What were the key takeaways from Ladder Capital's earnings call?

What is Ladder Capital's latest dividend and current dividend yield?

What guidance did Ladder Capital's management provide for the next earnings period?

What factors drove the changes in Ladder Capital's revenue and profit?

What is Ladder Capital's gross profit margin?

What does Ladder Capital do and what are its main business segments?

What is the market's earnings forecast for Ladder Capital next quarter?

What is the revenue and EPS growth rate for Ladder Capital year over year?

- **Accelerated Growth**: Q3 loan originations ($511M) and bond issuance ($500M) drive $354M portfolio expansion, positioning for $1B+ loan growth next year.
- **Cost Efficiency**: 5.3% unsecured bond coupon vs. 5.5% T-bills, with revolver at SOFR +1.25%.
- **Strategic Shifts**: Moving capital from 5.7% securities (80% AAA) to 8.2% loans, targeting 9-10% ROE.
- **Market Resilience**: Stable credit performance (2.6% non-accrual loans), with CECL reserve steady at $52M.
- **Liquidity Strength**: $879M liquidity (84% assets unencumbered), supporting $1B+ origination pipeline.


**【CEO Summary Section】**
- Generated distributable earnings of $32.1 million ($0.25 per share), with a return on equity of 8.3% and modest leverage of 1.7x.
- Loan originations accelerated to $511 million (highest in 3 years), driven by multifamily and industrial assets at a weighted average spread of 279 basis points.
- Reduced office loan exposure to $652 million (14% of assets) after full payoff of a $63 million Birmingham loan.
- Closed inaugural $500 million investment-grade bond at 5.5%, trading tighter to 120 basis points in secondary market.
- Liquidity remains strong at $879 million, with 84% of assets unencumbered.

**【CFO Financial Commentary】**
- Q3 distributable earnings: $32.1 million ($0.25 per share), with 8.3% ROE.
- Bond issuance proceeds used to call $285 million of high-yield bonds and fund originations.
- 75% of debt now unsecured corporate bonds, with a 5.3% weighted average coupon.
- Undrawn revolver provides $830 million of same-day liquidity at competitive rates.
- Repurchased $1.9 million of common stock, with $91.5 million remaining under buyback program.
- Dividend declared at $0.23 per share (8.5% yield), stable despite market volatility.

**【Q&A Key Highlights】**
- **Origination Strategy Post-IG Rating**: Focused on slightly larger, higher-quality transactions (e.g., new Class A apartments, industrial properties) with spreads improving due to reduced competition.
- **Loan Portfolio Growth**: Expect $1 billion+ expansion over next year, driven by $500 million+ pipeline and reduced securities runoff.
- **ROE Improvement**: Target 9-10% ROE through higher-yielding loans (8.5%+) and lower cost of funds (SOFR +1.25% revolver vs. 5.5% T-bills).
- **Securities Strategy**: Actively managing AAA runoff (Q3 sold $257 million), with focus on loan origination reinvestment.
- **New York Office Equity**: $13 million equity investment in 780 Third Avenue now 90% leased, with plans for similar larger transactions.


Ladder Capital Corp (LADR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LADR

LADR fundamentals

You can ask Aime