Ladder Capital (LADR) Q2 2025 earnings summary

Executive summary

• Achieved investment-grade ratings from Moody’s (Baa3) and Fitch (BBB-), completed inaugural $500 million five-year unsecured bond at 5.5% coupon, 5.5x oversubscribed, and recognized as the only investment grade mortgage REIT in the U.S.

• Distributable earnings for Q2 2025 were $30.9 million ($0.23/share), with a 7.7% return on equity and a declared dividend of $0.23/share (8.3% annual yield).

• Net income for Q2 2025 was $17.1 million, up from $11.6 million in Q1 2025 but down from $32.1 million in Q2 2024.

• Maintained $1 billion in liquidity, with 74% of debt unsecured and 83% of assets unencumbered.

• Portfolio comprised $4.7 billion in investment assets and cash, with 82% of assets senior secured or investment grade.

Financial highlights

• Q2 distributable earnings: $30.9 million, $0.23 per share; net income: $17.1 million; net interest income: $21.5 million.

• Return on average equity: 7.7%; after-tax distributable ROAE (LTM): 8.2%.

• Undepreciated book value per share: $13.68 (net of $0.41 CECL reserve); GAAP book value per share: $11.78.

• Declared $0.23 per share dividend, paid July 15, 2025; dividends for H1 2025 totaled $0.46 per share.

• Repurchased $6.6 million of common stock (635,000 shares at $10.40 avg. price); $93.4 million remains on repurchase program.

Outlook and guidance

• Expect continued tightening of spreads and lower cost of capital as investment-grade status is recognized.

• Anticipate portfolio growth in the second half of 2025, with muted payoffs and strong origination pipeline.

• Plan to potentially issue more unsecured bonds before year-end, possibly with longer maturities.

• Management highlights strong positioning to deploy capital into new investment opportunities and expand the investor base.

• Focus on capital deployment into higher-yielding investments amid attractive market opportunities.