Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q3 2023 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Oct 26, 2023
Slide 1: Supplemental Data for the Quarter Ended September 30, 2023
SUPPLEMENTAL DATA FOR THE QUARTER ENDED SEPTEMBER 30, 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: Third Quarter 2023 Highlights
THIRD QUARTER 2023 HIGHLIGHTS Strong Earnings Differentiated Balance Sheet $1.1B Total Liquidity 2 1 $39.0M Distributable Earnings 81% Non-Mark-to-Market Financing 1 $0.31 Distributable EPS 1.6x Adjusted Leverage Ratio 1 10.1% Distributable ROAE (after-tax) 1 $3.0B Unencumbered Assets Diversified CR
Slide 4: Third Quarter 2023 Summary
THIRD QUARTER 2023 SUMMARY 1 Distributable Earnings of $39.0 million, Distributable EPS of $0.31 and Distributable ROAE (after-tax) of 10.1% Earnings, Declared Q3 2023 cash dividend of $0.23 per LADR share, which represents a 10.1% annual dividend yield 2 Dividends and 1.35x dividend coverage
Slide 5: Diversified CRE Investment Strategy
DIVERSIFIED CRE INVESTMENT STRATEGY Diversified, granular portfolio of CRE debt & equity investments with significant liquidity on hand NET LEASE CRE EQUITY 156 properties ~9-year avg. remaining 36% Multifamily lease term $1.2 billion / 22% of assets 69% I.G.-rated tenants 100% post-COVID
Slide 6: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Disciplined lending approach with middle-market focus and national footprint 1 1 Loan Type Loan Size Key Loan Portfolio Metrics 85% post-COVID originations 99% senior secured first mortgage loans 67% weighted-avg. LTV 2.0-year weighted-avg. extended maturity 2 ~$25
Slide 7: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,334 $3,464 $3,751 $3,820 $3,939 Origination Volume 9 – 15 38 159 Funding Volume 18 13 34 54 182 1 Weighted-Average Coupon (end of quarter) 9.1
Slide 8: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 09/30/2023 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – Property Type Net Sales Proceeds – – – $11 $10 Carrying Value of Assets (end of quarter) $483 $488 $493
Slide 9: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 09/30/2023 06/30/2023 03/31/2023 12/31/2022 09/30/2022 Carrying Value of Assets $477 $458 $520 $588 $611 Weighed-Average Yield 6.8% 6.3% 5.7% 5.3% 3.7% Number of CUSIPs 92 94 101 107 102 Average CUSIP Size $5.2 $4.9 $5.2 $5.5 $6.0 Weighted-Average Duration
Slide 10: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 09/30/2023) (Nine Months Ended 09/30/2023) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $26 0.5% $0.6
Slide 11: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $3,372 Carrying Value of Assets $483 Cash & Cash Equ
Slide 12: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-11
Slide 13: Conservative, Diverse Capital Structure with Modest Leverage
CONSERVATIVE, DIVERSE CAPITAL STRUCTURE WITH MODEST LEVERAGE 09/30/2023 Capitalization Summary ($mm) ✓ Modest leverage $5.3B Total ✓ Predominantly unsecured & non-recourse, non-mark-to-market financing Capitalization ✓ Limited usage of repo financing Adjusted Debt/Equity (Adjusted Leverage Ratio 1):
Slide 14: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 09/30/2023) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2023 202
Slide 15: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Termed out maturities with large component of unsecured, non-recourse and non-mark-to-market financing 09/30/2023 Unsecured & Secured Debt Maturities ($mm) 1 Unsecured Debt Secured Debt Long & strong liability structure in place, with no corporate bond maturities unti
Slide 16: Large, High-Quality Unencumbered Asset Pool
LARGE, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 55% of total asset base is composed of unencumbered assets ✓ 82% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior, finan
Slide 17: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q3 2023 ($mm) = Undepreciated Book Value 1 2 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.72 3 $13.77 3 $12.07 $12.13 1. Excludes ($0.6) million of noncontrolling interest in
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-17
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Net interest income Interest income $101.1 $101.8 $103.8 $94.7 $77.4 Interest expense 62.3 61.3 60.7 57.4 48.5 Net interest income $38.8 $40.5 $43.0 $37.3 $28.9 Provision for (release of) loa
Slide 20: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER ($ in millions, except per share values) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Net income (loss) $31.2 $28.1 $22.2 $74.3 $28.7 Income tax expense (benefit) 3.1 0.0 1.7 1.0 2.6 Income (loss) before taxes $34.3 $28.1 $23.9 $75.3 $31.3 N
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 09/30/2023 06/30/2023 03/31/2023 12/31/2022 09/30/2022 Assets Cash and cash equivalents $798.4 $777.1 $626.1 $609.1 $328.4 Restricted cash 59.5 96.9 25.2 50.5 28.7 Mortgage loan receivables held for investment, net, at amortized cost
Slide 22: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 09/30/2023 06/30/2023 03/31/2023 12/31/2022 09/30/2022 Beginning book equity balance $1,531.5 $1,528.6 $1,533.6 $1,503.6 $1,509.7 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