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LADR NYSE· Ladder Capital Corporation
Earnings report Q3 2023

LADR Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Ladder Capital Corp (LADR) reported robust revenue growth in the latest quarter. The company's revenue is primarily derived from two segments: net interest income and other income.

  • Net interest income: LADR's net interest income for the quarter ended September 30, 2023, was $38.83 million, compared to $28.89 million in the same period last year. This represents a significant increase of 34.5%. The growth in net interest income can be attributed to higher interest income, which rose from $77.36 million to $101.09 million, driven by an increase in interest-earning assets. Despite a rise in interest expense from $48.47 million to $62.26 million, LADR managed to achieve a healthy net interest income growth.

  • Other income: LADR's other income for the quarter amounted to $33.96 million, compared to $28.43 million in the previous year's quarter. This segment includes real estate operating income, net result from mortgage loan receivables held for sale, realized gain (loss) on securities, and unrealized gain (loss) on securities. Notably, real estate operating income remained strong at $24.76 million, while the net result from mortgage loan receivables held for sale showed a slight loss of $0.63 million.

Strengths

LADR demonstrated several strengths in its latest quarter performance. The company's net interest income witnessed substantial growth, driven by increased interest income. This growth can be attributed to LADR's ability to expand its interest-earning assets. Additionally, LADR's real estate operating income remained solid, contributing to the overall revenue growth. Management's focus on optimizing the portfolio and capitalizing on favorable market conditions has likely played a role in the company's strong financial performance.

Challenges

While LADR's overall performance was strong, there are a few challenges worth noting. The net result from mortgage loan receivables held for sale showed a slight loss, indicating some volatility in this segment. Additionally, LADR reported a provision for loan loss reserves, which increased from $1.50 million to $7.47 million. This suggests potential credit risks that the company needs to manage effectively.

Noteworthy

LADR's revenue growth in the latest quarter is particularly noteworthy. The company's net interest income saw a significant increase, driven by higher interest income. This growth reflects LADR's ability to capitalize on favorable market conditions and expand its interest-earning assets. Additionally, the company's real estate operating income remained strong, contributing to the overall revenue growth.

Summary

Ladder Capital Corp (LADR) reported strong revenue growth in the latest quarter. The company's net interest income increased by 34.5%, primarily due to higher interest income. LADR's ability to expand its interest-earning assets played a crucial role in this growth. The company's real estate operating income remained solid, contributing to the overall revenue growth. However, LADR faced challenges in the form of a slight loss in the net result from mortgage loan receivables held for sale and an increase in provision for loan loss reserves. Despite these challenges, LADR's strong financial performance highlights its ability to navigate market conditions effectively.

Source documents

Form 10-Q  filed on Oct 27, 2023
31 pages scanned

Reference data

Company financials Q3 revenue 54.4M
Analyst estimates Q3 EPS beat by 8.47%
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