LADR earnings analysis
What we found in LADR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.12
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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