Ladder Capital Corp · NYSE:LADR
Ladder Capital — Investor Presentation (March 2021)
32 slides from Ladder Capital's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION MARCH 2021 NYSE: LADR A Leading Commercial Real Estate Investment Trust 1
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: Ladder Capital Highlights
LADDER CAPITAL HIGHLIGHTS LADDER CAPITAL (NYSE: LADR) IS A LEADING COMMERCIAL REAL ESTATE (CRE) CAPITAL PROVIDER, WITH $5.9 BILLION OF ASSETS AND $1.5 BILLION OF BOOK EQUITY MULTI-CYLINDER PLATFORM WITH CORE COMPETENCY OF CRE CREDIT UNDERWRITING THREE COMPLEMENTARY, SYNERGISTIC PRODUCTS – CRE LOANS,
Slide 4: Well Positioned for 2021 Opportunities
WELL POSITIONED FOR 2021 OPPORTUNITIES Focused on preserving and generating additional liquidity since onset of COVID-19, resulting in Significant Dry $1.3 billion unrestricted cash balance Powder for New Currently evaluating new investment opportunities, with >$250 million of loans under applic
Slide 5: Best-in-Class Team of Seasoned Leaders
BEST-IN-CLASS TEAM OF SEASONED LEADERS ✓ Executive team averages 24 years of industry experience and thought leadership through multiple market cycles ✓ Managers average 10 years’ tenure at Ladder and over 20 years of industry experience ✓ Led by Brian Harris – formerly Head of Commercial Real Estat
Slide 6: Improvements in Leverage & Liquidity
IMPROVEMENTS IN LEVERAGE & LIQUIDITY 1 1 1 Adjusted Leverage , Net of Cash & Adjusted Leverage Adjusted Leverage , Net of Cash Excluding Securities 2.9x 2.3x 2.5x 1.4x 2.3x 1.7x 1.0x 1.4x 0.8x 2 09/30/2020 12/31/2020 02/19/2021 09/30/2020 12/31/2020 02/19/20212 09/30/2020 12/31/2020 02/19/2021 2 3 T
Slide 7: Core Competency: CRE Credit Underwriting
CORE COMPETENCY: CRE CREDIT UNDERWRITING Three complementary, synergistic products within a relative-value, risk-adjusted return investment approach Portfolio Allocation Across CRE Capital Stack Note: As of 12/31/2020 1. Capital allocation represents carrying value of CRE debt and equity assets less
Slide 8: Diversified & Granular Senior Secured Loan Portfolio
DIVERSIFIED & GRANULAR SENIOR SECURED LOAN PORTFOLIO Disciplined lending approach with middle-market focus and national footprint 1 1 Loan Type Loan Size Other Key Loan Portfolio Metrics 95% senior secured first mortgage loans 67% weighted-average LTV on total loan portfolio 1.1-year weighted-
Slide 9: Conduit Loans
CONDUIT LOANS A consistent ROE enhancer & source of retained earnings Top 10 $705 $16.6 $1.7 69 million billion billion CMBS loan Cumulative Total loans Total Loans securitized contributor gains 1 securitized transactions in four Ladder-only transactions Partners include Citi, Credit Suisse, Deuts
Slide 10: High-Quality CRE Equity Portfolio – Predominantly Net Lease
HIGH-QUALITY CRE EQUITY PORTFOLIO – PREDOMINANTLY NET LEASE Source of stable, recurring net rental income with potential NAV upside; financed with long-term, non-recourse debt CRE Equity Portfolio Metrics CRE Equity Assets by Property Type Total Gross Asset Value $1.2 billion Total Net Equity Invest
Slide 11: Highly-Rated & Granular, Short-Dated Securities Portfolio
HIGHLY-RATED & GRANULAR, SHORT-DATED SECURITIES PORTFOLIO Securities Portfolio Metrics Highly-Rated Securities Portfolio Securities on Balance Sheet (02/19/2021 estimate) 1 $814 million Securities on Balance Sheet (12/31/2020) $1.1 billion % CMBS 100% % Investment Grade-Rated 99%+ % AAA-Rated or Age
Slide 12: Evolution of Capital Structure
EVOLUTION OF CAPITAL STRUCTURE Significant enhancement in capital structure during 2020, including improved diversity of funding and greater focus on unsecured, non-recourse, and non-mark-to-market financing 12/31/2019 Capitalization Summary ($mm) 12/31/2020 Capitalization Summary ($mm) $6.5B More d
Slide 13: Diverse and Robust Capital Structure
DIVERSE AND ROBUST CAPITAL STRUCTURE Best-in-class capital structure, with focus on liquidity, modest leverage, counterparty diversity, and unsecured, non-recourse, and non-mark-to-market financing Key Capital Structure Highlights >90% of outstanding debt composed of committed, term financing and
Slide 14: Significant Reduction in CMBS Portfolio Assets & Secured Financing
SIGNIFICANT REDUCTION IN CMBS PORTFOLIO ASSETS & SECURED FINANCING Securities Portfolio: Summary of Assets & Financing Key Securities Portfolio Trends 1 12/31/2019 12/31/2020 Reduced securities balance by $663 million, or 39% since 12/31/2019 Assets Financing $1,721 Over $365 million of securiti
Slide 15: Well-Staggered Debt Maturity Profile
WELL-STAGGERED DEBT MATURITY PROFILE Further extended debt maturities during 2020 with a larger component of non-recourse and non-mark-to-market financing 12/31/2020 Unsecured & Secured Debt Maturities ($mm) Unsecured Debt 1 Secured Debt Redeemed in January 2021 Long & strong liability structure in
