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]

Loan Origination and Portfolio - Ladder Capital Corp has originated $29.8 billion in commercial real estate loans since its inception in October 2008 through September 30, 2024[203]. - The company has a portfolio of 57 balance sheet first mortgage loans with an aggregate book value of $2.0 billion, with a weighted average loan-to-value ratio of 66.4% as of September 30, 2024[211]. - The estimated fair value of Ladder's portfolio of CMBS investments totaled $843.4 million as of September 30, 2024, with 98% rated investment grade[224]. - Ladder held $1.3 billion of U.S. Treasury securities classified as cash and cash equivalents on its consolidated balance sheet as of September 30, 2024[227]. - The company has originated $16.9 billion of conduit loans, making it one of the largest non-bank contributors to CMBS securitizations in the U.S. during the same period[204]. - Ladder's diversified commercial real estate properties had an undepreciated book value of $308.3 million, with a rent collection rate of 99% for the three months ended September 30, 2024[221]. - As of September 30, 2024, Ladder owned 155 single tenant net leased properties with an undepreciated book value of $637.3 million, fully leased with an average age of 19.5 years[220]. Financial Performance - The company's net interest income for the three months ended September 30, 2024, was $38.4 million, an increase of $4.1 million from the previous quarter[251]. - Total other income for the three months ended September 30, 2024, was $32.6 million, a decrease of $9.9 million compared to the previous quarter[251]. - The company recorded a net income of $27.6 million for the three months ended September 30, 2024, down from $32.1 million in the previous quarter[251]. - The company recorded a net income of $76.1 million for the nine months ended September 30, 2024, a decrease of $5.4 million from $81.5 million in the same period of 2023[272]. - For the three months ended September 30, 2024, the company experienced a net interest income of $109.9 million, a decrease of $12.5 million compared to $122.4 million for the same period in 2023[272]. - The company reported distributable earnings of $37,668 thousand for the three months ended September 30, 2024, compared to $40,398 thousand for the previous quarter, reflecting a decrease of approximately 6.5%[370]. Debt and Financing - The company maintains a flexible financing strategy, utilizing unsecured corporate bonds, CLO debt issuances, and committed term financing from leading financial institutions[205]. - As of September 30, 2024, the company had $2.1 billion of unsecured corporate bonds outstanding, including $500 million in 7.00% senior notes due 2031[230]. - The company had $244.5 million of borrowings outstanding under committed loan repurchase agreement facilities as of September 30, 2024[235]. - The company executed 16 new term debt agreements during the nine months ended September 30, 2024, with a carrying amount of $81.9 million[238]. - As of September 30, 2024, the company had total debt obligations of $3.6 billion, including $2.1 billion in senior unsecured notes and $776.1 million in CLO debt[313]. - The company maintains diverse liquidity sources, including cash, operational cash flow, and proceeds from various financing activities to support its business strategy[296]. Asset Management and Compliance - The company is subject to financial covenants requiring a debt-to-equity ratio of approximately 3.0:1.0 or below[243]. - The company is in compliance with all covenants as of September 30, 2024[248]. - The company recorded a provision for loan loss reserves of $13.9 million for the nine months ended September 30, 2024, down from $19.1 million in the same period of 2023, reflecting a decrease of $5.2 million[272]. - The allowance for loan losses increased to $52.8 million as of September 30, 2024, from $43.9 million as of December 31, 2023[355]. - The company utilizes a current expected credit loss model (CECL) for estimating loan loss provisions, which includes both portfolio-based and asset-specific components[354]. - The company engages a third-party service provider for market data and a credit loss model, which incorporates macroeconomic variables and loan-level data[354]. Market and Economic Conditions - The company faces risks related to real estate volatility, including economic conditions and changes in property values, which could impact collateral value[389]. - Regulatory compliance is critical, as failure to meet requirements could result in loss of licenses or economic penalties[393]. - The company actively monitors credit spread risk and may utilize credit total return swaps to mitigate potential losses from widening credit spreads[388]. Operational Integrity - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, indicating stable operational integrity[399]. - The company’s control systems provide reasonable assurance of effective disclosure, although inherent limitations exist[398].

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]

Core Viewpoint - Ladder Capital Corp reported its financial results for Q3 2024, indicating a positive performance for the quarter ended September 30, 2024 [1]. Financial Performance - The earnings call was held on October 24, 2024, with key participants including the company's President, CFO, and CEO [1]. - The company emphasized the importance of non-GAAP financial measures in assessing its financial performance, which will be discussed during the call [2][3]. Forward-Looking Statements - The call included forward-looking statements and projections, with a reference to the company's most recent Form 10-K for factors that could cause actual results to differ from these projections [2].

