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INVESTOR PRESENTATION SEPTEMBER 2017
NYSE: LADR
2
This presentation contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans and objectives of Ladder Capital Corp and its subsidiaries and affiliates (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement concerning future events or expectations, express or implied, is a forward-looking statement. Words such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements that are subject to risk and uncertainties. There can be no assurance that any expectations, express or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated. In particular, there can be no assurance that Ladder will achieve any performance objectives set forth in this presentation. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Ladder to predict those events or their effect on the Company. Except as required by law, Ladder is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This presentation is strictly for informational purposes. It is not intended to be relied upon as investment advice and is not, and should not be assumed to be, complete. The contents herein are not to be construed as legal, business or tax advice, and each recipient should consult its own attorney, business advisor and tax advisor as to legal, business and tax advice.
Certain information contained herein is based on, or derived from, information provided by independent third-party sources. Ladder believes that such information is accurate and that the sources from which it has been obtained are reliable. However, Ladder cannot guarantee the accuracy of such information and has not independently verified the assumptions on which such information is based. All data is presented as of June 30, 2017, unless otherwise indicated.
This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Company’s June 30, 2017 Form 10-Q filing and earnings press release, as well as the Company’s Earnings Supplement presentations, which are available on Ladder’s website (www.laddercapital.com), for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
Totals may not equal the sum of components due to rounding.
DISCLAIMERS
LADDER OVERVIEW
3
Ladder Capital Corp is the only internally-managed commercial real estate finance REIT
28 years average industry experience of senior management Experienced
$5.7 billion portfolio of commercial real estate debt & equity assets Balanced
11.0% after-tax core return on equity
(2) in the last twelve months Profitable
Management and directors own $175 million of equity in the Company
(1) Aligned
Disciplined credit culture with no credit losses since inception Credit-Centric
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Based on $13.41 LADR closing price on 06/30/2017. Equal to 11.8% of common equity outstanding (2) For a description of this non-GAAP financial measure, see Selected Definitions on page 23
Balance Sheet
Lending 53%
Conduit Lending
18%
Real Estate Equity
15%
Securities 14%
COMPLEMENTARY BUSINESS LINES
4
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Based on core gross income contribution before overhead and other corporate expenses
Stable and Diverse Income Streams from Commercial Real Estate
Net Revenue Contribution (1)
Six Months Ended 06/30/2017
LENDING – $2.8 BILLION OF ASSETS
Balance Sheet Loans / Loans held for investment
Ladder directly originates and invests in mortgage loans typically secured by income-generating commercial real estate nationwide, earning net interest income for Ladder
Conduit Loans / Loans held for sale
Ladder sells fixed-rate, 5 to 10-year mortgage loans into CMBS trusts (“securitizations”), typically earning a gain on sale of loans, net of associated hedging costs
SECURITIES – $1.5 BILLION OF ASSETS
Ladder invests in short duration, investment grade-rated commercial mortgage-backed securities (“CMBS”) to earn net interest income and manage liquidity
REAL ESTATE – $1.1 BILLION OF ASSETS (UNDEPRECIATED VALUE)
