Ladder Capital Corp · NYSE:LADR
Ladder Capital — Investor Presentation (November 2024)
33 slides from Ladder Capital's investor presentation, Nov 26, 2024
Slide 1: Investor Presentation November 2024
NYSE: LADR INVESTOR PRESENTATION NOVEMBER 2024 N E W Y O R K | M I A M I 1
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 (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement co
Slide 3: Ladder Capital Highlights
LADDER CAPITAL HIGHLIGHTS INVESTMENT OBJECTIVE: PRESERVE AND PROTECT SHAREHOLDER CAPITAL WHILE GENERATING ATTRACTIVE RISK-ADJUSTED RETURNS LEADING COMPREHENSIVE DIFFERENTIATED CRE CAPITAL PLATFORM LED BY CAPITAL PROVIDER EXPERIENCED TEAM STRUCTURE $5.5B $46B Internally-managed 1.6x 2 / 2.3x CRE inve
Slide 4: Third Quarter 2024 Highlights
THIRD QUARTER 2024 HIGHLIGHTS Strong Earnings Differentiated Balance Sheet >$1.9B Total Liquidity 2 $37.7M Distributable Earnings 1 $500M New Unsecured Bond Issuance $0.30 Distributable EPS 1 1.6x Adjusted Leverage Ratio 1 9.8% Distributable ROAE (after-tax) 1 $3.7B Unencumbered Assets (68% of total
Slide 5: Key Metrics Today vs. One Year Ago
KEY METRICS TODAY VS. ONE YEAR AGO ONE YEAR LATEST AGO QUARTER (Q3 2023) (Q3 2024) Total investment assets + cash $5.6B $5.5B smaller, leaner company Loan portfolio $3.4B $2.0B robust loan payoffs Undepreciated book value per share 1 $13.77 $13.81 stable book value Total liquidity $1.1B $1.9B substa
Slide 6: Ladder Book Value Preservation
LADDER BOOK VALUE PRESERVATION CREDIT UNDERWRITING EXPERTISE AND CONSERVATIVE INVESTMENT BASES HAVE LED TO BOOK VALUE STABILITY FOR LADDER CUMULATIVE CHANGE IN BOOK VALUE PER SHARE OVER LAST TWO YEARS Ladder: +1% SIGNIFIC ANT OUT PERFORMANC E VERSUS PEER GROUP Selected peer group average: (16%) Sour
Slide 7: Ladder vs. Traditional Equity REITs
LADDER VS. TRADITIONAL EQUITY REITS Mortgage Equity REITs REITs Management structure External Internal Internal Significant : Level of inside ownership Low Modest ~$170M 1 / >11% Diversified mix of Duration of cash flows Short-term loans Long-term leases loans, leases & securities 15% – 20% of portf
Slide 8: Diversified CRE Investment Strategy
DIVERSIFIED CRE INVESTMENT STRATEGY GRANULAR PORTFOLIO OF CRE DEBT & EQUITY INVESTMENTS WITH SIGNIFICANT LIQUIDITY ON HAND $637M net lease (67% of CRE equity) 155 properties ~ 8-year avg. remaining lease term 71% IG-rated tenants $41M in-place annual NOI 99% + senior secured first mortgage
Slide 9: CRE Loan Portfolio
CRE LOAN PORTFOLIO MID-MARKET LENDING FOCUS ENHANCES LIQUIDITY AND MITIGATES RISK LOAN TYPE LOAN SIZE LOAN PORTFOLIO KEY METRICS $2.0B LOAN PORTFOLIO ~$25M-$30M AVERAGE LOAN SIZE 1 66% W.A. LTV 1.2-YEAR W.A. EXTENDED MATURITY NO CONSTRUCTION LOANS LIMITED FUTURE FUNDING COMMITMENTS ($58M) GEOGRAPHY
Slide 10: CRE Equity Portfolio
CRE EQUITY PORTFOLIO PROVIDES DURABLE, RECURRING NET RENTAL INCOME WITH POTENTIAL NAV UPSIDE CRE EQUITY PORTFOLIO INVESTMENT KEY METRICS TYPE Focus on necessity-based Total gross asset value $946M businesses, including BJ’s, Net equity invested $432M Walgreens & Dollar General Square feet ~ 5.2M 71%
Slide 11: Embedded Value in CRE Equity
EMBEDDED VALUE IN CRE EQUITY HISTORY OF REALIZED GAINS SELLING ABOVE UNDEPRECIATED CARRYING VALUE EMBEDDED DEPRECIATION IN CRE EQUITY SALES BOOK EQUITY VALUE (SINCE 2020) # of Total Total $ Gain vs. % Gain vs. $1,764 Property Net Sales Undepreciated Undepreciated Undepreciated Accumulated Year Sales
