Ladder Capital : Supplemental Data - Third Quarter 2020

SUPPLEMENTAL DATA FOR

THE QUARTER ENDED

SEPTEMBER 30, 2020

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 of 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, 2019, 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 effect 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 September 30, 2020, 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 September 30, 2020 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.

THIRD QUARTER 2020 HIGHLIGHTS1

Earnings and Dividends

Investment Activity

Portfolio Composition

Liquidity,

Leverage,

Financing and

Book Value

• Core Earnings of $19.7 million and Core EPS of $0.16
• After-TaxCore Return on Average Equity (Core ROAE) of 5.1% for the quarter and 5.7% year-to-date
• Declared Q3 2020 cash dividend of $0.20 per LADR share, which represents a 11.5% annual dividend yield 2
• Continued to focus on preserving and generating additional liquidity
• Received $229 million of on-time or early repayments of balance sheet loans
• Sold $67 million of loans (comprised of $60 million of conduit loans and $7 million of balance sheet loans)
• Sold $34 million of securities and $64 million of real estate equity investments
• $6.4 billion in assets, including $2.7 billion of loans (43% of total), $1.4 billion of securities (23%), and $991 million of real estate equity (16%)
• 78% of assets are senior secured and/or investment grade-rated
• 80% of loans are floating-rate
• $876 million balance of unrestricted cash
• $239 million reduction in total debt during quarter
• Adjusted Leverage Ratio of 2.9x (Adjusted Leverage Ratio, net of cash, of 2.3x)
• $1.5 billion GAAP book equity value and $1.7 billion undepreciated book equity value (1% increase versus prior quarter)
• $14.35 undepreciated book value per share ($0.18 increase versus prior quarter)

Note: As of 09/30/2020, unless otherwise indicated

1. For a description of these financial and non-GAAP financial measures, see Selected Definitions on page S-20
2. Based on $6.98 LADR closing stock price on 10/28/2020

S-2

CAPITAL STRUCTURE UPDATE

ENHANCED QUALITY OF CAPITAL BASE

Over the last two quarters, Ladder has decreased total & net leverage, increased non-mark-to-market &

non-recourse financing, and significantly increased unrestricted cash balance

03/31/2020 Capitalization ($mm)	09/30/2020	Capitalization ($mm)

	Committed Loan Repo Facilities
	$537
	(7%)
	Committed Securities
	Repo Facility
	$478
Book Equity	(7%)
$1,501
(21%)

Committed Loan Repo Facilities
$354	Committed Securities
(6%)	Repo Facility
	$352
	(6%)	FHLB
		Financing
Book Equity		$326
	(5%)
$1,522
(24%)		Other Securities

$7.2B	FHLB
Financing
Capitalization
$1,008

$6.2B	Repo Facilities
$471
Capitalization
(8%)

(14%)

$358M

More diversified, durable capital structure in place with reduced leverage

$876M

Non-Recourse

Koch Financing

$191

Unsecured

Corporate Bonds &

Corporate Revolver

$2,140

(30%)

Unrestricted	Other Securities
Cash	Repo Facilities
$712
	(10%)
Non-Recourse
Mortgage Financing
$806
(11%)

Unrestricted
Unsecured	Cash	Non-Recourse
Corporate Bonds &
	Mortgage Financing
Corporate Revolver
	$770
$1,969
	(12%)
(32%)

(3%)

Non-Recourse

CLO Financing

$282

(5%)

03/31/2020

Debt/Equity (Adjusted Leverage Ratio):	3.8x
Net Debt1 (excluding Cash)/Equity Ratio:	3.4x
Non-Mark-to-Market Financing2 + Book Equity:	67%3
Non-Recourse & Unsecured Debt + Book Equity:	62%3

09/30/2020

2.9x

2.3x

79% 3

76% 3

1. Net debt excludes total cash on balance sheet of $622 million as of 03/31/2020 and $918 million as of 09/30/2020
2. Non-mark-to-marketfinancing includes financing that is subject to credit events only
3. Represents percentage of total capitalization

S-4

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 09/30/2020)

Issuance /		Debt							Maturity Year (weighted-average, where applicable)
Facility Size		Outstanding		2020		2021		2022		2023		2024			2025		2026		2027
$652	$643			4.250% Unsecured Bonds (issued in January 2020)
348	345			5.250% Unsecured Bonds
466	464			5.250% Unsecured Bonds
251	251			5.875% Unsecured Bonds
266	266			Unsecured Syndicated Revolving Credit Facility 2
					Total Unsecured Debt (42% of total debt)
$1,983	$1,969
770	770			Non-Recourse Mortgage Debt on Owned Real Estate
206	191			Non-Recourse Koch Financing
285	282			Non-Recourse CLO Financing
1,950	706	3		Committed Bilateral Bank Facilities (7 facilities)3
1,500	326			FHLB Financing
					Total Unsecured & Committed Secured Debt (90% of total debt)
$6,695	$4,244
-	471			Uncommitted Repo
					Total Financing
$6,695	$4,715

1. Includes extensions at Company's option
2. Secured by stock of selected unrestricted subsidiaries
3. Includes $354 million of outstanding committed loan repurchase financing and $352 million of outstanding committed securities repurchase financing

