Ladder Capital Corp (LADR, Financial) announced a robust net interest income (NII) of $20.3 million for the first quarter of the year. This comes on the back of a significant year in 2024 marked by a record number of loan repayments.
CEO Brian Harris highlighted the company's healthy balance sheet and noted that the momentum in new loan origination has continued to increase. The surge in new loans has surpassed loan payoffs in the first quarter, indicating a positive trend.
The company maintains a modest leverage and has ample liquidity, positioning it well to seize investment opportunities as they emerge. Ladder Capital's strategy appears focused on capitalizing on this liquidity while maintaining a balanced approach to leverage.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Ladder Capital Corp (LADR, Financial) is $12.75 with a high estimate of $14.00 and a low estimate of $11.00. The average target implies an upside of 24.76% from the current price of $10.22. More detailed estimate data can be found on the Ladder Capital Corp (LADR) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Ladder Capital Corp's (LADR, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ladder Capital Corp (LADR, Financial) in one year is $13.01, suggesting a upside of 27.3% from the current price of $10.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ladder Capital Corp (LADR) Summary page.
LADR Key Business Developments
Release Date: February 06, 2025
- Distributable Earnings (Q4 2024): $33.6 million or $0.27 per share.
- Return on Equity (Q4 2024): 8.9%.
- Distributable Earnings (Full Year 2024): $153.9 million or $1.21 per share.
- Return on Equity (Full Year 2024): 9.9%.
- Liquidity (as of Dec 31, 2024): $2.2 billion, including $1.3 billion in cash and cash equivalents.
- Adjusted Leverage Ratio (as of Dec 31, 2024): 1.4 times.
- Loan Portfolio (as of Dec 31, 2024): $1.6 billion with a weighted average yield of 9.3%.
- Loan Payoffs (Q4 2024): $575 million.
- Loan Payoffs (Full Year 2024): $1.7 billion.
- Real Estate Portfolio (Q4 2024): Generated $13.2 million in net rental income.
- Real Estate Portfolio (Full Year 2024): Generated $56.3 million in net rental income.
- Securities Portfolio (as of Dec 31, 2024): $1.1 billion with a weighted average unlevered yield of 6%.
- Unsecured Corporate Revolving Credit Facility: Increased from $324 million to $850 million, with potential upsizing to $1.25 billion.
- Unencumbered Assets (as of Dec 31, 2024): $3.8 billion or 77% of total assets.
- Book Value per Share (as of Dec 31, 2024): $13.88.
- Dividend (Q4 2024): $0.23 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ladder Capital Corp (LADR, Financial) achieved distributable earnings of $33.6 million in Q4 2024, translating to $0.27 per share, and a return on equity of 8.9%.
- The company maintained a strong liquidity position with $2.2 billion in liquidity, including $1.3 billion in cash and cash equivalents.
- Ladder Capital Corp (LADR) successfully extended and upsized its unsecured corporate revolving credit facility to $850 million, with potential to increase to $1.25 billion.
- The company received positive outlooks from Moody's and Fitch, and an upgrade from S&P, moving closer to achieving an investment-grade credit rating.
- Ladder Capital Corp (LADR) generated $56.3 million in net rental income from its real estate portfolio in 2024, with long-term leases to investment-grade tenants.
Negative Points
- The loan portfolio decreased significantly from $3.9 billion at the end of 2022 to $1.6 billion by the end of 2024.
- Despite a strong liquidity position, the company faces challenges in rapidly deploying capital into new loan originations.
- Interest rates on loans remain high, with borrowing costs near 7%, which could impact future loan demand.
- The company has two loans totaling $77 million on non-accrual status, indicating potential credit risk.
- Ladder Capital Corp (LADR) is cautious about lending in large cities with capital flight and crime issues, which may limit growth opportunities.
