Ladder Capital beat Q3 EPS estimates, grew its loan portfolio by a significant amount relative to Q2'25, and saw strong NII growth. The REIT's dividend coverage ratio improved to 1.09X in Q3'25, and it reported no additions to its CECL reserve for four consecutive quarters. The CRE finance REIT increased its net interest income drastically Q/Q due to new loans included in the portfolio while maintaining strong asset quality.
Ladder Capital Corp stands out among CRE REITs for its conservative leverage, management alignment, and stable book value. LADR's portfolio emphasizes senior secured middle-market loans, investment-grade securities, and resilient net lease equity, supporting long-term stability. The REIT's 1.7x leverage and fully covered 8.3% yield reflect prudent risk management, distinguishing LADR from more aggressive peers.
Ladder Capital's Q2 earnings showed improved dividend coverage on a Q/Q basis, fully covering its payout and reducing near-term dividend risk. The CRE REIT diversified its portfolio, now relying less on commercial real estate loans, which helps de-risk income streams. Ladder Capital did not record any new loan loss provisions in the second quarter, indicating high balance sheet quality.
| Mortgage Real Estate Investment Trusts (REITs) Industry | Financials Sector | Brian Richard Harris CEO | NYSE Exchange | 505743104 CUSIP |
| US Country | 54 Employees | 30 Sep 2025 Last Dividend | - Last Split | 6 Feb 2014 IPO Date |
Ladder Capital Corp is a distinguished internally-managed real estate investment trust (REIT) based in the United States, known for its significant operations in the real estate financing sector. The company, established in 2008 and located in New York, New York, engages in providing a wide range of financial services across its three primary segments: Loans, Securities, and Real Estate. A unique aspect of Ladder Capital Corp is its status as a real estate investment trust, which allows it to enjoy certain tax benefits. Specifically, the company is not subjected to federal corporate income taxes, provided it distributes at least 90% of its taxable income to shareholders, a standard requirement for REITs in the U.S.
This segment focuses on the origination of conduit first mortgage loans that are protected by cash-flowing commercial real estate. It also encompasses the origination and investment in balance sheet first mortgage loans aimed at commercial properties in transition, like those under lease-up, sell-out, and renovation or repositioning states. Additionally, Ladder Capital Corp embarks on investing in note purchase financings, subordinated debt, mezzanine debt, and a plethora of structured finance products closely tied to commercial real estate.
The Securities arm of the company places its investment in an array of instruments including commercial mortgage-backed securities, U.S. treasury and agency securities, corporate bonds, and equity securities. This diverse portfolio underlines the company’s strategic approach to investment, balancing risk and return across different asset classes within the financial markets sector.
Ladder Capital Corp’s Real Estate segment actively owns and invests in both commercial and residential real estate properties. The investments span a broad spectrum of property types including leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping centers, and condominium units. This extensive investment in physical properties showcases the company’s commitment to leveraging real estate as a cornerstone of its growth and income strategy.