S-5

STAGGERED DEBT MATURITY PROFILE

Further extended debt maturities with a larger component of non-recourse and non-mark-to-market financing

03/31/2020

Unsecured & Secured Debt Maturities ($mm)

					Unsecured Debt 1
$1,000					Secured Debt
										$902
$806								$773	$788
$750
				$685	$650
$500	$454				$264						$720
							$659
						$497
						$311
		$264
$250
				$421
						$153			$130	$48	$182
$0
Q2 2020	Q3 2020	Q4 2020	2021	2022	2023	2024	2025	2026	2027 &
											Beyond

$981 million reduction or extension in debt maturities through 2021 (vs. 03/31/2020)

$1,000

					$850			$771			$830
								$740
	$750				$251
					$617
							$482
09/30/2020	$500									$643
		$378					$611
					$464
	$250				$599
		n/a	n/a			$153			$129	$48	$186
	$0
	Q2 2020	Q3 2020	Q4 2020	2021	2022	2023	2024	2025	2026	2027 &
											Beyond

1. Amounts shown for existing unsecured corporate bonds are net of deferred financing fees

S-6

OVERSIZED, HIGH-QUALITY UNENCUMBERED ASSET POOL

• 43% of total asset base is composed of unencumbered assets
• 74% of unencumbered assets are cash or first mortgage loans

Total Unencumbered Asset Pool

Unencumbered First Mortgage Loans by Property Type

($ in millions)

($ in millions)

Unrestricted
Cash
$876		First
(32%)	$2.7B
Mortgage
	Loans
	Total
	$1,153
	Unencumbered	(42%)
	Assets
Other
Unencumbered
Assets
$315
(12%)

Unencumbered

First Mortgage Loans

Mixed Use	Hotel
$269
$297

		$1.2B
	Unencumbered
Other	First Mortgage	Office
$87		Loans
	$179
Multifamily	Industrial	Retail
$140
$76	$105

CRE	FHLB	Securities	Mezzanine
Equity
Loans
Stock	$143
1
$76	$62	(5%)	$119
(3%)
(4%)
(2%)

Note: As of 09/30/2020

1. Represents undepreciated asset value

2. Calculated by deducting unrestricted cash from the numerator and denominator

Key Unencumbered Asset Pool Highlights

• Predominantly senior, financeable, oversized unencumbered asset base
• 1.60x unencumbered asset/unsecured debt ratio ($683 million in excess of the 1.20x covenant)
• 2.22x unencumbered asset/unsecured debt ratio net of unrestricted cash2

 $1.2 billion of unencumbered senior secured first mortgage loans 7

• $876 million of unencumbered unrestricted cash

S-7

BOOK EQUITY VALUE ROLL-FORWARD

Summary of Changes to Book Equity Value During Q3 2020 ($mm)

$1,706	= Undepreciated Book Value	$1,726

$1,501		$21	$19	$1	$1,517
	$4
	($30)

06/30/2020	Distributions &	Equity-Based	Net Income /	Other Comprehensive	Other2	09/30/2020
Book Equity Value1	Dividends	Compensation	(Loss)	Income		Book Equity Value3
				(Securities Portfolio
Book Value per Share				Mark-to-Market)		Book Value per Share
(Undepreciated & GAAP)						(Undepreciated & GAAP)
$14.17						$14.35
$12.44						$12.61

1. Excludes $6.9 million of noncontrolling interest in consolidated joint ventures
2. Includes purchase of treasury stock, change in and exchange of noncontrolling interests, and acquisition of shares to satisfy tax withholding on vesting restricted stock
3. Excludes $5.3 million of noncontrolling interest in consolidated joint ventures

S-8

SEGMENT & FINANCIAL DATA

LADDER SNAPSHOT

($ in millions, except per share amounts)

		Snapshot of Business Lines
Balance Sheet Loans			Net Leased Commercial Real Estate (100% Owned)
Carrying Value of Assets		$2,731	Carrying Value of Assets	$643
Secured Financing on Assets	A	897	Undepreciated Book Value of Assets	789
Net Equity Invested (excl. Corporate Debt)	1,835	Secured Financing on Assets D	520
% First Mortgage		96%	Net Equity Invested (excl. Corporate Debt)	269

Total Assets & Liabilities, Book Equity, Leverage and ROE
Total Assets
Cash & Cash Equivalents	$876
Loans, Securities & Real Estate	5,422
Accumulated Depreciation & Amortization	(222)
Other Assets	4	284

% Other (Mezzanine / Subordinate)	4%	Total Square Feet	5,294,566
Weighted-Average Coupon	6.4%	Weighted-Average % Leased	100%
Accounting method: carried at lower of cost or FMV	In-Place Annual Net Operating Income (NOI)	$50.7
		Accounting method: carried at depreciated book value
Conduit Loans

Total Assets

Total Liabilities

Unsecured Corporate Bonds

Unsecured Revolving Credit Facility

Total Unsecured Debt

6,359

$1,703 266 1,969

Carrying Value of Assets	$31
Secured Financing on Assets B	14
Net Equity Invested (excl. Corporate Debt)	17
Weighted-Average Coupon	4.1%
Origination and Purchase Volume (LTM)	$605

