Ladder Capital Corp, an internally-managed real estate investment trust (REIT) focused on commercial real estate finance, reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a notable increase in cash and cash equivalents, rising to $1.6 billion from $1.0 billion at the end of 2023. However, mortgage loans receivable held for investment decreased significantly to $2.0 billion from $3.2 billion, reflecting a strategic shift in asset management.
For the three months ended September 30, 2024, net interest income was $38.4 million, slightly down from $38.8 million in the same period last year. After accounting for provisions for loan loss reserves, net interest income improved to $35.4 million, compared to $31.4 million in Q3 2023. Real estate operating income also increased to $25.3 million from $24.8 million year-over-year. The company reported a gain on extinguishment of debt of $20.9 million, up from $10.6 million in the prior year.
Despite these positive developments, net income for the quarter fell to $27.6 million from $31.2 million in Q3 2023, with earnings per share (EPS) decreasing to $0.22 from $0.25. For the nine months ended September 30, 2024, net income totaled $76.1 million, down from $81.5 million in the same period last year, with a corresponding decline in EPS from $0.66 to $0.61.
The company’s total liabilities decreased to $3.8 billion from $4.0 billion at the end of 2023, while total shareholders’ equity slightly declined to $1.5 billion. The allowance for credit losses increased to $52.3 million, reflecting a proactive approach to managing potential loan defaults amid changing market conditions.
Strategically, Ladder Capital made several acquisitions during the quarter, including a multifamily portfolio in Oakland, CA, valued at $7.5 million, and other properties through foreclosure. The company also repurchased $1.2 million of its Class A common stock as part of a broader $75 million repurchase authorization.
Overall, Ladder Capital's performance reflects a complex interplay of increased liquidity, strategic asset management, and ongoing adjustments to market conditions, positioning the company for future growth while navigating challenges in the commercial real estate sector.
About Ladder Capital Corp
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