Q2 2025 Ladder Capital Corp Earnings Call Transcript
Key Points
- Ladder Capital Corp (LADR) achieved investment grade ratings from Moody's and Fitch, marking a significant milestone in its history.
- The company successfully issued a $500 million five-year investment grade unsecured bond with a fixed rate coupon of 5.5%, which was 5.5 times oversubscribed.
- Ladder Capital Corp (LADR) has a strong liquidity position with $1 billion in liquidity, including an $850 million unsecured revolving credit facility.
- The company's securities portfolio increased to $2 billion, with 99% investment grade rated and 97% AAA rated, providing a stable source of income.
- Ladder Capital Corp (LADR) maintains a conservative balance sheet with a modest adjusted leverage of 1.6 times and a strong focus on credit risk management.
- Loan origination activity remained relatively flat in the second quarter, with $191 million in loan payoffs largely offset by $173 million in new loan originations.
- The company has five loans on non-accrual status, totaling $162.3 million, representing 3.6% of total assets.
- There are concerns about certain pockets of the multi-family sector where rents are falling, which could impact loan origination.
- The office sector remains challenging, with some properties experiencing overbuilding and rent reductions.
- The conduit lending business is supply-constrained, with a lack of mortgage-backed securities issuance affecting growth opportunities.
Good morning and welcome to Ladder Capital Corp's earnings call for the second quarter of 2025. As a reminder, today's call is being recorded. This morning, Ladder released its financial results for the quarter ended June 30, 2025. Before the call begins, I'd like to call your attention to the customary Safe Harbor disclosure in our earnings release regarding forward-looking statements. Today's call may include forward-looking statements and projections, and we refer you to our most recent Form 10-k for important factors that could cause actual results to differ materially from these statements and projections. We do not undertake any obligation to update our forward-looking statements or projections unless required by law.
In addition, Ladder will discuss certain non-GAAP financial measures on this call, which management believes are relevant to assessing the company's financial performance. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. These measures are reconciled
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