Ladder owns and operates 8.0 million square feet of real estate, including 4.2 million of net lease real estate, and 3.7 million of other office and multifamily real estate
Mezzanine/ Subordinate
Loans 3%
Balance Sheet First Mortgage
Loans 46%
Conduit Loans
4%
Net Leased CRE Equity
10% Other CRE Equity
8% Condominium Real Estate
Equity 1%
CRE Securities
28%
DIVERSIFIED ASSETS Predominantly Senior Secured Asset Base of Commercial Real Estate-Related Investments
Investment Asset Mix Loan Portfolio Overview
$5.7 billion of total assets
76% senior secured assets
Equity Portfolio Overview
5
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21
Office36%
WholesaleClub13%
GroceryStore10%
DrugStore12%
DollarStore9%Other
Retail6%
Ware-house
5%
MHC5%
Other4%
Northeast17%
South42%
West8%
South-west5%
Midwest27%
Various1%
Hotel34%
Retail12%
Multifamily23%
Office17%
MixedUse7% Land
2%MHP2%
Industrial3%
South30%
Northeast27%
West18%
Southwest10% Midwest
10%
Various5%
6
Consistent and steady growth in recurring revenue streams
Balance Sheet Loans
Outstanding
Revenue Contribution from
Balance Sheet Loans, CRE
Securities, and Net Lease Rents
(1)
($ in millions)
(1) Revenues not depicted in graph include conduit gain-on-sale income, other commercial real estate net operating income, real estate gains on sale, and income from equity (1) investments in JVs
GROWTH IN RECURRING REVENUE
35%
48%
62%70% 68%
0%
20%
40%
60%
80%
2013 2014 2015 2016 06/30/2017 LTM
$538
$1,524 $1,742
$2,000
$2,627
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
12/31/2013 12/31/2014 12/31/2015 12/31/2016 06/30/2017
7
Loan Portfolio LTV Over Time
CRE Securities Portfolio Over Time
Owned Real Estate Portfolio Over Time
(undepreciated book value of assets)
($ in millions)
% AAA-Rated
% Investment Grade-Rated
Other CRE Equity (JVs)
Net Lease
Condominium
HIGH-QUALITY ASSET BASE
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21
$302
$420
$583 $601 $613
$172
$278
$259 $301
$500
$175
$122
$76 $43
$33
$650
$820
$918 $944
$1,147
$0
$200
$400
$600
$800
$1,000
$1,200
12/31/13 12/31/14 12/31/15 12/31/16 6/30/17
100% 98% 99% 100% 100%
90%
81%
87%83% 81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
12/31/13 12/31/14 12/31/15 12/31/16 6/30/17
69%
63%66% 65% 65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
12/31/13 12/31/14 12/31/15 12/31/16 6/30/17
LENDING
8
$2.8 billion Loans on balance sheet
94.3% Of loans are first mortgages
6.8% Weighted average yield
64.8% Weighted Average LTV
$19,500,000
Fixed rate conduit first mortgage 4100 Alpha Road – Dallas, TX
$53,100,000
Floating rate balance sheet first mortgage Fifth Third Center – Cleveland, OH
$17,520,000
Fixed rate conduit first mortgage Aloft Hotel Nashville – Franklin, TN
$15,800,000
Floating rate balance sheet first mortgage Monarch at Liberty Pointe – Fayetteville, NC
Note 2: Photographs and descriptions represent selected assets, not entire portfolio. Conduit loans have already been sold by Ladder into securitizations
$17.0 million Average loan size
Note 1: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21
LENDING PROGRAMS
9
Lending Program
Assets on Balance Sheet
Loan-to- Value Ratio
(LTV)
Weighted-Average Coupon
Average Loan Size
Interest Rate Type
Loan Term
Business Plan
Conduit Loans
$201 million 57.4% 5.1% $25.1 million Typically fixed rate
Typically five years or ten years
Held for sale
Balance Sheet First Mortgage Loans
$2,466 million 64.9% 6.4% $19.9 million Typically floating rate, with a high floor
Typically one to five years, including extension options
Held for investment
Mezzanine and Other CRE-Related Loans
$161 million 70.4% 10.9% $4.7 million Typically fixed rate
Typically five to ten years
Held for investment
Total Loans $2,827 million 64.8% 6.8%
(1) $17.0 million 72% of loan portfolio is floating-rate
3.0-year weighted- average remaining maturity (excluding extension options)
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Represents total loan portfolio yield
SECURITIES
10
COMM 2014-CR19 A2 AAA-rated, five-year securities backed by a diversified pool of commercial real estate loans
