PresentationLindsey CrabbeDirector of Investor Relations Good morning, everyone, and thank you for joining us today. I'm Lindsey Crabbe, and I'm pleased to serve as today's moderator. Joining me are Rich Byrne, CEO of FBRT; Mike Comparato, President of FBRT; and Jerry Baglien, CFO and COO of FBRT. Before we get started, there's just a few housekeeping notes. We are going to record this webinar and post it to our website so anyone can join if they'd like to in the future. And please take a moment to review t ...

Core Insights - The acquisition of Newpoint by FBRT was completed on July 1, enhancing FBRT's capabilities in commercial real estate finance [3] - Newpoint is recognized as a leading vertically integrated company in the sector, providing various services including loan origination and asset management [3] - This acquisition positions FBRT to improve income stability and supports long-term growth in book value per share [3] Company Overview - FBRT's leadership includes CEO Rich Byrne, President Mike Comparato, and CFO Jerry Baglien, who participated in the recent webinar [1] - The company aims to leverage the acquisition to strengthen its agency origination and servicing platform [3] Industry Context - Newpoint is one of only 19 multifamily originators in the U.S. approved by all three Government-Sponsored Enterprises (GSEs): Fannie Mae, Freddie Mac, and FHA/HUD [3] - The acquisition reflects a strategic move within the commercial real estate finance industry to consolidate services and enhance operational capabilities [3]

NEW YORK--(BUSINESS WIRE)--Ladder Capital Corp ("Ladder†or the "Company†) (NYSE: LADR) today announced the declaration by its board of directors of a third quarter 2025 dividend of $0.23 per share of Class A common stock. The cash dividend is payable on October 15, 2025 to stockholders of record as of the close of business on September 30, 2025. About Ladder Ladder is a publicly listed, investment grade- rated commercial real estate finance company with a diversified, nationwide platform. We de. ...

Financial Performance - GAAP Net Loss attributable to common stockholders was $(170) million, or $(035) per basic common share[8, 13] - Distributable Earnings Loss was $(453) million, or $(094) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(20) million, or $(004) per basic common share[7, 8] - Book Value per Common Share was $799[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $19 billion across 47 loan investments[7, 8] - The portfolio is comprised of 99% senior loans[7, 25] - Weighted Average Stabilized LTV at Origination was 647%[7, 25] - Total CECL reserve was $1551 million, representing 81% of total loan portfolio commitments[7, 8] Capitalization and Liquidity - The company had $851 million in unrestricted cash[7, 8] - Total Leverage Ratio was 21x[7, 8] - The company repurchased 125 million shares at an average price of $248 per share, totaling $31 million[8]

Group 1: Stock Recommendations - New York Mortgage Trust (NYMT) is a real estate investment trust focused on residential mortgage securities and has seen a 4.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - TPG RE Finance Trust (TRTX) is a commercial real estate finance company that has experienced a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - First Commonwealth Financial (FCF) operates two chartered banks and has witnessed a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2: Dividend Yields - New York Mortgage Trust (NYMT) has a dividend yield of 12.2%, surpassing the industry average of 11.4% [2] - TPG RE Finance Trust (TRTX) has a dividend yield of 11.1%, compared to the industry average of 0.0% [3] - First Commonwealth Financial (FCF) offers a dividend yield of 3.3%, which is higher than the industry average of 2.7% [4]

