Ladder Capital Reports Q1 2025 Financial Results with $11.6M Net Income

Ladder Capital Corp reported its financial results for the first quarter of 2025, revealing a net income of $11.6 million, or $0.09 per share, compared to $16.4 million, or $0.13 per share, in the same period last year. The company's total revenue for the quarter was $51.2 million, down from $63.2 million in the first quarter of 2024. This decline was primarily driven by a significant decrease in interest income, which fell to $64.3 million from $95.9 million year-over-year, attributed to net payoffs within the loan portfolio. Interest expense also decreased to $44.0 million from $58.8 million, contributing to a net interest income of $20.3 million, down from $37.1 million in the prior year.

In terms of operational metrics, Ladder Capital's mortgage loan receivables held for investment increased to $1.7 billion as of March 31, 2025, up from $1.6 billion at the end of 2024. The company also reported a provision for loan loss reserves of $(0.1) million, a notable improvement from a $5.8 million provision in the previous year, reflecting a more favorable credit environment. The allowance for credit losses stood at $52.2 million, consistent with the previous quarter. The company’s total assets decreased to $4.5 billion from $4.8 billion at the end of 2024, primarily due to a reduction in cash and cash equivalents.

Strategically, Ladder Capital has maintained a diversified financing strategy, with total debt obligations amounting to $2.8 billion as of March 31, 2025. This includes $2.0 billion in senior unsecured notes and $275.6 million in collateralized loan obligations (CLO) debt. The company has also increased its revolving credit facility to $850 million, providing additional liquidity for operations. During the quarter, Ladder Capital repurchased $20.4 million of its senior notes, recognizing gains on extinguishment of debt.

The company continues to focus on its core business of originating and investing in commercial real estate loans and securities. As of March 31, 2025, Ladder Capital held a portfolio of 149 net leased properties valued at $591.5 million, fully leased with a weighted average remaining lease term of 7.5 years. The company also reported a significant increase in its securities portfolio, which rose to $1.5 billion, reflecting ongoing investments in AAA-rated real estate securities.

Looking ahead, Ladder Capital remains cautiously optimistic about its growth prospects, emphasizing its commitment to maintaining a strong balance sheet and liquidity position. The company plans to continue leveraging its diversified financing sources to support its investment strategy while navigating the challenges posed by current market conditions.