Diversified Commercial Real Estate	2,3
Carrying Value of Assets		$347
Undepreciated Book Value of Assets	423
Secured Financing on Assets E		250
Net Equity Invested (excl. Corporate Debt)	172

Secured Financing	A B C D
Total Debt
Other Liabilities	4
Total Liabilities

E F

2,745 4,715 123 4,838

Loan Sale Volume (LTM)		769
Core Earnings Contribution (LTM)	1	18
Accounting method: carried at lower of cost or FMV
Securities
Carrying Value of Assets		$1,448
Secured Financing on Assets C		1,065
Net Equity Invested (excl. Corporate Debt)	383
% First Mortgage Secured		100%
% AAA-Rated or Agency-Backed		92%
% Investment Grade-Rated		99%+
Average CUSIP Size		$10.8
Weighted-Average Duration		2.1 Years
Accounting method: carried at FMV

Total Square Feet	2,425,518
Weighted-Average Occupancy	81%
In-Place Annual Net Operating Income (NOI)	$21.6
Weighted-Average % Owned by Ladder	87.0%
Accounting method: carried at depreciated book value
Condominium Residential Real Estate (100% Owned)
Carrying Value of Assets	$1
Undepreciated Book Value of Assets	1
Secured Financing on Assets F	-
Net Equity Invested (excl. Corporate Debt)	1
Total Remaining Units	2
Unit Sale Price as % of GAAP Book Value (LTM)	104%
Accounting method: carried at depreciated book value

Book Equity Value
GAAP Book Equity Value (excl. NCI in JVs)		$1,517
Total Shares Outstanding (mm)				120.3
GAAP Book Value per Share	4				$12.61
Undepreciated Book Value per Share	5			$14.35
Leverage
Adjusted Debt (for Adjusted Leverage	Ratio)	5	$4,433
Total GAAP Book Equity (incl. NCI in JVs)		1,522
Adjusted Leverage Ratio	5					2.9x
Return on Average Equity (based on Core Earnings)	5
Core Earnings (LTM)						$112
Average Book Equity Value (LTM)				1,550
After-Tax Core ROAE (LTM)					7.2%

Note: As of 09/30/2020

1. Pre-taxand pre-overhead allocation
2. All metrics shown on a consolidated basis, except Weighted-Average % Owned by Ladder, which excludes the potential effects of partnership/joint venture promote/sharing arrangements
3. Excludes two unconsolidated joint venture investments with total book value of $49.2 million as of 09/30/2020
4. For a description of these financial measures, see Selected Definitions on page S-20
5. For a description of these non-GAAP financial measures, see Selected Definitions on page S-20

S-10

INVESTMENT PORTFOLIO SUMMARY

($ in millions)
		Investment Portfolio	Core Earnings Contribution
		(as of 09/30/2020)	(Nine Months Ended 09/30/2020)
		Carrying Value	% of Total	Amount of	% of Total
	Investment Type	of Assets	Assets	Contribution	Contribution
Conduit First Mortgage Loans	$31	0%	$1.6	1%
Balance Sheet First Mortgage Loans	2,609	41%	99.1	73%
Other (Mezzanine /Subordinate) Loans	122	2%	9.8	7%
Provision for Current Expected Credit Losses	(47)	(1%)	-	-
Total Loans		$2,715	43%	$110.5	81%
Securities		$1,448	23%	($10.4)	(8%)
Net Leased Commercial Real Estate	$643	10%	$25.4	19%
Diversified Commercial Real Estate	347	5%	11.4	8%
Condominium Residential Real Estate	1	0.01%	(0.2)	(0.2%)
Total Real Estate Equity Properties	$991	16%	$36.6	27%
Other Investments	$111	2%	($0.6)	(0.4%)
Total Investment Assets	$5,264	83%	$136.0	100%
Cash and Cash Equivalents (unrestricted)	$876	14%
Restricted Cash	42	1%
Other Assets	178	3%
Total Assets		$6,359	100%	$136.0	100%
Corporate Bond Interest Expense			(81.0)	(60%)
Gain on Bond Repurchases			20.2	15%
Corporate Operating Expenses /Other			(28.8)	(21%)
Transactional Adjustments (response to			16.9	12%
COVID-19)	1
Total Core Earnings			$63.3	47%

1. For additional detail on these Q2 2020 adjustments, please refer to the Company's June 30, 2020 Form 10-Q filing and earnings press release

S-11

LOAN PORTFOLIO OVERVIEW

Loan Type 1

Loan Size 1

2

$2.7 billion total loan portfolio 80% floating rate/ 20% fixed rate

Property Type

Note: As of 09/30/2020

1. Amounts in these charts shown before $47.1 million allowance for loan losses
2. Includes mezzanine and subordinate loans

