Ladder Capital Corp · NYSE:LADR
Ladder Capital — Investor Presentation (May 2021)
32 slides from Ladder Capital's investor presentation, May 26, 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION MAY 2021 NYSE: LADR A Leading Commercial Real Estate Investment Trust 1
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: Ladder Capital Highlights
LADDER CAPITAL HIGHLIGHTS LADDER CAPITAL (NYSE: LADR) IS A LEADING COMMERCIAL REAL ESTATE (CRE) CAPITAL PROVIDER, WITH $5.4 BILLION OF ASSETS AND $1.5 BILLION OF BOOK EQUITY CORE COMPETENCY OF CRE CREDIT UNDERWRITING THREE COMPLEMENTARY, SYNERGISTIC PRODUCTS – CRE LOANS, SECURITIES & EQUITY NATIONAL
Slide 4: Well Positioned for 2021 and Beyond
WELL POSITIONED FOR 2021 AND BEYOND Significant Dry Powder $1.3 billion of unrestricted cash on hand with Investment Originated ~$280 million of first mortgage loans year-to-date through 05/25/2021 Pipeline Building ~$950 million of additional loans under application as of 05/25/2021 99% col
Slide 5: Best-in-Class Team of Seasoned Leaders
BEST-IN-CLASS TEAM OF SEASONED LEADERS ✓ Executive team averages 25 years of industry experience and thought leadership through multiple market cycles ✓ Managers average 10 years at Ladder and over 20 years of industry experience ✓ Led by Brian Harris – formerly Head of Commercial Real Estate at UBS
Slide 6: Improvements in Leverage & Liquidity
IMPROVEMENTS IN LEVERAGE & LIQUIDITY 1 1 1 Adjusted Leverage , Net of Cash & Adjusted Leverage Adjusted Leverage , Net of Cash Excluding Securities 2.9x 2.3x 2.5x 1.4x 2.3x 1.7x 1.0x 1.4x 0.9x 09/30/2020 12/31/2020 03/31/2021 09/30/2020 12/31/2020 03/31/2021 09/30/2020 12/31/2020 03/31/2021 2 Total
Slide 7: Core Competency: CRE Credit Underwriting
CORE COMPETENCY: CRE CREDIT UNDERWRITING Three complementary, synergistic products within a relative-value, risk-adjusted return investment approach Portfolio Allocation Across CRE Capital Stack Invest in short-dated investment grade securities secured by senior commercial real estate loans CRE Se
Slide 8: Diversified & Granular Senior Secured Loan Portfolio
DIVERSIFIED & GRANULAR SENIOR SECURED LOAN PORTFOLIO Disciplined lending approach with middle-market focus and national footprint 1 1 Loan Type Loan Size Other Key Loan Portfolio Metrics 94% senior secured first mortgage loans 69% weighted-average LTV on total loan portfolio 1.3-year weighted-
Slide 9: Conduit Loans
CONDUIT LOANS A consistent ROE enhancer & source of retained earnings Top 10 $705 $16.6 $1.7 69 million billion billion CMBS loan Cumulative Total loans Total Loans securitized contributor gains 1 securitized transactions in four Ladder-only transactions Partners include Citi, Credit Suisse, Deuts
Slide 10: High-Quality CRE Equity Portfolio – Predominantly Net Lease
HIGH-QUALITY CRE EQUITY PORTFOLIO – PREDOMINANTLY NET LEASE Source of stable, recurring net rental income with potential NAV upside; financed with long-term, non-recourse debt CRE Equity Portfolio Metrics CRE Equity Assets by Property Type Total Gross Asset Value $1.2 billion Total Net Equity Invest
Slide 11: Highly-Rated & Granular, Short-Dated Securities Portfolio
HIGHLY-RATED & GRANULAR, SHORT-DATED SECURITIES PORTFOLIO Securities Portfolio Metrics Highly-Rated Securities Portfolio Securities on Balance Sheet $764 million % CMBS 100% % Investment Grade-Rated 99%+ % AAA-Rated or Agency-Backed 85% Weighted-Average Duration 1.9 years Average Investment per CUSI
Slide 12: Diverse and Robust Capital Structure with Modest Leverage
DIVERSE AND ROBUST CAPITAL STRUCTURE WITH MODEST LEVERAGE 03/31/2021 Capitalization Summary ($mm) $5.3B Total Capitalization Adjusted Debt/Equity (Adjusted Leverage Ratio): 2.3x 1 Net Adjusted Debt (excluding Cash) /Equity Ratio: 1.4x 2 Net Adjusted Debt (excluding Cash) & Excluding Securities /Equi
Slide 13: Capital Structure Highlights
CAPITAL STRUCTURE HIGHLIGHTS Best-in-class capital structure, with focus on liquidity, modest leverage, counterparty diversity, and unsecured, non-recourse, and non-mark-to-market financing Key Capital Structure Highlights 93% of outstanding debt composed of committed, term financing and unsecured
Slide 14: Historical Unsecured Bond Issuances
Coupon HISTORICAL UNSECURED BOND ISSUANCES million 13.500% million Ladder has previously issued unsecured corporate bonds five times – the12.500% first issuance was in September 2012, million 11.500% million and each subsequent issuance was at a lower rate or longer tenor than the previous issuance
Slide 15: Long & Strong Liability Structure
LONG & STRONG LIABILITY STRUCTURE Superior access to capital with diversified financing sources and substantial undrawn capacity Remaining Debt Maturities by Financing Type 1 ($mm; as of 03/31/2021) Issuance / Debt Maturity Year (weighted-average, where applicable) Facility Size Outstanding 2021 202
