Core Insights - Ladder Capital achieved significant growth in loan originations, with nearly $950 million in new loans in the second half of the year, marking the best performance in over three years [1] - The company generated distributable earnings of $109.9 million for the full year, achieving a 7.1% return on equity and maintaining a stable book value [3][4] - Ladder Capital became the only investment-grade rated commercial mortgage REIT, enhancing its access to capital markets and reducing its cost of funds [3][12] Financial Performance - In the fourth quarter, Ladder generated distributable earnings of $21.4 million, or $0.17 per share, which adjusted for a loan loss, would be $0.21 per share [4][11] - The loan portfolio totaled $2.2 billion at year-end, representing 42% of total assets, with a weighted average yield of 7.8% [1][16] - The company maintained robust liquidity of $608 million, including $570 million of undrawn capacity on its unsecured revolving credit facility [8][13] Investment Strategy - Ladder's investment strategy focuses on stable income-producing collateral, primarily in multifamily and industrial properties, with a reduction in office loan exposure from 14% to 11% [1][5] - The company made strategic investments in office properties, including a $25.8 million equity investment for a 20% interest in a Manhattan office property [5] - Ladder's securities portfolio totaled $2.1 billion, with 99% rated investment-grade and 97% rated AAA, underscoring its high credit quality [18] Market Positioning - Ladder's capital structure is predominantly unsecured, allowing it to operate independently of repo and CLO markets, positioning the company to capitalize on future opportunities [2][7] - The company has seen its bonds tighten significantly, outperforming comparably rated equity REIT bonds, which enhances its competitive positioning [7] - Ladder's focus on lower leverage models and disciplined underwriting practices has allowed it to avoid significant losses compared to industry peers [49] Future Outlook - The company plans to drive growth in loan originations and earnings in 2026, with expectations to increase the loan portfolio to over $6 billion by year-end [30][32] - Ladder anticipates a continued focus on lending opportunities, particularly in the commercial real estate market, as acquisition activity improves [5][23] - The company aims to attract high-quality equity REIT shareholders and align its valuation with peers to further reduce its cost of capital [9]

Core Viewpoint - Investors in the REIT and Equity Trust sector should consider Apollo Commercial Finance (ARI) and Ladder Capital (LADR) as potential value investment opportunities [1] Group 1: Investment Strategies - A strong Zacks Rank combined with a high Value grade from the Style Scores system yields the best returns for value investors [2] - The Zacks Rank emphasizes stocks with positive earnings estimate revisions, while Style Scores highlight specific company traits [2] Group 2: Current Rankings and Outlook - Both ARI and LADR hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3] - Value investors focus on various valuation metrics to identify undervalued companies [4] Group 3: Valuation Metrics - ARI has a forward P/E ratio of 9.44, while LADR has a forward P/E of 11.48 [5] - ARI's PEG ratio is 0.25, indicating a favorable valuation compared to LADR's PEG ratio of 2.31 [5] - ARI's P/B ratio is 0.74, compared to LADR's P/B of 0.94, suggesting ARI is more undervalued [6] - Based on these valuation metrics, ARI is rated with a Value grade of B, while LADR has a Value grade of D [6]

Core Viewpoint - The article compares Apollo Commercial Finance (ARI) and Ladder Capital (LADR) to determine which stock is more attractive to value investors [1] Valuation Metrics - ARI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to LADR, which has a Zacks Rank of 4 (Sell) [3] - ARI's forward P/E ratio is 9.31, while LADR's forward P/E ratio is 10.74 [5] - ARI has a PEG ratio of 0.24, suggesting it is undervalued relative to its expected earnings growth, whereas LADR has a PEG ratio of 2.16 [5] - ARI's P/B ratio is 0.72, compared to LADR's P/B ratio of 0.87, indicating ARI's market value is lower relative to its book value [6] - Based on these metrics, ARI earns a Value grade of B, while LADR receives a Value grade of D [6] Earnings Outlook - ARI is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Wall Street expects a year-over-year decline in earnings on lower revenues when BrightSpire (BRSP) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On th ...