$19 million average loan balance

Geography

S-12

LOANS SEGMENT SUMMARY

($ in millions)
	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
Conduit First Mortgage Loans
Carrying Value of Assets (end of quarter)	$31	$86	$147	$122	$174	$112	$190
Origination and Purchase Volume	-	-	213	392	231	158	175
Weighted-Average Coupon (end of quarter)	4.1%	4.0%	3.9%	4.2%	4.6%	5.0%	5.5%
Loan Sale Volume	$60	$68	$185	$456	$141	$238	$170
Balance Sheet First Mortgage Loans
Carrying Value of Assets (end of quarter)	$2,609	$2,833	$3,310	$3,127	$3,098	$2,977	$3,159
Origination and Purchase Volume	9	20	314	459	501	260	274
Weighted-Average Coupon (end of quarter)	6.2%	6.2%	6.2%	6.3%	6.7%	7.3%	7.3%
Weighted-Average LTV (end of quarter)	67%	71%	70%	70%	70%	70%	69%
Loan Sale Volume	$7	$172	-	-	-	-	-
Other (Mezzanine/Subordinate) Loans
Carrying Value of Assets (end of quarter)	$122	$122	$123	$130	$133	$143	$144
Origination Volume	-	-	-	7	-	-	7
Mezz./Subordinate Loans % of Total Assets	1.9%	1.9%	1.7%	1.9%	2.0%	2.2%	2.2%
Weighted-Average Coupon (end of quarter)	10.8%	10.8%	10.8%	10.9%	10.8%	10.9%	10.9%
Weighted-Average LTV (end of quarter)	67%	67%	67%	68%	68%	70%	68%
Allowance for Loan Losses /	($47)	($49)	($49)	($21)	($19)	($19)	($18)
Current Expected Credit Loss Provision
Total Loan Portfolio
Carrying Value of Assets (end of quarter)	$2,715	$2,992	$3,530	$3,359	$3,387	$3,213	$3,474
Weighted-Average Yield (end of quarter)	7.0%	6.9%	6.8%	6.9%	7.2%	7.9%	7.6%

S-13

SECURITIES SEGMENT SUMMARY

($ in millions)
	09/30/2020	06/30/2020	03/31/2020	12/31/2019	09/30/2019	06/30/2019	03/31/2019
Carrying Value of Assets	$1,448		$1,507	$1,931	$1,721	$1,911	$1,788	$1,619
Weighed-Average Yield	1.6%		1.6%	2.2%	3.1%	3.2%	3.3%	3.3%
Number of CUSIPs	134		148	164	161	181	188	197
Average CUSIP Size	$10.8		$10.2	$11.8	$10.7	$10.6	$9.5	$8.2
Weighted-Average Duration
2.1 Years		2.3 Years	2.3 Years	2.4 Years	2.4 Years	2.3 Years	2.5 Years
% AAA-Rated or Agency-Backed	92%		92%	92%	89%	86%	84%	83%
% Investment Grade-Rated	99%+		99%+	100%	99%	98%	97%	97%

Securities Portfolio Duration Profile (as of 09/30/2020)

100%

Category Portfolio Weighting

97%	100%	100%

Cumulative Portfolio Weighting

80%			77%
60%			57%	$1.4		$1.4	$1.4
				billion		billion	billion
40%			$1.1
		$825 billion
	20% 20%	million	19%
20%			97%	100%	100%
	100%
	80%		77%	$48
	$292	60%		57%$282
	$292			million	3%	$0.2
		40%
	million	million	20% 20%		million
			19%
	20%
0%							0.02%
	0%					3%	0.02%
		0-1 year	1-3 years		3-5 years	5-7.5 years	>7.5 years
	0-1 year	1-3 years	3-5 years		5-7.5 years	>7.5 years

Highly-rated,short-duration,highly-liquid securities portfolio

S-14

REAL ESTATE SEGMENT SUMMARY

($ in millions)
	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
Net Leased Commercial Real Estate (100% Owned)
Acquisitions	-	-	$6	$6	$9	$3	$2
Net Sales Proceeds	19	-	-	-	-	-	-
Carrying Value of Assets (end of quarter)	643	665	671	671	669	666	670
Square Feet (end of quarter)	5,294,566	5,382,354	5,382,354	5,338,661	5,291,867	5,224,039	5,204,471
Net Operating Income (Rental Income)	$13.5	$13.5	$13.6	$13.5	$13.0	$13.3	$13.2
Diversified Commercial Real Estate 1
Acquisitions 2	-	$4	$22	$66	-	-	$18
Net Sales Proceeds	44	-	29	-	7	12	-
Carrying Value of Assets (end of quarter)	347	377	375	375	309	315	331
Square Feet (end of quarter)	2,425,518	3,115,383	3,043,487	3,224,468	2,910,991	3,070,991	3,224,545
Net Operating Income	$3.9	$3.9	$4.9	$5.8	$4.8	$4.5	$4.6
Condominium Residential Real Estate 1
Net Sales Proceeds	$0.3	$0.3	$1	$1	$0.3	$2	$2
Carrying Value of Assets (end of quarter)	1	1	1	2	3	3	5
Remaining Condo Units (end of quarter)	2	3	4	6	9	10	17
Unit Sale Price as % of GAAP Book Value	92%	85%	87%	120%	94%	96%	99%
Total Real Estate Portfolio
Carrying Value of Assets (end of quarter)	$991	$1,042	$1,047	$1,048	$981	$984	$1,006

