Ladder Capital Corp (NYSE:LADR) Q1 2023 Earnings Conference Call April 26, 2023 5:00 PM ET Company Participants Pamela McCormack - President Paul Miceli - CFO Brian Harris - Founder and CEO Conference Call Participants Jade Rahmani - KBW Sarah Barcomb - BTIG Matthew Howlett - B. Riley FBR Chris Muller - JMP Securities Derek Hewett - Bank of America Merrill Lynch Operator Good afternoon. And welcome to Ladder Capital Corp's Earnings Call for the First Quarter of 2023. As a reminder, today's call is being rec ...

Debt and Financing - As of December 31, 2022, the company had $1.6 billion of unsecured corporate bonds outstanding, including $344.0 million in 5.25% senior notes due 2025, $650.8 million in 4.25% senior notes due 2027, and $649.0 million in 4.75% senior notes due 2029[69]. - The company maintains a $2.9 billion pool of unencumbered assets, primarily consisting of first mortgage loans and unrestricted cash as of December 31, 2022[70]. - The company executed a long-term debt agreement for real estate financing totaling $498.0 million, with fixed rates ranging from 4.25% to 8.03%, maturing between 2023 and 2031[80]. - As of December 31, 2022, the company had $1.1 billion of matched term, non-mark-to-market and non-recourse CLO debt included in its debt obligations[74]. - The company has $616.9 million of borrowings outstanding under committed loan repurchase agreement facilities, with an additional $0.7 billion of committed financing available as of December 31, 2022[75]. - The company's revolving credit facility has a maximum borrowing amount of $323.9 million, with no outstanding borrowings as of December 31, 2022[81]. - As of December 31, 2022, the company had $213.0 million of borrowings outstanding from the FHLB, with interest rates ranging from 2.74% to 4.70%[84]. - The company seeks to maintain a debt-to-equity ratio of approximately 3.0:1.0 or below, which may fluctuate during the fiscal year due to business operations[86]. - The company is in compliance with all covenants as of December 31, 2022[90]. Market and Competition - The commercial real estate finance markets are highly competitive, with the company facing competition from various institutional lenders and investors[91]. Employee Relations and Culture - The company employs 63 full-time employees as of December 31, 2022, with no union representation and a good employee relations environment[113]. - The company emphasizes a culture of diversity, equity, and inclusion, with two female co-founders and policies against discrimination[115]. - The company offers competitive compensation, including base salaries and stock awards, and promotes from within to develop talent[116]. - The company provides comprehensive healthcare benefits and supports employee wellness, including mental health services and work-life balance initiatives[119]. Financial Performance - Distributable earnings for the year ended December 31, 2022, were $148,399,000, a significant increase from $61,340,000 in 2021, representing a growth of 142.5%[472]. - The company's income before taxes for 2022 was $170,214,000, compared to $57,821,000 in 2021, indicating a year-over-year increase of 194.5%[472]. - The total GAAP depreciation and amortization for 2022 was $32,673,000, down from $37,801,000 in 2021, reflecting a decrease of 13.4%[473]. - The company's weighted-average loan-to-value ratio was 67.9% as of December 31, 2022, indicating a strong equity position[487]. - The company reported a GAAP realized gain on the sale of real estate of $115,998,000 for 2022, up from $55,766,000 in 2021, marking an increase of 107.5%[473]. - The company intends to maintain its REIT status by distributing at least 90% of its REIT taxable income to shareholders[474]. - The company has declared regular quarterly distributions to shareholders, aligning with its net taxable income[474]. - Net income for the year ended December 31, 2022, was $165,305,000, a significant increase from $56,893,000 in 2021 and a recovery from a loss of $9,458,000 in 2020[546]. - Cash provided by operating activities for 2022 was $106,710,000, compared to $79,739,000 in 2021 and $111,943,000 in 2020, indicating a strong operational performance[546]. - The company originated mortgage loan receivables held for investment totaling $1,234,765,000 in 2022, a decrease from $2,309,888,000 in 2021[546]. - The company reported a loss on the extinguishment of debt amounting to $685,000 in 2022, contrasting with a loss of $22,250,000 in 2020[546]. - The unrealized loss on derivative instruments was $645,000 in 2022, compared to a loss of $42,000 in 2021[546]. - The company declared dividends totaling $107,729,000, reflecting a commitment to returning value to shareholders[543]. Credit Losses and Impairments - The provision for loan losses for the year ended December 31, 2022, was $3.7 million, compared to a release of $8.7 million in 2021[457]. - The allowance for loan losses at December 31, 2022, was $21.5 million, down from $32.2 million at December 31, 2021[458]. - During 2022, there was a charge-off of reserve amounting to $14.4 million and a recovery of $3.1 million from a loan that was previously on non-accrual status[458]. - The Company evaluates each loan for impairment at least quarterly, with impairment occurring when it is probable that the Company will not collect all principal and interest due[452]. - A loan is designated as non-accrual when principal or interest payments are 90 days past due or if collection is doubtful[455]. - The Company uses a current expected credit loss model (CECL) for estimating loan loss provisions, which includes both portfolio-based and asset-specific components[451]. - The estimate of loan losses is sensitive to assumptions regarding future expected economic conditions[458]. - The Company engages a third-party service provider to support the calculation of CECL reserves, utilizing a forward-looking econometric model[451]. - The allowance for credit losses reflects the company's estimate of current expected credit losses on mortgage loan receivables over the life of the loans[507]. - The company uses a third-party probability of default and loss given default model to estimate expected losses, incorporating macroeconomic variables and collateral fair value[507]. - The critical audit matter involved the subjective nature of estimating the allowance for credit losses due to complex models and significant assumptions[505]. - The audit procedures included evaluating the methodology and significant assumptions used in estimating the allowance for credit losses[509]. Assets and Liabilities - Total assets increased to $5,951,173, up from $5,851,252 in 2021, representing a growth of 1.7%[527]. - Total liabilities increased to $4,417,612, compared to $4,337,633 in 2021, reflecting a rise of 1.8%[527]. - Cash and cash equivalents rose to $609,078, an increase of 10.9% from $548,744 in 2021[527]. - The total cash, cash equivalents, and restricted cash at the end of 2022 was $659.6 million, up from $621.5 million at the end of 2021, reflecting a 6.1% increase[549]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $38.1 million in 2022, contrasting with a decrease of $(662.7) million in 2021[547]. Real Estate and Investments - The company’s investment activities include originating senior first mortgage loans and owning commercial real estate, focusing on senior secured assets[552]. - The Company classifies securities as available-for-sale or held-to-maturity, with changes in fair value recognized in earnings or other comprehensive income[570]. - Real estate assets are acquired through cash purchases or foreclosure, classified as held for use or held for sale based on the Company's strategic intent[580]. - Impairment assessments for properties held for use consider factors like low lease percentages and projected cash flow losses, with impairment recognized if future cash flows are less than carrying value[589]. - When assets are classified as held for sale, depreciation is discontinued, and impairment charges are recorded if estimated net sales price is less than net book value[590]. - The Company recognizes gains on sales of real estate in accordance with ASC 606-20 and ASC 610-20, with residential condominiums governed by ASC 606-20 and rental properties under ASC 610-20[592]. - Investments in unconsolidated ventures are recorded at cost and adjusted for equity in earnings and cash contributions, with the equity method discontinued when the investment is reduced to zero[593]. - The Company only recognizes its share of income from ventures to the extent it exceeds previously unrecognized losses[593].

