Ladder Capital Corp — Q3 2026 Earnings Summary

Financial Performance

• GAAP income before taxes was $67.3 million for the quarter ended September 30, 2026, compared to $16.3 million for the quarter ended June 30, 2026.
• Diluted earnings per share (EPS) were $0.53 for the quarter ended September 30, 2026, compared to $0.12 for the quarter ended June 30, 2026.
• Distributable earnings were $44.7 million for the quarter ended September 30, 2026, compared to $30.8 million for the quarter ended June 30, 2026.
• Distributable EPS was $0.35 for the quarter ended September 30, 2026, compared to $0.24 for the quarter ended June 30, 2026.
• Distributable EPS prior to charge-off of allowance for credit losses was $0.38 for the quarter ended September 30, 2026, compared to $0.24 for the quarter ended June 30, 2026.
• After-tax distributable return on average equity (ROAE) was 12.1% for the quarter ended September 30, 2026, compared to 8.3% for the quarter ended June 30, 2026.
• Net interest income was $28.8 million for the quarter ended September 30, 2026, compared to $28.2 million for the quarter ended June 30, 2026.
• Total other income was $90.1 million for the quarter ended September 30, 2026, compared to $35.2 million for the quarter ended June 30, 2026.
• Real estate operating income was $30.7 million for the quarter ended September 30, 2026, compared to $30.9 million for the quarter ended June 30, 2026.
• Gain on real estate, net, was $65.6 million for the quarter ended September 30, 2026, compared to $0 for the quarter ended June 30, 2026.
• Total costs and expenses were $51.6 million for the quarter ended September 30, 2026, compared to $46.9 million for the quarter ended June 30, 2026.
• Mortgage loans receivable held for investment, net, at amortized cost were $2.95 billion as of September 30, 2026, compared to $2.22 billion as of December 31, 2025.
• Securities were $2.28 billion as of September 30, 2026, compared to $2.09 billion as of December 31, 2025.
• Total assets were $6.04 billion as of September 30, 2026, compared to $5.15 billion as of December 31, 2025.
• Debt obligations, net, were $4.35 billion as of September 30, 2026, compared to $3.51 billion as of December 31, 2025.
• Total shareholders' equity was $1.46 billion as of September 30, 2026, compared to $1.48 billion as of December 31, 2025.
• A charge-off of allowance for credit losses of $3.5 million was recorded for the quarter ended September 30, 2026.

Guidance and Future Outlook

• Management stated the company is well positioned to continue delivering value to shareholders with ample liquidity and a balance sheet built to benefit from higher rates.
• The company noted it made over $700 million of new loan and securities investments during the quarter.

Business Segments and Product Lines

• The company realized a meaningful gain on the sale of a net lease office asset.
• The company sold an office property in Jacksonville, FL during the quarter.
• The company classified a retail property in Carmel, NY as held-for-sale.
• The company recorded a $0.6 million impairment for distributable earnings related to the Carmel, NY property.
• The company recorded realized gains from sales of conduit mortgage loans collateralized by properties in its real estate segment of $0.3 million.

Market and Competitive Landscape

• The company maintains investment grade credit ratings of Baa3 from Moody's Ratings and BBB- from Fitch Ratings, with a stable outlook from both agencies.
• The company is rated BB+ by S&P Global Ratings with a positive outlook.
• The company's business model focuses on originating first mortgage loans on all major commercial property types with a focus on the middle market.
• The company has deployed $53 billion of capital since its founding in 2008.

Risks and Challenges

• The press release references risks discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, including risks related to forward-looking statements, market conditions, and credit losses.
• The company recorded a charge-off of allowance for credit losses of $3.5 million, indicating specific credit risk realization.

Management Commentary and Tone

• Brian Harris, Chief Executive Officer, described the third quarter as "strong," citing the growth in book value, new investments, and the gain on the sale of a net lease office asset.
• Management emphasized the company's ample liquidity and balance sheet strength in a higher rate environment.

Other Key Points

• Dividends per share of Class A common stock were $0.23 for the quarter ended September 30, 2026, consistent with the quarter ended June 30, 2026.
• Insider ownership is 13%, with management and the board of directors constituting the largest shareholder.
• The company issued a supplemental presentation detailing third quarter 2026 operating results and an updated investor presentation available on its website.
• A conference call and webcast were hosted on October 16, 2026, to discuss the results.