Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q3 2024 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Nov 7, 2024
Slide 1: Supplemental Data, Quarter Ended September 30, 2024
NYSE: LADR SUPPLEMENTAL DATA QUARTER ENDED SEPTEMBER 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: Third Quarter 2024 Highlights
THIRD QUARTER 2024 HIGHLIGHTS Differentiated Balance Sheet Strong Earnings >$1.9B Total Liquidity 2 $37.7M Distributable Earnings 1 $500M New Unsecured Bond Issuance $0.30 Distributable EPS 1 93% Non-Mark-to-Market Financing 1.6x Adjusted Leverage Ratio 1 9.8% Distributable ROAE (after-tax) 1 $3.7B
Slide 4: Third Quarter 2024 Summary
THIRD QUARTER 2024 SUMMARY 1 Distributable Earnings of $37.7M, Distributable EPS of $0.30 and Distributable ROAE (after-tax) of 9.8% Earnings, 2 Declared Q3 2024 cash dividend of $0.23 per LADR share, which represents an 8.4% annual dividend yield Dividends and 1.3x dividend coverage (based on Q3 20
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: 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 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW SENIOR-SECURED, MIDDLE-MARKET LENDING FOCUS 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 PROPERTY TYPE
Slide 8: Loans Segment Summary
LOANS SEGMENT SUMMARY Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $2,026 $2,523 $2,782 $3,123 $3,334 Origination Volume – 16 – – 9 Funding Volume 3 24 12 11 18 1 Weighted-Average Coupon (end of quarter) 9.0% 9.0% 9.0% 9.3% 9.1%
Slide 9: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 09/30/2024 REAL ESTATE PORTFOLIO SNAPSHOT Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – PROPERTY TYPE Net Sales Proceeds – $24 – – – GAAP Carrying Value (end of quarter) 455 457 $474 $478 $483 Square Feet (en
Slide 10: Securities Segment Summary
SECURITIES SEGMENT SUMMARY 09/30/2024 06/30/2024 03/31/2024 12/31/2023 09/30/2023 ayb Carrying Value of Assets $853 $481 $467 $486 $477 Weighed-Average Yield 6.8% 6.9% 6.8% 6.8% 6.8% Number of CUSIPs 111 92 92 92 92 Average CUSIP Size $7.7 $5.2 $5.1 $5.3 $5.2 Weighted-Average Duration 2.3 Years 2.1
Slide 11: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY Investment Portfolio Distributable Earnings Contribution (as of 09/30/2024) (Nine Months Ended 09/30/2024) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $28 1% $3.6 2% Balance Sheet
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 $2,040 Carrying Value of Assets $455 Cash & Cash Equivalents $1,607 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 2.3X TOTAL LEVERAGE RATIO 1.6X ADJUSTED LEVERAGE RATIO 1 0.7X NET ADJUSTED LEVERAGE RATIO 2 95%
Slide 15: 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 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 Note: As of 09/30/2024. Dollars in millions. 1. Excludes $776 million of matched-term CLO financing. Maturities under our committed fin
Slide 17: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD SUMMARY OF CHANGES TO BOOK EQUITY VALUE DURING Q3 2024 = Undepreciated Book Value 1 2 Book Value per Share Book Value per Share (Undepreciated / GAAP) (Undepreciated / GAAP) 3 3 net of $13.71 $13.81 $0.41/share $11.97 $12.00 CECL allowance Note: Dollars in millions 1.
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S - 18
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net interest income Interest income $96.1 $88.5 $95.9 $100.6 $101.1 Interest expense 57.7 54.2 58.8 60.7 62.3 Net interest income $38.4 $34.3 $37.1 $39.8 $38.8 Provision for (release of) loan
Slide 20: Distributable Earnings, EPS and ROAE by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE BY QUARTER ($ in millions, except per share values) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net income (loss) $27.6 $32.1 $16.4 $19.0 $31.2 Income tax expense (benefit) 0.9 (1.1) 1.9 (0.7) 3.1 Income (loss) before taxes $28.5 $31.0 $18.4 $18.4 $34.3 Net (income)
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 09/30/2024 06/30/2024 03/31/2024 12/31/2023 09/30/2023 Assets Cash and cash equivalents $1,607.2 $1,195.6 $1,220.2 $1,015.7 $798.4 Restricted cash 12.3 11.9 12.3 15.4 59.5 Mortgage loan receivables held for investment, net, at amortiz
Slide 22: Book Equity, Sharecount, and Adjusted Leverage by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE BY QUARTER ($ in millions, except per share values) 09/30/2024 06/30/2024 03/31/2024 12/31/2023 09/30/2023 Beginning book equity balance $1,528.5 $1,523.9 $1,532.2 $1,538.2 $1,531.5 Net income (loss) attributable to Class A common shareholders 27.9 32.3
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