Ladder Capital Corp (LADR) Q3 2026 Financial Results Summary
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Ladder Capital Corp (LADR) Q3 2026: Strong Earnings Growth — Positive Outlook
Ladder Capital Corp (NYSE: LADR) reported impressive results for the third quarter of 2026, with net income before taxes reaching $67.3 million, translating to a diluted earnings per share (EPS) of $0.53. This marks a significant increase from the previous year, where the net income was only $16.3 million, or $0.12 per share, representing a growth of $51 million or +312% year-over-year.
This quarter's performance is undoubtedly a positive development for shareholders. The substantial increase in net income and EPS indicates that the company is effectively leveraging its investment strategy and capitalizing on market opportunities. The CEO, Brian Harris, highlighted that Ladder made over $700 million in new loan and securities investments, which contributed to the growth in book value and a meaningful gain on the sale of a net lease office asset.
Key Financial Metrics:
- GAAP Income Before Taxes: $67.3 million (up from $16.3 million YoY)
- Diluted EPS: $0.53 (up from $0.12 YoY)
- Distributable Earnings: $44.7 million (up from $30.8 million YoY)
- Distributable EPS: $0.35 (up from $0.24 YoY)
- Distributable EPS (prior to charge-off of allowance for credit losses): $0.38
Dividend and Shareholder Returns
Ladder Capital maintained its dividend at $0.23 per share, consistent with the previous quarter. This stability in dividends, coupled with the strong earnings growth, reflects the company's commitment to returning value to shareholders while also reinvesting in growth opportunities.
Balance Sheet Highlights
- Total Assets: $6.04 billion (up from $5.15 billion at the end of 2025)
- Total Liabilities: $4.58 billion (up from $3.67 billion at the end of 2025)
- Total Shareholders’ Equity: $1.46 billion (down from $1.48 billion at the end of 2025)
The increase in total assets and liabilities indicates that Ladder is actively expanding its investment portfolio, which is a positive sign for future growth. The company’s ability to manage its liabilities effectively while increasing its asset base is crucial for maintaining financial health.
Forward-Looking Catalysts
Investors should keep an eye on Ladder's upcoming conference call scheduled for October 16, 2026, where management is expected to provide further insights into the company's strategic direction and market outlook. Additionally, the performance of new loan and securities investments will be critical to watch in the next quarter, as these will likely drive future earnings growth.
In summary, Ladder Capital's third quarter results reflect a robust performance, with significant year-over-year growth in earnings and a stable dividend policy. The company's proactive investment strategy positions it well for continued success, making it an attractive option for investors looking for exposure in the REIT sector.
Consolidated Balance Sheets
(Dollars in Thousands)
Note: The amounts in the following tables are in thousands.
| Assets | September 30, 2026 (Unaudited) | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $41,776 | $37,953 |
| Restricted cash | $21,432 | $14,888 |
| Mortgage loan receivables held for investment, net, at amortized cost: | ||
| Mortgage loans receivable | $2,951,526 | $2,217,375 |
| Allowance for credit losses | -$43,566 | -$47,137 |
| Mortgage loan receivables held for sale | $26,847 | $27,986 |
| Securities | $2,276,280 | $2,088,285 |
| Real estate and related lease intangibles, net | $654,152 | $703,537 |
| Real estate held for sale, net | $4,455 | — |
| Investments in and advances to unconsolidated ventures | $40,606 | $44,468 |
| Derivative instruments | $348 | $264 |
| Accrued interest receivable | $20,358 | $15,890 |
| Other assets | $50,464 | $49,041 |
| Total assets | $6,044,678 | $5,152,550 |
| Liabilities and Equity | ||
| Liabilities | ||
| Debt obligations, net | $4,346,438 | $3,510,402 |
| Dividends payable | $31,447 | $31,819 |
| Accrued expenses | $60,495 | $76,448 |
| Other liabilities | $145,690 | $52,524 |
| Total liabilities | $4,584,070 | $3,671,193 |
| Commitments and contingencies | — | — |
| Equity | ||
| Class A common stock, par value $0.001 per share | ||
| 600,000,000 shares authorized; | ||
| 130,790,591 and 130,790,591 shares issued and | $126 | $127 |
| 125,992,003 and 127,233,559 shares outstanding as of September 30, 2026 and December 31, 2025, respectively. | ||
| Additional paid-in capital | $1,779,879 | $1,787,074 |
| Treasury stock, 4,798,588 and 3,557,032 shares, at cost | -$49,146 | -$39,056 |
| Retained earnings (dividends in excess of earnings) | -$264,554 | -$260,084 |
| Accumulated other comprehensive income (loss) | -$3,170 | -$4,135 |
| Total shareholders’ equity | $1,463,135 | $1,483,926 |
| Noncontrolling interests in consolidated ventures | -$2,527 | -$2,569 |
| Total equity | $1,460,608 | $1,481,357 |
| Total liabilities and equity | $6,044,678 | $5,152,550 |
Consolidated Statements of Income
(Dollars in Thousands, Except Per Share and Dividend Data)
| Net interest income | Three Months Ended September 30, 2026 (Unaudited) | June 30, 2026 |
|---|---|---|
| Interest income | $80,446 | $78,204 |
| Interest expense | $51,616 | $50,010 |
| Net interest income (expense) | $28,830 | $28,194 |
| Provision for (release of) loan loss reserves, net | $13 | $122 |
| Net interest income (expense) after provision for (release of) loan loss reserves | $28,817 | $28,072 |
| Other income (loss) | ||
| Real estate operating income | $30,657 | $30,906 |
| Net result from mortgage loan receivables held for sale | -$357 | $174 |
| Gain (loss) on real estate, net | $65,627 | — |
| Fee and other income (loss) | -$5,526 | $3,564 |
| Net result from derivative transactions | $489 | $203 |
| Earnings (loss) from investment in unconsolidated ventures | -$823 | $252 |
| Gain (loss) on extinguishment of debt | $7 | $72 |
| Total other income (loss) | $90,074 | $35,171 |
| Costs and expenses | ||
| Compensation and employee benefits | $16,174 | $12,260 |
| Operating expenses | $4,885 | $5,108 |
| Real estate operating expenses | $14,748 | $12,909 |
| Interest expense on real estate investment related expenses | $5,789 | $5,607 |
| Depreciation and amortization | $8,059 | $9,343 |
| Total costs and expenses | $51,555 | $46,933 |
| Income (loss) before taxes | $67,336 | $16,310 |
| Income tax expense (benefit) | $1,450 | $1,749 |
| Net income (loss) | $65,886 | $14,561 |
| Net (income) loss attributable to noncontrolling interests in consolidated ventures | -$21 | $27 |
| Net income (loss) attributable to Class A common shareholders | $65,865 | $14,588 |
| Earnings per share: | ||
| Basic | $0.53 | $0.12 |
| Diluted | $0.53 | $0.12 |
| Weighted average shares outstanding | ||
| Basic | 124,098,939 | 124,730,611 |
| Diluted | 124,885,210 | 125,249,856 |
| Dividends per share of Class A common stock | $0.23 | $0.23 |
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