Ladder Capital (LADR) Q3 2025 earnings summary

Executive summary

• Distributable earnings for Q3 2025 were $32.1 million ($0.25 per share), with an after-tax distributable ROE of 8.3% and record loan originations of $511 million, the highest in over three years.

• Completed inaugural $500 million investment-grade unsecured bond issuance at a 5.5% coupon, tightening spreads and lowering borrowing costs.

• Declared a $0.23 per share dividend, representing an 8.4%–8.5% yield as of the call.

• Loan and securities portfolios each totaled $1.9 billion, representing 40% of total assets each.

• Management and directors hold over 11% of total equity, aligning interests with shareholders.

Financial highlights

• Net income for Q3 2025 was $19.2 million, with GAAP EPS of $0.15 and net interest income of $27.8 million.

• Total investment assets and unrestricted cash reached $4.9 billion, including $1.9 billion in first mortgage loans, $960 million in CRE equity, and $1.9 billion in securities.

• Book value per share was $13.71 (undepreciated) and $11.75 (GAAP) as of September 30, 2025.

• Total liquidity stood at $879 million, including $49 million in cash and $830 million undrawn revolver.

• 75% of total financing is unsecured debt; 92% of capitalization is non-mark-to-market financing and book equity.

Outlook and guidance

• Q4 loan originations expected to exceed Q3 levels, with over $500 million in additional loans under application and closing.

• Anticipates continued growth in loan portfolio, targeting a return to $3.4 billion over time.

• Expects cost of funds to decline as Fed cuts rates, supporting higher margins and ROE.

• Focus on organic loan growth, opportunistic securities acquisitions, and maintaining liquidity and credit quality.

• Aims to maintain a debt-to-equity ratio below 3.0:1.0 and preserve financial flexibility.