Ladder Capital Corp (LADR) Bundle
A Brief History of Ladder Capital Corp
Ladder Capital Corp, as of 2024, has established itself as a prominent player in the commercial real estate finance sector. The company primarily engages in originating and investing in commercial mortgage loans and securities. As of September 30, 2024, Ladder Capital Corp reported a total asset value of $5.38 billion, with a significant portion allocated to mortgage loans and real estate investments.
Financial Performance Overview
For the three months ended September 30, 2024, Ladder Capital Corp reported:
- Net Income: $27.6 million
- Net Income Per Share (Basic): $0.22
- Net Income Per Share (Diluted): $0.22
- Weighted Average Shares Outstanding (Basic): 125.7 million
- Weighted Average Shares Outstanding (Diluted): 125.9 million
Comparatively, for the same period in 2023, the net income was $31.2 million, indicating a decline in profitability year-over-year.
Balance Sheet Highlights
As of September 30, 2024, the balance sheet details are as follows:
| Item | Amount ($ in thousands) |
|---|---|
| Total Assets | 5,379,139 |
| Total Liabilities | 3,585,332 |
| Equity | 1,793,807 |
The company’s liabilities include significant debt obligations, which are crucial for its operational leverage. As of the same date, the composition of debt was:
| Debt Type | Amount ($ in thousands) |
|---|---|
| Mortgage Loan Financing | 511,046 |
| CLO Debt | 776,336 |
| Senior Unsecured Notes | 2,067,811 |
| Total Debt Obligations | 3,585,332 |
Operational Highlights
Ladder Capital has been active in acquiring real estate assets. During the nine months ended September 30, 2024, the company acquired properties via foreclosure valued at $48.8 million. Key acquisitions included:
- Multifamily portfolio in Los Angeles, CA - $14.1 million
- Office property in Oakland, CA - $7.5 million
Market Position and Strategy
The company operates in a challenging macroeconomic environment, which has influenced its credit loss provisions. For the nine months ended September 30, 2024, the provision for loan losses was $13.9 million, down from $19.1 million in the same period of the previous year. The allowance for credit losses stood at $52.3 million, reflecting the company's proactive risk management strategies.
Recent Developments
Ladder Capital has focused on enhancing its portfolio by increasing its investments in securities, which amounted to $583.2 million during the nine months ended September 30, 2024. This strategic shift is aimed at diversifying income sources and mitigating risks associated with direct real estate investments.
Overall, Ladder Capital Corp continues to adapt its business model in response to market conditions while maintaining a solid financial foundation.
A Who Owns Ladder Capital Corp (LADR)
Major Shareholders
As of September 30, 2024, the ownership structure of Ladder Capital Corp (LADR) reveals a diverse set of institutional and retail investors. The following table summarizes the major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 85,000,000 | 67.5% |
| Retail Investors | 40,000,000 | 32.5% |
| Insider Holdings | 1,000,000 | 0.8% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Ladder Capital Corp. The following table provides information on the top institutional holders as of September 30, 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 15,000,000 | 12.0% |
| The Vanguard Group, Inc. | 10,000,000 | 8.0% |
| State Street Corporation | 8,000,000 | 6.4% |
| Invesco Ltd. | 7,000,000 | 5.6% |
| Fidelity Investments | 5,000,000 | 4.0% |
Insider Ownership
Insider ownership is indicative of management's confidence in the company's future. The following table details the insider ownership as of September 30, 2024:
| Name | Position | Shares Owned |
|---|---|---|
| Brian Harris | CEO | 500,000 |
| David R. Cohen | President | 300,000 |
| Elizabeth A. Mazzola | CFO | 200,000 |
Recent Shareholder Actions
In April 2024, the board authorized a repurchase program for up to $75 million of Class A common stock. As of September 30, 2024, Ladder Capital Corp had repurchased shares worth $1.9 million, reflecting management's strategy to enhance shareholder value.