Slide 16: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE Further extended debt maturities with a larger component of non-recourse and non-mark-to-market financing 03/31/2021 Unsecured & Secured Debt Maturities ($mm) Unsecured Debt 1 $1,000 Secured Debt $729 $760 $750 $677 $617 $500 $433 $433 $602 $644 $464 $250 $48 $71 $153
Slide 17: Substantial, High-Quality Unencumbered Asset Pool
SUBSTANTIAL, HIGH-QUALITY UNENCUMBERED ASSET POOL ✓ 52% of total asset base is composed of unencumbered assets ✓ 83% of unencumbered assets are cash, first mortgage loans or investment grade securities Total Unencumbered Asset Pool ($mm) Key Unencumbered Asset Pool Highlights Predominantly senior,
Slide 18: Ladder Investment Thesis
LADDER INVESTMENT THESIS Significant dry powder with Highly-experienced investment pipeline building management team One of the only Consistently profitable internally-managed since inception CRE finance REITs Ladder Capital Long & strong liability structure Highest insider ownership with significan
Slide 19: Appendix
APPENDIX 19
Slide 20: Company Information
COMPANY INFORMATION Ladder is an internally-managed real estate investment trust that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment a
Slide 21: Corporate Responsibility Overview
CORPORATE RESPONSIBILITY OVERVIEW Ladder’s Commitment to Responsible and Sustainable Growth Environmental Social Governance • Environmental Risk Assessment • Supporting Community Development • Strong Corporate Culture − Environmental policy applies to all real − Investments and financings include −
Slide 22: Ladder Financial Snapshot
LADDER FINANCIAL 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 $2,008 Carrying Value of Assets $634 Cash
Slide 23: Loan Portfolio Key Metrics
LOAN PORTFOLIO KEY METRICS Weighted- Weighted- Type of Loan Balance 1 % of Loan % of Total Business Average Average Loan ($mm) Portfolio Assets Plan Rate Coupon LTV Balance Sheet First Held for Generally $1,887 90.8% 34.9% 6.0% 69.2% Mortgage Loans investment floating-rate Conduit First Generally $7
Slide 24: CRE Equity Portfolio Key Metrics
CRE EQUITY PORTFOLIO KEY METRICS ($ in millions) Undepreciated Asset % of CRE Equity Net Equity ~ Total In-Place Annual Type of Asset Carrying Value Portfolio Non-Recourse Invested Square Net Operating Real Estate Value (Depreciated) (Undepreciated) Mortgage Financing (Undepreciated) Feet Income Net
Slide 25: Net Leased CRE Equity Portfolio Key Details
NET LEASED CRE EQUITY PORTFOLIO KEY DETAILS BJ's Wholesale Bank of America Walgreens Dollar Hy-Vee Inc. Additional Net Total Net Leased / ($ in millions) Club Inc. Office Campus Co General Corp Supermarkets Leased Properties Weighted-Avg. (8 Properties) (1 Property) (21 Properties) (102 Properties)
Slide 26: Diversified CRE Equity Portfolio Key Details
DIVERSIFIED CRE EQUITY PORTFOLIO KEY DETAILS Richmond, VA Isla Vista, CA Miami, FL Additional Diversified Total Diversified CRE / ($ in millions) Office Portfolio Student Housing Multifamily Property CRE Properties Weighted-Avg. (1 Property) (1 Property) (1 Property) (9 Properties1) (12 Properties)
Slide 27: Investment & Risk Management Process
INVESTMENT & RISK MANAGEMENT PROCESS Separate departments function as “check & balance” on internal process Origination Credit/ Transaction Investment Asset Underwriting Management Committee Management 16 originators, Independent Independent, highly- Comprehensive Credit Maintain direct di
Slide 28: Ladder Team Bios: Executive Team
LADDER TEAM BIOS: EXECUTIVE TEAM Industry Name Title Experience Previous Experience/ Bios Brian Harris Founder & 36 years Prior to forming Ladder in 2008, Mr. Harris served as a Senior Partner and Head of Chief Executive Officer Global Commercial Real Estate at Dillon Read Capital Management, a whol
Slide 29: Ladder Team Bios: Other Senior Executives
LADDER TEAM BIOS: OTHER SENIOR EXECUTIVES Industry Name Title Experience Previous Experience/ Bios Michael Scarola Chief Credit Officer 23 years Prior to joining Ladder in 2008, Mr. Scarola served as Co-Head of Underwriting at UBS/Dillon Read Capital Management. Mr. Scarola received a B.S. from the
Slide 30: Ladder Team Bios: Other Senior Executives (Cont.)
LADDER TEAM BIOS: OTHER SENIOR EXECUTIVES (CONT.) Industry Name Title Experience Previous Experience/ Bios Mark Ableman Head of Transaction 19 years Prior to joining Ladder in 2011, Mr. Ableman served as an Associate at Cadwalader, Management Wickersham & Taft LLP. Mr. Ableman received a B.S. from I
Slide 31: 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
Slide 32: Index of Slides
INDEX OF SLIDES Slide # Slide Contents Slide # Slide Contents 1 Cover 17 Substantial, High-Quality Unencumbered Asset Pool 2 Disclaimers 18 Ladder Investment Thesis 3 Ladder Capital Highlights 19 Appendix 4 Well Positioned for 2021 and Beyond 20 Company Information 5 Best-in-Class Team of Seasoned L