Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q1 2023 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Apr 27, 2023
Slide 1: Supplemental Data for the Quarter Ended March 31, 2023
SUPPLEMENTAL DATA FOR THE QUARTER ENDED MARCH 31, 2023 NYSE: LADR Differentiated by Design 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: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS Strong Earnings Differentiated Balance Sheet >$950M Total Liquidity 2 1 $47.2M Distributable Earnings 76% Non-Mark-to-Market Financing 1 $0.38 Distributable EPS 1.8x Adjusted Leverage Ratio 1 12.3% Distributable ROAE (after-tax) 1 $2.9B Unencumbered Assets Well-Position
Slide 4: First Quarter 2023 Summary
FIRST QUARTER 2023 SUMMARY 1 Originated one $15 million loan (fully funded at closing), and also funded $19 million of pre-existing loan commitments Received $131 million of repayments of balance sheet loans, including $65 million on office loans Investment Activity Repurchased $2.3 million of
Slide 5: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Disciplined lending approach with middle-market focus and national footprint 1 1 Loan Type Loan Size Other Key Loan Portfolio Metrics 84% of loan portfolio comprised of post-COVID originations 99% senior secured first mortgage loans 68% weighted-average LTV on total loa
Slide 6: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,751 $3,820 $3,939 $3,923 $3,774 Origination Volume 15 38 159 359 677 Funding Volume 34 54 182 354 655 1 Weighted-Average Coupon (end of quarte
Slide 7: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 03/31/2023 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – Property Type Net Sales Proceeds – $11 $10 – $79 Carrying Value of Assets (end of quarter) 493 498 507 5
Slide 8: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 03/31/2023 12/31/2022 09/30/2022 06/30/2022 03/31/2022 Carrying Value of Assets $520 $588 $611 $617 $663 Weighed-Average Yield 5.7% 5.3% 3.7% 2.9% 2.0% Number of CUSIPs 101 107 102 103 101 Average CUSIP Size $5.2 $5.5 $6.0 $6.0 $6.6 Weighted-Average Duratio
Slide 9: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 03/31/2023) (Three Months Ended 03/31/2023) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $27 0.5% ($0
Slide 10: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $3,794 Carrying Value of Assets $493 Cash & Cash Equ
Slide 11: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-10
Slide 12: Conservative, Diverse Capital Structure with Modest Leverage
CONSERVATIVE, DIVERSE CAPITAL STRUCTURE WITH MODEST LEVERAGE 03/31/2023 Capitalization Summary ($mm) ✓ Modest leverage $5.6B Total ✓ Predominantly unsecured & non-recourse, non-mark-to-market financing Capitalization ✓ Limited usage of repo financing Adjusted Debt/Equity (Adjusted Leverage Ratio 1):
Slide 13: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 03/31/2023) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2023 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 03/31/2023 Unsecured & Secured Debt Maturities ($mm) 1 Unsecured Debt Secured Debt Long & strong liability structure in place, with no corporate bond maturities unti
Slide 15: Well-Positioned for Rising Rate Environment
WELL-POSITIONED FOR RISING RATE ENVIRONMENT With large floating-rate balance sheet loan portfolio and significant proportion of fixed-rate liabilities, earnings are positively correlated to rising interest rates Estimated Annual Increase in Net Interest Income per Share Interest rate changes: 88%
Slide 16: Large, High-Quality Unencumbered Asset Pool
LARGE, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 50% of total asset base is composed of unencumbered assets ✓ 78% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($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 Q1 2023 ($mm) = Undepreciated Book Value 1 2 3 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.66 4 $13.64 4 $12.12 $12.04 1. Excludes $0.2 million of noncontrolling interest in
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-17
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Net interest income Interest income $103.8 $94.7 $77.4 $65.3 $56.2 Interest expense 60.7 57.4 48.5 42.7 47.0 Net interest income $43.0 $37.3 $28.9 $22.6 $9.2 Provision for (release of) loan l
Slide 20: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER ($ in millions, except per share values) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Net income (loss) $22.2 $74.3 $28.7 $43.2 $19.2 Income tax expense (benefit) 1.7 1.0 2.6 2.6 (1.3) Income (loss) before taxes $23.9 $75.3 $31.3 $45.8 $17.8
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 03/31/2023 12/31/2022 09/30/2022 06/30/2022 03/31/2022 Assets Cash and cash equivalents $626.1 $609.1 $328.4 $217.4 $431.8 Restricted cash 25.2 50.5 28.7 65.6 63.5 Mortgage loan receivables held for investment, net, at amortized cost
Slide 22: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 03/31/2023 12/31/2022 09/30/2022 06/30/2022 03/31/2022 Beginning book equity balance $1,533.6 $1,503.6 $1,509.7 $1,509.2 $1,513.6 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