Ladder Capital Corp · NYSE:LADR
Ladder Capital — Q3 2022 Earnings Presentation
23 slides from Ladder Capital's earnings presentation, Oct 27, 2022
Slide 1: Supplemental Data for the Quarter Ended September 30, 2022
DRAFT (09/30/2022; 4:30 PM) SUPPLEMENTAL DATA FOR THE QUARTER ENDED SEPTEMBER 30, 2022 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 (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement co
Slide 3: Third Quarter 2022 Highlights
THIRD QUARTER 2022 HIGHLIGHTS Well-Positioned for Rising Rates Strong Earnings 89% 2 Floating-Rate First Mortgage Loans; $34.3M Distributable Earnings 1 ; Over 50% Fixed-Rate Liabilities 1 $0.27 Distributable EPS (incl. $1.6B long-term unsecured corporate bonds with ~4.65% weighted-avg. coupon) Diff
Slide 4: Third Quarter 2022 Summary
THIRD QUARTER 2022 SUMMARY 1 Originated $159 million of loans, $152 million of which were funded at closing, and also funded $31 million of pre-existing loan commitments Investment All loan fundings, which totaled $182 million, were comprised of balance sheet loans Activity Received $170 milli
Slide 5: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 1 1 Loan Type Loan Size 2 $4.0 billion total loan portfolio Middle-market focus – $25 million avg. loan size Geography Property Type Note: As of 09/30/2022 1. Amounts in these charts shown before $18.5 million allowance for loan losses 2. Includes mezzanine and subordinate lo
Slide 6: Loans Segment Summary
LOANS SEGMENT SUMMARY ($ in millions) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Balance Sheet First Mortgage Loans Carrying Value of Assets (end of quarter) $3,939 $3,923 $3,774 $3,455 $2,709 Origination Volume 159 359 677 1,174 578 Funding Volume 182 354 655 1,071 503 1 Weighted-Average Coupon (end o
Slide 7: Real Estate Segment Summary
REAL ESTATE SEGMENT SUMMARY ($ in millions) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 09/30/2022 Real Estate Portfolio Snapshot Net Leased Commercial Real Estate (100% Owned) Acquisitions – – – – – Property Type Net Sales Proceeds $10 – $79 $63 $38 Carrying Value of Assets (end of quarter) 507 516 520
Slide 8: Securities Segment Summary
SECURITIES SEGMENT SUMMARY ($ in millions) 09/30/2022 06/30/2022 03/31/2022 12/31/2021 09/30/2021 Carrying Value of Assets $611 $617 $663 $703 $725 Weighed-Average Yield 3.7% 2.9% 2.0% 1.7% 1.8% Number of CUSIPs 102 103 101 102 103 Average CUSIP Size $6.0 $6.0 $6.6 $6.9 $7.0 Weighted-Average Duratio
Slide 9: Investment Portfolio Summary
INVESTMENT PORTFOLIO SUMMARY ($ in millions) Investment Portfolio Distributable Earnings Contribution (as of 09/30/2022) (Nine Months Ended September 30, 2022) Carrying Value % of Total Amount of % of Total Investment Type of Assets Assets Contribution Contribution Conduit First Mortgage Loans $28 0
Slide 10: Ladder Snapshot
LADDER SNAPSHOT ($ 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 $4,019 Carrying Value of Assets $507 Cash & Cash Equ
Slide 11: Capital Structure Update
CAPITAL STRUCTURE UPDATE S-10
Slide 12: Conservative, Diverse Capital Structure with Modest Leverage
CONSERVATIVE, DIVERSE CAPITAL STRUCTURE WITH MODEST LEVERAGE 09/30/2022 Capitalization Summary ($mm) ✓ Modest leverage $5.7B ✓ Predominantly unsecured & non-recourse, Total non-mark-to-market financing Capitalization ✓ Limited usage of repo financing Adjusted Debt/Equity (Adjusted Leverage Ratio): 1
Slide 13: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 09/30/2022) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2022 202
Slide 14: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Termed out maturities with large component of unsecured, non-recourse and non-mark-to-market financing 09/30/2022 Unsecured & Secured Debt Maturities ($mm) 1 Unsecured Debt Secured Debt Long & strong liability structure in place, with no corporate bond maturities unti
Slide 15: Well-Positioned for Rising Rate Environment
WELL-POSITIONED FOR RISING RATE ENVIRONMENT With large floating-rate balance sheet loan portfolio and predominantly fixed-rate liabilities, earnings are positively correlated to rising interest rates Estimated Annual Increase in Net Interest Income per Share Interest rate increases: 89% of balance
Slide 16: Large, High-Quality Unencumbered Asset Pool
LARGE, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 48% of total asset base is composed of unencumbered assets ✓ 80% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior, finan
Slide 17: Book Equity Value Roll-Forward
BOOK EQUITY VALUE ROLL-FORWARD Summary of Changes to Book Equity Value During Q3 2022 ($mm) = Undepreciated Book Value 1 2 3 Book Value per Share Book Value per Share (Undepreciated & GAAP) (Undepreciated & GAAP) $13.57 $13.63 $11.84 $11.87 1. Excludes $7.4 million of noncontrolling interest in cons
Slide 18: Detailed Quarterly Financials
DETAILED QUARTERLY FINANCIALS S-17
Slide 19: Income Statement by Quarter
INCOME STATEMENT BY QUARTER ($ in millions, except per share values) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Net interest income Interest income $77.4 $65.3 $56.2 $53.0 $46.2 Interest expense 48.5 42.7 47.0 42.4 49.3 Net interest income $28.9 $22.6 $9.2 $10.6 ($3.1) Provision for (release of) loan l
Slide 20: Distributable Earnings, EPS and ROAE Reconciliations by Quarter
DISTRIBUTABLE EARNINGS, EPS AND ROAE RECONCILIATIONS BY QUARTER 1 ($ in millions, except per share values) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Net income (loss) $28.7 $43.2 $19.2 $27.1 $18.9 Income tax expense (benefit) 2.6 2.6 (1.3) 2.2 (0.2) Income (loss) before taxes $31.3 $45.8 $17.8 $29.3 $
Slide 21: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER ($ in millions, except per share values) 09/30/2022 06/30/2022 03/31/2022 12/31/2021 09/30/2021 Assets Cash and cash equivalents $328.4 $217.4 $431.8 $548.7 $758.1 Restricted cash 28.7 65.6 63.5 72.8 85.5 Mortgage loan receivables held for investment, net, at amortized cost
Slide 22: Book Equity, Sharecount, and Adjusted Leverage GAAP Reconciliation by Quarter
BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER ($ in millions, except per share values) 09/30/2022 06/30/2022 03/31/2022 12/31/2021 09/30/2021 Beginning book equity balance $1,509.7 $1,509.2 $1,513.6 $1,509.6 $1,519.9 Net income (loss) attributable to Class A common sh
Slide 23: 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 Total Adj