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1. Company Snapshot

1.a. Company Description

The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning.It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate.The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities.


This segment also invests in corporate bonds and equity securities.The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units.The company qualifies as a real estate investment trust for federal income tax purposes.


It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.

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1.b. Last Insights on LADR

Ladder Capital Corp's recent performance was driven by a stable dividend payout, with a second quarter 2025 dividend of $0.23 per share declared by its board of directors. The company's strong liquidity and conservative balance sheet, with a 1.4× coverage ratio, support its dividend payments. Additionally, Ladder Capital's management team has significant insider ownership, indicating a strong alignment of interests with shareholders. The company's recent investment grade credit rating from Fitch Ratings further enhances its creditworthiness and access to capital markets.

1.c. Company Highlights

2. Ladder Capital Corp's Q3 2025 Earnings: A Strong Performance

Ladder Capital Corp reported distributable earnings of $32.1 million or $0.25 per share, beating analyst estimates of $0.23 per share. The company's return on equity (ROE) stood at 8.3%, indicating a stable credit performance. The earnings per share (EPS) figure was a key highlight, with the company delivering a return that was in line with its expectations.

Publication Date: Oct -27

📋 Highlights
  • Distributable Earnings Growth:: Q3 2025 distributable earnings reached $32.1M ($0.25/share), with an 8.3% return on equity, reflecting stable credit performance and operational efficiency.
  • Loan Portfolio Expansion:: Accelerated originations of $511M in new loans drove portfolio growth to $1.9B (40% of total assets), with a weighted average spread of 279 bps on multifamily/industrial assets.
  • Securities Portfolio Optimization:: $257M in securities sales generated a $2M net gain, while paydowns reduced holdings by $129M, reflecting strategic reallocation toward higher-yielding loan assets.
  • Liquidity & Debt Strategy:: $879M liquidity ($49M cash, $830M undrawn revolver) and 84% unencumbered assets support growth, with $500M in new investment-grade bonds issued at 5.5% (167 bps spread over treasuries).
  • Future Growth Outlook:: Management targets $1B portfolio growth to $2.9B by Q4 2026, aiming for 9-10% ROE, driven by favorable spreads, reduced competition, and a focus on Class A multifamily/industrial loans at 8.5% yields.

Loan Portfolio Activity Accelerates

The company's loan portfolio activity saw a significant acceleration in the third quarter, with $511 million of new loans across 17 transactions at a weighted average spread of 279 basis points. The loan portfolio grew by approximately $354 million to $1.9 billion, now representing 40% of total assets. As Brian Harris noted, "We're focused on building up the bridge book, and I'm happy with where spreads are. They're less competitive than a couple of months ago, which tends to happen after the midpoint of the year."

Securities Portfolio Performance

The securities portfolio totaled $1.9 billion, representing 40% of total assets. Ladder acquired $365 million in AAA-rated securities, received $164 million in paydowns through amortization, and sold $257 million of securities, generating a $2 million net gain. The modest net reduction in securities holdings this quarter is expected to continue as the company reinvests the proceeds into its loan portfolio.

Capital Structure and Liquidity Remain Strong

Ladder's capital structure and liquidity remain strong, with the company closing its inaugural $500 million 5-year investment-grade unsecured bond offering at a rate of 5.5%. As of quarter end, 75% of Ladder's debt consisted of unsecured corporate bonds, and 84% of its balance sheet assets remain unencumbered. The company maintained $879 million in liquidity, including $49 million in cash and $830 million of undrawn capacity on its unsecured revolver.

Valuation and Outlook

With a Price-to-Book (P/B) Ratio of 0.92, Ladder Capital Corp's stock appears to be fairly valued. The company's ROE is expected to improve to 9% to 10% range, which would be beneficial to its valuation relative to book. Analysts estimate next year's revenue growth at 15.6%, indicating a positive outlook for the company. The Dividend Yield stands at 8.36%, making it an attractive option for income-seeking investors.

