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Ladder Capital Corp (0JSZ.L)

LSE - LSE Delayed price. Currency in USD
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9.73+0.66 (+7.28%)
As of 03:13PM BST. Market open.

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  • k
    kingsfan
    Since 90% of Ladder Capital's loans are floating rate, they should do well in a rising rate environment,
  • F
    Fighting Irish
    With large floating-rate balance sheet loan portfolio and predominantly fixed-rate liabilities, earnings are positively correlated to rising interest rates!
  • F
    Fighting Irish
    RE: LADR - 90% of balance sheet first mortgage loans are floating-rate
  • F
    Fighting Irish
    Sweet! Nice little dividend bump. IMHO......... This stock is VERY under valued.
  • D
    Deb
    anyone buying in at these prices or wait a bit??? I have not yet but am looking for a great reit with good yield long term..any thoughts
  • F
    Fighting Irish
    Nice Beat on both rev's and earnings ! SOLID QUARTER GENTS !!!!! $12.00+ HERE WE COME..........
  • V
    Victor
    Brad Thomas, the leading REIT authority on Seeking Alpha, includes Ladder Capital as the first of 4 mortgage REITs "Positioned for Significant Gains. He writes:

    "Book value per share (in the first quarter) declined from $15.23 to $14.01, which is a comparably positive given the current reality and almost double the current stock price of ~$8. Ladder has worked quickly and diligently to de-risk the portfolio and shore up liquidity.

    Since Q4 financials were released, LADR's M&A activity has reduced their hotel and retail exposure closer to 20.0%. I have a feeling management is very happy with that decision.

    Like the other quality mREITs, effectively all (98%) of Ladder's loans are senior secured at the top of the capital structure. Within its conduit loans division, the firm has had great success with 62 out of 63 transactions profitable. 98% of the portfolio is CMBS, all of which are investment grade and 86% AAA rated. Two thirds of commercial real estate exposure is structured as net lease. This lease term is ideal in the current environment."

    There are 120.5 million shares outstanding, which gives LADR a market cap of $935 million; with the company holding $830 million in unrestricted cash, the market is giving negligible value to the remainder of its assets.

    Management holds over 10% of the shares, so its interests are aligned with those of the outside shareholders. In the past, it has raised the dividend annually, and I would expect that policy to resume when the pandemic turmoil eases (it did cut the annual dividend from $1.36 to $0.80 in Q2 to strengthen its cash position during the pandemic).
  • B
    Brian
    Snippets from latest Seeking Alpha article on LADR.. "Economic Value Added (‘EVA’) (= dividends paid +/- change in book value) is one of the better ways one can objectively measure past performance for these types of firms. It’s not a panacea, but it does measure how well management of a financial firm has added value for shareholders in the past. Over the last 3 years, Ladder has produced an average annual EVA of 10.7%. This is the HIGHEST of the commercial mREIT firms Cash Flow Kingdom follows (see yellow highlight below).

    On the alignment front, Ladder Capital also stands above other firms. Management is internal (external management teams typically have an incentive to grow the asset base even when non-economic for shareholders). Management and the Board of Directors also have a lot of skin in the game (owning approximately $99 million worth of shares – over 10% of the company’s market capitalization). This is why they are the only Commercial mREIT to have earned an A rating from Cash Flow Kingdom on management alignment....

    I would point out that while Ladder had some pretty rough times in March, it has now significantly improved its balance sheet with a 3.1 Debt/Equity ratio at the end of Q2, plus the whopping $826 million in cash (a.k.a. dry powder) waiting to be deployed (2.5x debt/equity net of cash)....

    This means they could pay off all 2020 debt due with cash if they wanted to, and in doing so, probably still earn enough going forward to cover the 20¢ payout. I think going that route is unlikely; it is more likely they will keep the cash on hand and eventually use it to increase the real estate portion of the portfolio, but that they could further pay down or buy back a significant amount of debt is worth pointing out from a risk perspective...

    Ladder trades 37% below GAAP book value and 45% below undepreciated book value ($7.77 price vs. $12.44 GAAP book and $14.17 undepreciated book)....

    Before making such an investment, however, one needs to first decide whether this is likely a temporary setback. In large part, that will depend on your overall expectations regarding COVID (beyond the scope of this article). To that end, I would once again point out that Ladder's balance sheet is nowhere near as stressed currently as it was going into March. They now have plenty of cash and low-risk capital shoring it up that would help carry them through a reasonable amount of turmoil. Furthermore, this capital should more than make up for the difference between the dividend and AFFO once it is deployed.
  • C
    Chris
    I'm content to collect my 11% dividend while waiting for this to get back to $19+, at which point the dividend will be closer to 20% if you buy at current stock price (because div returns to precovid level). Solid company, the 5-year chart shows consistent growth. Expect they'll take advantage of huge cash on hand and market misalignment to expand their portfolio at bargain prices which will drive the SP well above $20 in coming years.
  • V
    Victor
    Price is now (10/19) $6.88--a great time to buy. The yield is now 11.6%. Income stocks that are not covering their AFFO (adjusted funds from operations) are being punished, sometimes quite unfairly. LADR has built up its balance sheet and recently had over $800 million in cash. It could use those funds at any time to reduce debt or buy additional properties or securities to cover the dividend easily. Management is doing exactly the right thing by holding onto the cash for now, waiting for the better opportunities that will be coming. The CEO indicated that when it settled on the current $0.20 quarterly dividend (reduced from $0.34), it chose an amount it was confident it could maintain--and expects to show AFFO greater than $0.20 by early next year. I hold a ton of the stock or would be buying more myself.
  • R
    Roger
    Ladder Capital beats on revenue.

