Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q2 2024 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Jul 25, 2024
Slide 1: Supplemental Data - Quarter Ended June 30, 2024
NYSE: LADR SUPPLEMENTAL DATA QUARTER ENDED JUNE 30, 2024 N E W Y O R K | M I A M I | L O S A N G E L E S S-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: Second Quarter 2024 Highlights
SECOND QUARTER 2024 HIGHLIGHTS Differentiated Balance Sheet Strong Earnings >$1.5B Total Liquidity 2 $40.4M Distributable Earnings 1 $500M New Unsecured Bond Issuance 3 $0.31 Distributable EPS 1 91% Non-Mark-to-Market Financing 4 1.4x Adjusted Leverage Ratio 1 10.2% Distributable ROAE (after-tax) 1
Slide 4: Second Quarter 2024 Summary
SECOND QUARTER 2024 SUMMARY 1 Distributable Earnings of $40.4M, Distributable EPS of $0.31 and Distributable ROAE (after-tax) of 10.2% Earnings, 2 Declared Q2 2024 cash dividend of $0.23 per LADR share, which represents a 7.8% annual dividend yield Dividends and 1.35x dividend coverage (based on Q2
Slide 5: Key Metrics Today vs. One Year Ago
KEY METRICS TODAY VS. ONE YEAR AGO ONE YEAR LATEST AGO QUARTER (Q2 2023) (Q2 2024) Total investment assets + cash $5.7B $5.2B smaller, leaner company Loan portfolio $3.5B $2.5B robust loan payoffs Undepreciated book value per share 1 $13.72 $13.71 stable book value Total liquidity $1.1B $1.5B signif
Slide 6: Diversified CRE Investment Strategy
DIVERSIFIED CRE INVESTMENT STRATEGY GRANULAR PORTFOLIO OF CRE DEBT & EQUITY INVESTMENTS WITH SIGNIFICANT LIQUIDITY ON HAND $635M 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 99% + IG-rat
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW SENIOR-SECURED, MIDDLE-MARKET LENDING FOCUS LOAN TYPE LOAN SIZE LOAN PORTFOLIO KEY METRICS $2.5B LOAN PORTFOLIO ~$25M-$30M AVERAGE LOAN SIZE 1 64% W.A. LTV 1.5-YEAR W.A. EXTENDED MATURITY NO CONSTRUCTION LOANS LIMITED FUTURE FUNDING COMMITMENTS ($94M) GEOGRAPHY PROPERTY TYPE
Slide 8: Loans Segment Summary
LOANS SEGMENT SUMMARY Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $2,523 $2,782 $3,123 $3,334 $3,464 Origination Volume 16 – – 9 – Funding Volume 24 12 11 18 13 1 Weighted-Average Coupon (end of quarter) 9.0% 9.0% 9.3% 9.1% 9.1
Slide 9: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 06/30/2024 REAL ESTATE PORTFOLIO SNAPSHOT Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – PROPERTY TYPE Net Sales Proceeds $24 – – – – Carrying Value of Assets (end of quarter) 457 $474 $478 $483 $488 Square Fe
Slide 10: Securities Segment Summary
SECURITIES SEGMENT SUMMARY 06/30/2024 03/31/2024 12/31/2023 09/30/2023 06/30/2023 Carrying Value of Assets $481 $467 $486 $477 $458 Weighed-Average Yield 6.9% 6.8% 6.8% 6.8% 6.3% Number of CUSIPs 92 92 92 92 94 Average CUSIP Size $5.2 $5.1 $5.3 $5.2 $4.9 Weighted-Average Duration 2.1 Years 1.9 Years
Slide 11: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY Investment Portfolio Distributable Earnings Contribution (as of 06/30/2024) (Six Months Ended 06/30/2024) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $26 1% $3.6 2% Balance Sheet F
Slide 12: 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 $2,539 Carrying Value of Assets $457 Cash & Cash Equivalents $1,196 Secured Financing on Asset
Slide 13: Capital Structure Update
CAPITAL STRUCTURE UPDATE S - 13
Slide 14: 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 2.2X TOTAL LEVERAGE RATIO 1.4X ADJUSTED LEVERAGE RATIO 1 0.7X NET ADJUSTED LEVERAGE RATIO 2 93%
Slide 15: Unencumbered Asset Pool
UNENCUMBERED ASSET POOL PREDOMINANTLY SENIOR SECURED, FINANCEABLE UNENCUMBERED ASSET BASE UNENCUMBERED ASSET KEY UNENCUMBERED POOL COMPOSITION POOL HIGHLIGHTS 62% OF TOTAL ASSETS ARE UNENCUMBERED 82% COMPRISED OF CASH, FIRST MORTGAGE LOANS AND IG SECURITIES $3.1B 1.98X UNENCUMBERED ASSETS / UNSECURE
Slide 16: 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 NEW $500 UNSECURED 2 BONDS Note: As of 06/30/2024. Dollars in millions. 1. Excludes $952 million of matched-term CLO financing. Maturit
Slide 17: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD SUMMARY OF CHANGES TO BOOK EQUITY VALUE DURING Q2 2024 = Undepreciated Book Value 1 2 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) 3 3 net of $13.68 $13.71 $0.42/share $11.93 $11.97 CECL allowance Note: Dollars in millions 1.
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S - 18
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net interest income Interest income $88.5 $95.9 $100.6 $101.1 $101.8 Interest expense 54.2 58.8 60.7 62.3 61.3 Net interest income $34.3 $37.1 $39.8 $38.8 $40.5 Provision for (release of) loa
Slide 20: Distributable Earnings, EPS and ROAE by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE BY QUARTER ($ in millions, except per share values) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net income (loss) $32.1 $16.4 $19.0 $31.2 $28.1 Income tax expense (benefit) (1.1) 1.9 (0.7) 3.1 0.0 Income (loss) before taxes $31.0 $18.4 $18.4 $34.3 $28.1 Net (income)
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 06/30/2024 03/31/2024 12/31/2023 09/30/2023 06/30/2023 Assets Cash and cash equivalents $1,195.6 $1,220.2 $1,015.7 $798.4 $777.1 Restricted cash 11.9 12.3 15.4 59.5 96.9 Mortgage loan receivables held for investment, net, at amortized
Slide 22: Book Equity, Sharecount, and Adjusted Leverage by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE BY QUARTER ($ in millions, except per share values) 06/30/2024 03/31/2024 12/31/2023 09/30/2023 06/30/2023 Beginning book equity balance $1,523.9 $1,532.2 $1,538.2 $1,531.5 $1,528.6 Net income (loss) attributable to Class A common shareholders 32.3 16.6
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 Total Adjus