LCCM 2014-PKMD A AAA-rated securities backed by a multi-family apartment community in San Francisco
COMM 2015-3BP A AAA-rated securities backed by 3 Bryant Park, a Class A office building in New York City
COMM 2016-CR28 XPA AAA-rated, interest-only securities backed by a diversified pool of commercial real estate loans
$1.5 billion CMBS on balance sheet
3.2 years Weighted-average duration
$7.3 million Average investment per CUSIP
81% AAA-rated
100% Investment grade-rated
Note 2: Photographs and descriptions represent selected assets, not entire portfolio Note 1: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21
REAL ESTATE EQUITY
11
Net Lease Portfolio
4.2 million square feet; 15.5-year weighted-average remaining lease term; includes tenants such as Walgreens and Hy-Vee (grocery)
Other Joint Ventures (1)
Ladder is invested in two unconsolidated real estate joint ventures, in New York and Michigan
Other CRE Portfolio
3.7 million square feet of office joint ventures and other commercial real estate properties
Condominiums
Ladder owns residential condominiums in Las Vegas and Miami, which it is selling over time
Note: As of 06/30/2017. Photographs and descriptions represent selected assets, not entire portfolio (1) Not included in Real Estate on Ladder’s 06/30/2017 balance sheet (included in Investments in Unconsolidated Joint Ventures) or in totals on right side of page (2) Includes Veer Towers (Las Vegas) and Terrazas (Miami) condominium projects. Excludes projects accounted for in Investments in Unconsolidated Joint Ventures
$1.1 billion
Undepreciated book value of real estate on balance sheet
$33 million Condominium inventory (undepreciated)
(2)
8.0 million Total square feet
$500 million Office & other CRE portfolio (undepreciated)
$613 million Net lease portfolio (undepreciated)
REAL ESTATE PORTFOLIO KEY METRICS
12
Type of Real Estate
Undepreciated Asset Value
Asset Carrying Value (Depreciated)
Non-Recourse Mortgage Financing
Net Equity
Invested
Total Square
Feet
In-Place Net Operating
Income
Weighted- Average
Occupancy
Net Leased Commercial Real Estate ( 125 properties )
$613 million $547 million $409 million $138 million 4,214,602 $40.4 million 100%
Office JV’s & Other Commercial Real Estate
(1) ( 37 properties )
$500 million $429 million $256 million $173 million 3,741,059 $32.6 million 91%
Condominium Projects
(1) ( 2 properties
(3) )
$33 million $30 million – $30 million n/a n/a n/a
Total / Weighted-Average
$1,147 million $1,006 million $665 million $341 million 7,955,661 $73.0 million 96%
Note: As of 06/30/2017. Financing amounts are based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Amounts shown on a fully-consolidated basis (2) Excludes Condominium Projects (3) Includes Veer Towers (Las Vegas) and Terrazas (Miami) condominium projects. Excludes projects accounted for in Investments in Unconsolidated Joint Ventures
(2) (2) (2)
$55 $62
$49 $53 $48 $52
$41 $50
$38 $31 $44 $45
$32
$51
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
Pre-Tax Core ROAE (LTM) (1)
FINANCIAL PERFORMANCE
13
Core Earnings
(1)
1.4x 1.5x 2.1x 2.8x 2.8x 2.7x 2.8x 2.9x 2.8x 3.0x 3.0x Leverage :
($ in millions)
(1) For a description of this non-GAAP financial measure, see Selected Definitions on page 23 (2) Represents Adjusted Leverage Ratio at end of quarter. For a description of this non-GAAP financial measure, see Selected Definitions on page 23
(2) 2.6x
10% 9%
2.9x
Pre-Tax Core
ROAE
2.8x
13.5% 14.3% 13.8%15.3%
14.3% 13.5% 12.9% 12.7% 12.1%10.8% 11.0% 10.6% 10.2%
11.6%
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
Cash Dividends
(1) vs. Core EPS
(2)
DIVIDEND COVERAGE
14
Ladder’s well-covered dividends have allowed for superior capital retention
(1) Q4 2015 and Q4 2016 dividends were subject to a cash / stock election. Amounts shown represent average cash dividend paid to Class A shareholders (2) For a description of this non-GAAP financial measure, see Selected Definitions on page 23
$1.065 $1.125 $1.175
$1.85
$1.48 $1.50
FY 2015 FY 2016 LTM 06/30/2017
Cash Dividend per Share Core EPS
DIVERSE FINANCING SOURCES
