INVESTOR RELATIONS

Press Release

Ladder Capital Corp Reports Results for the Quarter Ended June 30, 2020

Company Release - 7/30/2020 4:15 PM ET

 

NEW YORK--(BUSINESS WIRE)-- Ladder Capital Corp (NYSE: LADR) (“we,” “Ladder,” or the “Company”) today announced operating results for the quarter ended June 30, 2020. GAAP loss before taxes for the three months ended June 30, 2020 was $5.7 million, and diluted loss per share was $0.04. Core earnings was $12.8 million, or $0.12 of core EPS. After-tax GAAP return on average equity was (1.2)% and after-tax core return on average equity was 4.0%.

“In the second quarter, we met our goal of strengthening our balance sheet. We accomplished this by reducing our debt by $727.5 million and finishing the quarter with $826.1 million in cash,” said Brian Harris, Ladder’s Chief Executive Officer. “We believe we are now well-positioned to take advantage of the opportunities that are beginning to present themselves.”

Supplemental

The Company issued a supplemental presentation detailing its second quarter 2020 operating results, which can be viewed at http://ir.laddercapital.com/.

Conference Call and Webcast

We will host a conference call on Thursday, July 30, 2020 at 5:00 p.m. Eastern Time to discuss second quarter 2020 results. The conference call can be accessed by dialing (877) 407-4018 domestic or (201) 689-8471 international. Individuals who dial in will be asked to identify themselves and their affiliations. For those unable to participate, an audio replay will be available from 8:00 p.m. Eastern Time on Thursday, July 30, 2020 through midnight Thursday, August 13, 2020. To access the replay, please call (844) 512-2921 domestic or (412) 317-6671 international, access code 13706742. The conference call will also be webcast though a link on Ladder Capital Corp’s Investor Relations website at ir.laddercapital.com/event. A web-based archive of the conference call will also be available at the above website.

About Ladder

Ladder Capital Corp is an internally-managed commercial real estate investment trust with over $6 billion of assets. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns. As one of the nation’s leading commercial real estate capital providers, we specialize in underwriting commercial real estate and offering flexible capital solutions within a sophisticated platform.

Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment activities include: (i) our primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) investing in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) owning and operating commercial real estate, including net leased commercial properties.

Founded in 2008, and led by Brian Harris, the Company’s Chief Executive Officer, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Members of Ladder’s management and board of directors are highly aligned with the Company’s investors, owning over 10% of the Company’s equity.

Forward-Looking Statements & Coronavirus Risk

Certain statements in this release may constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results, including the impact of the COVID-19 pandemic on the Company's business. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in each of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended March 31, 2020, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.

Ladder Capital Corp

Consolidated Balance Sheets

(Dollars in Thousands)

 

 

June 30, 2020(1)

 

December 31, 2019(1)

 

(Unaudited)

 

 

Assets

 

 

 

Cash and cash equivalents

$

826,059

 

 

 

$

58,171

 

 

Restricted cash

47,945

 

 

 

297,575

 

 

Mortgage loan receivables held for investment, net, at amortized cost:

 

 

 

Mortgage loans held by consolidated subsidiaries

2,955,084

 

 

 

3,257,036

 

 

Allowance for loan losses

(49,102

)

 

 

(20,500

)

 

Mortgage loan receivables held for sale

85,977

 

 

 

122,325

 

 

Real estate securities

1,506,713

 

 

 

1,721,305

 

 

Real estate and related lease intangibles, net

1,042,210

 

 

 

1,048,081

 

 

Investments in and advances to unconsolidated joint ventures

48,919

 

 

 

48,433

 

 

FHLB stock

61,619

 

 

 

61,619

 

 

Derivative instruments

380

 

 

 

693

 

 

Accrued interest receivable

18,783

 

 

 

21,066

 

 

Other assets

64,963

 

 

 

53,348

 

 

Total assets

$

6,609,550

 

 

 

$

6,669,152

 

 

Liabilities and Equity

 

 

 

Liabilities

 

 

 

Debt obligations, net

$

4,953,514

 

 

 

$

4,859,873

 

 

Dividends payable

23,583

 

 

 

38,696

 

 

Accrued expenses

55,616

 

 

 

72,397

 

 

Other liabilities

68,457

 

 

 

59,209

 

 

Total liabilities

5,101,170

 

 

 

5,030,175

 

 

Commitments and contingencies

 

 

 

 

 

Equity

 

 

 

Class A common stock, par value $0.001 per share, 600,000,000 shares
authorized; 117,473,057 and 110,693,832 shares issued and
115,015,738 and 107,509,563 shares outstanding

116

 

 

 

