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Ladder Capital (LADR)
NYSE:LADR
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Ladder Capital
(NYSE:LADR)
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Rating:66Neutral
Price Target:
$12.50
▲(10.33% Upside)
Ladder Capital's overall score is driven by strong earnings call performance and positive technical indicators. However, financial performance is moderated by high leverage and liquidity concerns. The fair valuation and attractive dividend yield support the score, but caution is advised due to potential risks in cash flow management.
Positive Factors
Strong Loan Origination
Record loan origination volume indicates robust demand for Ladder's financing solutions, enhancing revenue potential and market position.
Investment-Grade Bond Offering
Successful bond issuance at favorable rates strengthens Ladder's financial flexibility and reduces cost of capital, supporting growth initiatives.
Liquidity Position
Strong liquidity and asset unencumbrance provide Ladder with the ability to navigate market fluctuations and seize investment opportunities.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially limiting Ladder's ability to withstand economic downturns and impacting long-term stability.
Negative Cash Flow
Negative cash flow highlights potential liquidity challenges, which could constrain Ladder's operational flexibility and investment capacity.
CECL Reserve
The CECL reserve indicates caution over loan portfolio quality, suggesting potential future losses that could impact financial performance.
Ladder Capital (LADR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend Yield8.21%
Average Volume (3M)704.27K
Price to Earnings (P/E)17.9
Beta (1Y)0.39
Revenue Growth-17.18%
EPS Growth-17.16%
CountryUS
Employees54
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.25
Shares Outstanding127,321,390
10 Day Avg. Volume801,177
30 Day Avg. Volume704,271
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)0.92
Price to Sales (P/S)2.75
P/FCF Ratio10.49
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue10.99
Enterprise Value/Gross Profit13.73
Enterprise Value/Ebitda13.48
Forecast
1Y Price Target
$12.33Price Target Upside8.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.92
Revenue Forecast (FY)$230.15M
Ladder Capital Business Overview & Revenue Model
Company DescriptionThe 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.
How the Company Makes MoneyLadder Capital generates revenue through several key streams. The primary source is the interest income from its loan portfolio, which includes first mortgage loans and subordinated debt. The company also earns fees from loan origination and servicing, as well as income from its investments in CMBS and other real estate securities. Additionally, Ladder Capital may engage in the sale of real estate assets or properties held in its portfolio, contributing to its earnings. The company’s financial performance is further supported by strategic partnerships with various financial institutions and real estate developers, enhancing its ability to identify and execute profitable investment opportunities.
Ladder Capital Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong performance in loan originations, successful bond issuance, and stable credit metrics. The company's strategic positioning and liquidity provide a solid foundation for future growth. However, there are ongoing challenges in managing securities holdings and maintaining reserves for potential loan losses.Q3-2025 Updates
Positive Updates
Record Loan Originations
Ladder Capital achieved $511 million in new loan originations across 17 transactions, marking the highest quarterly origination volume in over 3 years.
Successful Investment-Grade Bond Offering
The company closed its inaugural $500 million 5-year investment-grade unsecured bond offering at a rate of 5.5%, with strong demand and tighter trading spreads in the secondary market.
Strong Credit Performance
Ladder maintained stable credit performance with only 3 loans on non-accrual status totaling $123 million, or 2.6% of total assets, with no new loans added to non-accrual in the third quarter.
Increased Liquidity and Strong Balance Sheet
The company reported $879 million in liquidity and highlighted that 75% of its debt is unsecured corporate bonds, with 84% of balance sheet assets unencumbered.
Positive Market Positioning and Outlook
Ladder is poised for continued growth with expectations for fourth-quarter loan originations to exceed third-quarter production and a strategy to capitalize on investment-grade market opportunities.
Negative Updates
Reduced Securities Holdings
The company experienced a modest net reduction in securities holdings due to paydowns and sales exceeding purchases, reflecting a disciplined capital allocation approach in light of market volatility.
Non-Accrual Loans and CECL Reserve
Despite stable credit performance, there remains a $52 million CECL reserve, which highlights ongoing caution regarding potential loan portfolio losses.