1. All metrics shown on a consolidated basis
2. Includes additions to portfolio from foreclosure

09/30/2020 Real Estate

Portfolio Snapshot

Property Type

	Wholesale
Office	Club
11%	Dollar
25%
	Store
		13%
		Drug
Other		Store
8%		10%
	Grocery
Multifamily	Other	Store
14%	9%
Retail
	5%
Warehouse
	5%

Geography

Various Northeast

1% 14%

South

38%

Midwest

24%

West

16%

Southwest

7%

S-15

INCOME STATEMENT BY QUARTER

($ in millions, except per share values)	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
Net interest income
Interest income			$54.6	$62.1	$72.6	$76.2	$82.3	$85.3	$86.5
Interest expense			56.4	68.4	51.4	49.3	51.4	52.4	51.2
Net interest income		($1.8)	($6.3)	$21.2	$26.9	$30.9	$33.0	$35.2
			-	-	-	-	-	-	-
Provision for (release of) loan loss reserves	(2.5)	(0.7)	26.6	2.0	-	0.3	0.3
Net interest income after provision for (release of) loan losses	$0.7	($5.6)	($5.4)	$24.9	$30.9	$32.7	$34.9
Other income
Operating lease income	25.5	23.8	26.3	25.3	24.4	27.8	28.9
Sale of loans, net			1.1	(0.7)	1.0	16.2	11.2	20.3	7.1
Realized gain (loss) on securities	(0.3)	(14.8)	3.0	4.2	3.4	4.5	2.9
Unrealized gain (loss) on equity securities	-	0.4	(0.5)	0.4	0.3	(1.0)	2.1
Unrealized gain (loss) on Agency interest-only securities	0.0	0.1	0.1	0.0	0.0	0.0	0.0
Realized gain on sale of real estate, net	21.6	(0.0)	10.5	0.4	2.1	(1.1)	0.0
Impairment of real estate	-	-	-	-	-	-	(1.4)
Fee and other income	3.1	3.5	1.5	7.4	5.2	7.2	4.7
Net result from derivative transactions	0.3	(0.8)	(15.4)	5.9	(9.5)	(15.5)	(11.0)
Earnings (loss) from investment in unconsolidated joint ventures	0.4	0.5	0.4	(0.2)	1.1	1.6	1.0
Gain (loss) on extinguishment / defeasance of debt	1.2	19.0	2.1	-	-	-	(1.1)
Total other income	$52.8	$30.9	$29.0	$59.6	$38.2	$43.7	$33.1
Costs and expenses
Salaries and employee benefits	7.9	7.0	17.0	15.0	14.3	14.9	23.6
Operating expenses			3.9	6.2	5.8	5.9	5.3	6.0	5.4
Real estate operating expenses	8.1	6.0	7.9	5.5	6.3	6.0	5.5
Fee expense			2.5	2.0	1.4	1.1	2.1	1.2	1.7
Depreciation and amortization	9.8	9.8	10.0	9.3	9.0	9.9	10.2
Total costs and expenses	$32.1	$31.1	$42.2	$36.8	$37.0	$38.1	$46.4
Income (loss) before taxes	$21.4	($5.7)	($18.6)	$47.6	$32.1	$38.3	$21.7
Income tax expense (benefit)	0.0	(0.6)	(4.5)	2.2	1.1	2.2	(2.9)
Net income (loss)			$21.4	($5.2)	($14.1)	$45.4	$30.9	$36.1	$24.5
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures	(4.1)	0.3	(1.5)	0.0	(0.1)	0.3	0.4
Net (income) loss attributable to noncontrolling interest in operating partnership	(0.0)	0.8	(0.1)	(4.8)	(3.3)	(4.1)	(2.8)
Net income (loss) attributable to Class A common shareholders	$17.2	($4.2)	($15.7)	$40.6	$27.6	$32.2	$22.2
Earnings per share:
Basic			$0.15	($0.04)	($0.15)	$0.38	$0.26	$0.31	$0.21
Diluted			0.14	(0.04)	(0.15)	0.37	0.26	0.30	0.21
Weighted average shares outstanding (mm):
Basic			117.5	106.8	106.3	106.0	106.0	105.5	104.3
Diluted			118.8	106.8	106.3	118.9	106.6	105.9	105.0
Core Earnings (pre-tax)	1	$19.7	$12.8	$30.9	$48.6	$44.1	$51.0	$46.9
Core EPS (after-tax)	1		$0.16	$0.12	$0.26	$0.40	$0.38	$0.43	$0.40

1. For a description of these non-GAAP financial measures, see Selected Definitions on page S-20

S-16

CORE EARNINGS, CORE EPS AND ROAE RECONCILIATIONS BY QUARTER1

($ in millions, except per share values)

Net income (loss)

Income tax expense (benefit)

Income (loss) before taxes

Net (income) loss attributable to noncontrolling interest in consolidated joint ventures (GAAP) Our share of real estate depreciation, amortization and gain adjustments

Adjustments for unrecognized derivative results Unrealized (gain) loss on fair value securities