108

 

 

Class B common stock, par value $0.001 per share, 100,000,000 shares
authorized; 5,379,708 and 12,158,933 shares issued and outstanding

5

 

 

 

12

 

 

Additional paid-in capital

1,649,170

 

 

 

1,532,384

 

 

Treasury stock, 2,457,319 and 3,184,269 shares, at cost

(53,619

)

 

 

(42,699

)

 

Retained earnings (dividends in excess of earnings)

(120,082

)

 

 

(35,746

)

 

Accumulated other comprehensive income (loss)

(45,080

)

 

 

4,218

 

 

Total shareholders’ equity

1,430,510

 

 

 

1,458,277

 

 

Noncontrolling interest in operating partnership

70,968

 

 

 

172,054

 

 

Noncontrolling interest in consolidated joint ventures

6,902

 

 

 

8,646

 

 

Total equity

1,508,380

 

 

 

1,638,977

 

 

 

 

 

 

Total liabilities and equity

$

6,609,550

 

 

 

$

6,669,152

 

 

 

 

(1)

Includes amounts relating to consolidated variable interest entities.

Ladder Capital Corp

Consolidated Statements of Income

(Dollars in Thousands, Except Per Share and Dividend Data)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

 

 

Interest income

$

62,096

 

 

 

$

85,322

 

 

 

$

134,686

 

 

 

$

171,789

 

 

Interest expense

68,425

 

 

 

52,369

 

 

 

119,827

 

 

 

103,618

 

 

Net interest income

(6,329

)

 

 

32,953

 

 

 

14,859

 

 

 

68,171

 

 

Provision for/(release of) loan loss reserves

(729

)

 

 

300

 

 

 

25,852

 

 

 

600

 

 

Net interest income (expense) after provision
for loan losses

(5,600

)

 

 

32,653

 

 

 

(10,993

)

 

 

67,571

 

 

 

 

 

 

 

 

 

 

Other income (loss)

 

 

 

 

 

 

 

Operating lease income

23,773

 

 

 

27,780

 

 

 

50,101

 

 

 

56,701

 

 

Sale of loans, net

(744

)

 

 

20,264

 

 

 

261

 

 

 

27,342

 

 

Realized gain (loss) on securities

(14,798

)

 

 

4,464

 

 

 

(11,787

)

 

 

7,329

 

 

Unrealized gain (loss) on equity securities

401

 

 

 

(990

)

 

 

(132

)

 

 

1,088

 

 

Unrealized gain (loss) on Agency interest-only securities

98

 

 

 

11

 

 

 

174

 

 

 

22

 

 

Realized gain (loss) on sale of real estate, net

(1

)

 

 

(1,124

)

 

 

10,528

 

 

 

(1,119

)

 

Impairment of real estate

 

 

 

 

 

 

 

 

 

(1,350

)

 

Fee and other income

3,505

 

 

 

7,196

 

 

 

5,024

 

 

 

11,882

 

 

Net result from derivative transactions

(813

)

 

 

(15,457

)

 

 

(16,248

)

 

 

(26,491

)

 

Earnings (loss) from investment in unconsolidated joint ventures

471

 

 

 

1,564

 

 

 

912

 

 

 

2,522

 

 

Gain (loss) on extinguishment/defeasance of debt

19,017

 

 

 

 

 

 

21,077

 

 

 

(1,070

)

 

Total other income (loss)

30,909

 

 

 

43,708

 

 

 

59,910

 

 

 

76,856

 

 

Costs and expenses

 

 

 

 

 

 

 

Salaries and employee benefits

7,001

 

 

 

14,907

 

 

 

24,023

 

 

 

38,481

 

 

Operating expenses

6,224

 

 

 

6,012

 

 

 

12,018

 

 

 

11,413

 

 

Real estate operating expenses

6,034

 

 

 

6,032

 

 

 

13,981

 

 

 

11,506

 

 

Fee expense

1,977

 

 

 

1,183

 

 

 

3,415

 

 

 

2,895

 

 

Depreciation and amortization

9,816

 

 

 

9,935

 

 

 

19,825

 

 

 

20,162

 

 

Total costs and expenses

31,052

 

 

 

38,069

 

 

 

73,262

 

 

 

84,457

 

 

Income (loss) before taxes

(5,743

)

 

 

38,292

 

 

 

(24,345

)

 

 

59,970

 

 

Income tax expense (benefit)

(550

)

 

 

2,219

 

 

 

(5,091

)

 

 

(634

)

 

Net income (loss)

(5,193

)

 

 

36,073

 

 

 

(19,254

)

 

 

60,604

 

 

