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Ladder Capital (LADR)
NYSE:LADR
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Ladder Capital
(NYSE:LADR)
Rating:71Outperform
Price Target:―
Positive Factors
Credit Rating
Fitch upgraded Ladder Capital's credit rating to BBB- with a stable outlook, marking a major step forward in the company's pivot to growth.
Dividend and Investment
Dividend growth is viewed as a critical differentiator and a key indicator of Ladder Capital's health and investment outlook.
Share Price
Ladder Capital's shares are trading at a discount to book value, offering a potential price appreciation of 20% over the last closing price.
Negative Factors
Loan Portfolio
The loan portfolio has decreased by 22.2% from September 30 due to strong borrower repayments.
Ladder Capital (LADR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend Yield8.34%
Average Volume (3M)651.58K
Price to Earnings (P/E)13.4
Beta (1Y)0.61
Revenue Growth-12.51%
EPS Growth7.76%
CountryUS
Employees54
SectorReal Estate
Sector Strength55
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.20
Shares Outstanding127,471,870
10 Day Avg. Volume837,291
30 Day Avg. Volume651,579
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio12.51
Enterprise Value/Market Cap4.77
Enterprise Value/Revenue6.22
Enterprise Value/Gross Profit34.93
Enterprise Value/Ebitda6.03
Forecast
1Y Price Target
$12.75Price Target Upside15.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 primarily through interest and fees earned on its portfolio of commercial real estate loans and securities. The company's key revenue streams include income from lending activities, such as interest income from first mortgage loans and balance sheet loans, as well as gains from the sale of CMBS and other real estate-related securities. Additionally, Ladder Capital benefits from equity investments in real estate, generating rental income and potential capital appreciation. Strategic partnerships with institutional investors and financial institutions enhance its ability to source and manage high-quality assets, contributing to its earnings. The company's diversified approach to real estate finance allows it to capitalize on various market opportunities while managing risk effectively.
Ladder Capital Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 10.30%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
Ladder Capital demonstrated strong liquidity and low leverage, with substantial loan originations and progress toward an investment grade credit rating. However, challenges such as increased non-accrual loans and market uncertainty due to tariffs and interest rate volatility remain. The company is well-positioned to navigate these challenges and capitalize on opportunities.Q1-2025 Updates
Positive Updates
Strong Liquidity and Low Leverage
Ladder Capital reported $1.3 billion in liquidity, including $480 million in cash and cash equivalents. The company maintained a modest leverage of 1.83x, significantly below the target range of 2x to 3x.
Substantial Loan Originations
For the first quarter of 2025, Ladder Capital originated $329 million in new loans and acquired $521 million in AAA securities, with new loan originations outpacing payoffs. 74% of these originations were backed by multifamily or industrial assets.
Investment Grade Rating Progress
Ladder Capital remains on a positive outlook from Moody's and Fitch, with ratings just one notch below investment grade. S&P upgraded the company’s credit rating by one notch in 2024.
Stable and Growing Securities Portfolio
The securities portfolio increased 37% from year-end to $1.5 billion, primarily comprised of AAA rated securities with a weighted average yield of 5.67%.
Negative Updates
Increased Non-Accrual Loans
Two additional loans totaling $38.7 million were placed on non-accrual status during the first quarter, increasing the non-accrual loan balance to $116 million across four loans.
Market Uncertainty and Volatility
The reemergence of tariffs and persistent interest rate volatility have contributed to uncertainty, impacting commercial real estate demand and potentially dampening price discovery and deal execution.