Adjustment for economic gain on loan sales not recognized under GAAP for which risk has been substantially transferred, net of reversal/amortization

Adjustment for CECL reserves Non-cashstock-based compensation Transactional adjustments (response to COVID-19)2

Core earnings

Core estimated corporate tax benefit (expense)

After-tax core earnings

Adjusted weighted average shares outstanding (diluted) (mm)

Core EPS

Weighted average shares outstanding (diluted) (mm)

Effect of shares issuable to converted Class B shareholders, unvested restricted stock, and unvested stock options (mm)

Adjusted weighted average shares outstanding (diluted) (mm)

Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
$21.4	($5.2)	($14.1)	$45.4	$30.9	$36.1	$24.5
0.0	(0.6)	(4.5)	2.2	1.1	2.2	(2.9)
$21.4	($5.7)	($18.6)	$47.6	$32.1	$38.3	$21.7
(4.2)	0.2	(1.5)	(0.0)	(0.1)	0.3	0.4
4.5	8.9	1.4	8.2	6.7	6.6	5.7
(4.2)	(8.6)	17.6	(10.7)	1.9	2.2	9.1
(0.0)	(1.6)	1.5	(0.5)	(0.2)	0.9	(2.1)
0.5	0.2	(0.2)	0.2	(0.2)	(0.6)	(0.0)
(2.5)	(0.7)	18.6	-	-	-	-
4.1	3.3	12.2	3.7	3.9	3.4	12.1
-	16.9	-	-	-	-	-
$19.7	$12.8	$30.9	$48.6	$44.1	$51.0	$46.9
(0.4)	2.0	0.3	(1.6)	0.4	0.0	0.3
$19.4	$14.8	$31.1	$47.0	$44.6	$51.0	$47.2
118.8	118.9	118.9	118.9	118.8	118.6	118.2
$0.16	$0.12	$0.26	$0.40	$0.38	$0.43	$0.40
118.8	106.8	106.3	118.9	106.6	105.9	105.0
-	12.1	12.6	-	12.2	12.7	13.2
118.8	118.9	118.9	118.9	118.8	118.6	118.2

	Last Twelve	Year-to-Date:
	Months (LTM)	Nine Months
	Ended 09/30/2020	Ended 09/30/2020
Core earnings	$111.9	$63.3	$19.7	$12.8	$30.9	$48.6	$44.1	$51.0	$46.9
Average book equity	1,549.7	1,522.9	1,509.0	1,497.6	1,562.0	1,630.4	1,634.6	1,636.7	1,634.1
Pre-tax Core ROAE	7.2%	5.5%	5.2%	3.4%	7.9%	11.9%	10.8%	12.5%	11.5%
After-tax core earnings	$112.3	$65.3	$19.4	$14.8	$31.1	$47.0	$44.6	$51.0	$47.2
Average book equity	1,549.7	1,522.9	1,509.0	1,497.6	1,562.0	1,630.4	1,634.6	1,636.7	1,634.1
After-tax Core ROAE	7.2%	5.7%	5.1%	4.0%	8.0%	11.5%	10.9%	12.5%	11.6%

1. For a description of these non-GAAP financial measures, see Selected Definitions on page S-20
2. The impact from COVID-19 included adjustments in Q2 2020 related to the unusual market conditions and actions taken by management. For additional detail on these adjustments, please

1. refer to the Company's June 30, 2020 Form 10-Q filing and earnings press release