Financial Data and Key Metrics Changes - Ladder Capital Corp generated distributable earnings of $37.7 million, or $0.30 per share, resulting in a return on equity of 9.8% with adjusted leverage of 1.6 times [4][10] - The company maintained a steady book value and reported $1.9 billion in liquidity, with $1.6 billion in cash and cash equivalents, representing approximately 30% of the balance sheet [4][10] - The loan portfolio totaled $2 billion, accounting for 38% of total assets, with a weighted average yield of 9.33% [5][11] Business Line Data and Key Metrics Changes - In bridge lending, the focus is on new acquisitions and refinances for newer vintage properties, with significant increases in acquisition activity [6][7] - The securities portfolio was valued at $853 million, primarily consisting of AAA-rated securities with a weighted average yield of 6.8% [9][12] - The real estate segment generated $14.1 million in net rental income, mainly from net lease properties with long-term leases to investment-grade rated tenants [9][13] Market Data and Key Metrics Changes - The company received $492 million in loan paydowns during the third quarter, marking the second-highest quarterly payoff level in its history [7][19] - After the quarter end, an additional $64 million in loan repayments was received, indicating strong credit culture and liquidity [7][19] - The unencumbered asset pool stood at $3.7 billion, or 68% of total assets, enhancing financial flexibility [15] Company Strategy and Development Direction - Ladder plans to capitalize on market share held by regional banks and highly leveraged non-bank competitors, focusing on attractive securities and loan origination [18][19] - The company aims to achieve investment-grade status to enhance market position and attract a broader range of investors [5][14] - The management emphasizes a disciplined lending approach and strong credit culture to differentiate itself in the market [19][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the investment landscape due to increased transaction levels and reduced competition in the middle market [7][19] - The company is well-positioned for future growth with significant liquidity and a strong balance sheet, despite challenges in the commercial real estate market [4][17] - Management noted that the lending business is picking up, with more applications and signed deals expected in the coming quarters [26][32] Other Important Information - Ladder issued $500 million in unsecured corporate bonds, which contributed to a positive outlook from rating agencies [13][14] - The company repurchased $1.2 million of its common stock at a weighted average price of $11.91 per share during the third quarter [15][16] - The dividend declared was $0.23 per share, which remains well-covered by distributable earnings [16][40] Q&A Session Summary Question: What are the best opportunities in the market? - Management is focused on multifamily and industrial properties, avoiding construction loans, and looking for recapitalization opportunities [21][22] Question: What is driving the high loan repayment numbers? - The repayment is primarily driven by refinancing, especially in the apartment sector, although many loans require extensions [22][23] Question: How confident is the company in backfilling the loan book? - Management is seeing an increase in loan applications and expects a significant uptick in originations in the upcoming quarters [26][32] Question: How does the company view equity investments in the current market? - The company finds equity investments attractive but requires higher returns than typical institutional equity investors [33][34] Question: Will the company continue its stock buyback program? - Management confirmed that the buyback program will likely continue, with over $40 million remaining in authorization [35][40] Question: What is the outlook for the commercial real estate market? - Management believes that while there are challenges, the market is stabilizing, and they are optimistic about future opportunities [62][64]

Ladder Capital (LADR) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this commercial real estate mortgage origination and finance company would post earnings of $0.30 per share when it actually produced earnings of $0.31, delivering a surpr ...

IC L A D D E R CAPITAL NYSE: LADR SUPPLEMENTAL DATA QUARTER ENDED SEPTEMBER 30, 2024 NEW YORK | MIAMI | LOS ANGELES DISCLAIMERS 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. Word ...