Net (income) loss attributable to noncontrolling
interest in consolidated joint ventures

250

 

 

 

307

 

 

 

(1,269

)

 

 

754

 

 

Net (income) loss attributable to noncontrolling
interest in operating partnership

754

 

 

 

(4,136

)

 

 

605

 

 

 

(6,939

)

 

Net income (loss) attributable to Class A common
shareholders

$

(4,189

)

 

 

$

32,244

 

 

 

$

(19,918

)

 

 

$

54,419

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

(0.04

)

 

 

$

0.31

 

 

 

$

(0.19

)

 

 

$

0.52

 

 

Diluted

$

(0.04

)

 

 

$

0.30

 

 

 

$

(0.19

)

 

 

$

0.51

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

106,809,987

 

 

 

105,511,385

 

 

 

106,569,892

 

 

 

104,888,925

 

 

Diluted

106,809,987

 

 

 

105,892,420

 

 

 

106,569,892

 

 

 

105,742,589

 

 

 

 

 

 

 

 

 

 

Dividends per share of Class A common stock

$

0.200

 

 

 

$

0.340

 

 

 

$

0.540

 

 

 

$

0.680

 

 

Non-GAAP Financial Measures

We present core earnings, core EPS, and after-tax core return on average equity (“after-tax core ROAE”), which are non-GAAP financial measures, as supplemental measures of our performance. We believe core earnings, core EPS and after-tax core ROAE assist investors in comparing our performance across reporting periods on a more relevant and consistent basis by excluding certain non-cash expenses and unrecognized results as well as eliminating timing differences related to securitization gains and changes in the values of assets and derivatives. In addition, we use core earnings, core EPS and after-tax core ROAE: (i) to evaluate our earnings from operations and (ii) because management believes that they may be useful performance measures for us. Core earnings is also used as a factor in determining the annual incentive compensation of our senior managers and other employees.

We define core earnings as 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 fair value securities and passive interest in unconsolidated joint ventures, (iv) economic gains on loan sales not recognized under 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 periods, (v) adjustment for CECL reserves, (vi) non-cash stock-based compensation, and (vii) certain transactional items.

Core EPS is defined as after-tax core earnings divided by the adjusted weighted average diluted shares outstanding during the period. The adjusted weighted average diluted shares outstanding is defined as the GAAP weighted average diluted shares outstanding, adjusted for shares issuable upon conversion of all Class B shares, if excluded from the GAAP measure because they would have an anti-dilutive effect. The inclusion of shares issuable upon conversion of Class B shares is consistent with the inclusion of income attributable to noncontrolling interest in operating partnership in core earnings and after-tax core earnings.

Our results of operations were significantly impacted by the actions we took to generate liquidity and pay down mark-to-market debt in direct response to the unfavorable market conditions that occurred near the onset of the COVID-19 pandemic. The actions taken by management had multiple impacts on core earnings, core EPS and after-tax core ROAE for the three months ended June 30, 2020. Management believes the actions taken were prompted by the unusual market conditions and therefore outside of Ladder’s core operations. Management believes adjusting for certain transactional charges/gains related to the impact of COVID-19 on its performance measures provides a more useful guide to assess the ongoing core operations of the Company.

Set forth below is an unaudited reconciliation of net income to after-tax core earnings, and an unaudited computation of core EPS (in thousands, except per share data):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

Net income (loss)

$

(5,193

)

 

 

$

36,073

 

 

 

$

(19,254

)

 

 

$

60,604

 

 

Income tax expense (benefit)

(550

)

 

 

2,219

 

 

 

(5,091

)

 

 

(634

)

 

Income (loss) before taxes

(5,743

)

 

 

38,292

 

 

 

(24,345

)

 

 

59,970

 

 

Net (income) loss attributable to noncontrolling
interest in consolidated joint ventures (GAAP)(1)

246

 

 

 

299

 

 

 

(1,276

)

 

 

738

 

 

Our share of real estate depreciation, amortization
and gain adjustments(2)(3)

8,875

 

 

 

6,590

 

 

 

10,248

 

 

 

12,257

 

 

Adjustments for unrecognized derivative results(4)

(8,630

)

 

 

2,187

 

 

 

8,959

 

 

 

11,302

 

 

Unrealized (gain) loss on fair value securities

(1,649

)

 

 

861

 

 

 

(137

)

 

 

(1,227

)

 

Adjustment for economic gain on loan sales not
recognized under GAAP for which risk has been
substantially transferred, net of reversal/amortization

189

 

 

 

(645

)

 

 

(45

)

 

 

(648

)

 

Adjustment for CECL reserves

(729

)

 

 

 

 

 

17,852

 

 

 

 

