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Ladder Capital (LADR)
NYSE:LADR
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Ladder Capital
(NYSE:LADR)
64Neutral
Positive Factors
Dividend Yield
The dividend yield of 8.4% is attractive compared to the median levels in the commercial mortgage REIT sector.
Financial Performance
The company's distributable earnings per share exceeded expectations, indicating strong financial performance.
Investment Opportunity
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
Interest Rate Exposure
CRE investment opportunities remain very exposed to rates, affecting the risk/reward balance.
Loan Portfolio
The loan portfolio decreased by 19.8%, which may indicate challenges in maintaining loan origination levels.
Repayment and Origination
Elevated repayments outpacing new loan originations provide a near-term headwind for Distributable Earnings.
Ladder Capital (LADR) vs. S&P 500 (SPY)
Market Cap
$1.25B
Dividend Yield8.81%
Average Volume (3M)645.39K
Price to Earnings (P/E)11.5
Beta (1Y)0.69
Revenue Growth-12.51%
EPS Growth7.76%
CountryUS
Employees54
SectorReal Estate
Sector Strength83
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.27
Shares Outstanding127,106,480
10 Day Avg. Volume912,049
30 Day Avg. Volume645,395
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.26
Price to Cash Flow (P/CF)-6.10
P/FCF Ratio6.80
Enterprise Value/Market Cap2.58
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.66
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.33Price Target Upside17.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Ladder Capital Business Overview & Revenue Model
Company DescriptionLadder Capital Corp (LADR) is a leading commercial real estate investment trust (REIT) that specializes in originating and managing a diverse portfolio of commercial real estate and related assets. The company operates primarily in the real estate finance sector, focusing on providing comprehensive financing solutions to commercial property owners and developers across the United States. Ladder Capital offers a range of financial products, including first mortgage loans, balance sheet loans, and commercial mortgage-backed securities (CMBS).
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 Financial Statement Overview
Summary
Ladder Capital shows strong cost management and liquidity with no debt in 2024, but faces revenue volatility and inconsistent cash flow growth. Stabilizing revenue and maintaining cash flow efficiency are key for future performance.Income Statement
Ladder Capital has experienced fluctuating revenue growth over recent years, with a significant decline in total revenue in 2024. Despite this, the company maintains a healthy net profit margin, indicating effective cost management. However, the variability in EBIT and EBITDA margins suggests potential volatility in operating performance.55
Neutral
Balance Sheet
The balance sheet shows a strong equity base with no debt reported in 2024, highlighting a conservative capital structure. The company maintains high cash reserves relative to total assets, supporting liquidity. However, the equity ratio indicates moderate leverage, suggesting potential risks if assets are not managed efficiently.70
Positive
Cash Flow
Operating cash flow remains solid, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio is healthy, indicating good cash generation from profits. However, fluctuations in investing cash flow could signal potential cash management challenges.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 277.48M | 253.50M | 339.66M | 167.51M | 121.02M | Gross Profit |
| 277.48M | 189.76M | 301.06M | 141.35M | 43.88M | EBIT |
| 98.68M | 123.94M | 340.92M | 57.45M | -24.23M | EBITDA |
| 364.76M | 0.00 | 398.16M | 0.00 | 14.36M | Net Income Common Stockholders |
| 108.25M | 101.13M | 142.22M | 56.52M | -9.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.32B | 1.02B | 615.30M | 1.25B | 1.49B | Total Assets |
| 4.85B | 5.51B | 5.95B | 5.85B | 5.88B | Total Debt |
| 3.07B | 3.18B | 4.25B | 4.22B | 3.39B | Net Debt |
| 1.75B | 2.16B | 3.64B | 3.67B | 2.14B | Total Liabilities |
| 3.31B | 3.98B | 4.42B | 4.23B | 4.33B | Stockholders Equity |
| 1.54B | 1.53B | 1.53B | 1.51B | 1.54B |
| Cash Flow | Free Cash Flow | |||
| 133.92M | 180.60M | 99.76M | 74.87M | 105.84M | Operating Cash Flow |
| 133.92M | 180.60M | 106.71M | 79.74M | 111.94M | Investing Cash Flow |
| 932.76M | 793.50M | 81.59M | -651.46M | 1.54B | Financing Cash Flow |
| -796.59M | -557.77M | -150.24M | -91.02M | -725.67M |
Ladder Capital Technical Analysis
Neutral
10.49
Price Trends
10.94
Negative
11.01
Negative
11.07
Negative
Market Momentum
-0.16
Negative
48.97
Neutral
90.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LADR, the sentiment is Neutral. The current price of 10.49 is above the 20-day moving average (MA) of 10.27, below the 50-day MA of 10.94, and below the 200-day MA of 11.07, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 90.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $1.31B | ― | 0.41% | 11.74% | -14.98% | 95.53% | |
64 Neutral | $1.25B | 11.46 | 6.80% | 8.81% | -12.51% | 7.76% | |
63 Neutral | $3.25B | ― | -5.01% | 10.66% | -12.86% | -182.05% | |
60 Neutral | $2.74B | 11.40 | 0.08% | 8531.66% | 5.98% | -15.71% | |
59 Neutral | $610.11M | 10.23 | 6.22% | 12.75% | -13.64% | ― | |
54 Neutral | $629.11M | 57.45 | 2.42% | 10.89% | -16.46% | ― | |
49 Neutral | $95.36M | ― | -28.15% | 15.00% | -26.87% | -189.15% |
* Real Estate Sector Average
Performance Comparison
LADR
Ladder Capital
10.49
0.32
3.15%
ARI
Apollo Real Estate
9.42
0.42
4.67%
BXMT
Blackstone Mortgage
18.97
2.85
17.68%
KREF
Kkr Real Estate Finance
9.10
0.32
3.64%
GPMT
Granite Point Mortgage
1.92
-2.11
-52.36%
TRTX
Tpg Re Finance
7.55
0.29
3.99%
Ladder Capital Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 2.64%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.