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Distributable Earnings: $30.9 million or $0.23 per share.
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Return on Equity: 7.7%.
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Adjusted Leverage: 1.6 times as of quarter end.
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Investment Grade Rating: Upgraded to BAA3 by Moody’s and BBB by Fitch.
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Bond Issuance: $500 million five-year bond with a 5.5% coupon rate.
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Liquidity: $1 billion, including an $850 million undrawn revolving credit facility.
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Loan Portfolio: $1.6 billion with a weighted average yield of approximately 9%.
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Securities Portfolio: $2 billion, 99% investment grade rated, with a weighted average yield of 5.9%.
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Real Estate Portfolio: $936 million generating $15.1 million in net operating income.
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Dividend: $0.23 per share, paid on July 15, 2025.
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Stock Repurchase: $6.6 million repurchased, 635,000 shares at $10.40 per share.
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Undepreciated Book Value Per Share: $13.68.
Release Date: July 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Ladder Capital Corp (NYSE:LADR) achieved investment grade ratings from Moody’s and Fitch, marking a significant milestone in its history.
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The company successfully issued a $500 million five-year investment grade unsecured bond with a fixed rate coupon of 5.5%, which was 5.5 times oversubscribed.
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Ladder Capital Corp (NYSE:LADR) has a strong liquidity position with $1 billion in liquidity, including an $850 million unsecured revolving credit facility.
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The company’s securities portfolio increased to $2 billion, with 99% investment grade rated and 97% AAA rated, providing a stable source of income.
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Ladder Capital Corp (NYSE:LADR) maintains a conservative balance sheet with a modest adjusted leverage of 1.6 times and a strong focus on credit risk management.
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Loan origination activity remained relatively flat in the second quarter, with $191 million in loan payoffs largely offset by $173 million in new loan originations.
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The company has five loans on non-accrual status, totaling $162.3 million, representing 3.6% of total assets.
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There are concerns about certain pockets of the multi-family sector where rents are falling, which could impact loan origination.
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The office sector remains challenging, with some properties experiencing overbuilding and rent reductions.
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The conduit lending business is supply-constrained, with a lack of mortgage-backed securities issuance affecting growth opportunities.
Q: With the current market conditions and volatility, how is Ladder Capital managing its securities portfolio, particularly CMBS? A: Brian Harris, CEO, explained that the securities portfolio is performing well, especially given the volatility in April. Ladder Capital has been buying securities and believes they are at fair value now. The company is selectively selling securities as they transition from T-bills to securities and now into loans. The portfolio is designed to be a source of liquidity as the loan book builds.
