Ladder Capital Corp Reports Second Quarter 2018 Results
NEW YORK--(BUSINESS WIRE)--Jul 31, 2018--Ladder Capital Corp (NYSE:LADR) (“we,” “Ladder,” or the “Company”) today announced operating results for the quarter ended June 30, 2018. GAAP income before taxes for the three and six months ended June 30, 2018 was $44.1 million and $115.8 million, respectively compared to $37.7 million and $55.9 million for the three and six months ended June 30, 2017, respectively. The favorable year over year quarterly earnings variance reflects higher net interest income, higher net rental income, and the favorable impact of rising interest rates on interest rate hedges offset by lower gains on loan securitizations. The Diluted EPS for the three and six months ended June 30, 2018 was $0.40 and $0.93, respectively, compared to $0.26 and $0.45 for the three and six months ended June 30, 2017, respectively. After-tax GAAP return on average equity was 11.7% in the second quarter of 2018.
Core earnings, a non-GAAP financial measure, was $50.4 million for the second quarter of 2018, compared to $51.2 million earned in the second quarter of 2017. We achieved nearly the same quarterly earnings as the second quarter 2017 due to growth in recurring income that offset lower income from sales of loans. For the six months ended June 30, 2018, core earnings was $114.2 million compared to $82.7 million for the comparable period in 2017. The results of the six months ended June 30, 2018 surpassed the comparable period in the prior year due to higher net interest income on our portfolio of loans and higher net rental income on our real estate investments, as well as higher gains on sales of real estate than in the prior year. Core EPS, a non-GAAP financial measure, was $0.45 for the second quarter of 2018 and $1.00 for the six months ended June 30, 2018, compared to $0.42 and $0.73 for the three and six months ended June 30, 2017, respectively. We believe core earnings and core EPS are useful in evaluating our earnings from operations across reporting periods as discussed in the Non-GAAP Financial Measures section of this earnings release.
The following table summarizes the book value of our investment portfolio as of the dates indicated below ($ in thousands):
Note: CMBS investments and U.S. Agency Securities are carried at fair value.
Liquidity and Capital Resources
The following table summarizes our debt obligations as of the following dates ($ in thousands):
Conference Call and Webcast
We will host a conference call on Tuesday, July 31, 2018 at 5:00 p.m. Eastern Time to discuss second quarter 2018 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 Tuesday, July 31, 2018 through midnight Tuesday, August 14, 2018. To access the replay, please call (844) 512-2921 domestic or (412) 317-6671 international, access code 13681400. 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.
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