Ladder Capital Corp (NYSE: LADR)

Ladder Capital Corp is a commercial real estate finance company that originated over thirty one point three billion dollars of loans since its inception in October 2008 and completed its initial public offering in February 2014. The firm concentrates on senior secured assets including balance sheet first mortgage loans conduit first mortgage loans commercial mortgage backed securities and real estate properties. As of December 31 2025 it held a portfolio of balance sheet first mortgage loans with an aggregate book value of two point two billion dollars securities investments valued at two point one billion dollars and real estate assets with an undepreciated book value of nine hundred sixty six point two million dollars.

The company generates revenue primarily from net interest income on its balance sheet first mortgage loan portfolio and other commercial real estate related loans. It also earns interest income on its conduit first mortgage loans prior to their sale into securitizations. Rental income from its net leased and diversified commercial real estate properties contributes to earnings. Interest from its commercial mortgage backed securities portfolio and other rated securities provides additional returns. Furthermore Ladder Capital Corp receives fees from the sale of conduit loans into commercial mortgage backed securities securitizations and gains from loan sales or participations. These streams together create a stable base of net interest and rental income.

The company operates through the following segments:

• Balance Sheet Lending originates and invests in first mortgage loans on commercial real estate properties that are undergoing transition such as lease up sell out renovation or repositioning. These loans are typically structured with floating rates and terms ranging from one to five years. As of December 31 2025 the company held seventy three balance sheet first mortgage loans with an aggregate book value of two point two billion dollars and a weighted average loan to value ratio of sixty eight point eight percent. The company may hold these loans for investment contribute them to collateralized loan obligations sell participation interests or sell them as whole loans.

• Conduit Lending originates first mortgage loans on stabilized income producing commercial real estate that are intended for sale into commercial mortgage backed securities securitizations. These loans generally have fixed interest rates and terms of five to ten years. As of December 31 2025 the company held one conduit loan with a carrying value of twenty eight point zero million dollars and a loan to value ratio of fifty eight point nine percent. Although the primary intent is to sell the loans into securitizations the company retains flexibility to keep them on the balance sheet sell participation interests or sell the loans as whole loans.

• Securities Investments focuses on acquiring primarily AAA rated commercial mortgage backed securities and other real estate securities that are secured by first mortgage loans on commercial real estate. As of December 31 2025 the estimated fair value of the CMBS investment portfolio totaled two point one billion dollars across one hundred fifteen CUSIPs with a weighted average duration of three point zero years. Approximately ninety eight point six percent of the portfolio was rated investment grade by Standard & Poor’s Moody’s or Fitch. The company also invests in CRE CLOs and may hold unrated securities opportunistically.

• Real Estate Investments includes ownership of net leased single tenant properties and diversified commercial real estate assets. As of December 31 2025 the company owned one hundred forty nine net leased properties with an undepreciated book value of five hundred ninety six point two million dollars comprising three point four million square feet that were one hundred percent leased with an average age since construction of twenty one point two years and a weighted average remaining lease term of six point seven years. During the year ended December 31 2025 rent collection on these properties was one hundred percent. The company also owned fifty six diversified commercial real estate properties throughout the United States with an undepreciated book value of three hundred seventy point zero million dollars and rent collection of ninety eight percent for the same period.

Ladder Capital Corp is recognized as one of the largest non bank contributors of loans to commercial mortgage backed securities securitizations in the United States having originated over seventeen billion dollars of conduit loans since inception of which sixteen point nine billion dollars were sold into seventy five CMBS securitizations. The company competes with specialty finance companies commercial banks investment banks insurance companies and other REITs for lending and investment opportunities. Its competitive advantages arise from long standing relationships with borrowers and brokers a disciplined underwriting process that includes multiple internal and external checks and a flexible financing strategy that allows it to access senior unsecured notes unsecured revolving credit facilities committed loan repurchase facilities and securities repurchase financing. The firm’s focus on senior secured assets and its ability to securitize conduit loans provide a stable source of net interest and rental income while maintaining a debt to equity ratio target of approximately three point zero to one point zero.

Ladder Capital Corp serves property owners developers and investors who seek financing for transitional or stabilized commercial real estate projects. Its net leased properties are occupied by necessity based businesses such as pharmacies convenience stores and service providers that pay rent on a net basis. The company’s securities are held by institutional investors including insurance companies pension funds and asset managers that seek rated commercial mortgage backed securities. The real estate portfolio attracts tenants across office industrial retail and other sectors seeking long term leases. The borrower base includes private individuals partnerships and corporations that require customized loan structures for properties undergoing renovation lease up or repositioning.