Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q4 2020 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Feb 25, 2021
Slide 1: Supplemental Data for the Quarter and Year Ended December 31, 2020
SUPPLEMENTAL DATA FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2020 NYSE: LADR A Leading Commercial Real Estate Investment Trust S-0
Slide 2: Disclaimers
DISCLAIMERS This presentation contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans and objectives of Ladder Capital Corp and its subsidiaries and affiliates (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). A
Slide 3: Fourth Quarter and Full-Year 2020 Highlights
FOURTH QUARTER AND FULL-YEAR 2020 HIGHLIGHTS 1 Continued to focus on preserving and generating additional liquidity while selectively evaluating new investments Received repayments of balance sheet loans of $286 million in Q4 2020 and $961 million in FY 2020 Sold $101 million of loans in Q4 20
Slide 4: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-3
Slide 5: Evolution of Capital Structure
EVOLUTION OF CAPITAL STRUCTURE 12/31/2019 Capitalization Summary ($mm) 12/31/2020 Capitalization Summary ($mm) $6.5B More diversified, durable $5.8B capital structure in place Total with reduced leverage Total Capitalization Capitalization 12/31/2019 12/31/2020 02/19/2021 5 Adjusted Debt/Equity (Adj
Slide 6: Q4 2020 Leverage & Liquidity Improvements
Q4 2020 LEVERAGE & LIQUIDITY IMPROVEMENTS 1 1 1 Adjusted Leverage , Net of Cash & Adjusted Leverage Adjusted Leverage , Net of Cash Excluding Securities 2.3x as of 1.4x 02/19/2021 4 as of 02/19/2021 4 2 3 Mark-to-Market Debt ($mm) Securities Repo Financing ($mm) Unrestricted Cash ($mm) 1. Based on t
Slide 7: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 12/31/2020) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2021 202
Slide 8: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Further extended debt maturities during 2020 with a larger component of non-recourse and non-mark-to-market financing 12/31/2020 Unsecured & Secured Debt Maturities ($mm) Unsecured Debt 1 Secured Debt Redeemed in January 2021 Long & strong liability structure in place
Slide 9: Substantial, High-Quality Unencumbered Asset Pool
SUBSTANTIAL, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 48% of total asset base is composed of unencumbered assets ✓ 82% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior,
Slide 10: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q4 2020 ($mm) $1,762 $1,726 = Undepreciated Book Value $22 $18 $1,543 $1,517 $32 ($12) ($8) ($25) 09/30/2020 Distributions & Issuance of Equity-Based Net Income / Other Comprehensive Other 2 12/31/2020 Book Equity Value 1
Slide 11: Segment & Financial Data
SEGMENT & FINANCIAL DATA S-10
Slide 12: Ladder Snapshot
LADDER SNAPSHOT ($ in millions, except per share amounts) Snapshot of Business Lines Total Assets & Liabilities, Book Equity, Leverage and ROE Balance Sheet Loans Net Leased Commercial Real Estate (100% Owned) Total Assets Carrying Value of Assets $2,354 Carrying Value of Assets $640 Cash & Cash Equ
Slide 13: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 12/31/2020) (FY 2020) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $31 1% $1.0 1% Balance Sheet First
Slide 14: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size 2 $2.3 billion total loan portfolio 81% floating rate / 19% fixed rate $19 million average loan balance Property Type Geography Note: As of 12/31/2020 1. Amounts in these charts shown before $41.5 million allowance for loan losses 2. Includes mezzanine
Slide 15: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Conduit First Mortgage Loans Carrying Value of Assets (end of quarter) $31 $31 $86 $147 $122 $174 $112 $190 Origination and Purchase Volume – – – 213 392 231 158 175 Weighted-Average Coupon (end of
Slide 16: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Carrying Value of Assets $1,058 $1,448 $1,507 $1,931 $1,721 $1,911 $1,788 $1,619 Weighed-Average Yield 1.7% 1.6% 1.6% 2.2% 3.1% 3.2% 3.3% 3.3% Number of CUSIPs 123 134 1
Slide 17: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 12/31/2020 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions $1 – – $6 $6 $9 $3 $2 Property Type Net Sales Proceeds – 19 – – – – – – Carrying Value of
Slide 18: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net interest income Interest income $50.5 $54.6 $62.1 $72.6 $76.2 $82.3 $85.3 $86.5 Interest expense 51.2 56.4 68.4 51.4 49.3 51.4 52.4 51.2 Net interest income ($0.7)
Slide 19: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net income (loss) ($11.6) $21.4 ($5.2) ($14.1) $45.4 $30.9 $36.1 $24.5 Income tax expense (benefit) (4.7) 0.0 (0.6) (4.5) 2.2 1.1
Slide 20: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Assets Cash and cash equivalents $1,254.4 $875.8 $826.1 $358.4 $58.2 $83.1 $126.5 $45.2 Restricted cash 29.9 41.9 47.9 263.9 297.6 38.7 88.9 80.1
Slide 21: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Beginning book equity balance $1,521.8 $1,508.4 $1,500.8 $1,639.0 $1,639.3 $1,648.1 $1,644.2
Slide 22: Ranges for 02/19/2021 Estimates
RANGES FOR 02/19/2021 ESTIMATES ($ in millions) Low High Estimated Data as of 02/19/2021 Debt Obligations, Net $3,798 $3,838 Less: CLO Debt (243) (223) Adjusted Debt Obligations 3,555 3,615 Cash and Cash Equivalents (Unrestricted Cash) 1,333 1,353 Restricted Cash 143 163 Total Cash on Balance Sheet
Slide 23: Selected Definitions
SELECTED DEFINITIONS • Adjusted Leverage Ratio (non-GAAP) ̶ Total debt obligations, net of deferred financing costs, adjusted for non-recourse indebtedness related to securitizations that is consolidated on our GAAP balance sheet and liability for transfers not considered sales, divided by GAAP tota