Slide 12: CRE Securities Portfolio
CRE SECURITIES PORTFOLIO HIGHLY-RATED, SHORT-DURATION SECURITIES PORTFOLIO SECURITIES PORTFOLIO SECURITIES PORTFOLIO KEY METRICS CREDIT RATING SUMMARY Securities portfolio assets $853M % IG-rated 98% % AAA-rated or agency-backed 91% % Unencumbered 1 100% 98% IG-rated W.A. duration 2.3 Years Avg. inv
Slide 13: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE COMMITMENT TO UNSECURED BOND MARKET AND CONTINUING ON PATH TO IG MODEST LEVERAGE WITH MINIMAL MARK-TO-MARKET DEBT CAPITALIZATION KEY LEVERAGE & SUMMARY CAPITALIZATION RATIOS 2.3X TOTAL LEVERAGE RATIO 1.6X ADJUSTED LEVERAGE RATIO 1 0.7X NET ADJUSTED LEVERAGE RATIO 2 95%
Slide 14: Ladder Bond Issuance History
LADDER BOND ISSUANCE HISTORY SEASONED UNSECURED BOND ISSUER WITH INDUSTRY-LEADING CREDIT RATINGS Cumulative Unsecured Unsecured Bonds Corporate Bonds Issued ($mm) % of Total Debt REPAID Rating upgrade(s) O N E N O T C H B E L O W I G A N D P O S I T I V E at new issuance O U T L O O K F R O M M O O
Slide 15: Differentiated Capital Structure
DIFFERENTIATED CAPITAL STRUCTURE PRIMARILY COMPRISED OF UNSECURED BONDS – KEY DISTINCTION VS. PEERS LADDER SELECTED PEER AVG. 1 FINANCING MIX FINANCING MIX Mortgage Debt: Unsecured Bonds & Revolver Convertible Bonds Secured Bonds Non-Recourse Mortgage Debt Unsecured CLO Debt: Non-Recourse CLO Debt B
Slide 16: Differentiated Funding & Liquidity
DIFFERENTIATED FUNDING & LIQUIDITY LOWER LEVERAGE, GREATER UNSECURED USAGE, LOWER COST OF FUNDS AND HIGHER LIQUIDITY VS. PEERS TOTAL LEVERAGE WEIGHTED-AVERAGE RATIO1 COST OF FUNDS Peer Avg. 2 : Peer Avg. 2 : 3.1x LADR: LADR: ~7.0% 2.3x 5.8% UNSECURED BONDS % OF LIQUIDITY3 / LOAN FUTURE TOTAL DEBT FU
Slide 17: Unencumbered Asset Pool
UNENCUMBERED ASSET POOL PREDOMINANTLY SENIOR SECURED, FINANCEABLE UNENCUMBERED ASSET BASE UNENCUMBERED ASSET KEY UNENCUMBERED POOL COMPOSITION POOL HIGHLIGHTS 68% OF TOTAL ASSETS ARE UNENCUMBERED 84% COMPRISED OF CASH, FIRST MORTGAGE LOANS AND IG SECURITIES $3.7B 1.77X UNENCUMBERED ASSETS / UNSECURE
Slide 18: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE CONTINUE TO EXTEND MATURITIES WITH NEW LONG–TERM UNSECURED BONDS UNSECURED AND SECURED DEBT MATURITIES 1 Unsecured Debt Secured Debt Issued in Q3 2024 Note: As of 09/30/2024. Dollars in millions. 1. Excludes $776 million of matched-term CLO financing. Maturities under
Slide 19: Ladder Investment Thesis
LADDER INVESTMENT THESIS Consistently strong returns Track record of and dividend coverage conservative underwriting Multi-cylinder Diversified, granular investment strategy balance sheet Differentiated capital On path to 1 structure & leverage profile investment grade Deeply experienced Full stakeh
Slide 20: Appendix
APPENDIX 20
Slide 21: Company Information
COMPANY INFORMATION Ladder is an internally-managed real estate investment trust (REIT) that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment
Slide 22: Ladder Snapshot
LADDER SNAPSHOT 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 $2,040 Carrying Value of Assets $455 Cash & Cash Equivalents $1,607 Secured Financing on Asset
Slide 23: Loan Portfolio Key Metrics