S-17

BALANCE SHEET BY QUARTER

($ in millions, except per share values)	09/30/2020	06/30/2020	03/31/2020	12/31/2019	09/30/2019	06/30/2019	03/31/2019
Assets
Cash and cash equivalents	$875.8	$826.1	$358.4	$58.2	$83.1	$126.5	$45.2
Restricted cash	41.9	47.9	263.9	297.6	38.7	88.9	80.1
Mortgage loan receivables held for investment, net, at amortized cost	2,684.2	2,906.0	3,383.3	3,236.5	3,212.9	3,101.4	3,300.1
Mortgage loan receivables held for sale	30.6	86.0	146.7	122.3	174.2	112.0	189.5
Real estate securities	1,447.6	1,506.7	1,930.6	1,721.3	1,911.5	1,788.4	1,619.1
Real estate and related lease intangibles, net	990.6	1,042.2	1,047.4	1,048.1	981.3	984.4	1,006.0
Investments in unconsolidated joint ventures	49.2	48.9	48.7	48.4	51.4	57.8	93.8
FHLB stock	61.6	61.6	61.6	61.6	61.6	61.6	61.6
Derivative instruments	0.4	0.4	1.0	0.7	0.0	0.5	1.6
Accrued interest receivable	18.3	18.8	23.2	21.1	22.7	24.3	26.6
Other assets	159.3	65.0	67.1	53.3	82.4	61.0	101.8
Total assets	$6,359.5	$6,609.5	$7,331.9	$6,669.2	$6,619.9	$6,406.8	$6,525.4
Liabilities
Debt obligations:
Secured and unsecured debt obligations	$4,714.5	$4,953.5	$5,681.0	$4,859.9	$4,860.7	$4,613.1	$4,716.4
Liability for transfers not considered sales	-	-	-	-	-	-	15.8
Dividends payable	26.2	23.6	38.3	38.7	2.4	1.9	1.4
Accrued expenses	36.2	55.6	38.5	72.4	45.8	55.5	34.3
Other liabilities	60.7	68.5	73.3	59.2	71.8	88.3	113.1
Total liabilities	$4,837.7	$5,101.2	$5,831.0	$5,030.2	$4,980.6	$4,758.7	$4,881.2
Equity
Class A common stock, par value $0.001 per share, 600,000,000 shares authorized	$0.1	$0.1	$0.1	$0.1	$0.1	$0.1	$0.1
Class B common stock, no par value, 100,000,000 shares authorized	-	0.0	0.0	0.0	0.0	0.0	0.0
Additional paid-in capital	1,726.3	1,649.2	1,546.1	1,532.4	1,529.6	1,526.5	1,508.5
Treasury stock	(54.5)	(53.6)	(53.0)	(42.7)	(41.6)	(41.5)	(40.8)
Retained earnings (dividends in excess of earnings)	(127.0)	(120.1)	(94.2)	(35.7)	(39.9)	(30.8)	(26.5)
Accumulated other comprehensive income (loss)	(28.4)	(45.1)	(65.9)	4.2	10.4	12.2	7.1
Total shareholders' equity	$1,516.5	$1,430.5	$1,333.2	$1,458.3	$1,458.7	$1,466.4	$1,448.3
Noncontrolling interest in operating partnership	-	71.0	160.5	172.1	171.7	172.5	186.3
Noncontrolling interest in consolidated joint ventures	5.3	6.9	7.2	8.6	8.8	9.2	9.6
Total equity	$1,521.8	$1,508.4	$1,500.8	$1,639.0	$1,639.3	$1,648.1	$1,644.2
Total liabilities and equity	$6,359.5	$6,609.5	$7,331.9	$6,669.2	$6,619.9	$6,406.8	$6,525.4
Adjusted Leverage Ratio 1	2.9x	3.1x	3.8x	3.0x	2.9x	2.6x	2.6x
Total Shares Outstanding (mm)	120.3	120.4	120.5	119.7	119.7	119.7	119.8
GAAP Book Value per Share 2	$12.61	$12.44	$12.31	$13.56	$13.56	$13.63	$13.59
Undepreciated Book Value per Share 1	$14.35	$14.17	$14.01	$15.23	$15.15	$15.16	$15.09
Distributions per LADR Share	$0.20	$0.20	$0.34	$0.34	$0.34	$0.34	$0.34

1. For a description of these non-GAAP financial measures, see Selected Definitions on page S-20
2. For a description of these financial measures, see Selected Definitions on page S-20

S-18

BOOK EQUITY, SHARECOUNT, AND ADJUSTED LEVERAGE GAAP RECONCILIATION BY QUARTER

($ in millions, except per share values)

Beginning book equity balance

Net income (loss)

Dividends / distributions

Changes in other comprehensive income (OCI)

Issuance of common stock, net of offering costs

Other

Ending book equity balance (Total equity)

Noncontrolling interest in consolidated joint ventures (JVs)

Book equity balance excluding noncontrolling interest in consolidated JVs Average book equity balance excluding noncontrolling interest in consolidated JVs

Accumulated depreciation & amortization - net leased commercial real estate Accumulated depreciation & amortization - diversified commercial real estate Accumulated depreciation & amortization - condominium residential real estate

Less: JV noncontrolling interests' share of accumulated real estate depreciation & amortization

Accumulated real estate depreciation & amortization - our share

Undepreciated book value

09/30/2020	06/30/2020	03/31/2020	12/31/2019	09/30/2019	06/30/2019	03/31/2019
$1,508.4	$1,500.8	$1,639.0	$1,639.3	$1,648.1	$1,644.2	$1,643.6
21.4	(5.2)	(14.1)	45.4	30.9	36.1	24.5
(30.4)	(24.3)	(44.3)	(41.2)	(41.6)	(41.0)	(40.6)
18.7	26.1	(78.0)	(6.8)	(2.0)	5.6	13.2
-	-	-	-	-	-	-
3.7	10.9	(1.8)	2.3	3.9	3.2	3.4
$1,521.8	$1,508.4	$1,500.8	$1,639.0	$1,639.3	$1,648.1	$1,644.2
(5.3)	(6.9)	(7.2)	(8.6)	(8.8)	(9.2)	(9.6)
$1,516.5	$1,501.5	$1,493.7	$1,630.3	$1,630.4	$1,638.8	$1,634.6
$1,509.0	$1,497.6	$1,562.0	$1,630.4	$1,634.6	$1,636.7	$1,634.1
145.5	142.2	135.8	129.3	122.9	116.6	110.3
75.9	74.2	70.8	76.3	73.5	72.1	73.4
0.1	0.1	0.2	0.3	0.4	0.4	0.7
(11.9)	(12.1)	(11.7)	(13.4)	(13.0)	(12.6)	(12.2)
$209.6	$204.4	$195.0	$192.4	$183.8	$176.5	$172.1
$1,726.1	$1,705.9	$1,688.6	$1,822.8	$1,814.2	$1,815.4	$1,806.7