Company Guidance
During Ladder Capital Corp's first quarter 2025 earnings call, the company provided detailed financial guidance and metrics. Ladder reported distributable earnings of $25.5 million, or $0.20 per share, achieving a return on equity of 6.6% with an adjusted leverage of 1.4 times. The company originated $329 million in new loans and acquired $521 million in AAA securities, totaling over $800 million in first-quarter investment activity. As of March 31, 2025, Ladder's liquidity stood at $1.3 billion, including $480 million in cash and cash equivalents, with 83% of its asset base unencumbered and 72% of its debt comprised of unsecured corporate bonds. The loan portfolio was valued at $1.7 billion, representing 38% of total assets with a weighted average yield of 8.7%. Ladder's securities portfolio totaled $1.5 billion with a weighted average unlevered yield of 5.67%, predominantly composed of AAA-rated securities. The company maintained a non-accrual loan balance representing only 2.6% of its assets, with a CECL reserve of $52 million. Looking ahead, Ladder is poised to leverage its substantial liquidity and robust balance sheet to capitalize on market opportunities, despite potential volatility, and aims to enhance shareholder value through strategic investments and disciplined financial management.Ladder Capital Financial Statement Overview
Summary
Ladder Capital shows strong revenue growth and operational efficiency with robust gross and EBITDA margins. However, high leverage poses a potential risk, and there's a need for improvement in net margins and cash flow growth.Income Statement
Ladder Capital's TTM (Trailing-Twelve-Months) revenue shows steady growth with a revenue growth rate of 10.07% compared to the previous year. The gross profit margin stands strong at 83.42%, indicating efficient cost management. However, the net profit margin decreased slightly to 33.86% in TTM, reflecting some pressure on net profitability. The EBIT margin improved to 48.51%, showing better operational efficiency. The EBITDA margin is notably high at 107.89%, underscoring strong earnings before interest, taxes, depreciation, and amortization.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.61, which suggests significant leverage and potential risk if market conditions deteriorate. However, the company maintains reasonable stability with an equity ratio of 33.93%, indicating a balanced asset structure. The return on equity (ROE) for TTM is 6.82%, which is modest and reflects room for enhancement in shareholder returns.60
Neutral
Cash Flow
Ladder Capital's cash flow position is healthy with an operating cash flow to net income ratio of 1.21, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.23, suggesting effective free cash flow management. However, the free cash flow growth rate over the past year shows a slight decline of 5.21%, which could imply some challenges in growing cash reserves.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 261.13M | 277.48M | 268.99M | 339.66M | 183.61M | 139.96M |
| Gross Profit | 191.94M | 205.91M | 189.76M | 278.04M | 133.97M | 43.88M |
| EBITDA | 329.63M | 364.76M | 0.00 | 398.16M | 0.00 | 14.36M |
| Net Income | 103.42M | 108.25M | 101.13M | 142.22M | 56.52M | -14.45M |
Balance Sheet | ||||||
| Total Assets | 4.47B | 4.85B | 5.51B | 5.95B | 5.85B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 479.77M | 1.32B | 1.02B | 615.30M | 1.25B | 1.49B |
| Total Debt | 2.71B | 3.07B | 3.18B | 4.25B | 4.22B | 3.39B |
| Total Liabilities | 2.96B | 3.31B | 3.98B | 4.42B | 4.23B | 4.33B |
| Stockholders Equity | 1.52B | 1.54B | 1.53B | 1.53B | 1.51B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 126.94M | 133.92M | 180.60M | 99.76M | 74.87M | 105.84M |
| Operating Cash Flow | 125.57M | 133.92M | 180.60M | 106.71M | 79.74M | 111.94M |
| Investing Cash Flow | 221.87M | 932.76M | 793.50M | 81.59M | -651.46M | 1.54B |
| Financing Cash Flow | -636.40M | -796.59M | -557.77M | -150.24M | -91.02M | -725.67M |
Ladder Capital Technical Analysis
Positive
11.03
Price Trends
10.36
Positive
10.61
Positive
10.71
Positive
Market Momentum
0.15
Negative
71.99
Negative
83.68
Negative
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 11.03 is above the 20-day moving average (MA) of 10.56, above the 50-day MA of 10.36, and above the 200-day MA of 10.71, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.99 is Negative, neither overbought nor oversold. The STOCH value of 83.68 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.41B | 13.43 | 6.80% | 8.34% | -12.51% | 7.76% | |
67 Neutral | $643.65M | 11.57 | 6.22% | 11.91% | -13.64% | ― | |
66 Neutral | $1.37B | ― | 0.41% | 10.14% | -14.98% | 95.53% | |
64 Neutral | $7.01B | 18.92 | -1.36% | 6.84% | 4.67% | -25.39% | |
63 Neutral | $3.40B | ― | -2.06% | 9.48% | -20.46% | -1436.71% | |
54 Neutral | $612.11M | 55.90 | 2.42% | 11.11% | -16.46% | ― | |
49 Neutral | $124.40M | ― | -20.41% | 7.78% | -26.87% | -189.15% |
* Real Estate Sector Average
Performance Comparison
LADR
Ladder Capital
11.03
0.65
6.26%
ARI
Apollo Real Estate
9.86
0.96
10.79%
BXMT
Blackstone Mortgage
19.83
3.79
23.63%
KREF
Kkr Real Estate Finance
9.00
0.61
7.27%
GPMT
Granite Point Mortgage
2.57
0.00
0.00%
TRTX
Tpg Re Finance
8.06
0.32
4.13%
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.