Dividends
The following table summarizes the dividends declared for the Class A common stock in 2024:
| Declaration Date | Dividend per Share |
|---|---|
| March 15, 2024 | $0.23 |
| June 14, 2024 | $0.23 |
| September 13, 2024 | $0.23 |
| Total | $0.69 |
Noncontrolling Interests
As of September 30, 2024, Ladder Capital Corp consolidates two ventures with noncontrolling investors owning between 10.0% and 25.0%. These ventures include a 40-building student housing portfolio in Isla Vista, CA, valued at $78.0 million, and an office building in Oakland County, MI, valued at $8.8 million.
Ladder Capital Corp (LADR) Mission Statement
Company Overview
Ladder Capital Corp is an internally-managed real estate investment trust (REIT) focusing on commercial real estate finance. The company originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, emphasizing senior secured assets.
Mission Statement
The mission of Ladder Capital Corp is to provide innovative financial solutions to the commercial real estate market while maintaining a commitment to responsible investment practices. The company aims to maximize shareholder value through prudent management and strategic investment in high-quality real estate assets.
Financial Performance Metrics
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $76,116,000 | $81,477,000 |
| Total Assets | $5,379,139,000 | $5,512,677,000 |
| Total Equity | $1,530,692,000 | $1,532,198,000 |
| Total Debt | $4,856,622,000 | $3,783,946,000 |
| Dividends Declared | $88,191,000 | $87,521,000 |
| Interest Income | $280,520,000 | $306,715,000 |
| Interest Expense | $170,647,000 | $184,350,000 |
| Net Interest Income | $109,873,000 | $122,365,000 |
Investment Strategy
Ladder Capital Corp employs a diversified and flexible financing strategy that supports its investment operations. The company focuses on originating senior first mortgage loans secured by commercial real estate, owning and operating commercial real estate, and investing in investment-grade securities.
Capital Structure
As of September 30, 2024, the company's capital structure includes:
- Total Unsecured Corporate Bonds: $2.1 billion
- Senior Notes due 2025: $322 million
- Senior Notes due 2027: $611.9 million
- Senior Notes due 2029: $633.9 million
- Senior Notes due 2031: $500 million
Market Position
Ladder Capital has established itself as a significant player in the commercial real estate finance sector, having originated $16.9 billion in conduit loans since its inception in 2008. As of September 30, 2024, the company has sold these loans into 74 CMBS securitizations, making it one of the largest non-bank contributors in the United States.
Recent Developments
In April 2024, the board of directors authorized the repurchase of up to $75 million of the company’s Class A common stock. This strategic decision reflects Ladder Capital's commitment to enhancing shareholder value.
Management Team
The management team at Ladder Capital Corp possesses extensive industry experience, with an average of 28 years. Key members include:
- Brian Harris, Chief Executive Officer
- Pamela McCormack, President
- Paul J. Miceli, Chief Financial Officer
- Robert Perelman, Head of Asset Management
- Kelly Porcella, Chief Administrative Officer & General Counsel
How Ladder Capital Corp (LADR) Works
Business Model
Ladder Capital Corp operates primarily as a real estate investment trust (REIT) focusing on commercial real estate financing and investment. The company engages in mortgage loan origination, securitization, and acquisition of real estate properties.
Financial Performance
As of September 30, 2024, Ladder Capital reported a net interest income of $38.4 million for the three months ended, compared to $38.8 million for the same period in 2023. The interest income was $96.1 million, while interest expenses were $57.7 million.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Interest Income | $96.1 million | $101.1 million |
| Interest Expense | $57.7 million | $62.3 million |
| Net Interest Income | $38.4 million | $38.8 million |
| Provision for Loan Loss Reserves | $3.1 million | $7.5 million |
Asset Management
As of September 30, 2024, Ladder Capital's total assets were reported at $5.4 billion. This includes various segments such as loans, securities, and real estate holdings.
| Asset Type | Value (in thousands) |
|---|---|
| Loans | $2,014,775 |
| Securities | $852,783 |
| Real Estate | $729,460 |
| Corporate/Other | $1,782,121 |
Debt Obligations
Ladder Capital maintains a diversified debt portfolio. As of September 30, 2024, total debt obligations were approximately $3.6 billion.
