2. This presentation contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans and
objectives of Ladder Capital Corp and its subsidiaries and affiliates (collectively, “Ladder Capital,” “Ladder,” “LADR,” or the “Company”). Any statement
concerning future events or expectations, express or implied, is a forward-looking statement. Words such as “may,” “will,” “seek,” “should,” “expect,”
“anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology are
intended to identify forward-looking statements that are subject to risk and uncertainties. There can be no assurance that any expectations, express
or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated. In particular, there can
be no assurance that Ladder will achieve any performance objectives set forth in this presentation. Further, any forward-looking statement speaks
only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Ladder to predict those events or their
effect on the Company. Except as required by law, Ladder is not obligated to, and does not intend to, update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This presentation is strictly for informational purposes. It is not intended to be relied upon as investment advice and is not, and should not be
assumed to be, complete. The contents herein are not to be construed as legal, business or tax advice, and each recipient should consult its own
attorney, business advisor and tax advisor as to legal, business and tax advice.
Certain information contained herein is based on, or derived from, information provided by independent third-party sources. Ladder believes that such
information is accurate and that the sources from which it has been obtained are reliable. However, Ladder cannot guarantee the accuracy of such
information and has not independently verified the assumptions on which such information is based. All data is presented as of March 31, 2018, unless
otherwise indicated.
This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures should be considered only as supplemental to,
and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Company’s March 31, 2018 Form 10-Q filing and
earnings press release, as well as the Company’s Earnings Supplement presentations, which are available on Ladder’s website
(www.laddercapital.com), for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable
financial measures prepared in accordance with GAAP.
Totals may not equal the sum of components due to rounding.
DISCLAIMERS
2
4. NYSE: LADR / INTERNALLY-MANAGED COMMERCIAL REAL ESTATE (“CRE”) FINANCE REIT
CYCLE-TESTED AND ALIGNED MANAGEMENT TEAM
NATIONAL DIRECT CRE ORIGINATION PLATFORM
$1.7B EQUITY MARKET CAP / 8.3% DIVIDEND YIELD
30% DIVIDEND INCREASE SINCE INITIAL DIVIDEND IN Q1 2015 – 8%+ CAGR
$6.2B OF CRE DEBT & EQUITY ASSETS WITH A SENIOR SECURED FOCUS
$33.0B OF CRE INVESTMENTS SINCE INCEPTION WITH NO CREDIT LOSSES
4
Note: As of 03/31/2018
(1) Based on $15.70 LADR closing price on 06/14/2018
(1)
LADDER SNAPSHOT
4
(1)
5. 5
CRE finance groups led by Ladder’s CEO, Brian Harris, have never experienced a losing quarter
through multiple economic cycles and interest rate environments
Core team members have worked together for over two decades
Note: As of 03/31/2018
(1) Based on $15.70 LADR closing price on 06/14/2018
(2) For a description of this non-GAAP financial measure, see Selected Definitions on page 44. “NIM” represents net interest margin on loan & CMBS bond assets
Internally-managed REIT for maximum alignment of interest with shareholders
Management & directors own over $185 million
(1)
of LADR stock (over 12% of total equity market cap)
Alignment of
Interest
Internally-Managed, Aligned Team Producing Attractive and Protected Dividend
Cycle-Tested
Management
Team
$1.30 annualized cash dividend, up 30% since Q1 2015, with 8%+ compounded annual growth rate