Financial Data and Key Metrics Changes - Ladder generated distributable earnings of $38.9 million or $0.31 per share for Q4 2022, and $148.4 million or $1.16 per share for the full year 2022, representing a 9.7% after-tax return on equity [6][12] - The adjusted leverage ratio stood at 1.9x as of December 31, with a net leverage ratio of 1.1x when excluding cash and securities [9][3] - The company reported over $900 million in same-day liquidity, which includes cash, cash equivalents, and undrawn corporate revolver capacity [9][3] Business Line Data and Key Metrics Changes - The balance sheet loan portfolio totaled $3.9 billion, primarily floating rate and diversified in collateral and geography, with a focus on multi-family assets [16] - In 2022, Ladder originated $1.2 billion in balance sheet loans, with two-thirds being multifamily or manufactured housing [21] - The real estate portfolio generated net rental income of $67.9 million in 2022, contributing to distributable earnings [25] Market Data and Key Metrics Changes - 82% of the loan portfolio consists of 2021 and 2022 vintage loans, with 40% of the portfolio in multifamily or manufactured housing [16][22] - The company reported a competitive total cost of debt capital of 5.34% at the end of Q4 2022, benefiting from a large base of fixed-rate unsecured debt [14] Company Strategy and Development Direction - Ladder's strategy focuses on basis lending on smaller middle-market loans, with a strong emphasis on credit discipline and liquidity management [23][27] - The company aims to deploy significant liquidity into higher rate environments to grow earnings in 2023 and beyond [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic environment, highlighting strong liquidity and a diversified asset base [41][44] - The management team anticipates continued benefits from rising interest rates, which should enhance net interest income [36][92] Other Important Information - The company increased its quarterly dividend by 15% over the course of 2022, which remains well covered by net interest margin and net rental income [12][34] - Ladder's unencumbered asset pool stood at $3 billion, with 76% comprised of cash and cash equivalents and first mortgage loans [19] Q&A Session Summary Question: What is the current stock valuation for Ladder? - Management noted that despite a drop in stock price, the company has successfully raised dividends and expects to continue doing so based on strong earnings performance [86][88] Question: How does the company view the risk in multifamily loans originated post-COVID? - Management indicated that they have maintained a cautious approach to underwriting, focusing on high-quality assets and avoiding over-leveraged deals [91][96] Question: Can you provide details on the recent equity investment sales? - Management confirmed the sale of three properties, including a significant office asset, and provided details on cap rates and gains associated with these sales [113][120]

