Ladder Capital Corp (LADR, Financial) released its 8-K filing on February 8, 2024, detailing its financial results for the quarter and year ended December 31, 2023. The internally-managed commercial real estate investment trust reported a GAAP income before taxes of $18.4 million for the fourth quarter, with diluted earnings per share (EPS) at $0.15. For the full year, the company's GAAP income before taxes reached $104.7 million, with a diluted EPS of $0.81. Distributable earnings for the year stood at $167.7 million, translating to $1.34 of distributable EPS, reflecting the company's ability to generate consistent earnings.
Ladder Capital Corp, with $5.5 billion in assets as of the report date, specializes in underwriting commercial real estate and offering flexible capital solutions. The company's investment activities are primarily focused on originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate, owning and operating commercial real estate, and investing in investment-grade securities secured by first mortgage loans on commercial real estate.
CEO Brian Harris commented on the company's performance, stating, "2023 was another positive year for Ladder, as we generated both double-digit earnings growth and returns on equity with a smaller asset base and lower leverage than the previous year." He also highlighted the company's strong liquidity position and unique liability structure, which positions Ladder well to capitalize on new investment opportunities.
The company's balance sheet showed a decrease in total assets from $5.95 billion in 2022 to $5.51 billion in 2023. Cash and cash equivalents increased significantly from $609 million to over $1 billion, indicating a robust liquidity position. The company's debt obligations decreased from $4.24 billion to $3.78 billion, reflecting a stronger balance sheet with reduced leverage.
From the income statement perspective, net interest income after the provision for loan loss reserves was $33.8 million for Q4 and $137.1 million for the full year, demonstrating the company's effective interest income management. Other income, including real estate operating income and fee income, contributed to the company's earnings, with total other income reaching $20.7 million for Q4 and $127.1 million for the full year.
The company's financial achievements, particularly its strong liquidity and reduced leverage, are significant for a REIT as they provide flexibility in operations and the ability to withstand economic fluctuations. These factors are crucial for value investors who prioritize stability and consistent returns.
In conclusion, Ladder Capital Corp's 2023 performance showcases a solid financial foundation with a focus on earnings growth and prudent asset management. The company's strategic positioning and strong liquidity are poised to support its objectives in the commercial real estate finance sector, making it a noteworthy entity for value investors.
For further details, investors are encouraged to review the full earnings report and supplemental materials provided by the company.
Investor Contact:
Ladder Capital Corp Investor Relations
(917) 369-3207
[email protected]
Explore the complete 8-K earnings release (here) from Ladder Capital Corp for further details.