 

Non-cash stock-based compensation

3,272

 

 

 

3,371

 

 

 

15,431

 

 

 

15,465

 

 

Transactional adjustments (response to COVID-
19)(5)

16,939

 

 

 

 

 

 

16,939

 

 

 

 

 

Core earnings

12,770

 

 

 

50,955

 

 

 

43,626

 

 

 

97,857

 

 

Core estimated corporate tax benefit (expense)(6)

2,044

 

 

 

22

 

 

 

2,334

 

 

 

316

 

 

After-tax core earnings

$

14,814

 

 

 

$

50,977

 

 

 

$

45,960

 

 

 

$

98,173

 

 

Adjusted weighted average diluted shares
outstanding(7)

118,895

 

 

 

118,565

 

 

 

119,211

 

 

 

118,678

 

 

Core EPS

$

0.12

 

 

 

$

0.43

 

 

 

$

0.39

 

 

 

$

0.83

 

 

(1)

 

Includes $4 thousand and $7 thousand of net income which are included in net (income) loss attributable to noncontrolling interest in operating partnership on the consolidated statements of income for the three and six months ended June 30, 2020, respectively. Includes $8 thousand and $16 thousand of net income which are included in net (income) loss attributable to noncontrolling interest in operating partnership on the consolidated statements of income for the three and six months ended June 30, 2019, respectively.

  

(2)

 

The following is a reconciliation of GAAP depreciation and amortization to our share of real estate depreciation, amortization and gain adjustments presented in the computation of core earnings in the preceding table ($ in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

Total GAAP depreciation and amortization

$

9,816

 

 

 

$

9,935

 

 

 

$

19,825

 

 

 

$

20,162

 

 

Less: Depreciation and amortization related to
non-rental property fixed assets

(25

)

 

 

(25

)

 

 

(50

)

 

 

(49

)

 

Less: Non-controlling interest in consolidated
joint ventures’ share of accumulated
depreciation and amortization and unrecognized
passive interest in unconsolidated joint ventures

(349

)

 

 

(1,070

)

 

 

(941

)

 

 

(1,976

)

 

Our share of real estate depreciation and
amortization

9,442

 

 

 

8,840

 

 

 

18,834

 

 

 

18,137

 

 

 

 

 

 

 

 

 

 

Realized gain from accumulated depreciation
and amortization on real estate sold (see below)

(40

)

 

 

(1,935

)

 

 

(9,679

)

 

 

(5,421

)

 

Less: Non-controlling interest in consolidated
joint ventures’ share of accumulated
depreciation and amortization on real estate sold

 

 

 

42

 

 

 

2,147

 

 

 

42

 

 

Our share of accumulated depreciation and
amortization on real estate sold

(40

)

 

 

(1,893

)

 

 

(7,532

)

 

 

(5,379

)

 

 

 

 

 

 

 

 

 

Less: Operating lease income on above/below
market lease intangible amortization

(527

)

 

 

(357

)

 

 

(1,054

)

 

 

(501

)

 

 

 

 

 

 

 

 

 

Our share of real estate depreciation,
amortization and gain adjustments

$

8,875

 

 

 

$

6,590

 

 

 

$

10,248

 

 

 

$

12,257

 

 

GAAP gains/losses on sales of real estate include the effects of previously recognized real estate depreciation and amortization. For purposes of core earnings, our share of real estate depreciation and amortization is eliminated and, accordingly, the resultant gains/losses also must be adjusted. Following is a reconciliation of the related consolidated GAAP amounts to the amounts reflected in core earnings ($ in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

GAAP realized gain (loss) on sale of real estate,
net

$

(1

)

 

 

$

(1,124

)

 

 

$

10,528

 

 

 

$

(1,119

)

 

 

Adjusted gain/loss on sale of real estate for
purposes of core earnings

41

 

 

 

3,017

 

 

 

(2,996

)

 

 

6,498

 

 

 

Our share of accumulated depreciation and
amortization on real estate sold

$

40

 

 

 

$

1,893

 

 

 

$

7,532

 

 

 

$

5,379

 

 

(3)

 

For the three months ended March 31, 2019, the Company recognized $5.7 million of operating lease income from prepayment of a lease, a $1.1 million loss on extinguishment of debt and a $1.4 million impairment of real estate related to a single-tenant two-story office building in Wayne, NJ. This property was sold on May 1, 2019. For core earnings, the Company recognized the net impact of these events in the period the sale was realized. Accordingly, the $3.3 million net impact of the income and losses discussed above were excluded from core earnings for the three months ended March 31, 2019 and are included in core earnings for the three and six months ended June 30, 2019.

