10-Q · April 25, 2026
Ladder Capital reported a modest sequential revenue pickup (total net interest and other income of $51,908,000) but GAAP profitability declined sharply as costs rose; net income fell to $2,603,000 from $15,861,000 in…
Earnings analysis · 10-Q
LADR earnings analysis
Filed July 24, 2026 · Our reading of the company's report
The latest report
Ladder's calculated Q2 total income increased sequentially to $57.758 million, and net income recovered to $14.561 million from $2.603 million in Q1, aided substantially by lower compensation expense and higher…
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Ladder's calculated Q2 total income increased sequentially to $57.758 million, and net income recovered to $14.561 million from $2.603 million in Q1, aided substantially by lower compensation expense and higher real-estate income. Portfolio activity favored loan growth, with commercial mortgage loans up $183.3 million in the quarter, while securities declined $201.2 million. The outlook is balanced by weaker first-half earnings versus 2025, $4.005 billion of debt obligations, and no quantitative forward revenue or EPS guidance in the 10-Q.
Reported figures
- Earnings per share
- $0.12
What stood out
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Sequential income increased $5.878M
Calculated total quarterly income was $57.758 million, comprising $22.587 million of net interest income and $35.171 million of other income, versus $51.880 million in Q1 ($23.017 million and $28.863 million, respectively). The $5.878 million sequential increase was led by a $3.615 million increase in real-estate operating income and a $2.159 million rise in fee and other income.
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Q2 earnings rebounded sharply sequentially
Net income rose to $14.561 million in Q2 from $2.603 million in Q1, while income before taxes increased to $16.310 million from $3.169 million. The largest driver was a $10.064 million sequential reduction in compensation and employee benefits expense, partly reflecting Q1 immediate vesting of granted shares.
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Capital rotated from securities into loans
Commercial mortgage loans increased $183.3 million during Q2, supported by $491.7 million of fundings, versus $290.5 million of paydowns and a $13.0 million conduit-loan securitization. In contrast, the securities portfolio declined $201.2 million as $468.5 million of sales exceeded $333.3 million of purchases.
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Operating cash flow improved, investments funded
For the first six months, operating cash flow increased to $31.281 million from $15.318 million a year earlier. Investing used $426.708 million, primarily including $1.0 billion of mortgage-loan originations and $581.2 million of securities purchases, while financing provided $396.965 million; conventional capex/free cash flow was not separately disclosed.
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Cash stable and unencumbered assets sizable
Liquidity was broadly stable, with cash and equivalents of $37.6 million at June 30 versus $38.0 million at December 31, while restricted cash increased to $16.8 million from $14.9 million. Unencumbered assets totaled approximately $4.2 billion, including $2.7 billion of loans and $0.9 billion of securities.
What to watch
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Year-to-date earnings remain below prior year
First-half net income declined $11.499 million year over year to $17.165 million from $28.664 million. Although net interest income rose $3.745 million, total costs and expenses increased $14.017 million and other income declined $1.571 million, including a $4.829 million drop in mortgage-loan-held-for-sale results.
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Leverage and refinancing needs are material
Total debt obligations, net were $4.005 billion at June 30, including $825.936 million of securities repurchase debt, $275.000 million on the new term loan facility, and $202.000 million on the revolver. Contractual obligations due in less than one year were $1.675 billion, compared with $37.6 million of unrestricted cash, although the company also reports substantial unencumbered assets.
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CRE credit exposure and rate sensitivity persist
Credit and rate sensitivity remain material: the loan-loss allowance was $47.8 million and unfunded loan commitments increased to $182.7 million from $93.4 million at year-end. Management's modeled 100-basis-point rate decline would reduce 12-month net income by $20.214 million, while a 100-basis-point increase would reduce portfolio value by $3.826 million.
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No material risk-factor updates reported
The company states there were no material changes to its Item 1A risk factors during the three months ended June 30, 2026. Accordingly, the filing does not identify a newly added or materially revised risk factor relative to the annual report.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management states that future investments may be funded with existing cash, loan/securities payoffs, the unsecured revolver, term loan, other debt or equity raises; it also says it intends to continue regular quarterly distributions approximating REIT net taxable income.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.