Ladder Capital (LADR) Q4 2025 Earnings Transcript

Image source: The Motley Fool.

Thursday, Feb. 5, 2026 astatine 10:00 a.m. ET

• President & Chief Executive Officer — Pamela McCormack

• Chief Financial Officer — Paul Miceli

• Founder & Executive Chairman — Brian Harris

Need a punctuation from a Motley Fool analyst? Email [email protected]

Pamela McCormack: Good morning, and convey you for joining america today. I'm pleased to study Ladder Capital's 4th fourth and year-end results for 2025. This past twelvemonth marked a important milestone for our company. We became the lone investment-grade rated commercialized owe REIT, underscoring our beardown equilibrium expanse absorption and blimpish attack to leverage. Our robust positioning enables america to participate 2026 with a dedicated absorption connected driving net maturation and fiscal strength. During the 4th quarter, Ladder generated distributable net of $21.4 cardinal oregon $0.17 per share. Adjusting for a $5 cardinal realized indebtedness nonaccomplishment that had antecedently been reserved for, the 4th fourth net were $26.4 cardinal oregon $0.21 per share.

For the afloat year, Ladder generated distributable net of $109.9 million, delivering a 7.1% instrumentality connected equity, with adjusted leverage astatine a humble 2.0 times, unchangeable publication value, and robust liquidity. These results bespeak a coagulated twelvemonth of show and fiscal strength. Achieving investment-grade presumption successful 2025 with ratings from Moody's and Fitch importantly enhanced Ladder's entree to deeper and much unchangeable superior markets. This accomplishment lowered our outgo of funds and strengthened our liquidity profile. Building connected this momentum, we are pleased to spot S&P upgrade Ladder to treble B plus, conscionable 1 grade.

Our $850 cardinal unsecured revolving recognition installation remains a cornerstone of our backing strategy, complementing our unsecured enslaved issuances by providing same-day liquidity astatine a highly competitory rate. This installation includes an accordion diagnostic that allows for enlargement up to $1.25 billion. We are pleased to stock that we precocious secured $100 cardinal of further commitments to workout the accordion, with closing anticipated aboriginal successful the quarter. Together, these backing sources alteration Ladder to support a predominantly unsecured superior structure, operating independently of repo and CLO markets, and presumption america to capitalize connected aboriginal opportunities with confidence. In 2025, we originated $1.4 cardinal successful caller loans, our highest yearly measurement since 2021.

The 2nd fractional of the twelvemonth was peculiarly strong, with astir $950 cardinal successful caller indebtedness originations representing our champion two-quarter show successful implicit 3 years. During the 4th fourth alone, we made implicit $870 cardinal successful caller investments, including implicit $400 cardinal successful securities, a $25.8 cardinal equity investment, and much than $430 cardinal successful caller loans, astatine a weighted mean dispersed of 340 ground points. At year-end, our indebtedness portfolio totaled $2.2 billion, representing 42% of full assets. Our concern strategy remains focused connected unchangeable income-producing collateral, chiefly multifamily and concern properties, with nary drift connected recognition quality. Notably, bureau indebtedness vulnerability declined from 14% to 11% of full assets by year-end.