Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q4 2022 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Feb 9, 2023
Slide 1: Supplemental Data for the Quarter and Year Ended December 31, 2022
DRAFT (12/31/2022; 4:30 PM) SUPPLEMENTAL DATA FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2022 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 (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement co
Slide 3: Fourth Quarter 2022 Highlights
FOURTH QUARTER 2022 HIGHLIGHTS Strong Earnings Well-Positioned for Rising Rates $38.9M Distributable Earnings 1 90% 2 Floating-Rate First Mortgage Loans $0.31 Distributable EPS 1 48% Fixed-Rate Liabilities (including $1.6B long-term unsecured corporate 10.2% Distributable ROAE (after-tax) 1 bonds wi
Slide 4: Fourth Quarter & Full-Year 2022 Summary
FOURTH QUARTER & FULL-YEAR 2022 SUMMARY 1 Originated $38 million of loans, $35 million of which were funded at closing, and also funded $19 million of pre-existing loan commitments in Q4 2022; originated $1.3 billion of loans, $1.2 billion of which were funded at closing, and also funded $86 milli
Slide 5: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size 2 $3.9 billion total loan portfolio Middle-market focus – $25 million avg. loan size Geography Property Type Note: As of 12/31/2022 1. Amounts in these charts shown before $20.8 million allowance for loan losses 2. Includes mezzanine and subordinate lo
Slide 6: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,820 $3,939 $3,923 $3,774 $3,455 Origination Volume 38 159 359 677 1,174 Funding Volume 54 182 354 655 1,071 1 Weighted-Average Coupon (end of
Slide 7: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 12/31/2022 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – Property Type Net Sales Proceeds $11 $10 – $79 $63 Carrying Value of Assets (end of quarter) 498 507 516
Slide 8: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 12/31/2022 09/30/2022 06/30/2022 03/31/2022 12/31/2021 Carrying Value of Assets $588 $611 $617 $663 $703 Weighed-Average Yield 5.3% 3.7% 2.9% 2.0% 1.7% Number of CUSIPs 107 102 103 101 102 Average CUSIP Size $5.5 $6.0 $6.0 $6.6 $6.9 Weighted-Average Duratio
Slide 9: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 12/31/2022) (Full-Year 2022) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $27 0.5% $0.7 0.2% Balance
Slide 10: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $3,886 Carrying Value of Assets $498 Cash & Cash Equ
Slide 11: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-10
Slide 12: Conservative, Diverse Capital Structure with Modest Leverage
CONSERVATIVE, DIVERSE CAPITAL STRUCTURE WITH MODEST LEVERAGE 12/31/2022 Capitalization Summary ($mm) ✓ Modest leverage $5.8B ✓ Predominantly unsecured & non-recourse, Total non-mark-to-market financing Capitalization ✓ Limited usage of repo financing Adjusted Debt/Equity (Adjusted Leverage Ratio 1):
Slide 13: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 12/31/2022) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2022 202
Slide 14: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Termed out maturities with large component of unsecured, non-recourse and non-mark-to-market financing 12/31/2022 Unsecured & Secured Debt Maturities ($mm) 1 Unsecured Debt Secured Debt Long & strong liability structure in place, with no corporate bond maturities unti
Slide 15: Well-Positioned for Rising Rate Environment
WELL-POSITIONED FOR RISING RATE ENVIRONMENT With large floating-rate balance sheet loan portfolio and significant proportion of fixed-rate liabilities, earnings are positively correlated to rising interest rates Estimated Annual Increase in Net Interest Income per Share Interest rate increases: 90
Slide 16: Large, High-Quality Unencumbered Asset Pool
LARGE, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 50% of total asset base is composed of unencumbered assets ✓ 80% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior, finan
Slide 17: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q4 2022 ($mm) = Undepreciated Book Value 1 2 3 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.63 4 $13.66 4 $11.87 $12.12 1. Excludes $1.7 million of noncontrolling interest in
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-17
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Net interest income Interest income $94.7 $77.4 $65.3 $56.2 $53.0 Interest expense 57.4 48.5 42.7 47.0 42.4 Net interest income $37.3 $28.9 $22.6 $9.2 $10.6 Provision for (release of) loan lo
Slide 20: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER ($ in millions, except per share values) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Net income (loss) $74.3 $28.7 $43.2 $19.2 $27.1 Income tax expense (benefit) 1.0 2.6 2.6 (1.3) 2.2 Income (loss) before taxes $75.3 $31.3 $45.8 $17.8 $29.3
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 12/31/2022 09/30/2022 06/30/2022 03/31/2022 12/31/2021 Assets Cash and cash equivalents $609.1 $328.4 $217.4 $431.8 $548.7 Restricted cash 50.5 28.7 65.6 63.5 72.8 Mortgage loan receivables held for investment, net, at amortized cost
Slide 22: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 12/31/2022 09/30/2022 06/30/2022 03/31/2022 12/31/2021 Beginning book equity balance $1,503.6 $1,509.7 $1,509.2 $1,513.6 $1,509.6 Net income (loss) attributable to Class A common sh
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 Adj