[Executive Summary / Q3 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%2F%20Q3%202024%20Highlights) [Q3 2024 Financial Performance](index=1&type=section&id=Q3%202024%20Financial%20Performance) Ladder Capital Corp reported solid operating results for Q3 2024, with GAAP income before taxes of $28.5 million and diluted EPS of $0.22. Distributable earnings reached $37.7 million, translating to $0.30 of distributable EPS | Metric | Q3 2024 (Millions) | | :-------------------------- | :----------------- | | GAAP Income Before Taxes | $28.5 | | Diluted EPS | $0.22 | | Distributable Earnings | $37.7 | | Distributable EPS | $0.30 | [CEO Commentary & Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) CEO Brian Harris highlighted solid earnings and returns, noting stabilizing real estate markets and significant liquidity following a $500 million unsecured corporate bond offering. The company is actively pursuing new origination opportunities, signaling a return to an 'offense' strategy - Real estate markets are continuing to stabilize[1](index=1&type=chunk) - Ladder has **significant liquidity** after closing a **$500 million unsecured corporate bond offering**[1](index=1&type=chunk) - The company is actively pursuing new origination opportunities and is 'excited to return to offense'[1](index=1&type=chunk) [Company Overview](index=1&type=section&id=Company%20Overview) [Business Description and Investment Strategy](index=1&type=section&id=Business%20Description%20and%20Investment%20Strategy) Ladder Capital Corp is an internally-managed commercial real estate investment trust (REIT) with $5.4 billion in assets as of September 30, 2024. Its primary objective is to preserve shareholder capital while generating attractive risk-adjusted returns through originating and investing in a diverse portfolio of senior secured commercial real estate and related assets - Ladder Capital Corp is an **internally-managed commercial real estate investment trust (REIT)**[4](index=4&type=chunk) | Metric | Value (as of Sep 30, 2024) | | :--------------- | :------------------------- | | Total Assets | $5.4 billion | - Investment activities include originating senior first mortgage fixed and floating rate loans, owning and operating commercial real estate (including net leased properties), and investing in investment grade securities secured by first mortgage loans[4](index=4&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, Ladder Capital's total assets decreased slightly to $5.38 billion from $5.51 billion at year-end 2023. Cash and cash equivalents significantly increased, while mortgage loan receivables held for investment decreased. Total liabilities and shareholders' equity remained relatively stable Consolidated Balance Sheet Highlights (Dollars in Thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :------------------------------------------ | :----------- | :----------- | | Total Assets | $5,379,139 | $5,512,677 | | Cash and cash equivalents | $1,607,204 | $1,015,678 | | Mortgage loan receivables held for investment, net | $2,039,545 | $3,155,089 | | Securities | $852,783 | $485,533 | | Debt obligations, net | $3,585,332 | $3,783,946 | | Total shareholders' equity | $1,532,619 | $1,533,148 | - **Cash and cash equivalents increased by approximately $591.5 million** from December 31, 2023, to September 30, 2024[9](index=9&type=chunk) - **Mortgage loan receivables held for investment, net, decreased by approximately $1.12 billion** over the same period[9](index=9&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended September 30, 2024, net interest income increased to $38.4 million from $34.3 million in the prior quarter. However, income before taxes and net income attributable to Class A common shareholders saw a decline compared to the previous quarter, resulting in diluted EPS of $0.22, down from $0.26 Consolidated Statements of Operations Highlights (Dollars in Thousands) | Metric | Q3 2024 | Q2 2024 |\n| :------------------------------------------ | :----------- | :----------- | | Net interest income | $38,416 | $34,317 | | Income (loss) before taxes | $28,463 | $31,036 | | Net income (loss) attributable to Class A common shareholders | $27,913 | $32,349 | | Diluted EPS | $0.22 | $0.26 | | Dividends per share of Class A common stock | $0.23 | $0.23 | - **Net interest income increased by $4.1 million** quarter-over-quarter[12](index=12&type=chunk) - **Income before taxes decreased by $2.57 million** from Q2 2024 to Q3 2024[12](index=12&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Calculation of Distributable Earnings](index=5&type=section&id=Definition%20and%20Calculation%20of%20Distributable%20Earnings) Ladder Capital utilizes distributable earnings, distributable EPS, and after-tax distributable ROAE as supplemental non-GAAP measures to assess operating performance and dividend capacity. These metrics adjust GAAP income by excluding non-cash expenses, unrealized results, and timing differences related to securitization gains and asset/derivative value changes, providing a more consistent basis for comparison - **Distributable earnings**, **distributable EPS**, and **after-tax distributable ROAE** are used as supplemental measures to compare operating performance and dividend-paying ability[14](index=14&type=chunk) - Key adjustments to GAAP income include excluding real estate depreciation/amortization, derivative gains/losses (until realized), unrealized gains/losses on fair value securities, unrealized/realized provision for loan losses, non-cash stock-based compensation, and certain non-recurring items[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - **Distributable