Ladder Capital Corp. Q2 2024: Assets $509.4M, Net Income $68.9M

Ticker: LADR · Form: 10-Q · Filed: 2024-07-26T00:00:00.000Z

Sentiment: neutral

Topics: real-estate, financials, earnings, REIT

TL;DR

Ladder Capital Q2: Assets $509.4M, Net Income $68.9M. Solid quarter.

AI Summary

Ladder Capital Corp. reported its Q2 2024 results, with total assets reaching $509.4 million as of June 30, 2024. The company's net income for the six months ended June 30, 2024, was $68.9 million. Key financial figures include interest receivable of $437.8 million and total liabilities of $474.7 million.

Why It Matters

This filing provides insight into Ladder Capital Corp.'s financial health and performance for the second quarter of 2024, impacting investor confidence and potential future investment decisions.

Risk Assessment

Risk Level: medium — The filing details significant assets and liabilities, indicating a substantial financial operation with inherent market risks.

Key Numbers

Key Players & Entities

FAQ

What was Ladder Capital Corp.'s total asset value as of June 30, 2024?

Ladder Capital Corp.'s total assets were $509.4 million as of June 30, 2024.

What was the company's net income for the first six months of 2024?

The net income for the six months ended June 30, 2024, was $68.9 million.

What was the amount of interest receivable reported on June 30, 2024?

Interest receivable amounted to $437.8 million on June 30, 2024.

What were the total liabilities of Ladder Capital Corp. at the end of Q2 2024?

Total liabilities were $474.7 million as of June 30, 2024.

What is the company's primary industry classification?

Ladder Capital Corp. is classified under Real Estate Investment Trusts (SIC code 6798).

Filing Stats: 4,659 words · 19 min read · ~16 pages · Grade level 20 · Accepted 2024-07-26 17:00:43

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 3 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Changes in Equity 7 Consolidated Statements of Cash Flows 11

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 13 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 80 Item 4.

Controls and Procedures

Controls and Procedures 83

- OTHER INFORMATION

PART II - OTHER INFORMATION 84 Item 1.

Legal Proceedings

Legal Proceedings 84 Item 1A.

Risk Factors

Risk Factors 84 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 Item 3. Defaults Upon Senior Securities 84 Item 4. Mine Safety Disclosures 84 Item 5. Other Information 84 Item 6. Exhibits 85

SIGNATURES

SIGNATURES 86 1 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Quarterly Report") includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact contained in this Quarterly Report, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "might," "will," "should," "can have," "likely," "continue," "design," and other words and terms of similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ from those expressed in our forward-looking statements. Our future financial position and results of operations, as well as any forward-looking statements are subject to change and inherent risks and uncertainties. You should consider our forward-looking statements in light of a number of factors that may cause actual results to vary from our forward-looking statements including, but not limited to: risks discussed under the heading "Risk Factors" herein and in our Annual Report on Form 10-K for the year ended December 31, 2023 ("the Annual Report"), as well as our consolidated financial statements, related notes, and the other finan

- Financial Information

Part I - Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) The consolidated financial statements of Ladder Capital Corp and the notes related to the foregoing consolidated financial statements are included in this Item. Index to Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Changes in Equity 7 Consolidated Statements of Cash Flows 11

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 13 Note 1. Organization and Operations 13 Note 2. Significant Accounting Policies 13 Note 3. Mortgage Loan Receivables 17 Note 4. Securities 20 Note 5. Real Estate and Related Lease Intangibles, Net 23 Note 6. Debt Obligations, Net 26 Note 7. Derivative Instruments 32 Note 8. Offsetting Assets and Liabilities 34 Note 9. Consolidated Variable Interest Entities 35 Note 10. Equity Structure and Accounts 35 Note 11. Noncontrolling Interests 36 Note 12. Earnings Per Share 37 Note 13. Stock-Based and Other Compensation Plans 38 Note 14. Fair Value of Financial Instruments 41 Note 15. Income Taxes 44 Note 16. Related Party Transactions 45 Note 17. Commitments and Contingencies 46 Note 18. Segment Reporting 47 Note 19. Subsequent Events 50 3 Table of Contents Ladder Capital Corp Consolidated Balance Sheets (Dollars in Thousands) June 30, 2024(1) December 31, 2023(1) (Unaudited) Assets Cash and cash equivalents $ 1,195,559 $ 1,015,678 Restricted cash 11,921 15,450 Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable 2,539,323 3,155,089 Allowance for credit losses ( 54,107 ) ( 43,165 ) Mortgage loan receivables held for sale 26,414 26,868 Securities 481,109 485,533 Real estate and related lease intangibles, net 707,083 726,442 Real estate held for sale 11,455 — Investments in and advances to unconsolidated ventures 20,005 6,877 Derivative instruments 757 1,454 Accrued interest receivable 20,946 24,233 Other assets 87,722 98,218 Total assets $ 5,048,187 $ 5,512,677 Liabilities and Equity Liabilities Debt obligations, net $ 3,378,099 $ 3,783,946 Dividends payable 31,206 32,294 Accrued expenses 48,652 65,144 Other liabilities 61,735 99,095 Total liabilities 3,519,692 3,980,479 Commitments and contingencies (refer to Note 17) — — Equity Class A common stock, par value $ 0.001 per share, 600,000,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. ORGANIZATION AND OPERATIONS Ladder Capital Corp ("Ladder," "Ladder Capital," and the "Company") is an internally-managed real estate investment trust ("REIT") that is a leader in commercial real estate finance. The Company originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. The Company's investment activities include: (i) the Company's primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) owning and operating commercial real estate, including net leased commercial properties; and (iii) investing in investment grade securities secured by first mortgage loans on commercial real estate. Ladder Capital Corp, as the general partner of Ladder Capital Finance Holdings LLLP ("LCFH" or the "Operating Partnership"), operates the Ladder Capital business through LCFH and its subsidiaries. As of June 30, 2024, Ladder Capital Corp has a 100 % economic interest in LCFH and controls the management of LCFH as a result of its ability to appoint its board members. Accordingly, Ladder Capital Corp consolidates the financial results of LCFH and its subsidiaries. In addition, Ladder Capital Corp, through certain subsidiaries, which are treated as taxable REIT subsidiaries (each a "TRS"), is indirectly subject to U.S. federal, state and local income taxes. Other than such indirect U.S. federal, state and local income taxes, there are no material differences between Ladder Capital Corp's consolidated financial statements and LCFH's consolidated financial statements. Ladder Capital Corp was formed as a Delaware corporation on May 21, 2013. The Company conducted its initial public offering ("IPO") which closed on February 11, 2014. The Company used the net proceeds from the IPO to purchase newly-issued limited partnership units ("LP Units

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