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Ladder Capital (LADR)
NYSE:LADR
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Ladder Capital
(NYSE:LADR)
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Rating:71Outperform
Price Target:―
Ladder Capital's overall score reflects strong financial performance and a positive outlook from its earnings call, supported by robust liquidity and strategic investments. However, high leverage and market uncertainties are concerns. Technical analysis shows a neutral trend, and valuation metrics are favorable, contributing to a solid investment case.
Positive Factors
Strong Liquidity Position
A robust liquidity position provides Ladder Capital with the flexibility to capitalize on market opportunities and manage risks effectively, supporting long-term growth and stability.
Substantial Loan Originations
Strong loan origination activity indicates effective market penetration and demand for Ladder Capital's financing solutions, which can drive future revenue growth and enhance competitive positioning.
Investment Grade Rating Progress
Progress toward an investment-grade rating can lower borrowing costs and improve access to capital markets, enhancing financial flexibility and supporting strategic growth initiatives.
Negative Factors
High Leverage
High leverage can increase financial risk, especially in volatile market conditions, potentially impacting Ladder Capital's ability to sustain operations and pursue growth opportunities.
Increased Non-Accrual Loans
Rising non-accrual loans indicate potential credit quality issues, which can affect revenue stability and necessitate increased reserves, impacting profitability and financial health.
Market Uncertainty and Volatility
Market volatility and uncertainty can hinder commercial real estate transactions, affecting Ladder Capital's deal flow and revenue generation, posing challenges to long-term growth.
Ladder Capital (LADR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend Yield8.46%
Average Volume (3M)665.72K
Price to Earnings (P/E)17.2
Beta (1Y)0.41
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. Volume684,807
30 Day Avg. Volume665,723
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 Cap3.13
Enterprise Value/Revenue10.51
Enterprise Value/Gross Profit12.92
Enterprise Value/Ebitda14.78
Forecast
1Y Price Target
$12.50Price Target Upside15.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 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: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 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 | 412.41M | 511.22M | 268.99M | 339.66M | 183.61M | 139.96M |
| Gross Profit | 335.72M | 428.90M | 189.76M | 278.04M | 133.97M | 43.88M |
| EBITDA | 293.27M | 364.76M | 0.00 | 398.16M | 0.00 | 14.36M |
| 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 | 3.78B | 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
10.87
Price Trends
10.74
Positive
10.90
Negative
10.64
Positive
Market Momentum
0.07
Negative
52.94
Neutral
64.31
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 10.87 is above the 20-day moving average (MA) of 10.75, above the 50-day MA of 10.74, and above the 200-day MA of 10.64, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 64.31 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 | $1.47B | 10.40 | 9.23% | 11.37% | 70.94% | 2.95% | |
71 Outperform | $1.38B | 17.20 | 5.26% | 8.46% | -17.18% | -17.16% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $1.41B | 11.46 | 7.26% | 9.85% | 0.29% | ― | |
63 Neutral | $1.08B | ― | 2.10% | 11.43% | 9.46% | -111.44% | |
60 Neutral | $2.06B | 9.48 | 11.92% | 14.11% | 47.97% | 17.22% | |
58 Neutral | $1.97B | 379.70 | 3.75% | 16.38% | -27.55% | -97.87% |
* Real Estate Sector Average
LADR
Ladder Capital
10.87
-0.14
-1.27%
ARI
Apollo Real Estate
10.15
1.84
22.14%
ARR
ARMOUR Residential REIT
17.58
0.97
5.84%
CIM
Chimera Investment
12.95
-0.43
-3.21%
DX
Dynex Capital
14.03
3.18
29.31%
EFC
Ellington Financial
13.72
2.84
26.10%
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.