Financial Highlights - New investment activity reached over $1 billion[7] - Investment assets and unrestricted cash totaled $4.7 billion, including $1.6 billion in senior secured first mortgage loans[8] - Total liquidity was approximately $1 billion, which included an $850 million undrawn unsecured corporate revolver[8] - The company issued $500 million in inaugural investment grade unsecured bonds[8] Portfolio Composition - First mortgage loans accounted for $1.6 billion, or 35%, of the total investment portfolio[11] - CRE equity represented $936 million, or 20%, of the portfolio[11] - Securities comprised $2 billion, or 42%, of the portfolio[11] - 82% of the company's assets are senior secured and/or investment grade rated[11] Key Metrics - Distributable earnings were $30.9 million, resulting in distributable EPS of $0.23 and a distributable ROAE (after-tax) of 7.7%[11] - The company declared a Q2 2025 cash dividend of $0.23 per share, representing an 8.3% annual dividend yield[11] - Unencumbered assets totaled $3.7 billion, which is 83% of total assets[11] - The adjusted leverage ratio was 1.6x, or 1.5x net of cash[11] - 74% of total debt was comprised of unsecured corporate bonds[11]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of approximately $1.7 million or $0.03 per share, and distributable earnings of approximately $4 million or $0.08 per share [4][16] - Interest income decreased to $7.7 million from $9.4 million in Q4 2024, primarily due to declines in the SOFR benchmark rate and deleveraging of secured financings [16] - Total operating expenses were largely flat at $2.6 million in Q1 compared to $2.8 million in Q4 [17] - The total equity at the end of the quarter was approximately $232 million, with a book value of common stock at approximately $172 million or $3.29 per share, down from $3.40 [20] Business Line Data and Key Metrics Changes - The portfolio consisted of 61 floating rate note loans with an aggregate unpaid principal balance of approximately $1 billion, with 92% collateralized by multifamily properties [20] - The weighted average note floating rate was SOFR plus 355 basis points, with a weighted average remaining term of approximately 40 months [21] - The number of loans risk rated at three or better decreased to 60% from 64% in the prior quarter, while the weighted average risk rating remained flat at 3.5 [21] Market Data and Key Metrics Changes - The multifamily sector showed resilience despite low rent growth, with robust occupancy rates and a deceleration in multifamily construction starts due to financing scarcity and increased costs [9][10] - The company noted a favorable environment for multifamily investments due to steady demand and limited new supply, despite challenges faced by potential homebuyers [10] Company Strategy and Development Direction - The company is focused on active asset management, monitoring borrower performance, and market trends to maximize recovery values [11] - A proactive approach is taken to manage liquidity, with a considerable amount of unrestricted cash held on the balance sheet [12] - The company is exploring options for new secured financing to enhance flexibility and access the CRE CLO market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about investment opportunities in 2025, despite ongoing economic uncertainties [9] - The company anticipates potential resolutions for problem loans in the next three to six months, depending on market conditions and sponsor relationships [41][43] - Management acknowledged the challenges faced by sponsors and the importance of reinvestment in assets to prevent deterioration [47] Other Important Information - The company executed several successful loan modifications and extensions to preserve value and enhance downside protection [11] - Specific reserves for credit losses increased to $11.1 million, reflecting a net increase of $7.3 million from the prior quarter [18] Q&A Session Summary Question: Can you characterize the pipeline today and the level of net originations needed to maintain current dividend capacity? - Management indicated confidence in origination levels, stating that there are assets available for deployment when capacity allows, despite recent market volatility [30][31] Question: Are there alternative financing options being considered before the next CLO? - Management confirmed that opportunities exist in both bank and private credit markets, which may provide more flexible interim financing options [36][38] Question: What is the outlook for problem loans under asset management? - Management sees potential for resolutions in the near term, emphasizing the importance of sponsor relationships and the need for reinvestment in assets [40][41] Question: Is the rise in nonaccruals primarily a cash flow issue for sponsors? - Management acknowledged that cash flow issues are prevalent, affecting both asset performance and sponsor investment in properties [47] Question: How do current market conditions compare to previous assessments of strong fundamentals? - Management maintained that while overall market conditions remain strong, specific assets have faced challenges due to sponsor performance and investment decisions [49][50]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of approximately $1.7 million or $0.03 per share, and distributable earnings of approximately $4 million or $0.08 per share [4][15] - Interest income decreased to $7.7 million from $9.4 million in Q4 2024, primarily due to declines in the SOFR benchmark rate and deleveraging of secured financings [15] - Total operating expenses were largely flat at $2.6 million in Q1 compared to $2.8 million in Q4 [16] - The total book value of common stock decreased to approximately $172 million or $3.29 per share from $3.40 as of December 31, driven by an increase in the allowance for credit losses [20] Business Line Data and Key Metrics Changes - The portfolio consisted of 61 floating rate note loans with an aggregate unpaid principal balance of approximately $1 billion, with 92% collateralized by multifamily properties [21] - The weighted average note floating rate was SOFR plus 355 basis points, with a weighted average risk rating remaining flat at 3.5 [22] Market Data and Key Metrics Changes - The multifamily sector showed resilience despite low rent growth, with robust occupancy rates and a deceleration in multifamily construction starts due to financing scarcity and increased construction costs [10] - The company noted a favorable environment for multifamily investments due to steady demand and limited new supply [10] Company Strategy and Development Direction - The company is focused on active asset management, monitoring borrower performance, and market trends to maximize recovery values [11] - A proactive approach is taken to manage liquidity, holding a considerable amount of unrestricted cash rather than deploying it into new loan assets [12] - The company is exploring options for new secured financing to enhance flexibility and access the CRE CLO market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about investment opportunities in 2025, despite ongoing economic uncertainties [9] - The company anticipates potential volatility in the market but remains committed to preserving capital and maximizing risk-adjusted returns [11] Other Important Information - The company recognized a net increase in the allowance for credit losses of $5.7 million, with seven loans risk rated five, representing approximately 11% of the unpaid principal balance [17][22] - The unrestricted cash balance at the end of Q1 was $64 million, with effective leverage from securitizations at 77% [19] Q&A Session Summary Question: Can you characterize the pipeline today and the level of net originations needed to maintain current dividend capacity? - Management indicated that there are assets available for deployment and expressed confidence in maintaining origination levels despite recent market volatility [31][32] Question: Are there other financing options being considered before the next CLO? - Management confirmed that they are exploring both bank and private credit options for more flexible interim financing [36][37] Question: What is the outlook for problem loans and potential resolutions? - Management sees the potential for resolutions in the next three to six months, emphasizing the importance of sponsor relationships and the need for reinvestment in assets [40][41] Question: Is the rise in nonaccruals a cash flow issue for sponsors? - Management acknowledged that cash flow issues are prevalent, affecting both asset performance and sponsor investment [48][49] Question: How does the current market condition compare to previous strong fundamentals? - Management noted that while the overall market remains strong, some sponsors have not followed through on their commitments, leading to asset deterioration [50][51]

