Ladder Capital Exceeds Q2 EPS Expectations with $0.23 Distributable Profits

Ladder Capital Corporation, a mortgage real estate investment trust, reported Q2 distributable profits of $0.23 per share, beating the street's estimate of $0.22. The company's strategic portfolio pivot has contributed to its success, with a focus on alternative real estate lending.

Ladder Capital Corporation (NYSE: LADR), a leading mortgage real estate investment trust (REIT), reported Q2 distributable profits of $0.23 per share, surpassing the street's estimate of $0.22. This marks the third consecutive quarter in which the trust has beaten profit expectations [1].

The company's strategic pivot towards alternative real estate lending, particularly commercial real estate securities, has been a significant driver of its recent performance. Ladder Capital's commercial real estate lending portfolio continued to shrink, with the balance sheet first mortgage loan portfolio contracting by 37% year-over-year (YoY) [1]. This shift has led to a more diversified portfolio, with commercial real estate securities accounting for 47% of all investments in the second quarter of 2025, up from 13% in the previous quarter [1].

The strategic pivot has also contributed to a slight improvement in net interest income (NII), which rose by approximately $0.8 million quarter-over-quarter (QoQ) to $21.5 million, despite a 37% YoY decrease. The growth in commercial real estate securities more than offset the decrease in the value of the commercial lending portfolio, leading to a 14% YoY increase in the total portfolio [1].

Ladder Capital's dividend pay-out ratio improved QoQ, with the trust paying out 100% of its distributable profits in the second quarter, up from 115% in the first quarter. This improvement, combined with a 6% discount to book value, makes Ladder Capital an attractive option for passive income investors [1].

References:
[1] https://seekingalpha.com/article/4812948-ladder-capital-strategic-portfolio-pivot