LADR - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to Ladder Capital Corp's earnings call for the fourth quarter of 2024.

As a reminder, today's call is being recorded. This morning, Ladder released its financial results for the quarter and year-ended December 31, 2024.

Before the call begins, I'd like to call your attention to the customary safe harbor disclosure in our earnings release regarding forward-looking statements. Today's call may include forward-looking statements and projections, and we refer you to our most recent Form 10-K for important factors that could cause actual results to differ materially from these statements and projections. We do not undertake any obligation to update our forward-looking statements or projections unless required by law.

discuss believes financial the are performance. will call, on company's Ladder management which relevant addition, certain measures non-GAAP this financial In to assessing company's the financial intended presented in is isolation The GAAP. as information this with considered or for be in not substitute a accordance of presentation to information to figures our the of website. earnings Relations measures Investor presentation, which These section GAAP are supplement reconciled in in is available our

metrics, you to like for our Form we earnings today's and on presentation certain call to over I'd refer XX-K definitions to Pamela supplement call. At of Ladder's also which the time, cite may President, We this McCormack. turn

Pamela McCormack

Good morning.

We the fourth are of in XXXX. Ladder's year pleased performance quarter and with full

achieving Ladder X.X%. distributable million fourth a of quarter, on the During equity generated of per earnings $XX.X return share, or $X.XX

full business middle a sector. low liquidity leverage, return the totaled delivering $XXX.X For distributable supported in REIT, value. In reinforced robust conservative highest as real model earnings its maintaining credit by million, the leading XXXX, on ratings while the market-focused a year, commercial Ladder's estate equity, finance book and stable X.X% position

credit disciplined delivered Our challenging despite strong macroeconomic environment. the underwriting results

position the steps of addition, structure believe capital to the investment-grade over for well In enhance we year our took we potential proactive the should ratings. Ladder course

consistent in operating key Our and margins, real achievements income we earnings, In loan from XXXX, healthy delivered portfolio. net financial strong estate repayments performance. XXXX include strong interest attractive our net

year-end, and rates, interest Fed mortgage volumes enabled space. we conservative interest the challenges and apart approach expertise lowering us liquidity maintain pick of commercial and underwriting investment transaction setting up. Enhanced began rates loans resumed credit capacity. originating the period navigated rapidly credit began Despite book REIT our us to by and a to Additionally, as in successfully the a rising steady value,

a $XXX to further detail, an more the and facility million to credit corporate unsecured revolving cover transition cost. upsized facility streamline a operations. upsize key will secured at accordion extended recently to and in efforts our million debt reduced we all Ladder's from $XXX Paul primarily This to As and our marks to unsecured milestone $X.XX billion, sheet to ongoing using balance transaction our finance

with XX, of grade XX% from notch. our or comprised one upgraded who and bonds. Enhanced XX% received rating As at achievements leverage Moody's assets Ladder Ladder remained corporate investment billion Ladder's a conjunction credit of costs comprised to portfolio a by $X.X closer credit with July grade, XX% goal unsecured of Ladder Fitch, unencumbered a in investors. Loan These ratings. cash outlook becoming approximately which December In both rate attract and just asset unsecured XXXX, market should X.Xx, million in base S&P and we overview. positive XXXX, had notch billion position, expect our and total equivalents. of an company, $XXX including strengthen issuance our of one will of cash liquidity, below of lower us Adjusted of completed our funding of $X.X modest bond base broader while move investment debt

loan weighted continued portfolio the million In million. $XXX only billion, of fourth with representing of as loans. of assets, total in our our average the stood payoff XXXX, XX, XX at including quarter, of $XX a received pay minimal loan December and of As loan commitments funding X.X% portfolio we full down $X.X future yield XX% to payoffs,

with new $XXX our properties. X in select received acquisitions strength Since from refinancing underscoring highest ongoing over to Ladder's $XXX resets, billion recapitalization build annual an we on and pipeline across primarily multifamily has on year $X.X in million, for lease-up. along and QX, consistency new of lending strategy. In with to payoffs and properties industrial represents the vintage For loans loan loan focusing and the XXXX, full the payoffs This history, positions. XX Ladder quarter focus and originated million, middle the totaling proceeds end, with transactions continued basis market

