News Column

Ladder Capital Corp Reports Second Quarter 2014 Results

August 22, 2014



By a News Reporter-Staff News Editor at Real Estate Weekly News -- Ladder Capital Corp (NYSE:LADR) ("we," "Ladder," or the "Company") announced operating results for the quarter ended June 30, 2014. Core Earnings, a non-GAAP financial measure, were $62.3 million for the quarter ended June 30, 2014, compared to $40.9 million earned in the second quarter of 2013, an increase of 52.2%. For the six months ended June 30, 2014, Core Earnings were $119.1 million compared to $135.3 million for the comparable period in 2013. We believe Core Earnings, which adjusts GAAP income before taxes for certain non-cash expenses and unrecognized derivative results, is useful in evaluating our earnings from operations. Net income for the three and six months ended June 30, 2014 was $30.2 million and $48.6 million, respectively, compared to $59.8 million and $147.8 million for the three and six months ended June 30, 2013, respectively.

Core EPS, a non-GAAP measure, was $0.38 per share for the second quarter of 2014, and $0.75 per share for the six months ended June 30, 2014. Basic EPS on a GAAP basis was $0.26 per share and $0.51 per share for the three and six months ended June 30, 2014, respectively.

As of June 30, 2014, we had total assets of $3.8 billion, including $1.1 billion of commercial real estate loans, $1.8 billion of commercial real estate-related securities, $561.2 million of real estate, $123.0 million of total cash and $175.6 million of other assets. At the end of the second quarter of 2014, 77.8% of our total assets were comprised of senior secured assets, including first mortgage loans, real estate-related securities secured by first mortgage loans, and cash. Senior secured assets comprised 98.5% of the total $1.6 billion investment activity during the second quarter of 2014.

During the three months ended June 30, 2014, we originated $1.3 billion of loans, comprised of $827.9 million of commercial mortgage loans held for sale and $427.8 million of commercial mortgage loans held for investment. The additional liquidity resulting from the Company's initial public offering in the first quarter of 2014 allowed us to originate larger loans, including a $350.0 million first mortgage loan secured by an office building in New York City, which was sold into a single-asset securitization transaction during the quarter. We also participated in two other securitization transactions during the second quarter of 2014, contributing a total of $886.0 million in face amount of commercial mortgage loans. The sale of loans into these three securitization transactions, as well as other whole loan sales, resulted in income from the sale of loans, net, of $45.4 million in the second quarter of 2014. After factoring in related hedging results and other related adjustments, the net result from loans sold into securitizations during the quarter was $39.9 million. We also received $66.3 million in proceeds from the repayment of mortgage loans held for investment during the second quarter of 2014.

Our portfolio of CMBS and U.S. Agency securities increased by $84.4 million during the second quarter of 2014 to $1.8 billion. We purchased $326.0 million and sold $171.6 million of securities during the three months ended June 30, 2014. We also received $76.1 million of proceeds from the repayment of securities during the quarter.

Keywords for this news article include: Real Estate, First Mortgage, Ladder Capital Corp.

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Source: Real Estate Weekly News


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