Financial Performance - GAAP Net Loss attributable to common stockholders was $(10.6) million, or $(0.22) per basic common share[8, 13] - Distributable Earnings Loss was $(27.7) million, or $(0.57) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(3.0) million, or $(0.06) per basic common share[7, 8] - Common stock dividend was $0.05 per share[7, 10] - Book Value per Common Share was $8.24[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $2.0 billion across 50 loan investments[7, 8] - The unpaid principal balance of the loan portfolio was $1.9 billion[26, 37] - The weighted average stabilized LTV at origination was 64.5%[7, 25, 26] - The total CECL reserve was $180.2 million, representing 8.8% of total loan portfolio commitments[7, 8] - Net loan portfolio activity resulted in a decrease of $(161.4) million in unpaid principal balance[8, 24] Capitalization and Liquidity - The company had $85.7 million in unrestricted cash[7, 8, 10] - The total leverage ratio was 2.2x[7, 8, 34] - $2.1 billion financing capacity with $1.4 billion outstanding[7]

Financial Data and Key Metrics Changes - Apollo Commercial Real Estate Finance reported distributable earnings of $33 million or $0.24 per share for Q1 2025, with GAAP net income of $23 million or $0.16 per diluted share, providing 96% coverage of the quarterly dividends [15][16] - The loan portfolio ended the quarter with a carrying value of $7.7 billion, up from $7.1 billion at year-end, with a weighted average yield of 7.9% [17][19] - The debt-to-equity ratio at quarter end was 3.5x, up from 3.2x at year-end, reflecting the recirculation of proceeds from repayments into new leveraged deals [22] Business Line Data and Key Metrics Changes - The first quarter saw continued velocity in loan originations, with $650 million of new loans committed, primarily secured by residential properties and a data center construction loan [9][10] - Loan repayments totaled $93 million during the quarter, which were quickly redeployed through new origination post-quarter end, amounting to $709 million in total commitments on new loans in Q2 to date [18][20] Market Data and Key Metrics Changes - The real estate market is experiencing modest spread widening and a more cautious tone, with a broad recession presenting the greatest risk to ongoing recovery [7][8] - Limited new supply due to tariff effects driving up construction costs is expected to positively impact long-term real estate values and fundamentals [8] Company Strategy and Development Direction - The company is focused on proactive asset management and executing plans on focus loans to maximize value recovery and convert capital into higher return opportunities [13] - The strategy includes financing developers of data centers with strong credit tenants and long-term leases, reflecting a commitment to sectors with strong secular tailwinds [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan portfolio's ability to produce distributable earnings that support the current quarterly dividend run rate, despite Q1 earnings being slightly below this rate [14][16] - The company anticipates a recovery in distributable earnings for the remaining quarters of 2025, driven by growth in the loan portfolio and recirculation of underperforming capital [16] Other Important Information - The company has defined pathways for each focus asset and is actively pursuing resolutions, with a focus on selling the Liberty Center asset in the latter part of the year [28] - The company ended the quarter with $218 million of total liquidity, comprised of cash on hand and committed undrawn credit capacity [22] Q&A Session Summary Question: Concerns about realizing losses on non-accruing assets - Management indicated that specific CECL allowances are tied to two assets, with plans to sell Liberty Center later this year and positive sales momentum for 111 West 57th Street [26][28] Question: Market impacts on loan repayments and new money deployment - Management noted that the market remains robust, with no anticipated slowdown in transactions despite recent volatility [34][36] Question: Updates on specific assets and portfolio growth - Management provided updates on various assets, indicating positive leasing activity and potential recapitalization strategies for the Manhattan office [56][63] Question: Exposure in the U.K. and Europe - Management explained that the company's European operations were established through relationships with U.S. sponsors and have developed a strong presence in the market over the past decade [87][90]