Source Facility Size
($ mm)
Debt Outstanding
($ mm) Remaining
Term (1)
Eligible CRE Collateral
Unsecured Corporate Bonds (2) $266 $264 4.0 + years N/A (unsecured)
Unsecured Corporate Bonds (2) 500 493 4.5 + years N/A (unsecured)
Revolving Credit Facility 169 100 3.5 + years N/A (unsecured)
Federal Home Loan Bank 2,000 1,401 Member Conduit and balance sheet loans; securities
Non-Recourse Mortgage Debt (3rd Party) 665 665 approx. 6.7 years Real estate equity
investments
Bank A – facility 1 of 2 600 339 4.0 + years Conduit and balance sheet loans
Bank B 450 231 3.5 + years Conduit and balance sheet loans
Bank C 300 101 2.5 + years Conduit and balance sheet loans
Bank D 100 40 1.5 + years Conduit and balance sheet loans
Bank E 200 138 4.5 + years Conduit and balance sheet loans
Bank A – facility 2 of 2 400 108 1.0 + years Securities
Loan Participation Financing 4 4 5 + months Mortgage Loan Receivable Participation
Securities Repurchase Facilities – 193 1 – 3 months Securities
Total $5,654 $4,076
95% of outstanding debt comprised of committed, term financing & unsecured bonds
79% of total capital structure comprised of book equity, unsecured debt, FHLB financing and non-recourse mortgage financing
Capital Structure Summary ($ mm)
Over $1.5 billion of committed undrawn financing capacity
15
Note: As of 06/30/2017. Debt amounts are based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Includes extensions at Company’s option (2) Corporate family ratings: Moody’s: Ba2 / S&P: BB - / Fitch: BB. Corporate bond ratings: Moody’s: Ba3 / S&P: B + / Fitch: BB
Other Securities Repurchase Facilities & Other Financing
$197 (4%)
CommittedBank Warehouse
Facilities$957 (17%)
Non-Recourse Mortgage Financing
$665(12%)
FHLB Financing
$1,401 (25%)
Unsecured Corporate Bonds & Corporate Revolver
$857(16%)
Book Equity$1,468(26%)
1.8x
2.8x
Total Company –without Securities
Total Company –with Securities
LEVERAGE MATCHED TO ASSET LIQUIDITY
16
Note: As of 06/30/2017 (1) For a description of this non-GAAP financial measure, see Selected Definitions on page 23
• Ladder targets total Company leverage of approximately 2.0x – 3.0x
• Total Company leverage (Adjusted Leverage Ratio
(1) ) was 2.8x as of
06/30/2017
• Ladder employs higher leverage on its portfolio of liquid, principally AAA-rated securities. Excluding its securities portfolio, Ladder’s debt / equity ratio was 1.8x at 06/30/2017
Debt / Equity Ratio (as of 06/30/2017)
17
INTEREST RATE RISK MANAGEMENT
Note: As of 06/30/2017
• Conduit loans are 5 to 10-year fixed-rate loans. Ladder typically hedges all or most of the interest rate risk associated with these loans
• Balance sheet loans are typically 1 to 3-year, floating-rate loans, which generate more income with rising interest rates
• Securities portfolio is very highly-rated (100% investment grade) and short in duration (3.4-year weighted-average), which offers significant protection against changes in interest rates. Ladder typically hedges securities positions with durations longer than 5 years
• Real estate (equity), most of which is net-leased, is typically financed with long-term, fixed-rate, non-recourse mortgage debt
• Additionally, Ladder has $757 million of unsecured, fixed-rate corporate bonds outstanding
• In a rising interest rate environment, Ladder would expect to benefit from:
$2.1 billion floating rate balance sheet loan portfolio
$1.7 billion of fixed rate debt with remaining terms greater than one year
$695.1 million (notional value) of interest rate hedge positions that place Ladder in a position equivalent to that of a “fixed rate payer / floating rate receiver”
The Company estimates that a 100 basis point increase in LIBOR would result in an increase in annual net interest income of approximately $11.5 million
Change in LIBOR
Projected Change in Annual Net Interest Income
Projected Change in Portfolio Value
Decrease of 100 Basis Points ($9.0 million) $25.9 million (1.8% of book equity)
Increase of 100 Basis Points $11.5 million ($25.6 million) (1.7% of book equity)
INTEREST RATE RISK MANAGEMENT (CONT.)