8.3% well-covered dividend yield
(1)
with 72% of earnings sourced from recurring NIM & CRE equity NCF
Attractive &
Well-Protected
Dividend
Consistently earn 10% – 12%+ ROE
13.3% after-tax core return on average equity
(2)
in the last twelve months, with 2.7x average leverage
Market-Leading
ROE
LADDER SUMMARY
5
6. 6
6
LADDER INVESTMENT HIGHLIGHTS
(1)
(1) Based on review of SEC filings, company presentations and research reports for publicly-traded U.S. CRE finance REITs with equity market capitalizations over $1 billion
(2) Based on historical Core EPS as of the date hereof
ONLY internally-managed CRE finance REIT of scale
HIGHEST management/board member insider ownership
LOWEST payout ratio – well-covered(2)
& growing dividend
BEST IN CLASS management team
COMPELLING valuation versus book value/analyst estimated NAV
LONG & STRONG liability structure with ratings momentum
MARKET LEADING ROE
8. 8
COMPLEMENTARY CRE PRODUCTS
Balance
Sheet
Loans
75%
Conduit
Loans
5%
Net
Leased &
Other CRE
Equity
12%
CMBS
Bonds
8%
(1) As of 03/31/2018. Represents carrying value of assets less secured funding debt
Capital Allocation Across CRE Investments(1)
CRE Investment Product Mix
Best risk-
adjusted
return
opportunityEquity
Loans
CMBS
Bonds
Value-oriented allocation of CRE assets under one comprehensive CRE platform
9. 9
Robust origination team with 20 originators in 2 offices, including
7 Managing Directors (“MDs”)
Long-standing direct borrower and key broker relationships nationwide
Average loan size of ~$20 million with focus on mid-market lending
Loyal client base - more than 50% of balance sheet loans to repeat
borrowers
Certainty of execution and ability to act quickly with key decision
makers in the same building
Flexibility to originate and manage multiple CRE products is a key
differentiator
Leveraging deep CRE credit expertise through the capital stack
Market recognition with reputation for integrity and fair dealing
LADDER’S COMPETITIVE ADVANTAGE
Compelling Market Opportunity with
Substantial Annual CRE Debt Maturities
(1)
(1) Source: Trepp, as of Q4 2017. Includes bank, CMBS, life company and other debt for non-residential CRE (including multi-family)
$1.9 trillion of CRE debt maturing
over the next 5 years
($ in billions)
Unique full service CRE platform focused on mid-market lending
$342
$353
$375
$395 $397
2018 2019 2020 2021 2022
10. FULLY INTEGRATED CRE INVESTMENT TEAM
10
Marc Fox
CHIEF FINANCIAL
OFFICER
FINANCE AND
ACCOUNTING
Thomas Harney
HEAD OF
CAPITAL MARKETS
CAPITAL
MARKETS
Brian Harris
CEO
Robert Perelman
HEAD OF
ASSET MANAGEMENT
ASSET
MANAGEMENT
Pamela McCormack
PRESIDENT
ORIGINATION
(20 total originators, including 7 MDs)
Daniel Orbach
David Wright
Andrew Babat
Michael Bette
Adam Saltzman
Michael Olson
Alex Neubauer
Daniel Cruz
Isaac Wood
Geoff Weinstock
ACCOUNTING
/REPORTING
Kevin Moclair (CAO)
Christine Curcio
Tara Tannure
(CONTROLLER)
Benjamin
JeanBaptiste
Karina Rodrigues da
Silva
FINANCE
Matthew FitzGerald
(TREASURER)
Andrea Rodriguez-
Padilla
Elise Chamberlain
NEW YORK
Adam Siper
Malcolm Shaw
Adam Frank
Eric Crum
Justin Desiderio
Ryan Jantzen
Walker Brown
James Gorman
Loren Biller
Michael FitzMaurice
Lee Warshaw
Jack Weisselberg
Andrew Steiner
G. David Bednar
Ezra Kwestel
Marc Waldman
Michael Fife
Matthew Baron
LOS ANGELES, CA
Jeffrey Giudice
Josh Natker
Caroline Taylor
Zachary Mulkern
David Merkur
TRANSACTION
MANAGEMENT
Michael Scarola
(CHIEF CREDIT OFFICER,
HEAD OF BALANCE
SHEET UNDERWRITING)
Craig Robertson
(HEAD OF CONDUIT
UNDERWRITING)
Michael Alexander
Michael DiOrio
Sarah Gochberg
Colette Edmonds
Tierney Boisvert
REAL ESTATE TRADING &
SECURITIZATION
LEGAL, COMPLIANCE&
HUMAN RESOURCES
CORPORATE
LEGAL & HR
Stephanie Lin
Craig Sedmak
Keith Statfeld
Sam Greenwald
Blair Lewis
David Traitel (HEAD OF