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, 2022 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 https://reportify- 1252068037.cos.ap beijing.myqcloud.c (Exact name of registra ...

Ladder Capital Corp. (NYSE:LADR) Q3 2022 Earnings Conference Call October 27, 2022 5:00 PM ET Company Participants Pamela McCormack - Founder & President Brian Harris - Founder & Chief Executive Officer Paul Miceli - Chief Financial Officer Conference Call Participants Chris Muller - JMP Securities Jade Rahmani - KBW Rich Gross - Columbia Threadneedle Investments Matthew Howlett - B. Riley Securities Operator Good afternoon and welcome to Ladder Capital Corp's Earnings Call for the Third Quarter of 2022. As ...

Form 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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) (State or other jurisdiction ...

Investment Portfolio & Activity - Ladder Capital originated $371 million in loans, with $347 million funded at closing, and also funded $20 million of pre-existing loan commitments[11] - The company sold two CRE equity investments for $84 million in net sales proceeds, contributing $15 million to distributable earnings[11] - The total loan portfolio carrying value of assets was $4.023 billion[18] - Securities segment assets had a carrying value of $617 million with a weighted-average yield of 2.9%[19] Portfolio Composition & Financials - Total assets were $5.8 billion, including $4.0 billion in loans (69% of total), $788 million in real estate equity (13%), and $617 million in securities (11%)[11] - Distributable Earnings were $43.7 million and Distributable EPS was $0.34[12] - The company declared a Q2 2022 cash dividend of $0.22 per LADR share, a 10% increase vs Q1 2022, representing a 7.6% annual dividend yield[12] - Net interest income was $22.6 million[37] Capital Structure & Leverage - The company had $2.9 billion of unencumbered assets (49% of total assets), including $217 million of unrestricted cash[12] - The Adjusted Leverage Ratio was 1.8x, or 1.7x net of cash[12] - Non-Recourse, Non-Mark-to-Market & Unsecured Debt + Book Equity comprised 84% of total capitalization[26]

1 INVESTOR INVESTOR PRESENTATION PRESENTATION OCTOBER 2021 MAY 2022 NYSE: LADR NYSE: LADR A Leading Commercial Real Estate Investment Trust A Leading Commercial Real Estate Investment Trust DISCLAIMERS 2 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 and affiliates (collectively, "Ladder Capital," "Ladder," "LADR," or the "Company"). Any statement concern ...

