Ladder Capital (LADR) Q4 2025 earnings summary

Executive summary

• Achieved investment-grade status in 2025, becoming the only investment-grade commercial mortgage REIT, which enhanced access to capital and lowered funding costs.

• Q4 2025 distributable earnings were $21.4 million ($0.17/share), or $0.21/share excluding a realized loan loss; full-year distributable earnings reached $109.9 million.

• Declared a Q4 2025 dividend of $0.23/share, yielding 8.3% annually, with 96% dividend coverage for the year (excluding loan write-off).

• Undepreciated book value per share was $13.69 at year-end.

• Entered 2026 with strong liquidity, conservative leverage, and a focus on loan origination and earnings growth.

Financial highlights

• Adjusted leverage at 2.0x book value; liquidity of $608 million, including $570 million undrawn revolver capacity.

• Loan portfolio at year-end: $2.2 billion (42% of assets), weighted average yield 7.8%, average loan size $25–30 million, 69% weighted-average LTV.

• Securities portfolio: $2.1 billion (39% of assets), 99% investment grade, 97% AAA-rated, 5.3% yield, 3.0-year average duration.

• Real estate portfolio: $966 million, generating $57.3 million net operating income for 2025; $704 million in equity properties, $39.4 million annual NOI, 100% leased net lease portfolio.

• Total investment assets and unrestricted cash reached $5.3 billion at year-end.

Outlook and guidance

• Plans to increase loan originations in 2026 to drive earnings and support dividend growth, with over $250 million in loans closed in Q1 2026 and more than $400 million in the pipeline.

• Targeting loan portfolio growth to over $6 billion by year-end 2026.

• Expected ROE in the 9–10% range, with potential upside from one-time gains.

• Focus remains on balance sheet discipline and capitalizing on lending opportunities as market conditions improve.