributable earnings for Q1 2025 were $25,246,000, compared to $34,061,000 in Q4 2024, representing a decline of approximately 26%[25] - Net interest income for Q1 2025 was $20.3 million, down from $27.2 million in Q4 2024[17] - Total other income for the quarter was $30.9 million, compared to $41.4 million in the previous quarter[17] Asset and Debt Management - Total assets as of March 31, 2025, were $4.47 billion, a decrease from $4.85 billion as of December 31, 2024[14] - Debt obligations decreased to $2.77 billion from $3.14 billion, reflecting a reduction in leverage[14] - Average shareholders' equity for Q1 2025 was $1,525,849,000, slightly down from $1,533,826,000 in Q4 2024[26] Stock and Dividend Information - The board of directors authorized a stock repurchase program of $100 million, increasing the authorization from $66.8 million[3] - The company maintained a dividend of $0.23 per share for both Q1 2025 and Q4 2024[17] - The company intends to continue declaring regular quarterly distributions approximating the REIT's net taxable income to maintain REIT status[29] Investment and Origination - The company experienced a record year of loan payoffs in 2024, with new loans outpacing payoffs in Q1 2025, indicating strong origination efforts[2] - Ladder Capital has invested over $47 billion in debt and equity since 2008, focusing on commercial real estate financing[7] Other Financial Metrics - The company recognized a GAAP realized gain on the sale of real estate of $3,807,000 for Q1 2025, compared to $12,419,000 in Q4 2024[26] - Adjustments for derivative results and loan sale activity resulted in a negative impact of $435,000 for Q1 2025, slightly improved from a negative $474,000 in Q4 2024[25] - Non-cash stock-based compensation for Q1 2025 was $11,215,000, significantly higher than $2,237,000 in Q4 2024[25] - After-tax distributable ROAE for Q1 2025 was 6.6%, down from 8.9% in Q4 2024[26]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The stock market is viewed as a viable avenue for retail investors to achieve financial freedom, with opportunities available in both bull and bear markets [2] - The article emphasizes a defensive investment strategy with a medium- to long-term horizon [2] Group 2 - The article does not provide specific investment advice or recommendations, encouraging readers to conduct their own due diligence [4][5] - There is a disclosure regarding the author's beneficial long position in LADR shares, indicating a personal investment interest [3]

Group 1 - The article discusses the investment positions held by analysts in LADR and STWD, indicating a beneficial long position in these shares [1] - It emphasizes that the opinions expressed are personal and not influenced by any compensation from the companies mentioned [1] - The article clarifies that there is no business relationship between the author and the companies whose stocks are discussed [1] Group 2 - The article notes that past performance of investments does not guarantee future results, highlighting the inherent uncertainty in investment decisions [2] - It states that no specific recommendations or advice are provided regarding the suitability of investments for individual investors [2] - The article mentions that the views expressed may not represent the overall stance of Seeking Alpha, indicating a diversity of opinions among analysts [2]

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]