    Ladder Capital Q2 GAAP EPS of $0.08.

    Revenue of $40.5M (+64.8% Y/Y) beats by $15.12M.

    “With over $800 million of new originations during the quarter and a strong pipeline, Ladder is capitalizing on the opportunities we are seeing in our sector. Further, with ample liquidity following the successful placement of $650 million of unsecured corporate bonds and $498 million of managed CLO debt, we are doing so from a position of strength,” said Brian Harris, Ladder’s Chief Executive Officer.
  • R
    Roger
    Nice steady climb of the share price today. We should be expecting LADR to declare their next dividend any day now. I assume the buying spree we saw today are Investors believing that a dividend increase could be coming. They want to get a position started or add to their existing position before that announcement (knowing the price will most likely jump if a dividend increase is declared).

    Good Luck to all LADR Investors.
  • a
    arbpro
    I am amazed by sp reaction post-earnings. From the cc (all quotes from co. execs)
    1. "our 3 largest tenants are Dollar General, BJ's and Walgreens, all of which are highly defensive in nature."
    2. "our unrestricted cash balance is approximately $830 million"
    3. "almost half of our loan portfolio is unencumbered and is therefore not subject to the approval of a third party for amendment or any form of margin call risk whatsoever."
    4. "hotel and retail properties represented only 11% and 8% of our balance sheet loan portfolio,"
    5. "Our $671 million triple net lease property portfolio accounts for 64% of our real estate equity investments. The portfolio was generally financed with long-term nonrecourse mortgages and is principally leased to credit tenants with countercyclical necessity-based businesses like groceries and pharmacies that enjoy an average remaining net lease term of over 12 years."
    6. "approximately 64% of our total outstanding debt is now completely non-mark-to-market. In fact, we currently only have $414 million of secured loan repo debt outstanding across our entire portfolio. "
    I could go on and on...
  • R
    Roger
    Ladder Capital Corp today announced the declaration by its Board of Directors of a first quarter 2021 dividend of $0.20 per share of Class A common stock. The cash dividend is payable on April 15, 2021 to stockholders of record as of the close of business on March 31, 2021.

    Same dividend as the previous 3 quarters. I think some investors will view this negatively. I'm okay with it since I got in early and my yield is over 10%, but I also thought LADR might increase their dividend just a little this quarter. As with other REIT's I own, LADR delayed their announcing of the 1st Quarter dividend and the actual pay date of the dividend. Normally, they declare late February or early March and pay the first day or two of April. We'll have to see if the continue this new pattern the next couple of quarters.
  • B
    Brian
    So the company has an open "share repurchase" plan in place to repurchase up to $50M worth of shares. Per the 10Q: "From March 1, 2020 - March 31, 2020, the company repurchased 146,153 shares at an average of $8.22/share." This equates to $1.2M worth of shares. I would not be surprised if the company purchased additional shares in early April and perhaps continued purchases in May. We will know soon enough in the next 10Q. Also per the 10Q: "As of March 31, 2020, the Company has a remaining amount available for repurchase of $39.9 million."

    Considering the company saw value in their own shares at a $8.22 average, $6.80 is a steal for long term investors. With $622M in liquid cash on hand, a very nice dividend...and a current market cap of $822M...which is basically trading at just 1.3x cash on hand...this is a NO BRAINER BUY AND HOLD.

    I'm in for 6,700 shares at $6.82.
  • J
    Jacob
    LADR insiders bought 9,962,838 shares in the past 3 months and 12,189,009 shares in the past 12 months.
  • F
    Fighting Irish
    Core earnings was $12.8 million, or $0.12 of core EPS. After-tax GAAP return on average equity was (1.2)% and after-tax core return on average equity was 4.0%. In the second quarter, we met our goal of strengthening our balance sheet. We accomplished this by reducing our debt by $727.5 million and finishing the quarter with $826.1 million in cash,” said Brian Harris, Ladder’s Chief Executive Officer. “We believe we are now well-positioned to take advantage of the opportunities that are beginning to present themselves.”
    Looking forward to the call.......NICE !
  • D
    DocNyr
    This CEO gets paid too much relative to the performance of the stock IMHO....
  • r
    ripped off
    over reaction long term good stock
  • a
    arbpro
    One of the better ircc I've heard. Informative and upbeat, not only insofar as the company is concerned but for the country too. JPM analyst apparently agreed with my conclusions because he used his question to ask what great value asset did the company see as available due to the virus. Just incredible that the sp is trading at cash held and book value is more than 4 bucks higher. Really impressed with this management team.