Company Guidance
During the third quarter of 2025, Ladder Capital Corp. reported distributable earnings of $32.1 million or $0.25 per share, achieving a return on equity of 8.3% and maintaining adjusted leverage of 1.7x. The company originated $511 million in new loans, marking the highest quarterly origination volume in over three years, with a focus on multifamily and industrial assets. Notably, Ladder reduced its office loan exposure to $652 million, representing 14% of total assets, and executed a successful $500 million five-year investment-grade bond offering at a 5.5% rate. The bond issuance, alongside recent credit rating upgrades, has lowered Ladder's cost of debt, enhancing its ability to capitalize on investment opportunities. The securities portfolio, totaling $1.9 billion, saw net paydowns and sales surpass acquisitions, aligning with a disciplined capital allocation approach. Ladder's liquidity stood at $879 million, with a significant portion of its assets unencumbered. The company's strategic positioning and robust origination platform are expected to support continued earnings growth and shareholder returns.Ladder Capital Financial Statement Overview
Summary
Ladder Capital demonstrates strong profitability and operational efficiency, but faces risks due to high leverage and liquidity challenges. The income statement is robust, but the balance sheet's high debt-to-equity ratio and negative operating cash flow are concerning.Income Statement
Ladder Capital shows a strong gross profit margin of 79.99% TTM, indicating efficient cost management. The net profit margin of 22.14% TTM is healthy, reflecting profitability. However, revenue growth is modest at 10.46% TTM, and EBIT margin is robust at 72.74% TTM, suggesting operational efficiency. The company has shown resilience in revenue growth despite past fluctuations.65
Positive
Balance Sheet
The debt-to-equity ratio of 1.76 TTM indicates a high level of leverage, which could pose risks if not managed carefully. Return on equity is modest at 5.27% TTM, suggesting moderate efficiency in generating returns from equity. The equity ratio is not provided, but the high leverage remains a concern.55
Neutral
Cash Flow
The cash flow statement reveals challenges, with negative operating cash flow of -$18.47 million TTM and a significant decline in free cash flow growth. The free cash flow to net income ratio of 0.92 TTM indicates that cash generation is not keeping pace with net income, highlighting potential liquidity issues.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 359.82M | 511.22M | 525.09M | 543.71M | 358.21M | 358.10M |
| Gross Profit | 287.85M | 428.90M | 446.94M | 463.44M | 286.55M | 280.96M |
| EBITDA | 293.27M | 364.76M | 370.08M | 398.16M | 278.88M | 225.47M |
| Net Income | 79.68M | 108.25M | 101.13M | 142.22M | 56.52M | -14.45M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.85B | 5.51B | 5.95B | 5.85B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 418.29M | 1.32B | 1.02B | 611.12M | 854.70M | 1.25B |
| Total Debt | 2.64B | 3.15B | 3.78B | 4.25B | 4.22B | 4.21B |
| Total Liabilities | 3.19B | 3.31B | 3.98B | 4.42B | 4.34B | 4.33B |
| Stockholders Equity | 1.50B | 1.54B | 1.53B | 1.53B | 1.51B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | -16.96M | 133.92M | 180.60M | 99.76M | 74.87M | 105.84M |
| Operating Cash Flow | -18.46M | 133.92M | 180.60M | 106.71M | 79.74M | 111.94M |
| Investing Cash Flow | -871.68M | 932.76M | 793.50M | 81.59M | -651.46M | 1.54B |
| Financing Cash Flow | -746.16M | -796.59M | -557.77M | -150.24M | -91.02M | -725.67M |
Ladder Capital Technical Analysis
Positive
11.33
Price Trends
10.90
Positive
10.97
Positive
10.67
Positive
Market Momentum
0.15
Negative
60.05
Neutral
46.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LADR, the sentiment is Positive. The current price of 11.33 is above the 20-day moving average (MA) of 11.18, above the 50-day MA of 10.90, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 46.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LADR.
Ladder Capital Risk Analysis
Ladder Capital disclosed 70 risk factors in its most recent earnings report. Ladder Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ladder Capital Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.54B | 10.49 | 9.23% | 11.37% | 70.94% | 2.95% | |
66 Neutral | $1.44B | 17.93 | 5.26% | 8.21% | -17.18% | -17.16% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $1.38B | 11.24 | 7.26% | 9.89% | 0.29% | ― | |
63 Neutral | $1.07B | -31.55 | 2.10% | 11.40% | 9.46% | -111.44% | |
60 Neutral | $2.04B | 9.38 | 11.92% | 14.63% | 47.97% | 17.22% | |
58 Neutral | $1.96B | 378.62 | 3.75% | 16.45% | -27.55% | -97.87% |
* Real Estate Sector Average
LADR
Ladder Capital
11.33
0.97
9.36%
ARI
Apollo Real Estate
9.96
2.08
26.40%
ARR
ARMOUR Residential REIT
17.53
1.92
12.30%
CIM
Chimera Investment
12.88
0.36
2.88%
DX
Dynex Capital
13.88
3.17
29.60%
EFC
Ellington Financial
13.84
3.12
29.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.