Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q2 2020 Earnings Presentation
21 slides from Ladder Capital's earnings presentation, Jul 30, 2020
Slide 1: Supplemental Data for the Quarter Ended June 30, 2020
SUPPLEMENTAL DATA FOR THE QUARTER ENDED JUNE 30, 2020 NYSE: LADR A Leading Commercial Real Estate Investment Trust S-0
Slide 2: Disclaimers
DISCLAIMERS This presentation contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans and objectives of Ladder Capital Corp and its subsidiaries and affiliates (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). A
Slide 3: Second Quarter 2020 Highlights
1 SECOND QUARTER 2020 HIGHLIGHTS 2 2 Core Earnings of $12.8 million and Core EPS of $0.12 Earnings and After-Tax Core Return on Average Equity (Core ROAE) of 4.0% for the quarter and 6.0% year-to-date Dividends 3 Declared Q2 2020 cash dividend of $0.20 per LADR share, which represents a 10.4%
Slide 4: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-3
Slide 5: Enhanced Quality of Capital Base
ENHANCED QUALITY OF CAPITAL BASE Over the last quarter, Ladder has decreased total & net leverage, increased non-mark-to-market & non-recourse financing, and significantly increased unrestricted cash balance 03/31/2020 Capitalization ($mm) 06/30/2020 Capitalization ($mm) Committed Loan Repo Faciliti
Slide 6: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Staggered maturity profile in place, further extended with $750 million unsecured bond issuance in January 2020 and several transactions in Q2 2020, including new Koch and CLO financings, securities repo financing extensions & asset sales Unsecured & Secured Debt Matu
Slide 7: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 06/30/2020) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2020 202
Slide 8: Oversized, High-Quality Unencumbered Asset Pool
OVERSIZED, HIGH-QUALITY UNENCUMBERED ASSET POOL Total Unencumbered Asset Pool Unencumbered First Mortgage Loans by Property Type ($mm;as of 06/30/2020) ($mm; as of 06/30/2020) Hotel Mixed Use $292 Unrestricted $332 (23%) Cash (27%) $826 $1.3B (31%) Unencumbered $2.7B First Unencumbered First Mortgag
Slide 9: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q2 2020 ($mm) = Undepreciated Book Value $1,706 $1,689 $1,494 $26 $8 $1,501 $3 ($24) ($5) 03/31/2020 Distributions & Equity-Based Net Income / Other Comprehensive Other 2 06/30/2020 Book Equity Value 1 Dividends Compensati
Slide 10: Segment & Financial Data
SEGMENT & FINANCIAL DATA S-9
Slide 11: Ladder Snapshot
LADDER SNAPSHOT ($ in millions, except per share amounts) Snapshot of Business Lines Total Assets & Liabilities, Book Equity, Leverage and ROE Balance Sheet Loans Net Leased Commercial Real Estate (100% Owned) Total Assets Carrying Value of Assets $2,955 Carrying Value of Assets $665 Cash & Cash Equ
Slide 12: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Core Earnings Contribution (as of 06/30/2020) (Six Months Ended 06/30/2020) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $86 1% $3.0 4% Balance
Slide 13: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size $25mm – $50mm: Balance Condui t 28% Sheet Fi rs t Below Fi rs t Mortga ge Loans $25mm: Mortga ge $86mm 42% Loa ns Other $2,833mm Commercial Real Es ta te-Related $51mm – 2 Loa ns $75mm: $122mm 25% $76mm – $100mm $3.0 billion total loan portfolio 5% 79%
Slide 14: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Conduit First Mortgage Loans Carrying Value of Assets (end of quarter) $86 $147 $122 $174 $112 $190 Origination and Purchase Volume – 213 392 231 158 175 Weighted-Average Coupon (end of quarter) 4.0% 3.9% 4.2% 4.6%
Slide 15: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Carrying Value of Assets $1,507 $1,931 $1,721 $1,911 $1,788 $1,619 Weighed-Average Yield 1.6% 2.2% 3.1% 3.2% 3.3% 3.3% Number of CUSIPs 148 164 161 181 188 197 Average CUSIP Size $10.2 $11.8
Slide 16: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 06/30/2020 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – $6 $6 $9 $3 $2 Property Type Net Sales Proceeds – – – – – – Carrying Value of Assets (end of quarter) 66
Slide 17: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net interest income Interest income $62.1 $72.6 $76.2 $82.3 $85.3 $86.5 Interest expense 68.4 51.4 49.3 51.4 52.4 51.2 Net interest income ($6.3) $21.2 $26.9 $30.9 $33.0 $35.2 – – – –
Slide 18: Core Earnings, Core EPS and ROAE Reconciliations by Quarter
CORE EARNINGS, CORE EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net income (loss) ($5.2) ($14.1) $45.4 $30.9 $36.1 $24.5 Income tax expense (benefit) (0.6) (4.5) 2.2 1.1 2.2 (2.9) Income (loss) before taxes ($5.7)
Slide 19: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Assets Cash and cash equivalents $826.1 $358.4 $58.2 $83.1 $126.5 $45.2 Restricted cash 47.9 263.9 297.6 38.7 88.9 80.1 Mortgage loan receivables held for investment, n
Slide 20: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Beginning book equity balance $1,500.8 $1,639.0 $1,639.3 $1,648.1 $1,644.2 $1,643.6 Net income (loss) (5.2) (14.1)
Slide 21: Selected Definitions
SELECTED DEFINITIONS • Adjusted Leverage Ratio (non-GAAP) ̶ Total debt obligations, net of deferred financing costs, adjusted for non-recourse indebtedness related to securitizations that is consolidated on our GAAP balance sheet and liability for transfers not considered sales, divided by GAAP tota