Class A shares outstanding (mm)	120.3	115.0	108.3	107.5	107.6	107.6	106.6
Class B shares outstanding (mm)	-	5.4	12.2	12.2	12.2	12.2	13.2
	Total shares outstanding (mm)	120.3	120.4	120.5	119.7	119.7	119.7	119.8
Shareholders' equity GAAP reconciliation
Total shareholders' equity	$1,516.5	$1,430.5	$1,333.2	$1,458.3	$1,458.7	$1,466.4	$1,448.3
Plus: noncontrolling interest in operating partnership (Class B shareholder book equity)	-	71.0	160.5	172.1	171.7	172.5	186.3
	Total equity excluding noncontrolling interest in consolidated JVs	$1,516.5	$1,501.5	$1,493.7	$1,630.3	$1,630.4	$1,638.8	$1,634.6
GAAP Book Value per Share 1	$12.61	$12.44	$12.31	$13.56	$13.56	$13.63	$13.59
Undepreciated Book Value per Share 2	$14.35	$14.17	$14.01	$15.23	$15.15	$15.16	$15.09
Debt obligations GAAP reconciliation
Committed loan repurchase facilities	$353.8	$381.1	$537.0	$702.3	$760.5	$685.3	$611.4
Committed securities repurchase facility	352.2	451.3	477.7	42.8	85.5	-	93.8
Uncommitted securities repurchase facility	471.0	462.6	712.0	1,070.9	940.1	582.1	324.8
Revolving Credit Facility	266.4	266.4	266.4	-	-	-	-
Mortgage loan financing, net of unamortized debt issuance costs	770.0	805.4	806.2	812.6	723.3	734.7	739.5
Other secured loan financing facility	190.6	188.7	-	-	-	-	-
CLO debt, net of unamortized debt issuance costs	281.6	299.6	-	-	117.8	263.2	497.3
Participation financing (on mortgage loan receivable)	-	-	-	-	-	-	2.4
Borrowings from the FHLB	326.0	360.8	1,007.6	1,073.5	1,076.4	1,191.4	1,291.4
Senior unsecured notes, net of unamortized debt issuance costs	1,702.9	1,737.5	1,874.1	1,157.8	1,157.1	1,156.4	1,155.7
Liability for transfers not considered sales	-	-	-	-	-	-	15.8
	Debt obligations, net	$4,714.5	$4,953.5	$5,681.0	$4,859.9	$4,860.7	$4,613.1	$4,732.3
Less: CLO debt	(281.6)	(299.6)	-	-	(117.8)	(263.2)	(497.3)
Less: Liability for transfers not considered sales	-	-	-	-	-	-	(15.8)
	Adjusted debt obligations	$4,432.9	$4,653.9	$5,681.0	$4,859.9	$4,742.9	$4,349.9	$4,219.1
Total equity	$1,521.8	$1,508.4	$1,500.8	$1,639.0	$1,639.3	$1,648.1	$1,644.2
	Adjusted leverage ratio	2.9x	3.1x	3.8x	3.0x	2.9x	2.6x	2.6x

1. For a description of these financial measures, see Selected Definitions on page S-20
2. For a description of these non-GAAP financial measures, see Selected Definitions on page S-20

S-19

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 total equity.
• After-TaxCore Return on Average Equity (After-Tax Core ROAE) (non-GAAP)
• • After-TaxCore Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• Core Earnings (non-GAAP)
• • Income before taxes adjusted for (i) real estate depreciation and amortization, (ii) the impact of derivative gains and losses related to the hedging of assets on our balance sheet as of the end of the specified accounting period, (iii) unrealized gains/(losses) related to our investments in fair value securities and passive interest in unconsolidated joint ventures, (iv) economic gains on loan sales not recognized under GAAP accounting for which risk has substantially transferred during the period and the exclusion of resultant GAAP recognition of the related economics during the subsequent periods, (v) adjustment for CECL reserves, (vi) non-cashstock-based compensation, and (vii) certain transactional adjustments.
• Core EPS (non-GAAP)
• • After-TaxCore Earnings divided by adjusted weighted-average shares outstanding.
• GAAP Book Value per Share
• • Total shareholders' equity divided by Class A common shares outstanding.
• Other Assets
• • Includes cash collateral held by broker, allowance for loan losses, investments in unconsolidated joint ventures, FHLB stock, derivative instrument assets, amount due from brokers, accrued interest receivable, mortgage loans transferred but not considered sold and other assets.
• Other Liabilities
• • Includes amount due to brokers, derivative instrument liabilities, amount payable pursuant to tax receivable agreement, dividend payable, accrued expenses, liabilities for transfers not considered sales and other liabilities.
• Pre-TaxCore Return on Average Equity (Pre-Tax Core ROAE) (non-GAAP)
• • Core Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• Undepreciated Book Equity and Undepreciated Book Value per Share (non-GAAP)
• • Total equity, adjusted to exclude total noncontrolling interest in consolidated joint ventures and adjusted to include our share of total real estate accumulated depreciation and amortization. Per share information is derived by dividing the preceding amount by total diluted shares outstanding.

S-20