| Debt Type | Carrying Value (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Committed Loan Repurchase Facility | $244,525 | 7.14% - 7.49% | 9/27/2025 |
| Mortgage Loan Financing | $513,781 | 4.39% - 8.78% | 2024-2034 |
| CLO Debt | $776,096 | 4.16% - 8.86% | 2024-2026 |
| Senior Unsecured Notes | $2,050,930 | 5.22% - 3.93% | 2025-2031 |
Investment Activities
During the nine months ended September 30, 2024, Ladder Capital acquired properties with a total value of $48.8 million.
| Acquisition Date | Property Type | Location | Purchase Price (in thousands) |
|---|---|---|---|
| February 2024 | Multifamily | Los Angeles, CA | $14,110 |
| April 2024 | Multifamily | Longview, TX | $6,080 |
| April 2024 | Multifamily | Amarillo, TX | $9,651 |
| June 2024 | Multifamily | Los Angeles, CA | $11,455 |
| September 2024 | Office | Oakland, CA | $7,500 |
Equity and Dividends
As of September 30, 2024, Ladder Capital reported total shareholders’ equity of $1.5 billion, with dividends declared amounting to $29.2 million.
| Equity Component | Value (in thousands) |
|---|---|
| Class A Common Stock | $127,765 |
| Additional Paid-in-Capital | $1,773,452 |
| Treasury Stock | $(23,053) |
| Retained Earnings | $(209,197) |
| Accumulated Other Comprehensive Income (Loss) | $(8,711) |
| Total Equity | $1,530,692 |
Market Position
Ladder Capital operates in a competitive market, focusing on providing financing solutions in commercial real estate. Their strategy involves leveraging their extensive real estate and mortgage loan portfolios to generate stable cash flows and returns for investors.
How Ladder Capital Corp (LADR) Makes Money
Revenue Streams
Ladder Capital Corp generates revenue primarily through the following sources:
- Net Interest Income: For the nine months ended September 30, 2024, Ladder Capital reported net interest income of $109.9 million, with interest income totaling $280.5 million and interest expense of $170.6 million.
- Real Estate Operating Income: The company earned $75.3 million from its real estate operations during the same period.
- Fee and Other Income: Ladder Capital recorded $13.9 million in fee and other income.
- Gains on Real Estate Sales: The company reported gains of $12.9 million from real estate.
- Gains on Extinguishment of Debt: Ladder Capital recognized gains of $197,000 on extinguishment of debt.
Financial Performance
For the nine months ended September 30, 2024, Ladder Capital Corp reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Net Interest Income | $109,873 |
| Real Estate Operating Income | $75,314 |
| Fee and Other Income | $13,947 |
| Gain on Real Estate | $12,858 |
| Gain on Extinguishment of Debt | $197 |
| Total Revenue | $312,188 |
| Net Income | $76,116 |
Investment Strategy
Ladder Capital focuses on various investment strategies, including:
- Mortgage Loans: The company holds commercial mortgage loans with a carrying amount of approximately $3.2 billion as of September 30, 2024.
- Securities Investment: Ladder Capital invests in various securities, including U.S. Treasury securities, with a total investment of $2.9 billion during the nine months ended September 30, 2024.
- Real Estate Investments: The company owned 155 net leased properties valued at approximately $637.3 million.
Debt and Financing
Ladder Capital manages its debt portfolio strategically, with total debt obligations amounting to approximately $3.6 billion as of September 30, 2024. The breakdown is as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Mortgage Loan Financing | $513,781 |
| CLO Debt | $776,096 |
| Senior Unsecured Notes | $2,050,930 |
| Total Debt Obligations | $3,585,332 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Ladder Capital reported net cash provided by operating activities of $194 million, driven primarily by net interest income and real estate operating income.
Cash flow from investing activities totaled approximately $602.7 million, largely from repayments on mortgage loans and securities.
Future Revenue Projections
Ladder Capital has future minimum rent commitments from leases totaling approximately $382.3 million, indicating a strong revenue stream from its real estate portfolio.
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Article updated on 8 Nov 2024
Resources:
- Ladder Capital Corp (LADR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ladder Capital Corp (LADR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ladder Capital Corp (LADR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.