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Ladder Capital (LADR)
: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.
Financing
Ladder Capital's investment grade rating provides access to lower cost and more flexible financing.
Negative Factors
Interest Rate Environment
A more stable interest rate environment should also boost the company’s fee-based CMBS conduit lending business.
Ladder Capital (LADR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.46B
Dividend Yield8.05%
Average Volume (3M)731.41K
Price to Earnings (P/E)16.4
Beta (1Y)0.58
Revenue Growth-13.74%
EPS Growth-11.53%
CountryUS
Employees54
SectorReal Estate
Sector Strength48
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.23
Shares Outstanding127,460,976
10 Day Avg. Volume474,072
30 Day Avg. Volume731,407
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.75
Enterprise Value/Revenue10.59
Enterprise Value/Gross Profit13.11
Enterprise Value/Ebitda12.71
Forecast
1Y Price Target
$13.00Price Target Upside13.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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:Jul 24, 2025
(Q2-2025)
| % Change Since: 2.97%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call was marked by significant positive developments, including achieving investment-grade status and a successful bond issuance, which strengthens Ladder's financial position and growth potential. However, challenges in loan origination and specific market sectors were noted. The positive aspects of the call outweigh the concerns, providing a generally optimistic outlook.Q2-2025 Updates
Positive Updates
Investment-Grade Status Achieved
Ladder Capital achieved its goal of becoming an investment-grade rated company with Moody's and Fitch upgrading Ladder to Baa3 and BBB-, respectively. This is a significant milestone in Ladder's history.
Successful $500 Million Bond Issuance
Ladder issued a $500 million 5-year investment-grade unsecured bond with a fixed rate coupon of 5.5%, marking the tightest new issuance spread in Ladder's history.
Strong Liquidity Position
Ladder had $1 billion in liquidity as of June 30, including an $850 million unsecured revolving credit facility that was fully undrawn.
Significant Investment Activity
Over $1 billion of investments were made, including acquiring over $600 million in AAA-rated securities. The securities portfolio totaled $2 billion, up 82% from last year.
Stable Real Estate Portfolio Income
The $936 million real estate portfolio generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
Negative Updates
Loan Portfolio Concerns
5 loans on nonaccrual totaling $162.3 million, representing 3.6% of total assets, were reported. One $50 million loan was added to nonaccrual status.
Challenges in Loan Origination
Loan origination activity remained relatively flat with $191 million in loan payoffs largely offset by $173 million in new loan originations.
Macroeconomic and Sector-Specific Risks
Concerns were raised about the hotel sector in big cities and certain pockets of multifamily where rents are falling.
CMBS Market Supply Constraints
The lack of supply in the mortgage-backed securities market was noted, with the company contributing a $64 million loan to a pool due to insufficient volume.
Company Guidance
During the second quarter of 2025, Ladder Capital Corp. achieved notable financial and strategic milestones, as reported in their earnings call. The company generated distributable earnings of $30.9 million, equating to $0.23 per share, and achieved a return on equity of 7.7% with adjusted leverage at 1.6x. A significant highlight was Ladder's upgrade to an investment-grade rating by Moody's and Fitch, marking a pivotal achievement in its long-term strategy. This upgrade facilitated the successful issuance of a $500 million 5-year investment-grade unsecured bond with a 5.5% fixed rate coupon, which was 5.5x oversubscribed. As of June 30, 2025, Ladder's liquidity stood at $1 billion, bolstered by an $850 million undrawn unsecured revolving credit facility. The company's investment activity included over $1 billion in investments, with a focus on AAA-rated securities and multifamily loans. Ladder's securities and loan portfolios were valued at $2 billion and $1.6 billion, respectively, with the real estate segment generating $15.1 million in net operating income. Moving forward, Ladder anticipates further benefits from its investment-grade status, aiming to lower its cost of equity and debt capital while maintaining strong liquidity and a conservative balance sheet to capitalize on emerging investment opportunities.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 | 378.35M | 511.22M | 268.99M | 339.66M | 183.61M | 139.96M |
| Gross Profit | 305.79M | 428.90M | 189.76M | 278.04M | 133.97M | 43.88M |
| EBITDA | 315.32M | 364.76M | 0.00 | 398.16M | 0.00 | 14.36M |
| Net Income | 88.40M | 108.25M | 101.13M | 142.22M | 56.52M | -14.45M |
Balance Sheet | ||||||
| Total Assets | 4.46B | 4.85B | 5.51B | 5.95B | 5.85B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 467.60M | 1.32B | 1.02B | 615.30M | 1.25B | 1.49B |
| Total Debt | 2.78B | 3.15B | 3.18B | 4.25B | 4.22B | 3.39B |
| Total Liabilities | 2.96B | 3.31B | 3.98B | 4.42B | 4.23B | 4.33B |
| Stockholders Equity | 1.50B | 1.54B | 1.53B | 1.53B | 1.51B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 126.04M | 133.92M | 180.60M | 99.76M | 74.87M | 105.84M |
| Operating Cash Flow | 124.21M | 133.92M | 180.60M | 106.71M | 79.74M | 111.94M |
| Investing Cash Flow | -433.32M | 932.76M | 793.50M | 81.59M | -651.46M | 1.54B |
| Financing Cash Flow | -750.05M | -796.59M | -557.77M | -150.24M | -91.02M | -725.67M |
Ladder Capital Technical Analysis
Positive
11.43
Price Trends
10.97
Positive
10.60
Positive
10.78
Positive
Market Momentum
0.11
Negative
60.83
Neutral
69.21
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 11.43 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 10.97, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 69.21 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.46B | 16.41 | 5.83% | 8.05% | -13.74% | -11.53% | |
67 Neutral | $724.61M | 14.25 | 5.87% | 10.47% | -12.51% | ― | |
63 Neutral | $3.35B | ― | -0.33% | 9.73% | -19.20% | 92.16% | |
63 Neutral | $7.02B | 13.65 | -0.57% | 7.06% | 3.62% | -22.63% | |
57 Neutral | $1.44B | ― | -0.35% | 9.73% | -26.29% | -342.06% | |
54 Neutral | $628.18M | 56.21 | -1.76% | 10.57% | -20.88% | -420.89% | |
49 Neutral | $134.60M | ― | -14.12% | 7.14% | -29.55% | 42.09% |
* Real Estate Sector Average
Performance Comparison
LADR
Ladder Capital
11.43
0.27
2.42%
ARI
Apollo Real Estate
10.28
0.92
9.83%
BXMT
Blackstone Mortgage
19.32
2.79
16.88%
KREF
Kkr Real Estate Finance
9.46
-1.20
-11.26%
GPMT
Granite Point Mortgage
2.80
0.46
19.66%
TRTX
Tpg Re Finance
9.17
1.21
15.20%
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.