asset value strategic divested investments. multifamily we sold capital owned and capabilities above foreclosure, million drive property continue estate. realizing X real estate value. Consistent gains, aggregate million for in our through in-house including us acquired XXXX, In to real income to $X.X $X.X Texas we sales during management million carry Our portfolio. quarter We multifamily opportunistically a enabled the carry through a sold properties in from fourth $X.X gain our

year million generated $XXX properties leases real in tenants. of The million Our during investment quarter, the lease to portfolio net full XXXX. primarily million portfolio consists long-term grade-rated income for $XX.X $XX.X estate net fourth and rental the with

gains In addition, in to we portfolio. distributable net million $X properties, earnings. Growing securities lease generating sold X

liquidity we fourth of primarily portfolio mark-to-market provides XXXX unlevered By strength In quarter, capital $X.X showcased conclusion, unlevered a Ladder's the and a $XXX of of average stability million During securities. unlevered exposure. XXXX weighted and at weighted X.X%. AAA-rated X%, without of purchased conservative portfolio securities of with enhanced approach comprised average our AAA-rated billion year-end, outlook. Ladder yield with yield the totaled differentiated This structure.

to that, clarity estate a prudently. over market markets the to well while on As substantial stabilize, maintaining approach are to our and to I'll positioned transaction opportunities disciplined commercial XXXX growth. With call volumes in we're and optimism, we Paul. turn liquidity with real Entering risk rebound, capitalize deploy recovering prepared our improves valuation

Paul Miceli

Thank on quarter EPS, or of share earnings, you, XXXX, distributable per generated Pamela. of million equity of return distributable of a $X.XX fourth In X.X%. achieving average the $XX.X Ladder

distributable X.X% average XXXX, share $XXX.X EPS, totaled For million, a on or per $X.XX equity. earnings of distributable return achieving

securities were our loans, achieved strong This was from allowing portfolio, offensive and while estate earnings return on equity. quarter cash, income de-levering driven sheet, performance to the real our operating income net delivering on balance strategy preserving by adopt alongside book an a fourth of interest and [ XXXX. value us steady maintaining balance, dividend stable ] significant a cash coverage, XXXX and by Our net

equivalents, $X.X billion and with billion, liquidity. totaling total XXXX, comprised sheet of of December balance was As XX, XX% $X.X Ladder's of cash cash

we including rate increase, plus from rating XXX and XXX a discussed, of fortified a to balance SOFR with agencies. upsize interest plus sheet credit upon Pamela through revolver $XXX reduction points basis SOFR As over basis investment-grade an further rating X achieving Ladder's to reduced unsecured X.Xx the further our points, million to

We with XX-bank are pleased to appreciate this our syndicate. our extend [ deeply ] gratitude partners. outcome support strong from and We our banking the

leverage in $X.X debt in ratio secured XXXX was $XXX due paid corporate we deleveraged position. Overall of XXXX, large X.Xx, our a leverage with December a in gross unsecured balance in XXXX. XX, issued XXXX, total adjusted as As liquidity million ratio and trending and of with down amassed sheet our X.Xx, billion bonds down over we in

since remains investment both corporate placed bonds rating modest commercial XXXX on grade. strategies with company of within repurchased business of financing bonds, and As strategic and our XXXX, with X.X%. our In unwavering agencies which upgraded mature the focus in our a Ladder's real value on and Ladder we fourth levels, December recognize of positive estate, leverage business, one of X first in the well managed XXXX, XX% model X.X attractive inception prudent weighted long-held as we XX, S&P BaX, as XXXX as principal debt debt investment upgraded us becoming average Fitch an ago. We of an years and credit. capital, since unsecured our in Moody's disciplined at for and and demonstrated outlook, on maturity October, Ladder's remaining of outstanding. In our bonds over of goal in long of notch our credit weighted focus believe for credit on credit well. average unsecured a rating, of coupon track position an manager corporate quarter was bonds $XX years, million the with specifically our received aligning of XXXX, rating an comprised investment-grade fixed coupled rating the of which our We rating to our with Moody's internally achieving principal with $XXX rate our million record believe XX unnotched

for believe to to cost return equity We an capital with goal time. growth, continue the grade Ladder up of markets, to grade more access and over with enhanced investment open along the a on will attractive to rating achieving shareholders capital broader credit opportunities of investment

