Ladder Capital Corp. is an internally-managed real estate investment trust (REIT) specializing in commercial real estate and real estate-related assets. The company primarily engages in originating senior first mortgage loans, both fixed and floating rate, that are collateralized by commercial real estate. Additionally, Ladder owns and operates commercial real estate properties and invests in investment-grade securities, which are typically secured by first mortgage loans on commercial real estate.
The company's investment process involves a thorough and detailed analysis, including cash flow analysis, borrower analysis, site inspections, legal due diligence, and third-party appraisals. Ladder's management team and underwriters conduct a comprehensive due diligence process for each prospective investment, evaluating factors such as the property's rent roll, operating expenses, net operating income, leasing costs, and capital expenditures.
As of December 31, 2023, Ladder's portfolio included various investments: 107 balance sheet first mortgage loans with an aggregate book value of $3.1 billion, 9 mezzanine loans valued at $32.4 million, 1 conduit first mortgage loan worth $26.9 million, 156 net leased commercial real estate properties with an undepreciated book value of $653.5 million, 53 diversified commercial real estate properties valued at $293.7 million, and a portfolio of commercial mortgage-backed securities (CMBS) with an estimated fair value of $431.5 million. The company's securities investments are predominantly AAA-rated, focusing on front-pay securities with relatively short durations and significant subordination. Continue reading...
Ladder's management team and directors collectively hold over 11% of the company's total equity, bringing an average of 28 years of industry experience. The company maintains a disciplined and aligned management approach, with a focus on opportunistic capital allocation and risk management.
Ladder competes with other REITs, commercial banks, and financial institutions for lending and investment opportunities. The company emphasizes relationships, product offerings, loan structure, terms, pricing, and customer service to maintain and build on its market presence.
The company employs 59 full-time personnel, all of whom work for Ladder Capital Finance LLC. Ladder Capital Corp. promotes a diverse and inclusive workplace, offering competitive pay, benefits, and opportunities for professional growth. The company also provides comprehensive healthcare benefits, paid time off, and mental health services to support its employees' wellness and work-life balance.
Overall, Ladder Capital Corp. operates with a complex financial structure involving various subsidiaries and affiliated entities, adhering to regulations by federal and state authorities, including the SEC and insurance authorities. Through its strategic operations and experienced management team, Ladder aims to effectively navigate the commercial real estate investment landscape.