LEGAL STRUCTURING)
Mark Ableman (HEAD
OF TRANSACTION MGT)
CREDIT
Ed Peterson
(HEAD OF CMBS
TRADING, CO-
HEAD OF
SECURITIZATION)
Kelly Porcella
(GENERAL
COUNSEL)
Michelle
Wallach (CCO)
Member of
Management Team
David Henschke
(CO-HEAD OF
SECURITIZATION)
33
21
27 3229
#
Managing Director
Department Head &
Managing Director
years of experience
LEGEND
1222
15
133119
10
11
13
13
29
23
13
11
20
17
26
23
18
• Nearly 3 decades of management experience and thought leadership through multiple market cycles, with deep seasoned bench
• 45% of employees have been with Ladder over 5 years, and over 25% of employees have been with Ladder over 7 years
11. 11
20 originators,
including 7 managing
directors
Key relationships with
direct borrowers &
leading brokers
nationwide
Compensation linked
to loan performance,
not volume
Independent
underwriter leads
due diligence
Independent
appraisal and third
party reports
Visit every asset
prior to funding
Limited outsourcing
to ensure quality
and accountability
Comprehensive
Credit Committee
Memo and meeting
for every investment
Management (with
significant equity
risk) approves every
investment
Risk and
Underwriting
Committee of the
Board approves
investments above
certain size
thresholds
Maintain direct
dialogue with loan
servicers and
borrowers
Proactively manage
and oversee all assets
Conduct regular formal
asset and portfolio
reviews
Provide comprehensive
quarterly reporting
Independent, highly-
experienced team of
attorneys leads legal
process and closings
Conduct legal
diligence and
manage outside
counsel
Oversee
securitizations and
asset dispositions
No principal losses since inception – separate departments promote quality
INVESTMENT & RISK MANAGEMENT PROCESS
11
Origination Credit/
Underwriting
Investment
Committee
Transaction
Management
Asset
Management
13. 13
EXECUTING THE STRATEGY
THEN NOW
09/30/2013 (latest financials at LADR IPO) 03/31/2018
Total Assets:
Balance Sheet Loan NIM +
CMBS Bond NIM +
CRE Equity Net Cash Flow
Real Estate
Equity Portfolio
Total Committed
Financing Capacity
Total Unsecured &
Non-Recourse Borrowings
$2.5 billion
$108 million
(FY 2013)
$6.2 billion
$525 million undepreciated asset value $1.1 billion undepreciated asset value
56 buildings 171 buildings
~8.9 million square feet
$4.0 billion $6.8 billion
$616 million $2.5 billion
+149%
+133%
+118%
+205%
+201%
+72%
+309%
Balance Sheet Loan Portfolio
(loans held-for-investment)
$370 million $3.5 billion+855%
$250 million
(LTM 03/31/2018)
Number of Employees 59 +14%
Total assets have increased by 149% since IPO to $6.2 billion, with only 8 additional employees
~2.9 million square feet
67
14. 36%
52%
70%
74%
78%
72%
0%
20%
40%
60%
80%
2013 2014 2015 2016 2017 LTM 03/31/2018
14
Stable base of predictable, recurring revenue from NIM and rental income
Balance Sheet
Loans
Outstanding
($ in millions)
EXECUTING THE STRATEGY (CONT.)
% Revenue
Contribution
from Balance
Sheet Loan NIM,
CMBS Bonds,
and CRE Equity
Net Cash Flow
72%
36%
$538
$1,524
$1,742
$2,000
$3,282
$3,528
$0
$1,000
$2,000
$3,000
$4,000
12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 03/31/2018
15. (1) Source: Public filings and Company information for ownership data and Yahoo Finance for LADR daily trading volume. IPO date excluded from average trading volume
(1) calculations, where applicable
Source of
Earnings
2013 (year leading up to LADR IPO) 12 Months Ended 03/31/2018
THEN NOW
Overhang &
Liquidity (1)
Top 4 Pre-IPO Holders
% Ladder Ownership –
at IPO (02/06/2014)
LADR Average Daily
Trading Volume –
First 24 Months Public
51%
148,913 4%
1,430,895
Top 4 Pre-IPO Holders
% Ladder Ownership –
03/31/2018
LADR Average Daily
Trading Volume –
03/31/2018 (30-day)
15
Gain-on-Sale
from
Securitization
59%
Recurring
NIM & CRE
Equity NCF
36%
Other
5%
EXECUTING THE STRATEGY (CONT.)
