Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q3 2021 Earnings Presentation
21 slides from Ladder Capital's earnings presentation, Oct 28, 2021
Slide 1: Investor Presentation: Supplemental Data for the Quarter Ended September 30, 2021
DRAFT (09/30/2021; 4:30 PM) INVESTOR SUPPLEMENTAL DATA FOR PRESENTATION THE QUARTER ENDED SEPTEMBER 30, 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: Third Quarter 2021 Highlights
THIRD QUARTER 2021 HIGHLIGHTS 1 Originated $628 million of first mortgage loans, $546 million of which were funded at closing, and also funded $7 million of pre-existing loan commitments Loan fundings comprised of $503 million of balance sheet loans and $51 million of conduit loans Investment
Slide 4: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size 2 $2.8 billion total loan portfolio – 10% increase vs. 06/30/2021 Middle-market focus – $22 million avg. loan size Geography Property Type Note: As of 09/30/2021 1. Amounts in these charts shown before $33.6 million allowance for loan losses 2. Include
Slide 5: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $2,709 $2,414 $1,887 $2,233 $2,609 Origination Volume 578 803 114 – – Funding Volume 503 689 119 11 9 1 Weighted-Average Coupon (end of quarter)
Slide 6: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 09/30/2021 06/30/2021 03/31/2021 12/31/2020 09/30/2020 Carrying Value of Assets $725 $719 $764 $1,058 $1,448 Weighed-Average Yield 1.8% 1.7% 1.7% 1.7% 1.6% Number of CUSIPs 103 105 111 123 134 Average CUSIP Size $7.0 $6.8 $6.9 $8.6 $10.8 Weighted-Average Du
Slide 7: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 09/30/2021 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – $1 – Property Type Net Sales Proceeds 38 39 – – 19 Carrying Value of Assets (end of quarter) 613 642 669 675
Slide 8: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 09/30/2021) (Nine Months Ended 09/30/2021) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $38 1% $5.2 4
Slide 9: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $2,811 Carrying Value of Assets $613 Cash & Cash Equ
Slide 10: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-9
Slide 11: Diverse and Robust Capital Structure with Modest Leverage
DIVERSE AND ROBUST CAPITAL STRUCTURE WITH MODEST LEVERAGE 09/30/2021 Capitalization Summary ($mm) $5.3B Total Capitalization Adjusted Debt/Equity (Adjusted Leverage Ratio): 2.1x 1 Net Adjusted Debt (excluding Cash) /Equity Ratio: 1.6x 2 Net Adjusted Debt (excluding Cash) & Excluding Securities /Equi
Slide 12: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 09/30/2021) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2021 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 09/30/2021 Unsecured & Secured Debt Maturities ($mm) Unsecured Debt 1 $900 Secured Debt $760 $750 $686 $600 $472 $450 $645 $376 $339 $640 $316 $300 $25
Slide 14: Substantial, High-Quality Unencumbered Asset Pool
SUBSTANTIAL, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 51% of total asset base is composed of unencumbered assets ✓ 82% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior,
Slide 15: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q3 2021 ($mm) $1,741 $1,729 = Undepreciated Book Value $1,514 $19 $3 $1,503 ($25) ($1) ($7) 06/30/2021 Net Income / Distributions & Other Comprehensive Equity-Based Stock Repurchases/ 09/30/2021 Book Equity Value 1 (Loss)
Slide 16: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-15
Slide 17: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Net interest income Interest income $46.2 $37.6 $39.3 $50.5 $54.6 Interest expense 49.3 45.2 46.0 51.2 56.4 Net interest income ($3.1) ($7.6) ($6.7) ($0.7) ($1.8) Provision for (release of) l
Slide 18: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Net income (loss) $18.9 $10.5 $0.4 ($11.6) $21.4 Income tax expense (benefit) (0.2) (0.3) (0.8) (4.7) 0.0 Income (loss) before taxes $18.7 $10.1 ($0.3) (
Slide 19: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 09/30/2021 06/30/2021 03/31/2021 12/31/2020 09/30/2020 Assets Cash and cash equivalents $758.1 $1,169.8 $1,305.7 $1,254.4 $875.8 Restricted cash 85.5 115.8 146.4 29.9 41.9 Mortgage loan receivables held for investment, net, at amortiz
Slide 20: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 09/30/2021 06/30/2021 03/31/2021 12/31/2020 09/30/2020 Beginning book equity balance $1,519.9 $1,530.8 $1,548.4 $1,521.8 $1,508.4 Net income (loss) 18.9 10.5 0.4 (11.6) 21.4 Dividen
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