Financial Performance - Net income for the three months ended March 31, 2022, was $19.2 million, a decrease of $7.9 million compared to $27.1 million for the previous quarter [288]. - Distributable earnings for the three months ended March 31, 2022, totaled $31.5 million, up from $27.7 million in the previous quarter, reflecting a $7.6 million increase in real estate sales [289]. - The net income for the three months ended March 31, 2022, was $19.2 million, a significant increase from $0.4 million for the same period in 2021 [316]. - Distributable earnings totaled $31.5 million for the three months ended March 31, 2022, compared to $3.2 million for the same period in 2021, reflecting a $28.3 million increase [317]. - Total other income increased by $16.1 million to $65.2 million, driven by a $10.5 million increase in realized gain on sale of real estate and a $4.4 million increase in fee and other income [290]. Assets and Investments - As of March 31, 2022, total assets amounted to $6.0 billion, with total equity at $1.5 billion [234]. - Ladder Capital's total investments reached $5.4 billion, representing 90.4% of total assets as of March 31, 2022 [238]. - The company held a portfolio of 143 balance sheet first mortgage loans with an aggregate book value of $3.8 billion, with a weighted average loan-to-value ratio of 68.2% [240]. - As of March 31, 2022, Ladder Capital owned 158 single tenant net leased properties valued at $520.3 million, with 100% of rent collected during the three months ended March 31, 2022 [246]. - The company has invested $12.9 billion in predominantly investment grade-rated securities secured by first mortgage loans on commercial real estate [232]. Debt and Borrowings - As of March 31, 2022, the company had $1.6 billion of unsecured corporate bonds outstanding, including $348.0 million in 5.25% senior notes due 2025, $651.8 million in 4.25% senior notes due 2027, and $650.0 million in 4.75% senior notes due 2029 [257]. - Total debt obligations as of March 31, 2022, were $4.34 billion, including senior unsecured notes of $1.63 billion and CLO debt of $1.06 billion [365]. - The company had $412.3 million of borrowings outstanding under committed loan repurchase facilities, with an additional $0.9 billion of committed financing available [368]. - The company had $1.1 billion of matched term, non-mark-to-market and non-recourse CLO debt included in its debt obligations as of March 31, 2022 [261]. - The company generally seeks to maintain a debt-to-equity ratio of approximately 3.0:1.0 or below, with expectations of fluctuations due to business operations [278]. Cash Flow - Net cash used in operating activities for the three months ended March 31, 2022, was $(30.0) million, driven by $(54.8) million of mortgage loan originations held for sale [353]. - Net cash provided by financing activities was $75.6 million, resulting from net borrowings of $115.4 million, partially offset by $(26.1) million in dividend payments [355]. - Net cash provided by investing activities was $688.7 million, driven by $394.4 million in mortgage loan receivables repayment and $329.1 million from the sale of real estate securities [358]. - Net cash used in financing activities amounted to $(477.4) million, primarily due to net borrowings of $(445.6) million and $26.2 million in dividend payments [359]. - The company held cash, cash equivalents, and restricted cash of $495.2 million as of March 31, 2022, with $431.8 million being unrestricted [349]. Loan and Securities Management - The company originated and funded $703.4 million in commercial mortgage loans during the three months ended March 31, 2022, offset by $349.9 million in principal repayments [286]. - The weighted average yield on mortgage loan receivables was 5.4% as of March 31, 2022, down from 5.7% as of December 31, 2021 [294]. - The company recorded a $16.9 million increase in interest income for the three months ended March 31, 2022, attributed to increased net originations and higher prevailing rate benchmarks [319]. - The company had outstanding borrowings secured by mortgage loan receivables equal to 40.7% of their carrying value as of March 31, 2022, up from 39.0% as of December 31, 2021 [294]. - The company acquired $29.8 million in new securities during the three months ended March 31, 2022, contributing to a net decrease in the securities portfolio of $40.3 million [286]. Risk Management and Provisions - The total provision for loan loss reserves increased by $0.9 million for the three months ended March 31, 2022, due to a $0.6 million increase in general reserves and a $0.3 million increase related to unfunded loan commitments [297]. - The estimated provision for loan losses increased to $33.1 million at March 31, 2022, compared to $32.2 million at December 31, 2021 [422]. - The provision for loan losses for the three months ended March 31, 2022, was $0.9 million, while the allowance for loan losses stood at $32.3 million [423]. - The company evaluates loans for impairment at least quarterly, with impairment occurring when it is probable that the company will not collect all amounts due [417]. - The company utilizes a current expected credit loss model (CECL) for estimating loan loss provisions, which includes both portfolio-based and asset-specific components [416]. Management and Governance - Ladder Capital's management team holds over 10% of the company's total equity, with an average of 26 years of industry experience [236]. - The Company intends to declare regular quarterly distributions to its shareholders approximating at least 90% of the REIT's annual net taxable income [397]. - Approximately $1.2 billion of Tuebor's member's capital was restricted from transfer via dividend to Tuebor's parent without prior approval of state insurance regulators [387]. - The company has no known material cash requirements beyond its contractual obligations and unfunded commitments [409]. - The company had two properties classified as held for sale at March 31, 2022, and did not record any impairments for the three months ended March 31, 2022 [427].

DRAFT (03/31/2022; 4:30 PM) INVESTOR S-0 PRESENTATION SUPPLEMENTAL DATA FOR THE QUARTER ENDED MARCH 31, 2022 OCTOBER 2021 NYSE: LADR NYSE: LADR A Leading Commercial Real Estate Investment Trust A Leading Commercial Real Estate Investment Trust DISCLAIMERS S-1 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 and affiliates (collectively, "Ladder Capital," "L ...