As XXXX. segments X our in discussed, performed well Pamela

lending in origination the fourth in positions, in quarters. which to and million conduit quarter. coming will XXXX, $XXX payoffs year focus focus and bridge lending across paid our in outpace achieve X for of Ladder portfolio and pivot meaningfully the originations loan was billion originated loans mid-market loan generating the XXXX allowing us balance of a helped down $X.X a balance, Ladder's the sheet with paydowns, portfolio closed meaningful Our flexible and X.X% of the yield. originated space. In a reduction liquidity majority hopeful through on XX% We're us with the

million at totaling the XXXX quarter As we million general use fourth in including our addition quarter, $XX million, from on reserve a residential York loans of nonaccrual, December identified $XX X and $XX City. No New the the properties collateralized specific loan mixed by and retail XX, were impairments in in fourth prior the X had of unchanged CECL quarter. remained

shifts adequate to hold loan persist economy. reserve level in to the this our this portfolio. is continued global loss macroeconomic the cover potential continue We given that level believe We of reserve in any

holdings AAA new In XX, securities loan our as for securities by value capital of and book more to rotated off fourth quarter. billion. our December $X.X XXXX, opportunities of the pay XXXX our As lending at was up doubled geared carrying we into than the par, and continued portfolio we

XX, liquidity The investment-grade of of securities portfolio securities readily financeable, same-day rated. As XXXX, being predominantly the we billion is $X.X complementing December entire with of liquidity, XX% source was additional portfolio providing maintain. the and XX% unlevered potential of AAA of rated, AAA

long-term real net an continued XXXX. income of operating properties, million includes term The $XXX investment X.X remaining lease generate years. grade to credits, with Our committed portfolio leases in XXX to lease segment stable average estate primarily net

gains previously XXXX As million of of the depreciation proceeds, million lease X amortization distributable million XXXX, the $XX.X sale for and net sold assets, of of $X.X of of for we which expense. properties Pamela earnings, in recapture of gain in gain executed includes net and distributable a X foreclosed earnings. Further, $XX.X million recorded $XX.X for multifamily for GAAP, on sales generating generating we $X.X proceeds previously for net million, discussed,

[ upsized our we within structure financial recently of flexibility access on Ladder our strong notch revolving XXXX. large pool with as high-quality XX% ] deployment liquidity or grade, XXXX, and capital first of this equivalents. includes mortgage billion our unencumbered at significant securities of As we asset asset stood is unrestricted total cash our believe of XX, $X.X comprised and and which position focus best-in-class one in pool of to X unencumbered December to assets, loans, and Overall, ready credit facility, investment position, XX% capital assets. pool cash segments unencumbered

undepreciated is As of price Ladder's net was the of share reserve XXXX, established. $X.XX of the quarter repurchased our stock weighted per shares December XX, million $XX.XX, XXXX, a general which per value book $X we or of average fourth XXX,XXX In $XX.XX share. CECL per of common at share

our December of at of XXX,XXX share. weighted For million we XXXX, per common $X XX, stock, $XX.XX the or price year-ended repurchased average shares a

As current of December XXXX, remains on program. XX, stock outstanding Ladder's million repurchase $XX.X

the covered. Finally, dividend, quarter, January in in And XXXX. on per XXXX, XX, share $X.XX declared was our Ladder which a dividend remained paid well fourth

will coming our on Form to the to and our supplement, report XX-K results, is annual days. With Ladder's the expect fourth XXXX that, refer on year which on details quarter full available which we Brian. please For file I call and website, over operating to in turn our earnings

Brian Harris

to Thanks, easier design model and our Smaller lending diversify and middle relatively during loan was due enabled enabled a market geographic on last full XXXX. time We sponsor have believe exposure display to refinancing borrowers coming loans us Paul. by our Ladder's sizes year.

never modestly heard in took further very million the March funding liquidity bright we liability an position paid breaking model regional soared some a tame unsecured bank in loans the throughout they refinance the XXXX, response the alive going X generally levered inflation $XXX be industry by to harder rate the point and million for certain upsizing points our in to and a went interest for except estate of beyond to while did big we sponsors off, closed disrupted our expression figures, rates investors, of most up received as By due highlight the throughout failed, during as year. After bond XXXX. I July, of in a cut early difficult loans the think enabled strengthen with the that to coming stay to billion as was issued $X.X became coming events to to also off in it need of Fed X half and revolver economy the the to due. short-term on sponsors the year. alive times $X.X till Ladder see steps XXXX events, loans all real that Fed seemed slowing pushed a past basis to in to stay set to cuts the when XXXX having of year XXX loans were these our 'XX banks our year of for December. These of corporate until paid of spot our bring not 'XX, billion followed was total We that $XXX commercial second