Gain-on-Sale
from
Securitization
14%
Recurring
NIM & CRE
Equity NCF
72%
Other
14%
16. 16
$1.00
Q1 2015
Annualized Cash Dividend per Share
$1.30
Q2 2018
Dividend Coverage
Annual Cash
Dividends
per Share(1)
Core EPS
(LTM 3/31/18)
$1.78
$1.30
8%+ dividend compounded annual growth rate Well-covered dividend – 1.4x coverage ratio
DIVIDEND GROWTH & COVERAGE
(1) Represents run-rate of current $0.325 quarterly cash dividend per LADR share
18. 18
Asset Type
Weighted-Average
Return on Asset
Illustrative Asset-Level
Levered Return(1)
Balance Sheet First Mortgage Loans 6.0% – 8.0% 10.0% – 12.0%
Mezzanine/Subordinate Loans 10.5% – 13.5% 10.5% – 13.5%
Net Leased Real Estate Equity 6.0% – 7.5% 9.5% – 10.5%
Diversified CRE Equity 7.5% – 8.5% 12.0% – 15.0%+
CMBS Bonds 3.0% – 4.0% 7.5% – 9.0%
Core REIT Asset ROE (2)
9.0% – 10.0%
(+) Conduit Loan Securitization Gains 25% – 35%+
(+) Real Estate Equity Gains 20% – 30%+
Total Illustrative Ladder ROE
(2)
10.0% – 12.0%+
Note: Returns shown are strictly for illustrative purposes and are based on management’s view of current market conditions
(1) Assumes utilization of available leverage based on financing facilities currently in place
(2) Net of all estimated corporate overhead expenses and corporate debt service
ILLUSTRATIVE RETURNS
19. 12.1%
10.7%
11.5%
13.3%
2015 2016 2017 LTM 03/31/2018
19
2.8xLeverage :
(1) For a description of this non-GAAP financial measure, see Selected Definitions on page 44
(2) Represents average Adjusted Leverage Ratio during period. For a description of this non-GAAP financial measure, see Selected Definitions on page 44
(2)
2.7x2.8x
Core ROAE (after-tax)(1)
9% – 10%
Core REIT
Operations
ATTRACTIVE CORE REIT ROE ENHANCED BY
PROFITABLE SECURITIZATIONS
2.7x
20. Profitable capital recycling enhances returns above solid baseline REIT ROE of 9%–10%
20
Note: As of 03/31/2018
(1) After hedging costs; before corporate overhead expenses
(2) Wall Street research
(3) Ladder had one securitization net loss in August 2011 of $5.1 million from hedging results when the United States was downgraded by S&P and treasury bonds rallied
The conduit business: Is it really worth nothing?
CONDUIT BUSINESS – IT’S JUST GRAVY
$646 million
(1)
of cumulative core gains
on securitized loans since inception,
with $299 million
(1)
since IPO
Top 10 CMBS loan originator since
inception(2)
– 51 of 52 securitization
transactions have been profitable(3)
Contributed $14.5 billion of loans into 52
CMBS transactions since inception, earning
a 4.5% weighted-average profit margin
(1)
Partnered with Citibank,
Deutsche Bank, J.P. Morgan,
UBS and Wells Fargo
Ladder’s
Conduit Loan
Securitization
Business
22. Carrying Value $3.8 billion
Number of Loans 216
Weighted-Average LTV 66%
Weighted-Average Coupon 7.0%
Average Loan Size ~$20 million
22
Note: As of 03/31/2018
Diversification by Region
Selected Loan Portfolio Metrics
Diversification by Property Type Fixed-Rate vs. Floating-Rate Mix
Consistent Loan Portfolio LTVs Over Time
$3.5 billion diversified loan portfolio with strong fundamentals
22
LENDING PORTFOLIO SNAPSHOT
$3.8 Billion of Assets
80% Capital Allocation
Northeast
31%
South
22%
West
16%
Southwest
13%
Midwest
13%
Various
5%
Hotel
26%
Retail
11%
Multifamily
21% Office
25%
Mixed
Use
7%
MHP
5%
Industrial
3%
Land /
Other
2%
Floating-
Rate
72%
Fixed-
Rate
28%
69%
63% 66% 65% 67% 66%
0%
20%
40%
60%
80%
100%
12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 3/31/18
24. 155 E 48th Street
New York, NY
$15,500,000
Floating rate balance sheet
first mortgage loan
Golden Belt
Durham, NC
$18,000,000
Floating rate balance sheet
first mortgage loan
Bank of America
Jacksonville, FL
$74,000,000
Floating rate balance sheet
first mortgage loan
Loan Description Middle-Market LTV/LTC <70% Repeat Borrower