18
Note: As of 06/30/2017
RISK MANAGEMENT OVERVIEW
19
Liquidity Risk Management
Hedging Practices
• Utilize standard interest rate and credit spread hedging tools with multiple ISDA counterparties
• Gap and rate sensitivity analyses performed and reviewed by the Risk and Underwriting Committee of the Board of Directors
Superior Liability
Structure
• Target debt / equity ratio of approximately 2x – 3x, inclusive of higher leverage on investment grade-rated securities
• Long-term leverage forecasting including various scenario analyses performed on a regular basis
• FHLB membership, six committed term financing relationships with five leading financial institutions, corporate unsecured revolver and bonds, and non-recourse mortgage financing
• Preponderance of assets are either senior secured or investment grade-rated
• Emphasis on committed term funding with multiple counterparties (including FHLB) to manage duration risk and enhance diversity
• Detailed cash and debt management forecast updated and reviewed by management daily
BALANCE SHEET SUMMARY
20
($ in millions)
Consistent emphasis on senior secured assets, liquidity and moderate leverage
76% senior secured asset base
Cash & Cash Equivalents $58
Loans Held for Sale 201
Loans Held for Investment (pre-provision) 2,627
Securities 1,482
Net Lease & Other Equity Investments 1,006
Equity Investment in Partnerships & JVs 35
Other Assets 283
Total Assets $5,692
Total Debt $4,076
Other Liabilities 120
Total Liabilities 4,195
Equity Capital 1,486
Non-Controlling Interest (Joint Ventures) 11
Total Equity Capital 1,497
Total Liabilities and Equity $5,692
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21
21
RECONCILIATION OF GAAP BALANCE SHEET TO CORE BALANCE SHEET (AS OF 06/30/2017) ($ in millions)
GAAP Core Adjustments for: CoreBalance Ladder-Only Other Balance
Sheet Securitization Adjustments SheetAssetsCash and cash equivalents $58.2 – – $58.2Restricted cash 97.3 – – 97.3Mortgage loan receivables held for investment, net, at amortized cost: – –
Mortgage loans held by consolidated subsidiaries 2,626.7 – – 2,626.7Mortgage loans transferred but not considered sold 599.5 (547.7) (51.8) –Provision for loan losses (4.0) – – (4.0)
Mortgage loan receivables held for sale 200.7 – – 200.7Real estate securities, available-for-sale 1,407.5 74.8 – 1,482.4Real estate and related lease intangibles, net 1,006.3 – – 1,006.3Investments in unconsolidated joint ventures 34.5 – – 34.5FHLB stock 77.9 – – 77.9Derivative instruments 4.6 – – 4.6Due from brokers 26.4 – – 26.4Accrued interest receivable 26.5 (1.2) (0.2) 25.1Other assets 55.9 – – 55.9 Total assets $6,218.1 ($474.1) ($52.1) $5,692.0
Liabilities and Equity Liabilities Debt obligations, net:
Secured and unsecured debt obligations $3,998.8 $76.7 – $4,075.5Liability for transfers not considered sales 632.1 (580.0) (52.1) –
Due to brokers 1.7 – – 1.7Derivative instruments 4.3 – – 4.3Amount payable pursuant to tax receivable agreement 2.4 – – 2.4Dividends payable 1.3 – – 1.3Accrued expenses 54.2 0.3 (0.2) 54.3Other liabilities 55.6 – – 55.6 Total liabilities $4,750.4 ($503.1) ($52.3) $4,195.1
Total equity $1,467.7 $29.0 $0.2 $1,496.9
Total liabilities and equity $6,218.1 ($474.1) ($52.1) $5,692.0
A
Description of Key Adjustments
Mortgage loans to third party borrowers transferred to a securitization trust
Mortgage debt secured by Ladder-owned real estate, payable to a securitization trust
Net sale proceeds from transfer of loans, less the portion of securities purchased by Ladder
CMBS securities purchased by Ladder
B-note transferred to third party but not considered sold under GAAP due to A-note held by the LC26 securitization trust
Net sale proceeds from transfer of B-note
E
D
B
C F
A
B
C
D
E
Ladder transferred $625.7 million of loans to the LCCM 2017-LC26 securitization trust, but did not recognize sales for GAAP due to transfer restrictions placed on the majority owner of the controlling classes pursuant to the risk retention requirements of the Dodd-Frank Act.