these loan unlevered historical weighted new [ receive that we interest takes to over a cash an are new X from at a rate, originations, while close AAA-rated of income the we believe day originations average and T-bills a we days acquired payoffs move including XX soon an of yields loan of added after of pipeline our fund paying over last X.XX%. We at them. we XX is new after currently will of loan average believe the stands of January ], a also just it As outpace purchased under loans rapid at loans perspective, million, securities proceeds X.XX%. will from growing outpaced our months, $XXX application out And and earning first investments, cash loan of we off. To application. million yield attractive to most $XXX 'XX, to It

to support have option the to or securities, to billion provide we additional finance of liquidity our pipeline. growth up our which some sell $X loan could of Additionally, continued in

take this but it While we we time, expect on. be readily quarter observable XXXX, will throughout the expect our loan inventory second to build from some to

including while, intend we shareholders. We optimal present we We plan place. highest securities that alternatives investing closing risk/reward bills there manage good replenishing accomplish believe of forward this asset from to to available a migrate additional lag capital with and process. Overall, quality amounts our and loan with base to rates plenty of While sheet higher the to low high in can us, of higher securities. our of from application the T out lag the takes relationships and our find the leverage all we while concentrations balance look maintaining of to interest liquidity assets loan in into for are to origination loans short-term

business plenty We of and have leverage. and record by debt estate longer low room primarily of grow track with with limited loan sheet. investments a Ladder add dollars upcoming and to funded and unsecured with allocating balance non-mark-to-market new maturities term loans among our model has corporate a investment securities long differentiated real

with leverage liquidity with we be enhance buying As shareholder and are excess market time and large in stock Paul environment. waited of with discussed, low continue amounts high interest we debt rate back to the we armed today, paying a in and when liquidity, long in been a value. We've position down present with plan to to us conditions this have strategy opportunities relatively

are, to therefore, thank call, very will for to over they forth. I'll a strong and that employees for Ladder. like now take optimistic effort be thank put this I'd XXXX in it tuning the We the for back and our year operator. to everybody this on time to turn XXXX

Operator

KBW. Our Rahmani first Jade question is with [Operator Instructions] from

Jade Rahmani

CMBS conduit the about ask to wanted I business.

meaningfully competes to you For probably been now? issuance REITs to originations still an yet regional was loans more pulling about CMBS to XXXX. are Therefore, XXX% let more banks the opportunity mortgage come increase banks. back up with in have as market, CMBS willing see maturity most Ladder than conduit and do

Brian Harris

fixed in a is to shortage securitization going which steeper. great of a tightening It's works curve almost and everywhere. income yield investments, the I conduit spreads Yes, think is on causing credit business the There's Brian. when be so. That in better

yet. So being for while there it's way we're no we're say, inverted would that not after but longer I years, improving,

at not attractive. breakevens look not we when more capital. not we other a loans basis, rate or on on when It's to seem terribly profitable reverse take that it's making as a be It's that we make a of could investments things our be at the just it's all. that allocation XX-year think attractive I fixed a are we what to X

come the expect wouldn't to strong near I very future. too us out So in

see there However, as in the a curve steepens, waiting little us you'll bit more.

Jade Rahmani

at meaningfully. that repayments reserves those then And reserve, level? in There received? potential it been some for the Are to releasing was maintain just on of unchanged. was that provisionings, CECL increased level do dollars, planning no with quite see you the new it means significant have reserve Or the that which you the

Brian Harris

I higher not leave and the this see we Well, potential think, were all there paid they're there. point, need at possible that still as for did Those we off. because is loans it that the a it reserves, yes, percentage problems

that the smaller. loans obviously, denominator the However, did pay off, is getting

well through hard start think we're inventory. -- increasing think really to could where we'll it I that loss little what to the unless So as a something changing. we're all in quarter that don't and gauge It's I the column. expecting of in economy covered. I not get don't see our in happens But things

at in, don't likely some but I number see be it's going towards that reserves far back I more point we'll that think probability releasing -- probably up.

Operator

is question from next Tom Our with Catherwood BTIG.