  

(4)

 

The following is a reconciliation of GAAP net results from derivative transactions to our unrecognized derivative result presented in the computation of core earnings in the preceding table ($ in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

Net results from derivative transactions

$

(813

)

 

 

$

(15,457

)

 

 

$

(16,248

)

 

 

$

(26,491

)

 

 

Hedging interest expense

(843

)

 

 

1,640

 

 

 

(311

)

 

 

1,491

 

 

 

Hedging realized result

10,286

 

 

 

11,630

 

 

 

7,600

 

 

 

13,698

 

 

 

Adjustments for unrecognized derivative
results

$

8,630

 

 

 

$

(2,187

)

 

 

$

(8,959

)

 

 

$

(11,302

)

 

(5)

The impact from COVID-19 included adjustments related to the unusual market conditions and actions taken by management including: (a) $6.7 million of losses from sales of performing first mortgage loans included in sale of loans, net, (b) $15.4 million of losses from sales of CMBS, (c) $3.7 million of losses from conduit loan sales, (d) $6.5 million of prepayment penalties related to paydowns of mark-to-market debt included in interest expense, (e) $2.1 million of professional fee expenses included in operating expenses and (f) $0.2 million of severance costs included in salaries and employee benefits. The $34.5 million total of the preceding amounts was partially offset by (g) $19.0 million of gains from the repurchase of and extinguishment of unsecured corporate bond debt at a discount from par net of (h) $1.5 million of accelerated premium amortization included in interest expense. Set forth below is a reconciliation of certain of the above COVID-19 losses to the most comparable GAAP financial measure ($ in thousands):

 

Three and six months ended

 

June 30, 2020

(b) Losses from sales of CMBS

 

Loss on sale of securities - COVID-19 related

$

(14,670)

Hedge (loss) related to sale of securities, included in net results from
derivative transactions

(698)

Losses from sales of CMBS

$

(15,368)

 

 

(c) Losses from conduit loan sales

 

Income from sales of loans, net - COVID-19 related

$

(1,680)

Hedge (loss) related to sales of loans, included in net results from
derivative transactions

(1,994)

Losses from conduit loan sales

$

(3,674)

(6)

Core estimated corporate tax benefit (expense) based on effective tax rate applied to core earnings generated by the activity within our taxable REIT subsidiary.

(7)

Set forth below is an unaudited reconciliation of weighted average diluted shares outstanding to adjusted weighted average diluted shares outstanding (in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

Weighted average diluted shares outstanding

106,810

 

 

105,892

 

 

106,570

 

 

105,743

 

Weighted average shares issuable to converted
Class B shareholders

12,085

 

 

12,673

 

 

12,641

 

 

12,935

 

Adjusted weighted average diluted shares
outstanding

118,895

 

 

118,565

 

 

119,211

 

 

118,678

 

After-tax core ROAE is presented on an annualized basis and is defined as after-tax core earnings divided by the average total shareholders’ equity and noncontrolling interest in operating partnership during the period. The inclusion of noncontrolling interest in operating partnership is consistent with the inclusion of income attributable to noncontrolling interest in operating partnership in after-tax core earnings. Set forth below is an unaudited computation of after-tax core ROAE ($ in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

After-tax core earnings

$

14,814

 

 

$

50,977

 

 

$

45,960

 

 

$

98,173

 

Average shareholders’ equity and NCI in
operating partnership

1,497,567

 

 

1,636,730

 

 

1,529,780

 

 

1,635,414

 

After-tax core ROAE

4.0

%

 

12.5

%

 

6.0

%

 

12.0

%

Non-GAAP Measures - Limitations

Our non-GAAP financial measures have limitations as analytical tools. Some of these limitations are:

  • core earnings, core EPS and after-tax core ROAE do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations and are not necessarily indicative of cash necessary to fund cash needs;
  • core EPS and after-tax core ROAE are based on a non-GAAP estimate of our effective tax rate, including the impact of Unincorporated Business Tax and the impact of our election to be taxed as a REIT effective January 1, 2015, assuming the conversion of all shares of Class B common stock into shares of Class A common stock. Our actual tax rate may differ materially from this estimate; and
  • other companies in our industry may calculate non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, our non-GAAP financial measures should not be considered in isolation or as a substitute for net income (loss) attributable to shareholders, earnings per share or book value per share, or any other performance measures calculated in accordance with GAAP. Our non-GAAP financial measures should not be considered an alternative to cash flows from operations as a measure of our liquidity.

In the future, we may incur gains and losses that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Investors
Ladder Capital Corp Investor Relations (917) 369-3207 investor.relations@laddercapital.com

Source: Ladder Capital Corp