Ladder Capital(US:LADR)2026-02-05 13:30Financial Performance - For Q4 2025, Ladder Capital Corp reported GAAP income before taxes of $15.5 million, or $0.13 diluted EPS, and distributable earnings of $21.4 million, or $0.17 distributable EPS[1]. - For the full year 2025, GAAP income before taxes was $67.2 million, or $0.51 diluted EPS, and distributable earnings totaled $109.9 million, or $0.84 distributable EPS[1]. - Distributable earnings for Q4 2025 were $21.418 million, a decrease from $32.055 million in Q3 2025, and $109.851 million for the year ended December 31, 2025[24]. - After-tax distributable earnings for Q4 2025 were $20.966 million, compared to $31.184 million in Q3 2025, and $106.333 million for the year ended December 31, 2025[26]. - The company reported a charge-off of allowance for credit losses amounting to $5 million in Q4 2025, consistent with the previous year's charge-off[27]. - The company recorded a net income before taxes of $15.518 million for Q4 2025, compared to $20.130 million in Q3 2025[24]. Capital Structure and Assets - The company maintains a conservative capital structure, reflected in its investment grade credit ratings of Baa3 from Moody's and BBB- from Fitch, both with stable outlooks[7]. - Total assets as of December 31, 2025, were $5.15 billion, an increase from $4.85 billion in 2024[12]. - Total liabilities rose to $3.67 billion in 2025, compared to $3.31 billion in 2024[12]. - Mortgage loan receivables held for investment, net, at amortized cost increased to $2.22 billion in 2025 from $1.59 billion in 2024[12]. - The average shareholders' equity for Q4 2025 was approximately $1.490 billion, leading to an after-tax distributable ROAE of 5.6%[26]. Earnings and Distributions - The company intends to continue declaring regular quarterly distributions to maintain its REIT status, requiring at least 90% of its REIT taxable income to be distributed[29]. - Distributable EPS prior to charge-offs of allowance for credit losses was $0.21 for Q4 2025[1]. - The weighted average diluted shares outstanding were 126,186 for Q4 2025, resulting in a distributable EPS of $0.17, down from $0.25 in Q3 2025[24]. Market and Economic Factors - The company achieved investment grade credit ratings in 2025, which reduced its cost of capital and expanded access to the unsecured corporate bond market[2]. - The company recognized unrealized losses on securities amounting to $135 thousand in Q4 2025, while the total GAAP depreciation and amortization was $8.378 million[24][25]. - The company adjusted for economic gains and losses related to loan sales, resulting in a net adjustment of $44 thousand for Q4 2025[25]. - The total GAAP realized gain on the sale of real estate for the year ended December 31, 2025, was $3.807 million[25]. - The company may incur gains and losses similar to adjustments presented, indicating potential future volatility in results[30]. Non-GAAP Measures - Distributable earnings and EPS do not reflect certain cash charges considered non-indicative of ongoing operations[31]. - Distributable EPS is based on a non-GAAP estimate of the effective tax rate, which may differ materially from actual rates[31]. - Other companies in the industry may calculate non-GAAP financial measures differently, limiting comparability[31].