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Ladder Capital Corp (LADR)

NYSE - NYSE Delayed Price. Currency in USD
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11.70+0.09 (+0.78%)
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  • j
    john c
    Ladr only went down 4 cents on the ex div date, so its making up for that today.
  • R
    Roger
    Ladder Capital Corp today announced the declaration by its Board of Directors of a first quarter 2021 dividend of $0.20 per share of Class A common stock. The cash dividend is payable on April 15, 2021 to stockholders of record as of the close of business on March 31, 2021.

    Same dividend as the previous 3 quarters. I think some investors will view this negatively. I'm okay with it since I got in early and my yield is over 10%, but I also thought LADR might increase their dividend just a little this quarter. As with other REIT's I own, LADR delayed their announcing of the 1st Quarter dividend and the actual pay date of the dividend. Normally, they declare late February or early March and pay the first day or two of April. We'll have to see if the continue this new pattern the next couple of quarters.
  • j
    john c
    anybody have a suggestion how to handle all the different types of income(section 199A divs.,unrecaptured 1250 gains, non-dividend distributions) from a tax standpoint. suggestions will be most appreciated.
  • J
    Joe
    lordy.... I have nearly a 2-bagger in < one year since first buy, over 100% gain on combined buys..and still sporting a ~7% fwd div yield.. un-believable! My premise during the Covid-crash was to buy a little of the high yielders, but only the most rock solid cos. I could think of in their sector. I chose LADR and EPD. As always, it pays to pay for quality..
  • V
    Victor
    It's hard for me to believe the degree of ignorance that some are displaying on this board. If you sell your assets (loans, etc.) to build liquidity in case there is another leg to the downturn, but more significantly to take advantage of the distressed-selling opportunities that are beginning to emerge, then of course your cash flow and earnings will decrease. As you begin to deploy your cash and cash-equivalent assets into new purchases at significantly higher yields, your earnings and cash flow will increase and pass previous levels. What is important in the conference call is the following comment by CEO Brian Harris: "We could probably push $1 billion out the door in 90 days. But that would be insane because you could have another leg down here. And we're going to be cautious about it. But will we grow that dividend? Yes, easily. Do we have any plans to cut it? No. Let me say it again. No."
  • J
    Joe
    woo-hoo...I knew I shoulda bought more yesterday, when the market was up big and LADR one of the few falling..even though Raymond James reaffirmed a strong buy same day. I can't complain though, almost a double from all buys in < one year.. works for me %^)
  • d
    dave
    WELL IT LOOKS LIKE IT IS STARTING TO ROLL OVER SINCE THE HIGH....FUNNY HOW A SOLID COMPANY CANT SUSTAIN THE $12's
  • Y
    Yahoo Finance Insights
    Ladder Capital is up 5.18% to 12.07
  • R
    RogerB
    Not the earnings report I was hoping for, but I will continue to hold my shares for the long term. I wouldn't be surprised to see a short term drop (especially, if the overall market is weak). At the very least, I wouldn't think we'd see much upward movement until the next quarter reports.
  • J
    Joe
    LADR stepping up today!...
  • D
    David
    The reasons why I HATE short sellers.
    1) Profiting from company failures is immoral.
    2) The practice is damaging because it artificially lowers stock prices.
    3) It’s a privileged investment tactic that is not available to everyday investors.
    4) Short sellers manipulate the market, by conspiring
    Bullish
  • M
    Mr Clean
    Dividend isn’t worth the risk, REITs this small need a solid yielding dividend for the risk investors take, you might as well go buy $T which has a larger yield and always pays lol
  • D
    David
    Are they going to cut the dividend, answer: NO, that's NO, and NO! That's streight from the horses mouth!
    Bullish
  • A
    Andy
    Anyone have a clue how this news will affect the company?
  • C
    Clouzz
    Earnings announced October 29.. three months later is Jan 29.. We are 2 weeks past that, I have not seen any announcement on earnings report?
  • S
    Sean
    well new 26 week high was not expected.
  • t
    trident_t150
    So, why would have JP Morgan have downgraded this today, in the middle of an earnings cycle? Not that I minded, I picked up a few more shares at a drastic discount.
  • B
    Brian
    Snippets from latest Seeking Alpha article on LADR.. "Economic Value Added (‘EVA’) (= dividends paid +/- change in book value) is one of the better ways one can objectively measure past performance for these types of firms. It’s not a panacea, but it does measure how well management of a financial firm has added value for shareholders in the past. Over the last 3 years, Ladder has produced an average annual EVA of 10.7%. This is the HIGHEST of the commercial mREIT firms Cash Flow Kingdom follows (see yellow highlight below).

    On the alignment front, Ladder Capital also stands above other firms. Management is internal (external management teams typically have an incentive to grow the asset base even when non-economic for shareholders). Management and the Board of Directors also have a lot of skin in the game (owning approximately $99 million worth of shares – over 10% of the company’s market capitalization). This is why they are the only Commercial mREIT to have earned an A rating from Cash Flow Kingdom on management alignment....

    I would point out that while Ladder had some pretty rough times in March, it has now significantly improved its balance sheet with a 3.1 Debt/Equity ratio at the end of Q2, plus the whopping $826 million in cash (a.k.a. dry powder) waiting to be deployed (2.5x debt/equity net of cash)....

    This means they could pay off all 2020 debt due with cash if they wanted to, and in doing so, probably still earn enough going forward to cover the 20¢ payout. I think going that route is unlikely; it is more likely they will keep the cash on hand and eventually use it to increase the real estate portion of the portfolio, but that they could further pay down or buy back a significant amount of debt is worth pointing out from a risk perspective...

    Ladder trades 37% below GAAP book value and 45% below undepreciated book value ($7.77 price vs. $12.44 GAAP book and $14.17 undepreciated book)....

    Before making such an investment, however, one needs to first decide whether this is likely a temporary setback. In large part, that will depend on your overall expectations regarding COVID (beyond the scope of this article). To that end, I would once again point out that Ladder's balance sheet is nowhere near as stressed currently as it was going into March. They now have plenty of cash and low-risk capital shoring it up that would help carry them through a reasonable amount of turmoil. Furthermore, this capital should more than make up for the difference between the dividend and AFFO once it is deployed.
  • V
    Victor
    Brad Thomas, the leading REIT authority on Seeking Alpha, includes Ladder Capital as the first of 4 mortgage REITs "Positioned for Significant Gains. He writes:

    "Book value per share (in the first quarter) declined from $15.23 to $14.01, which is a comparably positive given the current reality and almost double the current stock price of ~$8. Ladder has worked quickly and diligently to de-risk the portfolio and shore up liquidity.

    Since Q4 financials were released, LADR's M&A activity has reduced their hotel and retail exposure closer to 20.0%. I have a feeling management is very happy with that decision.

    Like the other quality mREITs, effectively all (98%) of Ladder's loans are senior secured at the top of the capital structure. Within its conduit loans division, the firm has had great success with 62 out of 63 transactions profitable. 98% of the portfolio is CMBS, all of which are investment grade and 86% AAA rated. Two thirds of commercial real estate exposure is structured as net lease. This lease term is ideal in the current environment."

    There are 120.5 million shares outstanding, which gives LADR a market cap of $935 million; with the company holding $830 million in unrestricted cash, the market is giving negligible value to the remainder of its assets.

    Management holds over 10% of the shares, so its interests are aligned with those of the outside shareholders. In the past, it has raised the dividend annually, and I would expect that policy to resume when the pandemic turmoil eases (it did cut the annual dividend from $1.36 to $0.80 in Q2 to strengthen its cash position during the pandemic).