In order to back out the effects of this with respect to Ladder’s 06/30/2017 balance sheet, the adjustments that have been made to get from the Company’s GAAP Balance Sheet to its Core Balance Sheet are described as follows :
F
22
($ in millions, except per share amounts)
LADDER SNAPSHOT
Note: As of 06/30/2017. All metrics are shown based on Ladder’s Core Balance Sheet. For reconciliation from GAAP Balance Sheet to Core Balance Sheet, see page 21 (1) Includes earnings contribution from mortgage loans transferred but not considered sold in Q2 2017 (2) All metrics shown on a consolidated basis, except Weighted-Average % Owned by Ladder (3) Excludes two unconsolidated joint venture investments with total book value of $34.5 million as of 06/30/2017 (4) For a description of these financial measures, see Selected Definitions on page 23 (5) For a description of these non-GAAP financial measures, see Selected Definitions on page 23
Snapshot of Business Lines Other Assets, Financing, Book Equity and ROE
Conduit Loans Net Leased Commercial Real Estate (100% Owned) Other AssetsCarrying Value of Assets $201 Carrying Value of Assets $547 Cash & Cash Equivalents $58Weighted-Average Coupon 5.1% Undepreciated Book Value of Assets 613 Other Assets
(4) 322Origination and Purchase Volume (LTM) 1,427 Total Square Feet 4,214,602Securitization Volume (LTM) 1,704 Weighted-Average Occupancy 100% FinancingSecuritization Profit Margin (LTM)
(1) 3.2% In-Place Annual Net Operating Income (NOI) $40.4 Secured Debt $3,319Number of Securitizations (LTM) 5 Accounting method: carried at depreciated book value Unsecured Debt 757
Net Revenue Contribution (LTM) (1) $68 Total Debt 4,076
Accounting method: carried at lower of cost or FMV Other Commercial Real Estate (2)
(3) Other Liabilities (4) 120
Carrying Value of Assets $429
Balance Sheet Loans Undepreciated Book Value of Assets 500 Book Equity ValueCarrying Value of Assets (pre-provision) $2,627 Total Square Feet 3,741,059 Book Equity Value (excluding NCI in JVs) $1,457% First Mortgage 94% Weighted-Average Occupancy 91% Total Shares Outstanding (mm) 110.7% Other (Mezzanine / Subordinate) 6% In-Place Annual Net Operating Income (NOI) $32.6 GAAP Book Value per Share
(4) $13.10Weighted-Average Coupon 6.7% Weighted-Average % Owned by Ladder 89.8% Undepreciated Book Value per Share
(5) $14.33Accounting method: carried at lower of cost or FMV Accounting method: carried at depreciated book value
LeverageSecurities Condominium Residential Real Estate
(2) Adjusted Leverage Ratio (5) 2.8x
Carrying Value of Assets $1,482 Carrying Value of Assets $30% First Mortgage Secured 100% Undepreciated Book Value of Assets 33 Return on Average Equity (based on Core Earnings)
(5)
% AAA-Rated 81% Total Remaining Units 110 Core Earnings (LTM) $172% Investment Grade-Rated 100% Unit Sale Price as % of GAAP Book Value (LTM) 151% Average Book Equity Value (LTM) 1,486Weighted-Average Duration 3.2 Years Weighted-Average % Owned by Ladder 99.5% Pre-Tax Core ROAE (LTM) 11.6%
Accounting method: carried at FMV Accounting method: carried at depreciated book value Core ROAE (After-Tax) (LTM) 11.0%
23
SELECTED DEFINITIONS • Adjusted Leverage Ratio (non-GAAP)
Total debt obligations, net of deferred financing costs, adjusted for liabilities for transfers not considered sales under GAAP, divided by total equity.
• Core Earnings (non-GAAP) Income before taxes adjusted for (i) real estate depreciation and amortization, (ii) the impact of derivative gains and losses related to the hedging
of assets on our balance sheet as of the end of the specified accounting period, (iii) unrealized gains/(losses) related to our investments in Agency interest-only securities, (iv) economic gains on securitization transactions not recognized for GAAP accounting for which risk has substantially transferred during the period and the exclusion of resultant GAAP recognition of the related economics during the subsequent period, (v) non-cash stock-based compensation and (vi) certain one-time transactional items.
• Core EPS (non-GAAP) After-tax Core Earnings divided by adjusted weighted-average shares outstanding.
• Core Return on Average Equity (Core ROAE) (non-GAAP) After-tax Core Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• GAAP Book Value per Share Total shareholders’ equity divided by Class A common shares outstanding.
• Other Assets Includes cash collateral held by broker, investments in unconsolidated joint ventures, FHLB stock, derivative instrument assets, amount due from
brokers, accrued interest receivable and other assets.
• Other Liabilities Includes amount due to brokers, derivative instrument liabilities, amount payable pursuant to tax receivable agreement, dividend payable, accrued
expenses and other liabilities.
• Pre-Tax Core Return on Average Equity (Pre-Tax Core ROAE) (non-GAAP) Core Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• Undepreciated Book Equity and Undepreciated Book Value per Share (non-GAAP) Total equity, adjusted to exclude total noncontrolling interest in consolidated joint ventures and adjusted to include our share of total real estate
accumulated depreciation and amortization. Per share information is derived by dividing the preceding amount by total diluted shares outstanding.