24
SELECTED LOANS
Terraces at Butler
Mauldin, SC
$9,250,000
Fixed rate conduit
first mortgage loan
25. 25
Note: As of 03/31/2018
(1) Represents weighted-average % leased for net leased equity investments and weighted-average % occupied for diversified CRE equity investments
Undepreciated Asset Value $1.1 billion
Asset Carrying Value $981 million
Non-Recourse Mortgage Financing $683 million
Net Equity Invested $463 million
~ Total Square Feet 8.9 million
In-Place Annual NOI $75.1 million
Weighted-Average % Leased / Occupied(1)
96%
Investment Overview
Real estate portfolio comprised of ~8.9 million square feet
Investments are comprised of single-tenant net leased
properties (solely-owned) and diversified CRE, including
office, industrial and mobile homes, both solely-owned and
majority-owned in joint venture format
Portfolio is financed with long-term, non-recourse, fixed-rate
financing
Portfolio Metrics
Portfolio by Region
Portfolio by Property Type
CRE EQUITY PORTFOLIO SNAPSHOT
Source of stable recurring cash flows with potential NAV upside
$1.1 Billion of Assets
12% Capital Allocation
Northeast
17%
South
47%
West
1%
South-
west
6%
Midwest
27%
Various
2%
Office
36%
Wholesale
Club
13%
Drug Store
12%Grocery
Store
10%
Dollar
Store
9%
Other
Retail
6%
Warehouse
6%
Other
8%
26. 26
Lafayette Office Park Portfolio – St. Paul, Minnesota
4-building portfolio acquired in September 2014 for $69.5 million,
leased to State of Minnesota Government Agencies (investment
grade credit) with an average of 7 years remaining on lease terms at
acquisition
Acquired adjacent parcel of land and constructed a surface parking
lot in April 2016 for $1 million – 3 tenants extended leases for 10 years
to 2026, with the 4th tenant also recently extending its lease for
10 years to 2028
Annual NOI increased from $6.5 million at acquisition to $8.1 million
as a result of new 10-year lease extensions and operating expense
reductions under Ladder management, resulting in an annual levered
cash-on-cash return on Ladder’s invested equity of ~20%
Current NOI equivalent to a ~12% cap rate on Ladder’s undepreciated
book value, or a ~16% cap rate on Ladder’s depreciated book value
A sale at current market cap rate of 7.5%–8.0% would generate an
approximate $30–$40 million gain to Ladder over undepreciated
book value before transaction expenses
CRE EQUITY PORTFOLIO CASE STUDIES
27. 27
Ladder was originating a $38 million, 2-year acquisition loan when,
two weeks before close, the borrower lost their 80% equity partner
The property was experiencing low occupancy due to an unresolved
ground lease situation and opportunities for improved NOI with better
management
Ladder, recognizing the value of the asset, offered to joint venture
with the sponsor at a 70% level to acquire the 45-acre, 421-pad MHC
property for $52.7 million (a 4.6% cap rate) in April 2017
The acquisition unlocked the property’s value by allowing our JV
entity to buy out the ground lease encumbering 2.6 acres to achieve
100% fee-ownership of the entire 45-acre community
Within a few months of ownership, Ladder received an attractive bid
to purchase the asset. At this time, although occupancy was at just
65%, NOI had begun to increase through expense saving initiatives
and lease-up efforts by our new property management program
After an 11-month ownership period, our joint venture sold the asset in
February 2018 for $72.5 million, or a 4.0% cap rate on in-place NOI,
generating a $10.3 million gain on sale to Ladder over undepreciated
book value in addition to $1.3 million in collected fees and interest on
our debt financing, for a total of $11.6 million of earnings contribution
Brookside Manufactured Home Community – El Monte, California
CRE EQUITY PORTFOLIO CASE STUDIES (CONT.)
