NYSE:LADR

Stock Analysis Report

Executive Summary

Ladder Capital Corp operates as a real estate investment trust in the United States.


Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Ladder Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LADR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

LADR

1.2%

US Mortgage REITs

0.06%

US Market


1 Year Return

2.6%

LADR

8.4%

US Mortgage REITs

19.3%

US Market

Return vs Industry: LADR underperformed the US Mortgage REITs industry which returned 8.4% over the past year.

Return vs Market: LADR underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

LADRIndustryMarket
7 Day-0.5%1.2%0.06%
30 Day1.4%4.6%1.7%
90 Day10.9%10.6%9.0%
1 Year11.1%2.6%20.3%8.4%21.8%19.3%
3 Year75.3%35.0%46.1%5.7%49.5%39.9%
5 Year70.3%2.0%75.2%0.7%73.1%54.1%

Price Volatility Vs. Market

How volatile is Ladder Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ladder Capital undervalued compared to its fair value and its price relative to the market?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LADR ($18.76) is trading below our estimate of fair value ($32.9)

Significantly Below Fair Value: LADR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LADR is poor value based on its PE Ratio (18.4x) compared to the Mortgage REITs industry average (13.5x).

PE vs Market: LADR is good value based on its PE Ratio (18.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LADR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: LADR is overvalued based on its PB Ratio (1.4x) compared to the US Mortgage REITs industry average (1.1x).


Next Steps

Future Growth

How is Ladder Capital forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LADR's forecast earnings growth (14.1% per year) is above the savings rate (1.7%).

Earnings vs Market: LADR's earnings (14.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: LADR's earnings are forecast to grow, but not significantly.

Revenue vs Market: LADR's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LADR's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LADR's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Ladder Capital performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LADR has high quality earnings.

Growing Profit Margin: LADR's current net profit margins (37.9%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: LADR's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: LADR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LADR had negative earnings growth (-44.7%) over the past year, making it difficult to compare to the Mortgage REITs industry average (7.3%).


Return on Equity

High ROE: LADR's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ladder Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LADR has a low level of unsold assets or inventory.

Debt Coverage by Assets: LADR's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: LADR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LADR has a sufficient allowance for bad loans.

Low Risk Liabilities: LADR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LADR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LADR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LADR has an appropriate level of bad loans.


Next Steps

Dividend

What is Ladder Capital's current dividend yield, its reliability and sustainability?

7.25%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%1.4%markettop25%3.7%industryaverage9.2%forecastin3Years7.4%

Current dividend yield vs market & industry

Notable Dividend: LADR's dividend (7.25%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: LADR's dividend (7.25%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: LADR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LADR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (133.2%), LADR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LADR's dividends in 3 years are forecast to be covered by earnings (80.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Brian Harris (59yo)

6.8yrs

Tenure

US$17,308,240

Compensation

Mr. Brian Richard Harris serves as the Chief Executive Officer of Ladder Capital Finance LLC, Ladder Capital Securities LLC and Ladder Capital Realty Finance Inc. Mr. Harris serves as Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD17.31M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Harris
Founder6.8yrsUS$17.31m1.33% $29.8m
Pamela McCormack
Co-Founder0.7yrsUS$5.40m0.19% $4.3m
Robert Perelman
Head of Asset Management & Co- Founder0yrsUS$1.46m0.18% $4.1m
Marc Fox
CFO and Head of Merchant Banking & Capital Markets11.3yrsUS$2.33m0.16% $3.6m
Kevin Moclair
Chief Accounting Officer0yrsno data0.013% $289.3k
Kelly Porcella
Chief Administrative Officer0.8yrsno data0.038% $852.4k
Michelle Wallach
Chief Compliance Officer & Senior Regulatory Counsel0yrsno datano data
Lee Warshaw
Managing Director0yrsno datano data
Marc Waldman
Managing Director3yrsno datano data
Ryan Jantzen
Co-Head of Origination2.8yrsno datano data

2.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: LADR's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Harris
Founder6.8yrsUS$17.31m1.33% $29.8m
Pamela McCormack
Co-Founder0.7yrsUS$5.40m0.19% $4.3m
Alan Fishman
Non-Executive Chairman of the Board6.8yrsUS$374.99k0.099% $2.2m
Douglas Durst
Independent Director6.1yrsUS$199.99k0.026% $585.0k
Jeffrey Steiner
Independent Director1.6yrsUS$120.16k0.0085% $190.4k
Michael Mazzei
Director2.7yrsUS$174.99k0.92% $20.5m
David Weiner
Director0.7yrsno data0.0043% $95.1k
Mark Alexander
Independent Director4.7yrsUS$189.99k0.077% $1.7m

3.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LADR's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.


Top Shareholders

Company Information

Ladder Capital Corp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ladder Capital Corp
  • Ticker: LADR
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$2.238b
  • Market Cap: US$2.018b
  • Shares outstanding: 119.73m
  • Website: https://www.laddercapital.com

Number of Employees


Location

  • Ladder Capital Corp
  • 345 Park Avenue
  • 8th Floor
  • New York
  • New York
  • 10154
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LADRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2014
LD1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2014
0JSZLSE (London Stock Exchange)YesClass A Common StockGBUSDFeb 2014

Biography

Ladder Capital Corp operates as a real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. This segment also invests in corporate bonds and real estate related equity investments. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, student housing portfolio, industrial buildings, office buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:38
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.