Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q4 2021 Earnings Presentation
22 slides from Ladder Capital's earnings presentation, February 2022
Slide 1: Investor Supplemental Data for the Quarter and Year Ended December 31, 2021
DRAFT (12/31/2021; 4:30 PM) INVESTOR SUPPLEMENTAL DATA FOR THE PRESENTATION QUARTER AND YEAR ENDED DECEMBER 31, 2021 OCTOBER 2021 NYSE: LADR NYSE: LADR A Leading A Leading Commercial Commercial Real Real Estate Estate Investment Trust 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 2021 Highlights
FOURTH QUARTER 2021 HIGHLIGHTS 1 Originated $1.3 billion of first mortgage loans, $1.1 billion of which were funded at closing, and also funded $21 million of pre-existing loan commitments Loan fundings comprised of $1.05 billion of balance sheet loans and $93 million of conduit loans Investment
Slide 4: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size 2 $3.5 billion total loan portfolio – 25% increase vs. 09/30/2021 Middle-market focus – $23 million avg. loan size Geography Property Type Note: As of 12/31/2021 1. Amounts in these charts shown before $31.8 million allowance for loan losses 2. Include
Slide 5: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,455 $2,709 $2,414 $1,887 $2,233 Origination Volume 1,174 578 803 114 – Funding Volume 1,071 503 689 119 11 1 Weighted-Average Coupon (end of q
Slide 6: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 12/31/2021 09/30/2021 06/30/2021 03/31/2021 12/31/2020 Carrying Value of Assets $703 $725 $719 $764 $1,058 Weighed-Average Yield 1.7% 1.8% 1.7% 1.7% 1.7% Number of CUSIPs 102 103 105 111 123 Average CUSIP Size $6.9 $7.0 $6.8 $6.9 $8.6 Weighted-Average Durat
Slide 7: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 12/31/2021 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – $1 Property Type Net Sales Proceeds 53 38 39 – – Carrying Value of Assets (end of quarter) 575 613 642 669
Slide 8: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 12/31/2021) (FY 2021) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans – – $7.8 4% Balance Sheet First Mo
Slide 9: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $3,554 Carrying Value of Assets $575 Cash & Cash Equ
Slide 10: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-9
Slide 11: Diverse and Robust Capital Structure with Modest Leverage
DIVERSE AND ROBUST CAPITAL STRUCTURE WITH MODEST LEVERAGE 12/31/2021 Capitalization Summary ($mm) $5.7B Total Capitalization Adjusted Debt/Equity (Adjusted Leverage Ratio): 1.8x 1 Net Adjusted Debt (excluding Cash) /Equity Ratio: 1.5x 2 Net Adjusted Debt (excluding Cash) & Excluding Securities /Equi
Slide 12: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 12/31/2021) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2022 202
Slide 13: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Further extended debt maturities with a larger component of unsecured, non-recourse and non-mark-to-market financing 12/31/2021 Unsecured & Secured Debt Maturities ($mm) Unsecured Debt 1 Secured Debt Long & strong liability structure in place, with no corporate bond m
Slide 14: Well-Positioned for Rising Rate Environment
WELL-POSITIONED FOR RISING RATE ENVIRONMENT With large floating-rate balance sheet loan portfolio and predominantly fixed-rate liabilities, earnings are positively correlated to rising interest rates Estimated Annual Increase in Net Interest Income per Share $0.36 $0.31 $0.26 $0.21 $0.16 $0.12 $0.07
Slide 15: Large, High-Quality Unencumbered Asset Pool
LARGE, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 48% of total asset base is composed of unencumbered assets ✓ 81% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior, finan
Slide 16: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q4 2021 ($mm) = Undepreciated Book Value 1 2 3 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.78 $13.79 $11.98 $12.01 1. Excludes $6.6 million of noncontrolling interest in cons
Slide 17: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-16
Slide 18: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Net interest income Interest income $53.0 $46.2 $37.6 $39.3 $50.5 Interest expense 42.4 49.3 45.2 46.0 51.2 Net interest income $10.6 ($3.1) ($7.6) ($6.7) ($0.7) Provision for (release of) lo
Slide 19: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Net income (loss) $27.1 $18.9 $10.5 $0.4 ($11.6) Income tax expense (benefit) 2.2 (0.2) (0.3) (0.8) (4.7) Income (loss) before taxes $29.3 $18.7 $10.1 ($
Slide 20: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 12/31/2021 09/30/2021 06/30/2021 03/31/2021 12/31/2020 Assets Cash and cash equivalents $548.7 $758.1 $1,169.8 $1,305.7 $1,254.4 Restricted cash 72.8 85.5 115.8 146.4 29.9 Mortgage loan receivables held for investment, net, at amortiz
Slide 21: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 12/31/2021 09/30/2021 06/30/2021 03/31/2021 12/31/2020 Beginning book equity balance $1,509.6 $1,519.9 $1,530.8 $1,548.4 $1,521.8 Net income (loss) 27.1 18.9 10.5 0.4 (11.6) Dividen
Slide 22: 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 Adj