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Ladder Capital (LADR)
NYSE:LADR
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Ladder Capital
(NYSE:LADR)68Neutral
Positive Factors
Financial Performance
Ladder Capital reported a solid 3Q24 with Distributable EPS of $0.30 ahead of estimates.
Stock Valuation
Ladder Capital's shares are trading at a discount to book value, offering a potential price appreciation of 20% over the last closing price.
Negative Factors
Loan Portfolio
The loan portfolio has decreased by 22.2% from September 30 due to strong borrower repayments.
Ladder Capital (LADR) vs. S&P 500 (SPY)
Market Cap
$1.47B
Dividend Yield7.94%
Average Volume (3M)519.43K
Price to Earnings (P/E)13.5
Beta (1Y)0.94
Revenue Growth-5.09%
EPS Growth6.25%
CountryUS
Employees54
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.86
Shares Outstanding127,106,480
10 Day Avg. Volume459,891
30 Day Avg. Volume519,433
Financial Highlights & Ratios
PEG Ratio2.15
Price to Book (P/B)N/A
Price to Sales (P/S)6.31
Price to Cash Flow (P/CF)-6.30
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.13Price Target Upside12.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ladder Capital Business Overview & Revenue Model
Company DescriptionLadder Capital Corp. is a holding company, which engages in the provision of commercial real estate finance services. It operates through the following segments: Loans, Securities, Real Estate, and Corporate and Other. The Loans segment includes mortgage loan receivables held for investment and mortgage loan receivables held for sale. The Securities segment comprises of all of the company's activities related to commercial real estate securities, as well as investments in commercial mortgage-backed securities, United States agency securities, corporate bonds, and equity securities. The Real Estate segment consists of net leased properties, office buildings, a mobile home community, a warehouse, a shopping centre, and condominium units. The Corporate and Other segment represents the company's investments in joint ventures, other asset management activities, and operating expenses. The company was founded by Pamela McCormack, Robert Perelman and Brian Harris on May 21, 2013 and is headquartered in New York, NY.
How the Company Makes MoneyLadder Capital generates revenue primarily through interest and fees earned on its portfolio of commercial real estate loans and securities. The company's key revenue streams include income from lending activities, such as interest income from first mortgage loans and balance sheet loans, as well as gains from the sale of CMBS and other real estate-related securities. Additionally, Ladder Capital benefits from equity investments in real estate, generating rental income and potential capital appreciation. Strategic partnerships with institutional investors and financial institutions enhance its ability to source and manage high-quality assets, contributing to its earnings. The company's diversified approach to real estate finance allows it to capitalize on various market opportunities while managing risk effectively.
Ladder Capital Financial Statement Overview
Summary
Ladder Capital demonstrates strong cost management and liquidity with no debt in the latest year. However, revenue volatility and inconsistent cash flow growth are significant challenges.Income Statement
Ladder Capital has experienced fluctuating revenue growth over recent years, with a significant decline in total revenue in 2024. Despite this, the company maintains a healthy net profit margin, indicating effective cost management. However, the variability in EBIT and EBITDA margins suggests potential volatility in operating performance.55
Neutral
Balance Sheet
The balance sheet shows a strong equity base with no debt reported in 2024, highlighting a conservative capital structure. The company maintains high cash reserves relative to total assets, supporting liquidity. However, the equity ratio indicates moderate leverage, suggesting potential risks if assets are not managed efficiently.70
Positive
Cash Flow
Operating cash flow remains solid, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio is healthy, indicating good cash generation from profits. However, fluctuations in investing cash flow could signal potential cash management challenges.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 277.48M | 253.50M | 339.66M | 167.51M | 121.02M | Gross Profit |
| 277.48M | 189.76M | 301.06M | 141.35M | 43.88M | EBIT |
| 98.68M | 123.94M | 340.92M | 57.45M | -24.23M | EBITDA |
| 364.76M | 0.00 | 398.16M | 0.00 | 14.36M | Net Income Common Stockholders |
| 108.25M | 101.13M | 142.22M | 56.52M | -9.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.32B | 1.02B | 615.30M | 1.25B | 1.49B | Total Assets |
| 4.85B | 5.51B | 5.95B | 5.85B | 5.88B | Total Debt |
| 3.07B | 3.18B | 4.25B | 4.22B | 3.39B | Net Debt |
| 1.75B | 2.16B | 3.64B | 3.67B | 2.14B | Total Liabilities |
| 3.31B | 3.98B | 4.42B | 4.23B | 4.33B | Stockholders Equity |
| 1.54B | 1.53B | 1.53B | 1.51B | 1.54B |
| Cash Flow | Free Cash Flow | |||
| 133.92M | 180.60M | 99.76M | 74.87M | 105.84M | Operating Cash Flow |
| 133.92M | 180.60M | 106.71M | 79.74M | 111.94M | Investing Cash Flow |
| 932.76M | 793.50M | 81.59M | -651.46M | 1.54B | Financing Cash Flow |
| -796.59M | -557.77M | -150.24M | -91.02M | -725.67M |
Ladder Capital Technical Analysis
Positive
11.64
Price Trends
11.33
Positive
11.32
Positive
11.21
Positive
Market Momentum
0.10
Positive
53.67
Neutral
44.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LADR, the sentiment is Positive. The current price of 11.64 is below the 20-day moving average (MA) of 11.65, above the 50-day MA of 11.33, and above the 200-day MA of 11.21, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LADR.
