Ladder Capital(US:LADR)2025-04-26 00:34Loan 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].