Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q1 2020 Earnings Presentation
21 slides from Ladder Capital's earnings presentation, May 6, 2020
Slide 1: Supplemental Data for the Quarter Ended March 31, 2020
SUPPLEMENTAL DATA FOR THE QUARTER ENDED MARCH 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: First Quarter 2020 Highlights
1 FIRST QUARTER 2020 HIGHLIGHTS Core Earnings of $30.9 million and Core EPS of $0.26 Earnings and After-Tax Core Return on Average Equity (Core ROAE) of 8.0% Dividends Declared Q1 2020 cash dividend of $0.34 per share of LADR Class A common stock Loans & Securities Originated $527 million of
Slide 4: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-3
Slide 5: Improvements to Capital Base
IMPROVEMENTS TO CAPITAL BASE Since 03/31/2020, Ladder has decreased total & net leverage, increased non-mark-to-market & non-recourse financing, and significantly increased unrestricted cash balance 03/31/2020 Capitalization ($mm; as reported) 05/01/2020 Capitalization ($mm; Company estimate) Commit
Slide 6: Debt Maturity Schedule by Year
DEBT MATURITY SCHEDULE BY YEAR Staggered maturity profile in place, further extended with $750 million unsecured bond issuance in January 2020 and several transactions in April 2020, including Koch financing, CLO financing, securities repo extensions & asset sales Unsecured & Secured Debt Maturities
Slide 7: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; Company estimate as of 05/01/2020) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Out
Slide 8: Summary of Unencumbered Assets
SUMMARY OF UNENCUMBERED ASSETS High-quality, financeable unencumbered asset base – well in excess of amount required by corporate bond covenant Total Unencumbered Asset Pool Unencumbered First Mortgage Loans by Property Type ($mm; Company estimate as of 05/01/2020) ($mm; Company estimate as of 05/01
Slide 9: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value Since 12/31/2019 ($mm) $1,823 = Undepreciated Book Value $1,689 $1,630 $14 ($44) ($6) ($14) $1,494 ($78) ($9) 12/31/2019 Distributions & Equity-Based CECL Net Income / Other Other 2 03/31/2020 Book Equity Value1 Dividends Compens
Slide 10: Segment & Financial Data
SEGMENT & FINANCIAL DATA S-9
Slide 11: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $3,433 Carrying Value of Assets $671 Cash & Cash Equ
Slide 12: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Core Earnings Contribution (as of 03/31/2020) (3 Months Ended 03/31/2020) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $147 2% $6.5 10% Balance
Slide 13: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 03/31/2020 Loan Portfolio Snapshot (as reported) 05/01/2020 Company estimate 1 1 Loan Type Loan Size Loan Type $25mm – $50mm: Condui t Below 30% Ba l ance Fi rs t $25mm: Sheet Mortga ge Loans 39% Fi rs t $147mm Mortga ge Loa ns Other Commercial Real $2,973mm $51mm – Es tate-R
Slide 14: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Conduit First Mortgage Loans Carrying Value of Assets (end of quarter) $147 $122 $174 $112 $190 Origination and Purchase Volume 213 392 231 158 175 Weighted-Average Coupon (end of quarter) 3.9% 4.2% 4.6% 5.0% 5.5% Loan Sal
Slide 15: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Carrying Value of Assets $1,931 $1,721 $1,911 $1,788 $1,619 Weighed-Average Yield 2.2% 3.1% 3.2% 3.3% 3.3% Number of CUSIPs 164 161 181 188 197 Average CUSIP Size $11.8 $10.7 $10.6 $9.5 $8.2 Weighted-Av
Slide 16: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 03/31/2020 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions $6 $6 $9 $3 $2 Property Type Net Sales Proceeds – – – – – Carrying Value of Assets (end of quarter) 671 671 669 66
Slide 17: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net interest income Interest income $72.6 $76.2 $82.3 $85.3 $86.5 Interest expense 51.4 49.3 51.4 52.4 51.2 Net interest income $21.2 $26.9 $30.9 $33.0 $35.2 – – – – – Provision for loan loss
Slide 18: Core Earnings, Core EPS and ROAE Reconciliations by Quarter
CORE EARNINGS, CORE EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net income (loss) ($14.1) $45.4 $30.9 $36.1 $24.5 Income tax expense (benefit) (4.5) 2.2 1.1 2.2 (2.9) Income (loss) before taxes ($18.6) $47.6 $32.1 $38.3 $
Slide 19: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Assets Cash and cash equivalents $358.4 $58.2 $83.1 $126.5 $45.2 Restricted cash 263.9 297.6 38.7 88.9 80.1 Mortgage loan receivables held for investment, net, at amortized cost 3
Slide 20: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Beginning book equity balance $1,639.0 $1,639.3 $1,648.1 $1,644.2 $1,643.6 Net income (loss) (14.1) 45.4 30.9 36.1 24.5 Divide
Slide 21: 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