Quarter ended September 30, 2026
Filed Oct 16, 2026Ladder Capital Corp reported GAAP income before taxes of $67.3 million, or $0.53 of diluted earnings per share, and distributable earnings of $44.7 million, or $0.35 of distributable EPS, for the three months ended September 30, 2026.
Quarterly GAAP income before taxes rose to $67.3 million from $16.3 million in the preceding quarter, supported by a $65.6 million gain on real estate. Distributable earnings increased to $44.7 million from $30.8 million, while distributable EPS increased to $0.35 from $0.24. The period included a $3.5 million charge-off of allowance for credit losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income, three months ended September 30, 2026GAAP | $28.83M | – | – |
| Provision for loan loss reserves, net, three months ended September 30, 2026GAAP | $ 13 | – | – |
| Net interest income after provision for loan loss reserves, three months ended September 30, 2026GAAP | $28.82M | – | – |
| Real estate operating income, three months ended September 30, 2026GAAP | $30.66M | – | – |
| Net result from mortgage loan receivables held for sale, three months ended September 30, 2026GAAP | −$357K | – | – |
| Gain on real estate, net, three months ended September 30, 2026GAAP | $65.63M | – | – |
| Fee and other income, three months ended September 30, 2026GAAP | −$5.53M | – | – |
| Net result from derivative transactions, three months ended September 30, 2026GAAP | $489K | – | – |
| Earnings from investment in unconsolidated ventures, three months ended September 30, 2026GAAP | −$823K | – | – |
| Gain on extinguishment of debt, three months ended September 30, 2026GAAP | $ 7 | – | – |
| Total other income, three months ended September 30, 2026GAAP | $90.07M | – | – |
| Compensation and employee benefits, three months ended September 30, 2026GAAP | $16.17M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $4.88M | – | – |
| Real estate operating expenses, three months ended September 30, 2026GAAP | $14.75M | – | – |
| Interest expense on real estate, three months ended September 30, 2026GAAP | $5.79M | – | – |
| Investment related expenses, three months ended September 30, 2026GAAP | $1.9M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $8.06M | – | – |
| Total costs and expenses, three months ended September 30, 2026GAAP | $51.55M | – | – |
| Income before taxes, three months ended September 30, 2026GAAP | $67.34M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $1.45M | – | – |
| Net income, three months ended September 30, 2026GAAP | $65.89M | – | – |
| Net income attributable to Class A common shareholders, three months ended September 30, 2026GAAP | $65.86M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 0.53 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.53 | – | – |
| Distributable earnings prior to charge-off of allowance for credit losses, three months ended September 30, 2026non-GAAP | $48.17M | – | – |
| Charge-off of allowance for credit losses, three months ended September 30, 2026non-GAAP | −$3.5M | – | – |
| Distributable earnings, three months ended September 30, 2026non-GAAP | $44.67M | – | – |
| After-tax distributable earnings, three months ended September 30, 2026non-GAAP | $43.69M | – | – |
| Distributable EPS, three months ended September 30, 2026non-GAAP | $ 0.35 | – | – |
| Distributable EPS prior to charge-off of allowance for credit losses, three months ended September 30, 2026non-GAAP | $ 0.38 | – | – |
| After-tax distributable ROAE, three months ended September 30, 2026non-GAAP | 12.1 % | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Dividends per share of Class A common stock: $ 0.23 for the three months ended September 30, 2026.
- Dividends payable: $ 31,447 as of September 30, 2026.
- Treasury stock, 4,798,588 shares, at cost: $ (49,146) as of September 30, 2026.
What drove it
- The Company made over $700 million of new loan and securities investments.
- Gain on real estate, net was $ 65,627 during the three months ended September 30, 2026.
- During the three months ended September 30, 2026, the Company sold an office property in Jacksonville, FL.
- The Company classified a retail property in Carmel, NY as held-for-sale; the property is in contract to sell at an amount in excess of GAAP net book value after adjustments described in the filing.
- Mortgage loans receivable increased to $ 2,951,526 as of September 30, 2026 from $ 2,217,375 as of December 31, 2025.
- Securities increased to $ 2,276,280 as of September 30, 2026 from $ 2,088,285 as of December 31, 2025.
Concerns
- The Company determined a portion of the allowance for loan loss to be non-recoverable and charged-off $3.5 million during the three months ended September 30, 2026.
- Fee and other income was $ (5,526) for the three months ended September 30, 2026, compared with $ 3,564 for the three months ended June 30, 2026.
- Net result from mortgage loan receivables held for sale was $ (357) for the three months ended September 30, 2026, compared with $ 174 for the three months ended June 30, 2026.
- Debt obligations, net increased to $ 4,346,438 as of September 30, 2026 from $ 3,510,402 as of December 31, 2025.