28. 28
100% investment grade-rated, majority
AAA-rated
Source of stable recurring net interest
income and portfolio liquidity
Mix of single-asset/single-borrower
(“SASB”) and conduit loan collateral
Ladder management has deep
knowledge of collateral and structure
COMM 2015-3BP A
• Brookfield Place – Class A
Office Building in Manhattan
• AAA-rated bonds
• Superior leveraged risk-return
profile
CMBS on Balance Sheet $1.1 billion
% Investment Grade-Rated 100%
% AAA-Rated 79%
Weighted-Average Duration 3.0 years
Average Investment per CUSIP $7.9 million
Weighted-Average Advance Rate 83%
Portfolio Metrics Selected Investment
AAA /
Aaa
79%
AA / Aa
17% A / A
2%
BBB / Baa
2%
Note: As of 03/31/2018
Investment Overview Portfolio Ratings Portfolio Collateral Types
SASB –
Other
14%
SASB –
Office
26%
SASB –
Multi-
family
23%
Conduit –
Super
Senior
15%
Conduit–
Other
22%
63% SASB/37% Conduit100% Investment Grade-Rated
CMBS BOND PORTFOLIO SNAPSHOT
Short-duration, highly-rated, highly-liquid bond portfolio
$1.1 Billion of Assets
8% Capital Allocation
30. 66% of capital base comprised of book
equity, unsecured debt, and non-recourse
mortgage & CLO financing
98% of outstanding debt comprised
of committed, term financing and unsecured
bonds
Note: As of 03/31/2018
($ in millions)
30
ROBUST & DIVERSIFIED CAPITAL STRUCTURE
Committed
Bank Warehouse
Facilities
$652
(11%)
Other Securities
Repurchase
Facilities
$105
(2%)
Non-Recourse
Mortgage
Financing
$683
(11%)
Non-Recourse
CLO Financing
$683
(11%)
FHLB
Financing
$1,348
(22%)
Unsecured
Corporate
Bonds &
Corporate
Revolver
$1,153
(19%)
Book Equity
$1,503
(24%)
32. Remaining Term(1)
Size Outstanding 2018 2019 2020 2021 2022 2023 2024 2025
$1,408 $1,153 Total Unsecured Debt (25% of total debt)
$6,827 $4,520 Total Committed & Unsecured Debt (98% of total debt)
$6,827 $4,625 Total Financing
($ in millions)
Facility Debt
266 264
500 494
$400 $395
2,053 652
683 683
241 –
Committed Bilateral Bank Facilities (6 facilities)
5.250% Unsecured Bonds
5.250% Unsecured Bonds
5.875% Unsecured Bonds
Unsecured Syndicated Revolving Credit Facility
Non-Recourse Mortgage Debt on Owned Real Estate
– 105 Short-Term Repo
2,000 1,348 FHLB Financing
683 683 Non-Recourse CLO Financing
Note: As of 03/31/2018
(1) Includes extensions at Company’s option
(2) Secured by stock of selected unrestricted subsidiaries
(2)
32
Superior access to capital with substantial liquidity and $2.3 billion of undrawn, committed financing capacity
LONG & STRONG LIABILITY STRUCTURE
Moody’s
Ba2 Corp
Ba3 Bonds
Positive outlook
S&P
BB Corp
BB- Bonds
Stable outlook
Fitch
BB Corp
BB Bonds
Stable outlook
33. 33
Balance sheet loans – typically 1 to 3-year, floating-rate loans that generate more income with rising interest rates
Conduit loans – 5 to 10-year fixed-rate loans typically with all of the interest rate risk hedged
Real estate equity – typically financed with long-term, fixed-rate, third-party, non-recourse mortgage debt
CMBS portfolio – highly-rated (100% investment grade), short-duration (3.0-year weighted-average), and typically hedged if
duration >5 years
Unsecured bonds – Ladder has $1.2 billion of unsecured, fixed-rate corporate bonds
Note: As of 03/31/2018
$0.15
Estimated annual increase in net interest
income per share with increase in LIBOR of: 100 bps 200 bps 300 bps
$0.31
$0.46
Earnings Positively Correlated to Rising Rates
Summary of Interest Rate Hedging
WELL-POSITIONED FOR RISING RATE ENVIRONMENT
72% of loan portfolio comprised of floating-rate loans with interest rate floors
34. 34
34
LADDER INVESTMENT HIGHLIGHTS
(1)
HIGHEST management/board member insider ownership
LOWEST payout ratio – well-covered(2)
& growing dividend
BEST IN CLASS management team
COMPELLING valuation versus book value/analyst estimated NAV
LONG & STRONG liability structure with ratings momentum
MARKET LEADING ROE
ONLY internally-managed CRE finance REIT of scale
(1) Based on review of SEC filings, company presentations and research reports for publicly-traded U.S. CRE finance REITs with equity market capitalizations over $1 billion
(2) Based on historical Core EPS as of the date hereof
35. 35
Company Contact Information:
New York Headquarters:
345 Park Avenue – 8th Floor
New York, NY 10154
(212) 715-3170
Los Angeles Regional Office:
520 Broadway – Suite 200
Santa Monica, CA 90401
(310) 601-2460
Equity Research Analyst Coverage:
B. Riley-FBR:
Tim Hayes – (703) 312-1819
Bank of America/Merrill Lynch:
Kenneth Bruce – (415) 676-3545
Deutsche Bank
George Bahamondes – (212) 250-1587
JMP Securities:
Steven DeLaney – (404) 848-7773
J.P. Morgan:
Richard Shane – (415) 315-6701
Keefe Bruyette & Woods
Jade Rahmani – (212) 887-3882
Rating Agency Coverage:
Moody’s:
Mark Wasden – (212) 553-4866
Rating: Ba2 / Outlook: Positive
Standard & Poor’s:
Diogenes Mejia – (212) 438-0145
Rating: BB / Outlook: Stable
Fitch:
Sean Pattap – (212) 908-0642
Rating: BB / Outlook: Stable
Investor Relations:
investor.relations@laddercapital.com
(917) 369-3207
Ladder is an internally-managed real estate investment trust that is a leader in commercial real estate finance. Ladder originates and
invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s
investment activities include: (i) direct origination of commercial real estate first mortgage loans; (ii) investments in investment grade
securities secured by first mortgage loans on commercial real estate; and (iii) investments in net leased and other commercial real
estate equity. Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of
the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management.
