Ladder Capital Enters 2026 with Robust Momentum Following Record Year

Ladder Capital US5057431042

Ladder Capital Corp. has carried a wave of operational strength from a successful 2025 into the opening of 2026. The company’s latest performance is highlighted by two critical achievements: securing an investment-grade credit rating and originating its highest volume of new loans in four years. This raises a pivotal question for investors: does this newfound stability provide enough foundation to navigate the persistent headwinds in the commercial real estate sector?

The firm’s annual report reveals several key data points underscoring its current financial health:

• New Loan Originations: A volume of $1.4 billion was closed in 2025, marking the highest level since 2021.
• Return on Equity: Calculated at 7.1% based on distributable earnings.
• Risk Management: Exposure to office properties was reduced to 11% of the total balance sheet.
• Liquidity Position: The company ended the year with $608 million in available capital resources.

A cornerstone of Ladder Capital's strategy was the attainment of an investment-grade rating in the past year. This upgrade to its credit profile has provided the commercial real estate finance company with enhanced access to the unsecured corporate debt market, effectively lowering its cost of capital. By year-end, 71% of its liabilities were unsecured, while 81% of its assets remained unencumbered—a structural advantage that grants significant operational flexibility, especially in volatile market conditions.

For the fourth quarter of 2025, Ladder Capital reported distributable earnings of $0.17 per share. When adjusted for one-time credit loss provisions, this figure rises to $0.21 per share. The firm’s loan portfolio stood at $2.2 billion with a weighted average yield of 7.7%. This is complemented by a $2.1 billion securities portfolio, which is comprised of 97% AAA-rated instruments.

Prudent Risk Management and Shareholder Returns

Management has taken deliberate steps to mitigate sector-specific risks, particularly within the troubled office segment. The company’s allocation to office assets decreased from 14% to 11% of total investments year-over-year. Although three new office loans were committed in the final quarter—each collateralized by recently acquired properties—portfolio diversification remains a top priority.

The overall quality of the credit book is further evidenced by the fact that only four loans, with an aggregate value of approximately $130 million, are currently classified as non-performing. This represents a mere 2.5% of the total balance sheet. Demonstrating a commitment to returning capital to shareholders, Ladder Capital paid a quarterly dividend of $0.23 per share, which was covered by 96% of the full year's earnings.

A Promising Start to the New Fiscal Year

The positive operational trajectory has continued unabated into 2026. In the initial weeks of the first quarter, through February 4, Ladder Capital has already closed on new loans exceeding $250 million. With a current pipeline of over $400 million and an undrawn credit facility of $570 million, the company appears well-positioned to continue expanding its lending activities throughout the current year.