Ladder Capital Corp Announces Improved Outlook From S&P

Rhea-AI Summary

Ladder Capital Corp (NYSE: LADR) received a positive outlook upgrade from S&P Global Ratings on April 27, 2022, moving from Stable to Positive. This change reflects Ladder's stable operating performance, asset quality, and liquidity profile. S&P also affirmed the issuer credit rating and senior unsecured debt rating at BB-. Ladder's CEO noted that over 50% of their financing consists of fixed-rate liabilities, positioning them well to benefit from rising short-term interest rates. As of March 31, 2022, the company had $6 billion in assets.

Positive

• S&P Global Ratings upgraded Ladder's outlook to Positive from Stable.
• The upgrade is based on stable operating performance and strong asset quality.
• Over 50% of financing consists of fixed-rate liabilities, which could enhance net interest income.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Ladder Capital Corp (“Ladder” or the “Company”) (NYSE: LADR) announced an improved outlook by S&P Global Ratings (“S&P”) last week. On April 27, 2022, S&P revised Ladder’s outlook to Positive from Stable. According to S&P, the outlook improvement is based, in part, on Ladder’s stable operating performance, asset quality, existing funding mix and liquidity profile. S&P also affirmed Ladder’s issuer credit rating and senior unsecured debt rating at BB-.

Ladder’s issuer credit ratings from Fitch Ratings (“Fitch”) and Moody’s Investors Service (“Moody’s”) are BB+ and Ba1, respectively, both one notch below investment grade, and Ladder’s senior unsecured debt ratings from Fitch and Moody’s are BB+ and Ba2, respectively.

Ladder’s CEO, Brian Harris, commented “Ladder is pleased to see S&P’s positive outlook on the Company and recognition of our large component of long-dated, unsecured, fixed-rate liabilities. With over half of our current financing being fixed-rate, coupled with our predominantly floating-rate asset base, Ladder’s net interest income is well-positioned to benefit from rising short-term interest rates, and should in turn allow us to increase distributions to shareholders in the coming quarters.”

About Ladder

Ladder Capital Corp is an internally-managed commercial real estate investment trust with $6.0 billion of assets as of March 31, 2022. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns. As one of the nation’s leading commercial real estate capital providers, we specialize in underwriting commercial real estate and offering flexible capital solutions within a sophisticated platform.

Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment activities include: (i) our primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) owning and operating commercial real estate, including net leased commercial properties; and (iii) investing in investment grade securities secured by first mortgage loans on commercial real estate.

Founded in 2008 and led by Brian Harris, the Company’s Chief Executive Officer, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Members of Ladder’s management and board of directors are highly aligned with the Company’s investors, owning over 10% of the Company’s equity. Ladder is headquartered in New York City with regional offices in Miami, Florida and Santa Monica, California.

Forward-Looking Statements & Coronavirus Risk

Certain statements in this release may constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results, including the impact and aftermath of the COVID-19 pandemic on the Company's business. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in each of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005760/en/

Investor Contact

Ladder Capital Corp Investor Relations

(917) 369-3207

investor.relations@laddercapital.com

Source: Ladder Capital Corp

FAQ

What does the S&P outlook upgrade mean for Ladder Capital Corp (LADR)?

The S&P outlook upgrade indicates improved confidence in Ladder's financial stability and operating performance.

When was Ladder Capital Corp's outlook upgraded by S&P?

The outlook was upgraded on April 27, 2022.

What is Ladder Capital Corp's issuer credit rating?

Ladder's issuer credit rating was affirmed at BB- by S&P.

How much in assets does Ladder Capital Corp have as of March 31, 2022?

As of March 31, 2022, Ladder Capital Corp had $6 billion in assets.

Why is Ladder Capital Corp well-positioned to benefit from rising interest rates?

Over 50% of Ladder's financing is fixed-rate, which prepares them for increasing net interest income.