3. NewsRoom

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Ladder Capital: 7% BV Discount, Covered Dividend, Loan Growth

Oct -29

Source: seekingalpha.com

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Ladder Capital: Robust CRE Fund, 8% Yield

Oct -27

Source: seekingalpha.com

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Ladder Capital Corp (LADR) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Ladder Capital Corp Reports Results for the Quarter Ended September 30, 2025

Oct -23

Source: businesswire.com

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Allspring Global Investments Holdings LLC Raises Stock Holdings in Ladder Capital Corp $LADR

Oct -21

Source: defenseworld.net

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Ladder Capital Corp to Report Third Quarter 2025 Results

Oct -16

Source: businesswire.com

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Ladder Capital Corp Announces Third Quarter 2025 Dividend to Holders of Class A Common Stock

Sep -15

Source: businesswire.com

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Ladder Capital: 8% Yield, 100% Coverage, BV Stability

Aug -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Loans

Expected Growth: 7%

Ladder Capital Corp's 7% loan growth is driven by increasing demand for commercial real estate financing, expansion into new markets, and a strong track record of originating high-quality loans. Additionally, the company's diversified lending platform, which includes first mortgage loans, mezzanine loans, and preferred equity investments, has contributed to its growth.

Real Estate

Expected Growth: 7%

Ladder Capital Corp's 7% growth in Real Estate is driven by increasing demand for commercial properties, low interest rates, and government incentives for real estate investments. Additionally, the company's diversified portfolio, strong property management, and strategic acquisitions have contributed to its growth. Furthermore, the growing trend of e-commerce and logistics has boosted demand for industrial and warehouse spaces, benefiting Ladder Capital Corp's Real Estate segment.

Corporate/Other

Expected Growth: 7%

Ladder Capital Corp's Corporate/Other segment growth of 7% is driven by increasing investment management fees, expansion of its commercial loan portfolio, and growing demand for its mortgage banking services. Additionally, the company's strategic acquisitions and partnerships have contributed to its growth, along with a favorable interest rate environment and a strong balance sheet.

Securities

Expected Growth: 7%

Ladder Capital Corp's 7% growth is driven by increasing demand for commercial real estate loans, expansion into new markets, and a strong track record of originating and securitizing loans. Additionally, the company's diversified portfolio and ability to adapt to changing market conditions have contributed to its growth.

7. Detailed Products

Commercial Mortgage Loans

Ladder Capital Corp provides commercial mortgage loans to borrowers for the acquisition, refinancing, or renovation of commercial properties.

Bridge Loans

Ladder Capital Corp offers bridge loans to borrowers who need short-term financing for commercial properties.

Construction Loans

Ladder Capital Corp provides construction loans to borrowers for the development of new commercial properties or the renovation of existing ones.

Mezzanine Financing

Ladder Capital Corp offers mezzanine financing to borrowers who need additional capital to complete a project or refinance existing debt.

Preferred Equity

Ladder Capital Corp provides preferred equity investments to borrowers who need additional capital without taking on more debt.

8. Ladder Capital Corp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ladder Capital Corp is moderate, as there are alternative investment options available to investors, but the company's diversified portfolio and strong brand recognition help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Ladder Capital Corp, as the company's products and services are highly specialized and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Ladder Capital Corp, as the company relies on a diverse range of suppliers, but some suppliers may have significant bargaining power due to their size and importance.

Threat Of New Entrants

The threat of new entrants is high for Ladder Capital Corp, as the financial services industry is highly competitive and new entrants can easily enter the market with innovative products and services.

Intensity Of Rivalry

The intensity of rivalry is high for Ladder Capital Corp, as the company operates in a highly competitive industry with many established players, and the company must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.17%
Debt Cost 8.04%
Equity Weight 30.83%
Equity Cost 13.66%
WACC 9.77%
Leverage 224.32%

11. Quality Control: Ladder Capital Corp passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ellington Financial

A-Score: 6.8/10

Value: 5.7

Growth: 3.0

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Ladder Capital

A-Score: 6.6/10

Value: 6.1

Growth: 4.6

Quality: 5.5

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Two Harbors Investment

A-Score: 6.6/10

Value: 9.2

Growth: 4.2

Quality: 6.6

Yield: 10.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Ellington Residential Mortgage REIT

A-Score: 5.7/10

Value: 4.5

Growth: 2.8

Quality: 5.2

Yield: 10.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

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Ready Capital

A-Score: 5.2/10

Value: 7.4

Growth: 5.4

Quality: 2.9

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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ACRES Commercial Realty

A-Score: 4.7/10

Value: 6.6

Growth: 4.1

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.87$

Current Price

10.87$

Potential

-0.00%

Expected Cash-Flows