William Catherwood

detail the the originations between applications and on closings. Brian, I appreciate and lag

multifamily. of of impacting then On well? and it the tightening to origination how willing A, Kind yields X on? front, lend of is as you that you're somewhat, are types And especially pipeline properties that parts. your we're for hearing seeing B, the

Brian Harris

And are people recent paying past. relative tightening. on spreads not rates is loans The interest up are. don't Credit Okay. think low our I X%. near very that the that's are to rate actual

talk interest about a got in tightening little So to we the prevailing on mortgage rates spreads when credit and you market. cautious -- be around

So Treasury today the the pay the don't that administration how see the that is that XX-year. world I might to and new some at situation hope that have made point. and would issue going to Secretary borrowing rates because they're of personally on their of U.S. like comments in I the this deficit the be to think to down with by the coming interest

something other That property for but at that retail building So, people stability, safest But somewhere. than looks then types to is definitely don't multifamily credit rate. the we any we an we're as don't on market, high seem a anything, Obviously, ever a the number in very crime. as or in it. put If we all. any because more building far a But tighter I in like terribly We multifamily happy think the overly yes, to today's if come condition difficult have writing live sure, any spreads reputation I redline we to necessarily targeting think I sacrifice office try to into to comes of at we're or be multifamily. tightest. because And neighborhood. But industrial, we us, avoid office to it. I on from criminal is we're where back recalibrated if it's won't we'll lend comes -- to not asset that and that's go, not things. be preferencing happen like, see happen to

office In that refinance fact, even building. you sure it's a that would I'm an not can reasonable say I thought

getting although done. bit So right outlier yes, are large SASB of deals a you an is that some seeing those now, very --

is ] pipe. Bryant down the now. [ building is MetLife coming in Park right market think I the

will leaving types I on. But improving. defroster their some I waiting more lot bit think that they're with are under flight, hesitant doubt product suspect way. is are also they start around where a rich into large control. cities we we other little crime extent do There it, where their capital having And this in a of problems no is about that the a got very the and still So to is people meaningful haven't

Midwest. very Downtown happy to are pretty flyover But L.A. economies no we in states We go -- actually few and doing people in the that need write going those the are to what avoid happen I to the where well. loans to continue we're name like to call So cities.

William Catherwood

now seeing up a maybe Or year you've I loans appreciate in that more kind your those sticking maybe of seen rate would X-year thoughts, that And pipeline, are Brian. not the with borrower that loans fixed floating-rate have looking for done last is likely yet? borrowers crop to trend flexibility? transitional you profiles provide

Brian Harris

been We that, have say, long-time would through seen have I estate. that, real to some especially here, extent I of owners in think something borrowers

sometimes, over And they operating on many, refinances wealth that having cash and decades. have generational in spending for weren't expenses, requiring estate families years, last on they're of the spend to couple real they're many to also which used owned lot money a especially of the

not So I necessarily causing do spreads. think what's is it

necessarily a rate think actually higher that, I now a the balance gravitating rates where at point or we hit floating of -- are they fully there's want very they a But rate go a would have the people is property, some sell because few sheet to we've are can from there's that interest bank. Having And world our extension lower. said loan the quoted the few than to not or and I be. They've X-year X-year because conduit think towards no written think rates where that prepayable. penalty that we a lockout. prepayment get on what slightly are why loans rate and part a short provide reason X- they floating we fixed and going

So the plus we we the that charge up year think see ahead. originate picking you'll the coupon I so make simply to in And the more fees loan.

Operator

next Our Instructions] Steve with question is Citizens Delaney [Operator from JMP.

Steven Delaney

close great a XXXX. on Congratulations to

been do think $XX.XX been peers that. volatility to that CRE a that is think over I I don't had maintain cetera, of share corners, you've able And per that value remarkable have thing despite the neighborhood problems, you the the in from have over to the last that book most years. et X with any X back we've the able, last I looking market years Just all the in all noticed

a accomplishment. So page ] just me, to off jumps [ it is the great

Now thing we've heart that -- dropped your expect question more in return go the would of my on defense, -- all significant what loan billion now things. got direct direct I The core commercial forward your And in the XXXX. book guess has mortgage you 'XX end if of make net? to I and soul, new would you your one earn at that? play $X you book do Can competency operate pretty REITs. from X-part what to a in loans the -- loan and XXXX? XXXX, average your you think equity you in do is your billion? about Can in by $X.X to as the billion for as reduction net And you $X grow and about mind, you But on can -- lending. much do $X.X you lending see lot you billion, on sort a of my might Brian, has as question. expect So as

