Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q4 2023 Earnings Presentation
24 slides from Ladder Capital's earnings presentation, Feb 8, 2024
Slide 1: Supplemental Data: Quarter & Year Ended December 31, 2023
NYSE: LADR SUPPLEMENTAL DATA QUARTER & YEAR ENDED DECEMBER 31, 2023 NEW YORK | MIAMI | LOS ANGELES 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 (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement co
Slide 3: Fourth Quarter 2023 Highlights
FOURTH QUARTER 2023 HIGHLIGHTS Strong Earnings Differentiated Balance Sheet >$1.3B Total Liquidity 2 1 $40.0M Distributable Earnings 81% Non-Mark-to-Market Financing 1 $0.32 Distributable EPS 1.6x Adjusted Leverage Ratio 1 10.5% Distributable ROAE (after-tax) 1 $3.0B Unencumbered Assets Diversified
Slide 4: Fourth Quarter & Full-Year 2023 Summary
FOURTH QUARTER & FULL-YEAR 2023 SUMMARY 1 Distributable Earnings of $40.0M, Distributable EPS of $0.32 and Distributable ROAE (after-tax) of 10.5% in Q4 2023; Earnings, Distributable Earnings of $167.7M and Distributable ROAE (after-tax) of 10.9% in FY 2023 Dividends and Declared Q4 2023 cash divide
Slide 5: Key Metrics Today vs. One Year Ago
KEY METRICS TODAY VS. ONE YEAR AGO TODAY ONE YEAR AGO (Q4 2023) (Q4 2022) Total investment assets + cash $5.6B $6.0B smaller, leaner company Loan portfolio $3.1B $3.9B robust loan payoffs Undepreciated book value per share $13.79 $13.66 book value growth Total leverage ratio 2.5x 2.8x modest and dec
Slide 6: Diversified CRE Investments
DIVERSIFIED CRE INVESTMENTS Diversified, granular portfolio of CRE debt & equity investments with significant liquidity on hand NET LEASE CRE EQUITY 156 properties ~8.5-year avg. remaining lease term 69% IG-rated tenants $42M in-place annual NOI CRE LOANS 86% post-COVID $5.6B CRE SECURITIE
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Loan Type Loan Size Key Loan Portfolio Metrics $3.1B loan portfolio 99%+ senior secured first mortgage loans 86% post-COVID originations 66% W.A. LTV 1.8-year W.A. extended maturity Mid-market focus – ~$25M avg. loan size No construction loans Modest future funding commitment
Slide 8: Loans Segment Summary
LOANS SEGMENT SUMMARY Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,123 $3,334 $3,464 $3,751 $3,820 Origination Volume – 9 – 15 38 Funding Volume 11 18 13 34 54 1 Weighted-Average Coupon (end of quarter) 9.3% 9.1% 9.1% 8.7% 8.
Slide 9: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 12/31/2023 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – Property Type Net Sales Proceeds – – – – $11 Carrying Value of Assets (end of quarter) $478 $483 $488 $493 498 Square Fe
Slide 10: Securities Segment Summary
SECURITIES SEGMENT SUMMARY 12/31/2023 09/30/2023 06/30/2023 03/31/2023 12/31/2022 Carrying Value of Assets $486 $477 $458 $520 $588 Weighed-Average Yield 6.8% 6.8% 6.3% 5.7% 5.3% Number of CUSIPs 92 92 94 101 107 Average CUSIP Size $5.3 $5.2 $4.9 $5.2 $5.5 Weighted-Average Duration 2.0 Years 2.1 Yea
Slide 11: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY Investment Portfolio Distributable Earnings Contribution (as of 12/31/2023) (Twelve Months Ended 12/31/2023) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $27 0.5% $1.1 0.4% Balance
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 $3,155 Carrying Value of Assets $478 Cash & Cash Equivalents $1,016 Secured Financing on Asset
Slide 13: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-12
Slide 14: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE Modest leverage with focus on unsecured & non-recourse, non-mark-to-market financing Capitalization Summary Key Leverage & Capitalization Ratios 2.5x Total leverage ratio 1.6x Adjusted leverage ratio 1 1.0x Net adjusted leverage 2 0.7x Net adjusted leverage, excluding
Slide 15: Unencumbered Asset Pool
UNENCUMBERED ASSET POOL Predominantly senior secured, financeable unencumbered asset base Total Unencumbered Asset Pool Key Unencumbered Asset Pool Highlights $3.0B or 55% of total assets are unencumbered 81% comprised of cash, first mortgages and IG securities 1.91x unencumbered asset /unsecured de
Slide 16: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Debt Maturities by Financing Type 1 Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2024 2025 2026 2027 2028 2029 $636 $629 4.750% Unsecured Bonds 612 608 4.250% Unsecured Bonds 328 327 5.250% Unsecured Bonds 324 – Unsecu
Slide 17: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE 12/31/2023 Unsecured & Secured Debt Maturities 1 Unsecured Debt Secured Debt Note: Dollars in millions 1. Excludes $1.1 billion of matched-term CLO financing. Maturities under our committed financing facilities are based on the earlier of the fully-extended maturity d
Slide 18: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q4 2023 = Undepreciated Book Value 1 2 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.77 3 $13.79 3 $12.13 $12.08 Note: Dollars in millions 1. Excludes ($0.7) million of noncont
Slide 19: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-18
Slide 20: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Net interest income Interest income $100.6 $101.1 $101.8 $103.8 $94.7 Interest expense 60.7 62.3 61.3 60.7 57.4 Net interest income $39.8 $38.8 $40.5 $43.0 $37.3 Provision for (release of) lo
Slide 21: Distributable Earnings, EPS and ROAE by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE BY QUARTER ($ in millions, except per share values) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Net income (loss) $19.0 $31.2 $28.1 $22.2 $74.3 Income tax expense (benefit) (0.7) 3.1 0.0 1.7 1.0 Income (loss) before taxes $18.4 $34.3 $28.1 $23.9 $75.3 Net (income) lo
Slide 22: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 12/31/2023 09/30/2023 06/30/2023 03/31/2023 12/31/2022 Assets Cash and cash equivalents $1,015.7 $798.4 $777.1 $626.1 $609.1 Restricted cash 15.4 59.5 96.9 25.2 50.5 Mortgage loan receivables held for investment, net, at amortized cos
Slide 23: Book Equity, Sharecount, and Adjusted Leverage by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE BY QUARTER ($ in millions, except per share values) 12/31/2023 09/30/2023 06/30/2023 03/31/2023 12/31/2022 Beginning book equity balance $1,538.2 $1,531.5 $1,528.6 $1,533.6 $1,503.6 Net income (loss) attributable to Class A common shareholders 19.2 31.3
Slide 24: 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