LADDER CAPITAL CORP SUPPLEMENTAL DATA FOR
THE QUARTER ENDED
JUNE 30, 2021
NYSE: LADR
A Leading Commercial Real Estate Investment Trust
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"). Any statement concerning future events or expectations, express or implied, is a forward-looking statement. Words such as "may," "will," "seek," "should," "expect," "anticipate," "project," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology are intended to identify forward- looking statements that are subject to risk and uncertainties. Such risks and uncertainties include, among others, the impact of the COVID-19 pandemic and the responsive measures implemented by various governmental authorities, businesses and other third parties, and the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and its other filings with the U.S. Securities and Exchange Commission. There can be no assurance that any expectations, express or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated. In particular, there can be no assurance that Ladder will achieve any performance objectives set forth in this presentation. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Ladder to predict those events or their effects on the Company. Except as required by law, Ladder is not obligated to, and does not intend to, update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.
This presentation is strictly for informational purposes. It is not intended to be relied upon as investment advice and is not, and should not be assumed to be, complete. The contents herein are not to be construed as legal, business or tax advice, and each recipient should consult its own attorney, business advisor and tax advisor as to legal, business and tax advice.
Certain information contained herein is based on, or derived from, information provided by independent third-party sources. Ladder believes that such information is accurate and that the sources from which it has been obtained are reliable. However, Ladder cannot guarantee the accuracy of such information and has not independently verified the assumptions on which such information is based. All data is presented as of June 30, 2021, unless otherwise indicated.
This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Company's June 30, 2021 Form 10-Q filing and earnings press release, which are available on Ladder's website (www.laddercapital.com), as well as the supplemental financial tables included herein, for a reconciliation of the non- GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
Totals may not equal the sum of components due to rounding.
S-1
SECOND QUARTER 2021 HIGHLIGHTS1
Investment Activity
- Originated $839 million of first mortgage loans, $718 million of which were funded at closing, and also funded $6 million of pre-existing loan commitments
- Loan fundings comprised of $689 million of balance sheet loans and $35 million of conduit loans
- Received $158 million of repayments of balance sheet loans and sold $48 million of conduit loans
- Closed an additional $190 million of loans in the third quarter through 07/28/2021, with over $1.0 billion of additional loans currently under application in the pipeline
- Sold one CRE equity investment for $39 million of net sales proceeds, contributing $7 million to distributable earnings
Portfolio Composition
- $5.6 billion in assets, including $2.6 billion of loans (45% of total), $948 million of real estate equity (17%), and $719 million of securities (13%)
- 79% of assets are senior secured and/or investment grade-rated
- 82% of loans are floating-rate
- Increased sources of unsecured and non-recourse,non-mark-to-market financing:
- Issued $650 million of 8-year unsecured corporate bonds at 4.75% coupon (closed in June 2021)
Liquidity,
Leverage,
Financing and
Book Value
- Subsequent to 06/30/2021, issued managed CLO with $498 million of financing at L + 155 bps weighted-avg. coupon
- $3.3 billion of unencumbered assets (58% of total assets), including $1.2 billion of unrestricted cash (21% of total assets)
- Adjusted Leverage Ratio of 2.5x, or 1.7x net of cash
- $1.5 billion GAAP book equity value and $1.7 billion undepreciated book equity value
- $13.79 undepreciated book value per share
Earnings and | | Distributable Earnings of $13.4 million and Distributable EPS of $0.10 |
Dividends | | Declared Q2 2021 cash dividend of $0.20 per LADR share, which represents a 7.1% annual dividend yield2 |
Note: As of 06/30/2021, unless noted otherwise
- For a description of these financial and non-GAAP financial measures, see Selected Definitions on page S-20
- Based on $11.34 LADR closing stock price on 07/28/2021
S-2
LOAN PORTFOLIO OVERVIEW (06/30/2021)
Loan Type1 | Loan Size1 |
2 | |
$2.6 billiontotal loan portfolio - | |
25% increasevs. 03/31/2021 | Middle-marketfocus - $21 million avg. loan size |
Property Type | Geography |
Note: As of 06/30/2021
- Amounts in these charts shown before $35.9 million allowance for loan losses
- Includes mezzanine and subordinate loans
S-3
LOANS SEGMENT SUMMARY
($ in millions)
Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||
Balance Sheet First Mortgage Loans | ||||||||
Carrying Value of Assets (end of quarter) | $2,414 | $1,887 | $2,233 | $2,609 | $2,833 | $3,310 | ||
Origination Volume | 803 | 114 | - | - | - | 351 | ||
Funding Volume | 689 | 117 | 10 | 9 | 20 | 314 | ||
Weighted-Average Coupon (end of quarter)1 | 5.6% | 6.0% | 6.1% | 6.1% | 6.1% | 6.2% | ||
Weighted-Average LTV (end of quarter) | 68% | 69% | 67% | 67% | 71% | 70% | ||
Loan Sale Volume | - | $47 | $101 | $7 | $172 | - | ||
Other (Mezzanine/Subordinate) Loans | ||||||||
Carrying Value of Assets (end of quarter) | $117 | $121 | $121 | $122 | $122 | $123 | ||
Origination/Funding Volume | - | - | - | - | - | - | ||
Mezz./Subordinate Loans % of Total Assets | 2.1% | 2.2% | 2.1% | 1.9% | 1.9% | 1.7% | ||
Weighted-Average Coupon (end of quarter)1 | 10.9% | 10.8% | 10.9% | 10.9% | 10.9% | 10.9% | ||
Weighted-Average LTV (end of quarter) | 68% | 67% | 67% | 67% | 67% | 67% | ||
Conduit First Mortgage Loans | ||||||||
Carrying Value of Assets (end of quarter) | $59 | $71 | $31 | $31 | $86 | $147 | ||
Origination/Funding Volume | 35 | 41 | - | - | - | 213 | ||
Weighted-Average Coupon (end of quarter) | 4.2% | 4.2% | 4.1% | 4.1% | 3.9% | 3.9% | ||
Loan Sale Volume | $48 | - | - | $60 | $68 | $185 | ||
Allowance for Loan Losses | ($36) | ($36) | ($42) | ($47) | ($49) | ($49) | ||
Total Loan Portfolio | ||||||||
Carrying Value of Assets (end of quarter) | $2,554 | $2,043 | $2,343 | $2,715 | $2,992 | $3,530 | ||
Weighted-Average Yield (end of quarter)1 | 6.1% | 6.5% | 6.7% | 7.0% | 6.9% | 6.8% |
1. Excludes the impact of non-accrual loans. For additional details on non-accrual loans, please refer to the Company's 10-Q and 10-K filings
S-4
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Ladder Capital Corp. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 20:28:06 UTC.