Ladder Capital Risk Analysis
Ladder Capital disclosed 70 risk factors in its most recent earnings report. Ladder Capital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ladder Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.70B | 18.06 | 5.59% | 9.66% | -0.97% | 3.75% | |
69 Neutral | $738.82M | 56.90 | 2.50% | 9.33% | -10.24% | ― | |
68 Neutral | $1.47B | 13.46 | 7.05% | 7.94% | -5.09% | 6.25% | |
63 Neutral | $682.05M | 11.27 | 6.45% | 11.29% | -10.05% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $1.38B | ― | -6.38% | 12.07% | -9.71% | -426.57% | |
60 Neutral | $3.45B | ― | -5.39% | 10.85% | -12.86% | -182.05% |
* Real Estate Sector Average
Performance Comparison
LADR
Ladder Capital
11.64
1.71
17.22%
ARI
Apollo Real Estate
9.98
0.35
3.63%
BXMT
Blackstone Mortgage
20.04
2.44
13.86%
STWD
Starwood Property
20.12
1.75
9.53%
KREF
Kkr Real Estate Finance
10.80
2.01
22.87%
TRTX
Tpg Re Finance
8.48
2.02
31.27%
Ladder Capital Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 3.47% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
Ladder Capital Corp exhibited strong financial performance with robust liquidity and improved credit ratings in 2024. However, there was a significant reduction in the loan portfolio and the presence of non-accrual loans, indicating challenges in maintaining growth in the lending segment. Overall, the company appears well-positioned for future growth, but economic uncertainties remain.Highlights
Strong Financial Performance
Ladder generated distributable earnings of $33.6 million in Q4 2024, achieving a return on equity of 8.9%. For the full year, distributable earnings totaled $153.9 million with a 9.9% return on equity.
Enhanced Liquidity and Credit Capacity
The unsecured corporate revolving credit facility was extended and upsized from $324 million to $850 million, with provisions to increase to $1.25 billion at a reduced cost.
Record Loan Payoffs
Ladder received $1.7 billion in loan payoffs across 61 loan positions in 2024, the highest annual payoffs in its history.
Improved Credit Ratings
Ladder received a positive outlook from Moody's and Fitch after a $500 million unsecured bond issuance, with S&P upgrading the credit rating by one notch.
Growing Securities Portfolio
Purchased $295 million of AAA-rated securities with a weighted average unlevered yield of 6.2%, increasing the portfolio to $1.1 billion.
Lowlights
Loan Portfolio Reduction
The loan portfolio reduced from $3.9 billion at the end of 2022 to $1.6 billion by the end of 2024, reflecting a significant reduction in direct lending.
Non-Accrual Loans
As of December 31, 2024, Ladder had two loans totaling $77 million on non-accrual, including a $16 million loan added in Q4.
Continued Economic Uncertainty
Maintained a general CECL reserve of $52 million due to ongoing macroeconomic shifts, with no specific impairments identified in Q4.
Company Guidance
In the fourth quarter of 2024, Ladder Capital Corp reported distributable earnings of $33.6 million, or $0.27 per share, with a return on equity of 8.9%. For the full year, distributable earnings reached $153.9 million, achieving a 9.9% return on equity. As of December 31, 2024, Ladder's loan portfolio was valued at $1.6 billion with a weighted average yield of 9.3%, while their securities portfolio totaled $1.1 billion at a 6% unlevered yield. The company maintained $2.2 billion in liquidity, with $1.3 billion in cash and equivalents, and an adjusted leverage of 1.4 times. Ladder extended its unsecured revolving credit facility to $850 million, with an option to increase to $1.25 billion, reflecting a strategic shift towards using unsecured debt. They also recorded significant loan payoffs totaling $1.7 billion and originated $129 million in new loans in Q4. Their real estate portfolio generated $13.2 million in net rental income for the quarter, and they made $295 million in AAA-rated securities purchases. The company's credit ratings saw positive outlooks from Moody's and Fitch, with S&P upgrading their rating, bringing them closer to an investment-grade status.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.