Brian Harris

have that we yes, value. And Steve. Thanks, noticed book Okay.

fact, to quite did. billion, $X.X you that [ X.X% year SOFR in are one portfolio tell think providing $XXX and that, the is of with something said, for Pamela out now, that billion at right like parse that, else. lot down in better at around ] I of most the What's were as even maybe sent than Obviously, got probably would proud which paid dropped you rate In whole group have if X.X with obviously, she other lowest that has fees dividend, would to the interesting of has kind the our so of or over, million X quite you X.X%, back to is But to people as of gets companies we and X.X%, comes demonstrating -- we the of space. But I at get of the in that a people a think drop in we one think reflected point, it. each bit. X.XX%. a we point chart loan I throw the you maybe some you $X.X a I to that unlevered right, space, that might in unlevered, And

So ] don't then said, They're we be [ And just one. loans for They over. million targeting. That that rise, as go writing the up area. million those think they most in rates that's are not more [ those spreads that one spreads we But would widen. ] will fall, unlevered will, the if as $XXX rates will $XXX return tighten. we're

the yield on unlevered we're probably is targeting So that X.X%. I think something basis an

$XXX you'll about worth when X%, by Now off you million and net money instead loans. floating go, a the the X loans the are T-bills are points closing put [ that of of taking up, delay ] on understanding on and By XXX and yielding get money you right? market if stop AAA $X securities the so there's right is time lose more into cash paid margin the so in billion you basis of fund, comfortable get place to holding X%, at And ultimately, now. interest business rate, going application picking to and which taking there CLOs a

yielding of we year, XXXX, I'm that's is write you [ you. [ over right, because -- $XXX have you and we the And half have at this $XXX ] to January, million million telling So the ], ] is of say, that $XXX what And X.XX%. spread average month in an about there trying purchased average million we're far -- [ AAA $XXX spread, of million is spread loans so yield for in securities. and all instance, interesting just the the AAA credit to

quarters the keep I just in yield add those mind, So we bought purchased that securities. in of third the high, relatively because we've if to million actually are still $XXX year, what X.XX%. $XXX this those of average about and And spreads and is million on fourth

now [ ] go for we X% X% And X% the on then until a while credit. right [ told let's we're X% interest that loans. But deploy we from into right, Ladder you're were, the sure all from to little find good net ]. sure make higher-yielding ] seeing go hold to margin. are. to at We we on attractive X% went there I don't from we we'll let's So or [ people ways capital We to what X.X% is -- we think make

still we T-bills high. Okay, can't and see we Earnings going benefited us back check will bit, we by in short-term imagine loans. Will securities box to are rather rates a and add is but you're a we downward won't. got interest paid the start little a out pushed be flat. year. the fact because into quite curve that just I And that lot move $X -- to of billion? The

is that we've we too, borrowers And million illustrate some capital billion. loans. of quarter, any rarely that do $XXX quarter to which rapidly. is can third We've going app -- or we small the suspect again. balance that $XXX add going of in in that things and not have happen weeks the That's quarters, now, could holding this, off will we anymore. because waking we market we very repo didn't got both got originate And will dwarf number a will forward. And where to probably and the think say originated, beholden sheet different it market, the to outstanding the and a not and when under CLOs X notice the double lot securitization very brokers we're quarter. number been I lot the visit paying of we're million up -- fourth to that and $XXX because flexible was But we starting I to think that in second has are in I Ladder fourth world and right beginning a million in amount I XXXX, first $X and

of So we could call those. one

million to our February, you we're going in to probably So to securities for bridge on We'll [ ], and long now, for a look tell tail tell right and we're add side [ end to of [ Right area. as $XXX off. in to acquire pressure ] this under It's some the they're ]. some preference on would the that million there's is [ as expenses Adam group But origination $XXX push like I do now million you to our ideally too neighborhood. going $XXX probably me ]. the going interest cut things continue little million loans much pay Siper's $XXX

turn, shopping then your never so back, but of ahead ever And and price. you -- into not X of be loan end move XX% of the any cash, recovery, earning gather business to portfolio, your while securities, of loans you're compromise credit -- the you're keep side competitors. you normal harvest your So you're get going principal then at cycle new good for the

are focus we'll today. we're concerned fast that about can we don't overly out that, to happens. and These -- we write loans how assets So where figure not have

to us that detail can they people of to have the to where pretty in slight right our X And we're lot out a in figure off overlook. I But love a pay We with ability it's years. X position do now. comfortable this.