- Total shareholders’ equity was $ 1,463,135 as of September 30, 2026, compared with $ 1,483,926 as of December 31, 2025.
What to watch
- Whether gains on real estate recur following the $ 65,627 gain on real estate, net in the three months ended September 30, 2026.
- The effect of the $3.5 million charge-off of allowance for credit losses on future distributable earnings and credit-loss reserves.
- Deployment and earnings contribution from over $700 million of new loan and securities investments.
- The development of the retail property in Carmel, NY that was classified as held-for-sale and is in contract to sell.
- Changes in debt obligations, net, which were $ 4,346,438 as of September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents: $ 41,776 as of September 30, 2026, compared with $ 37,953 as of December 31, 2025.
- Restricted cash: $ 21,432 as of September 30, 2026, compared with $ 14,888 as of December 31, 2025.
- Mortgage loan receivables held for investment, net, at amortized cost: mortgage loans receivable of $ 2,951,526 and allowance for credit losses of $ (43,566) as of September 30, 2026.
- Securities: $ 2,276,280 as of September 30, 2026, compared with $ 2,088,285 as of December 31, 2025.
- Real estate and related lease intangibles, net: $ 654,152 as of September 30, 2026, compared with $ 703,537 as of December 31, 2025.
- Total assets: $ 6,044,678 as of September 30, 2026, compared with $ 5,152,550 as of December 31, 2025.
- Debt obligations, net: $ 4,346,438 as of September 30, 2026, compared with $ 3,510,402 as of December 31, 2025.
- Total shareholders’ equity: $ 1,463,135 as of September 30, 2026, compared with $ 1,483,926 as of December 31, 2025.
- Total equity: $ 1,460,608 as of September 30, 2026, compared with $ 1,481,357 as of December 31, 2025.
Analysis
Ladder reported materially stronger third-quarter profitability than in the preceding quarter. GAAP income before taxes was $ 67,336, compared with $ 16,310 for the three months ended June 30, 2026, while net income attributable to Class A common shareholders was $ 65,865, compared with $ 14,588. Diluted EPS was $ 0.53, compared with $ 0.12. The principal reported contributor was gain on real estate, net of $ 65,627, whereas the preceding quarter recorded $ — on that line.
Core interest earnings improved modestly. Net interest income was $ 28,830, compared with $ 28,194 in the preceding quarter, and net interest income after provision for loan loss reserves was $ 28,817, compared with $ 28,072. Real estate operating income was $ 30,657, slightly below $ 30,906 in the preceding quarter. Offsetting items included fee and other income of $ (5,526), compared with $ 3,564, and a net result from mortgage loan receivables held for sale of $ (357), compared with $ 174.
Non-GAAP distributable earnings were $ 44,667, compared with $ 30,814 in the preceding quarter, and distributable EPS was $ 0.35, compared with $ 0.24. The Company recorded a $ (3,500) charge-off of allowance for credit losses, resulting in distributable earnings prior to charge-off of allowance for credit losses of $ 48,167 and distributable EPS prior to charge-off of allowance for credit losses of $ 0.38. After-tax distributable ROAE was 12.1 %, compared with 8.3 % in the preceding quarter.
The balance sheet expanded through lending and securities activity. Mortgage loans receivable were $ 2,951,526 as of September 30, 2026, versus $ 2,217,375 as of December 31, 2025, while securities were $ 2,276,280 versus $ 2,088,285. The Company stated it made over $700 million of new loan and securities investments. Debt obligations, net were $ 4,346,438, compared with $ 3,510,402, while cash and cash equivalents were $ 41,776, compared with $ 37,953.
Capital returns included a $ 0.23 dividend per share of Class A common stock, unchanged from the preceding quarter. The release did not provide forward financial guidance. Attention is therefore on the durability of interest income, the realization of value from real estate sales including the Carmel, NY property held for sale, the impact of the credit-loss charge-off, and the earnings contribution from newly deployed loan and securities capital.
Management, verbatim
Ladder delivered a strong third quarter. We made over $700 million of new loan and securities investments, grew book value, and realized a meaningful gain on the sale of a net lease office asset. With ample liquidity and a balance sheet built to benefit from higher rates, we are well positioned to continue delivering value to our shareholders.
Brian Harris, Chief Executive Officer
Not in the filing
stated, not guessed- Revenue was not reported.
- Gross margin was not reported.
- Segment revenue and segment operating results were not reported.
- Prior-year comparative figures and year-over-year changes were not reported for the quarterly income-statement and non-GAAP metrics.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases during the period were not reported.
- Forward financial guidance was not provided.
- Prior outlook was not provided.
- GAAP operating income was not reported.
- GAAP gross profit was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.