earnings prior to charge-offs of allowance for credit losses** is an additional metric considered for dividend declarations[14](index=14&type=chunk) [Reconciliation of GAAP to Distributable Earnings](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Distributable%20Earnings) The reconciliation from GAAP income before taxes to distributable earnings shows various adjustments, including a significant charge-off of allowance for credit losses in Q3 2024. This resulted in distributable earnings of $37.7 million and distributable EPS of $0.30 for the quarter, a decrease from Q2 2024 Reconciliation of GAAP Income to Distributable Earnings (Thousands, except per share data) | Metric | Q3 2024 | Q2 2024 | | :------------------------------------------ | :----------- | :----------- | | Income (loss) before taxes | $28,463 | $31,036 | | Our share of real estate depreciation, amortization and gain adjustments | $7,514 | $(1,398) | | Adjustment for impairment | $3,063 | $5,055 | | Non-cash stock-based compensation | $3,177 | $3,117 | | Distributable earnings prior to charge-off of allowance for credit losses | $42,691 | $40,398 | | Charge-off of allowance for credit losses | $(5,023) | — | | Distributable earnings | $37,668 | $40,398 | | After-tax distributable earnings | $37,528 | $39,091 | | Distributable EPS | $0.30 | $0.31 | - A **charge-off of allowance for credit losses of $5.023 million** was recorded in Q3 2024, impacting distributable earnings[20](index=20&type=chunk)[25](index=25&type=chunk) - **Distributable EPS decreased from $0.31 in Q2 2024 to $0.30 in Q3 2024**[20](index=20&type=chunk) [After-Tax Distributable Return on Average Equity (ROAE)](index=7&type=section&id=After-Tax%20Distributable%20Return%20on%20Average%20Equity%20(ROAE)) The after-tax distributable ROAE for the three months ended September 30, 2024, was 9.8%, a slight decrease from 10.2% in the prior quarter After-Tax Distributable ROAE | Metric | Q3 2024 (Thousands) | Q2 2024 (Thousands) | | :------------------------------- | :------ | :------ | | After-tax distributable earnings | $37,528 | $39,091 | | Average shareholders' equity | 1,531,345 | 1,527,643 | | After-tax distributable ROAE | 9.8 % | 10.2 % | [Limitations of Non-GAAP Measures](index=8&type=section&id=Limitations%20of%20Non-GAAP%20Measures) The company explicitly states that its non-GAAP financial measures, such as distributable earnings and EPS, have limitations. They do not reflect certain cash charges, are based on estimated tax rates, and may not be comparable to measures used by other companies. These non-GAAP metrics should not be considered in isolation or as substitutes for GAAP measures or cash flows from operations - Non-GAAP measures do not reflect certain cash charges and are not necessarily indicative of cash needed to fund operations[27](index=27&type=chunk) - **Distributable EPS** and **ROAE** are based on a non-GAAP estimate of the effective tax rate, which may differ materially from the actual tax rate[27](index=27&type=chunk) - Non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures (net income, EPS, book value, or cash flows from operations)[28](index=28&type=chunk) [Additional Information](index=1&type=section&id=Additional%20Information) [Supplemental Information & Conference Call](index=1&type=section&id=Supplemental%20Information%20%26%20Conference%20Call) Ladder Capital issued a supplemental presentation detailing its Q3 2024 results, available on its investor relations website. A conference call was scheduled for October 24, 2024, to discuss these results, with an audio replay available until November 7, 2024 - A supplemental presentation for Q3 2024 operating results is available at http://ir.laddercapital.com[2](index=2&type=chunk) - A conference call was held on Thursday, October 24, 2024, at 10:00 a.m. Eastern Time to discuss Q3 2024 results, with an audio replay available until November 7, 2024[3](index=3&type=chunk) [Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements based on management's current expectations, which are predictions and not historical facts. These statements involve risks and uncertainties, and actual results could differ materially from those anticipated. The company disclaims any obligation to update these statements - Statements in the release may constitute 'forward-looking' statements, which are predictions, not historical fact, and involve risks and uncertainties[6](index=6&type=chunk) - Actual results, levels of activity, performance, achievements, and events could differ materially from those stated or implied by forward-looking statements[6](index=6&type=chunk) - Ladder expressly disclaims any obligation to release updates or revisions to any forward-looking statements[7](index=7&type=chunk) [Investor Contact](index=2&type=section&id=Investor%20Contact) Contact information for Ladder Capital Corp Investor Relations is provided for inquiries - Investor Relations can be reached at (917) 369-3207 or investor.relations@laddercapital.com[8](index=8&type=chunk)

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EschCollection Ladder Capital Corporation (NYSE:LADR) managed to cover its dividend with distributable earnings in the second quarter and the commercial real estate investment trust maintained a stable book value on a YoY basis. Ladder Capital's book value stability is particularly impressive given that the office commercial real estate market is suffering economic pressure which just forced a dividend cut on Blackstone Mortgage Trust Inc. (BXMT). Ladder Capital's 8% yield also offers passive income investo ...