Slide 16: Substantial, High-Quality Unencumbered Asset Pool
SUBSTANTIAL, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 48% 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 ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior,
Slide 17: Ladder Investment Thesis
LADDER INVESTMENT THESIS Complementary, synergistic Highly-experienced business lines management team One of the only Consistently profitable internally-managed since inception CRE finance REITs Ladder Capital Long & strong liability structure Highest insider ownership with significant unsecured and
Slide 18: Appendix
APPENDIX 18
Slide 19: Company Information
COMPANY INFORMATION Ladder is an internally-managed real estate investment trust that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment a
Slide 20: Corporate Responsibility Overview
CORPORATE RESPONSIBILITY OVERVIEW Ladder’s Commitment to Responsible and Sustainable Growth Environmental Social Governance • Environmental Risk Assessment • Supporting Community Development • Strong Corporate Culture − Environmental policy applies to all real − Investments and financings include −
Slide 21: Ladder Financial Snapshot
LADDER FINANCIAL SNAPSHOT ($ 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 $2,354 Carrying Value of Assets $640 Cash
Slide 22: Loan Portfolio Key Metrics
LOAN PORTFOLIO KEY METRICS Weighted- Weighted- Type of Loan Balance 1 % of Loan % of Total Business Average Average Loan ($mm) Portfolio Assets Plan Rate Coupon LTV Balance Sheet First Held for Generally $2,233 93.6% 38.0% 6.1% 67.4% Mortgage Loans investment floating-rate Conduit First Generally $3
Slide 23: CRE Equity Portfolio Key Metrics
CRE EQUITY PORTFOLIO KEY METRICS ($ in millions) Undepreciated Asset % of CRE Equity Net Equity ~ Total In-Place Annual Type of Asset Carrying Value Portfolio Non-Recourse Invested Square Net Operating Real Estate Value (Depreciated) (Undepreciated) Mortgage Financing (Undepreciated) Feet Income Net
Slide 24: Net Leased CRE Equity Portfolio Key Details
NET LEASED CRE EQUITY PORTFOLIO KEY DETAILS BJ's Wholesale Bank of America Walgreens Dollar Hy-Vee Inc. Additional Net Total Net Leased / ($ in millions) Club Inc. Office Campus Co General Corp Supermarkets Leased Properties Weighted-Avg. (8 Properties) (1 Property) (21 Properties) (102 Properties)
Slide 25: Diversified CRE Equity Portfolio Key Details
DIVERSIFIED CRE EQUITY PORTFOLIO KEY DETAILS Richmond, VA Isla Vista, CA Miami, FL Additional Diversified Total Diversified CRE / ($ in millions) Office Portfolio Student Housing Multifamily Property CRE Properties Weighted-Avg. (1 Property) (1 Property) (1 Property) (9 Properties1) (12 Properties)
Slide 26: Investment & Risk Management Process
INVESTMENT & RISK MANAGEMENT PROCESS Separate departments function as “check & balance” on internal process Origination Credit/ Transaction Investment Asset Underwriting Management Committee Management 15 originators, Independent Independent, highly- Comprehensive Credit Maintain direct di
Slide 27: Ladder Team Bios: Executive Team
LADDER TEAM BIOS: EXECUTIVE TEAM Industry Name Title Experience Previous Experience/ Bios Brian Harris Founder & 36 years Prior to forming Ladder in 2008, Mr. Harris served as a Senior Partner and Head of Chief Executive Officer Global Commercial Real Estate at Dillon Read Capital Management, a whol
Slide 28: Ladder Team Bios: Other Senior Executives
LADDER TEAM BIOS: OTHER SENIOR EXECUTIVES Industry Name Title Experience Previous Experience/ Bios Michael Scarola Chief Credit Officer 22 years Prior to joining Ladder in 2008, Mr. Scarola served as Co-Head of Underwriting at UBS/Dillon Read Capital Management. Mr. Scarola received a B.S. from the
Slide 29: Ladder Team Bios: Other Senior Executives (Cont.)
LADDER TEAM BIOS: OTHER SENIOR EXECUTIVES (CONT.) Industry Name Title Experience Previous Experience/ Bios David Traitel Head of Legal Structuring 25 years Prior to joining Ladder in 2010, Mr. Traitel served as a Partner at Winston & Strawn LLP. Mr. Traitel received a B.A. from the University of Mic
Slide 30: Ranges for 02/19/2021 Estimates
RANGES FOR 02/19/2021 ESTIMATES ($ in millions) Low High Estimated Data as of 02/19/2021 Debt Obligations, Net $3,798 $3,838 Less: CLO Debt (243) (223) Adjusted Debt Obligations 3,555 3,615 Total Unsecured Debt $1,710 $1,730 Total Mark-to-Market Debt 897 917 Cash and Cash Equivalents (Unrestricted C
Slide 31: 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
Slide 32: Index of Slides
INDEX OF SLIDES Slide # Slide Contents Slide # Slide Contents 1 Cover 17 Ladder Investment Thesis 2 Disclaimers 18 Appendix 3 Ladder Capital Highlights 19 Company Information 4 Well Positioned for 2021 Opportunities 20 Corporate Responsibility Overview 5 Best-in-Class Team of Seasoned Leaders 21 Lad