LOAN PORTFOLIO KEY METRICS Type of Loan % of Loan % of Total Business W.A. W.A. Loan Balance 1 Portfolio Assets Plan Rate Coupon LTV Balance Sheet Held for Generally First Mortgage $2,026 98.0% 37.7% 9.0% 66.4% investment floating-rate Loans Conduit First Generally $28 1.3% 0.5% Held for sale 4.6% 5
Slide 24: CRE Equity Portfolio Key Metrics
CRE EQUITY PORTFOLIO KEY METRICS Undepreciated Asset % of CRE Equity Non-Recourse Net Equity ~ Total In-Place Annual Type of Asset Carrying Value Portfolio Mortgage Invested Square Net Operating Real Estate Value (Depreciated) (Undepreciated) Financing (Undepreciated) Feet Income Net Leased Commerci
Slide 25: Net Lease Portfolio Key Metrics
NET LEASE PORTFOLIO KEY METRICS Bank of America Dollar Walgreens BJ's Wholesale Hy-Vee Inc. Additional Net Total Net Leased / Office Campus General Corp Co Club Inc. Supermarkets Leased Properties Weighted-Avg. (1 Property) (102 Properties) (21 Properties) (4 Properties) (6 Properties) (21 Propertie
Slide 26: Investment and Risk Management Process
INVESTMENT AND RISK MANAGEMENT PROCESS SEPARATE DEPARTMENTS FUNCTION AS “CHECK & BALANCE” ON INTERNAL PROCESSES ORIGINATION CREDIT / TRANSACTION INVESTMENT ASSET UNDERWRITING MANAGEMENT COMMITTEE MANAGEMENT 1 1 11 originators 11 underwriters Independent, highly- Comprehensive credit Maintain direct
Slide 27: Corporate Responsibility Overview
CORPORATE RESPONSIBILITY OVERVIEW Our Principles Our People Our Our Planet Communities Nominating & Corp. 40% of Executives and Ladder employees Ladder estimated its Scope 1 Governance Committee >20% of employees identify volunteered at DREAM and 2 GHG emissions oversees ESG efforts as female, with
Slide 28: Best-in-Class Leadership Team
BEST-IN-CLASS LEADERSHIP TEAM EXECUTIVE TEAM AVERAGES 28 YEARS OF INDUSTRY EXPERIENCE MAJORITY OF MANAGEMENT TEAM WORKED TOGETHER >25 YEARS DEEP BENCH OF HIGHLY-SEASONED PROFESSIONALS 40 28 20 36 18 # years of industry experience Brian Harris Pamela McCormack Paul Miceli Robert Perelman Kelly Porcel
Slide 29: Ladder Team Bios: Executive Team
LADDER TEAM BIOS: EXECUTIVE TEAM Industry Name Title Experience Previous Experience / Bios Brian Harris Founder & 40 years Prior to forming Ladder in 2008, Mr. Harris served as a Senior Partner and Head of Global Chief Executive Officer Commercial Real Estate at Dillon Read Capital Management, a who
Slide 30: Ladder Team Bios: Managers
LADDER TEAM BIOS: MANAGERS Industry Name Title Experience Previous Experience / Bios Michael Scarola Chief Credit Officer 26 years Prior to joining Ladder in 2008, Mr. Scarola served as Co-Head of Underwriting at UBS/Dillon Read Capital Management. Mr. Scarola received a B.S. from the Leonard N. Ste
Slide 31: Ladder Team Bios: Managers (cont.)
LADDER TEAM BIOS: MANAGERS (CONT.) Industry Name Title Experience Previous Experience / Bios Michelle Wallach Chief Compliance Officer & 33 years Prior to joining Ladder in 2012, Ms. Wallach served as the Deputy Chief Compliance Officer and Senior Regulatory Counsel Director of Operational Risk Mana
Slide 32: 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 Total Adjus
Slide 33: Index of Slides
INDEX OF SLIDES Slide # Slide Contents Slide # Slide Contents 1 Cover 18 Staggered Debt Maturity Profile 2 Disclaimers 19 Ladder Investment Thesis 3 Ladder Capital Highlights 20 Appendix 4 Third Quarter 2024 Highlights 21 Company Information 5 Key Metrics Today vs. One Year Ago 22 Ladder Financial S
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