have We there. access market out every debt to

end covered hand to a the of want. And now, we in any upsizing have already right to due $XXX got more the don't of could additional now. October keep on And right We with Some borrow cash. of the are quite million, staring $XXX of probably need the we million is obviously corporate revolver thing have than really coming but don't at less at little that a we lot we've us only them anymore. we which cash market, bond inexpensive if

at math So looking to of meaningfully XXX think sheet here. that's And spread here. what start billion we're on, we're up full numbers balance basis some I do a really looking adding to. you add for And points, you $X forward you if deployment can net some your

Steven Delaney

yield nature Just leverage clear, -- on what, depending it you up on correct? X% to a move double-digits low be would when put bridge the of loan that to yield leverage, the

Brian Harris

have That's we correct. XX%. leverage purchased, are they And by too, AAAs, to yield. the also way, put the If note, -- goes of securities on these right X.X% that have $XXX almost now million I'd they we that,

So and -- financeable. easily

[ XXXX, them. continue sell is to AAAs ], as They're them still just And they we which XXX These may quite not wide. wide tighten. not we've those at where buying been ] CLOs spreads in spread get attractive. on probably ]. that XXX as are so in [ they're CLOs AAAs. originated being suspect where pretty I on at were ], down still XXX AAA will XXXX, [ XXX around But [ are

Operator

with a KBW. follow-up Jade final Rahmani from question Our is

Jade Rahmani

a co-originate lot servicing X mortgage reasonable to tough I do creation strategic due the BXMT with & is has Curious if to were be the the When M&T. have which economics. participate ask you the to opportunity is its in that if high BXMT a wanted relationship a agency which traded And see the you and at Arbor, say, commercial business, Ladder to downstream servicing was Dunlop? to due names potential given to to a any lender, on could book servicing with wondering agency question due to business. space, balance. There cash I something multifamily, loans look premiums you its established and REIT material that's at the is in were: diversification; scale; value pursue? a Walker partner think of value Starwood

Brian Harris

rating heard like But couple months ago. of of and pursue -- it. the there's moving moving I -- quite seeing There many of thing lot suspect on you have I private haven't anything M&T is tie-up. money We going a not I see right don't you're right recently. of to it market it's lot too of And saw a reasonable were -- -- capital cash, that a that's that a those are to real is in by places the out banks some let tell been get market losses rates big approached loans of -- have parties They're the lot opportunity, flush making figure anymore. and in borrower are of think who who where now. just and the there's team then little an a I hard right we agencies do and -- to are. But think estate when going place the like the kind the A making It's underway now some with into a do how an few with introductions a somebody, I think to that now.

less each a come more of But getting we probably that to amount of And it's are And that's very little it. of for people to we're we to we right other capital I anything So interested than and suspect suggestions. where do we've if inside I appear now, like a attention that, given from our do be rather -- from in little REIT. But some then little own we to mean, hard-pressed a good with our manage will the would them a bit to the us would open I very side. a part sidecar where that we the got we're them funds insurance would than that's perhaps servicing see of you side shareholders. attractive be. say might think income something where shares

So capital. that a could insurance in, And do. I environment new do think to suspect originations, I us to our see $X think do of a capital some start little to more I what right an our the lines we or -- expertise you all now, like don't about will this company competitors the with But get interesting. along if of our through fortunate we exporting of we're want we're and billion third-party. we really then that become investment probably the have

Benefit Apollo any be to too. ] happy right [ company on Street we ] not think insurance are has now. that, do that an -- like we'd does discussions but [ they invest. something so I But in underway

Operator

to our We closing remarks. question-and-answer the over reached call Brian to have turn session. back of Harris end would the for I like

Brian Harris

It's numbers Just will we're spoken [ the the go the in year side. We're in of up looking of a these in. We to since chute our investors been I ahead. ] out think that very thanks while equity at ahead. year we've order. that dramatically coming the look on good forward And already listening for to origination

with get on fruitful the for And a appreciate you. having and us, thanks 'XX. So train we again

Operator

This conference. you. conclude will Thank today's

You may and this time, participation. you thank your disconnect lines your at for

Ladder Capital (LADR) 6 Feb 252024 Q4 Earnings call transcript