COMPANY INFORMATION
Raymond James
Stephen Laws – (901) 579-4868
37. 37
Name Title
Industry
Experience Previous Experience/Bios
Brian Harris CEO and Director 33 years Brian Harris is a founder and Chief Executive Officer of Ladder Capital. Prior to forming Ladder Capital, Mr. Harris
served as a Senior Partner, Managing Director and Head of Global Commercial Real Estate at Dillon Read Capital
Management, a wholly owned subsidiary of UBS, managing over $500 million of equity capital from UBS for Dillon
Read’s commercial real estate activities globally. Before joining Dillon Read, Mr. Harris served as Managing
Director and Head of Global Commercial Real Estate at UBS, managing UBS’ proprietary commercial real estate
activities globally. Mr. Harris also served as a Member of the Board of Directors of UBS Investment Bank. Prior to
joining UBS, Mr. Harris served as Head of Commercial Mortgage Trading at Credit Suisse, where he was
responsible for managing all proprietary commercial real estate investment and trading activities. Mr. Harris also
previously worked in the real estate groups at Lehman Brothers, Salomon Brothers, Smith Barney and Daiwa
Securities. Mr. Harris earned a B.S. in Biology and an M.B.A. from The State University of New York at Albany.
Pamela McCormack President 21 years Pamela McCormack is a founder and President of Ladder Capital. Ms. McCormack most recently served as
Ladder’s Chief Operating Officer and previously as the Company’s Chief Strategy Officer and General Counsel.
Before forming Ladder, Ms. McCormack served as Head of Transaction Management – Global Commercial Real
Estate at both Dillon Read Capital Management and at UBS. Prior to joining UBS, Ms. McCormack was Vice
President and Counsel at Credit Suisse and an associate at leading global law firms. Ms. McCormack received a B.
A. in English, cum laude, from the State University of New York at Stony Brook and a J.D. from St. John’s University
School of Law.
Marc Fox Chief Financial Officer 27 years Marc Fox is Chief Financial Officer of Ladder Capital. Prior to joining Ladder Capital, Mr. Fox served as Treasurer
of Capmark Financial Group Inc., where Mr. Fox formulated and executed its worldwide funding strategies. Mr. Fox
was significantly involved in the formation of Capmark’s wholly owned banking platform and debt management of
Capmark Bank, a regulated industrial bank subsidiary of Capmark. Mr. Fox earned a B.S. in Economics and an
M.B.A. from The Wharton School of the University of Pennsylvania.
Thomas Harney Head of Merchant Banking &
Capital Markets
32 years Thomas Harney is Head of Merchant Banking & Capital Markets of Ladder Capital. Prior to joining Ladder Capital,
Mr. Harney served as the Head of Real Estate at Tri-Artisan Capital Partners, a private merchant banking group
based in New York. Before joining Tri-Artisan, Mr. Harney served as Senior Managing Director of the Real Estate
Investment Banking Group at Bear Stearns. Mr. Harney has extensive experience in completing large-scale M&A
transactions, as well as a broad range of debt and equity securities transactions in both public and private formats.
Mr. Harney graduated magna cum laude with a B.A. in Urban Studies from the University of Pennsylvania and is a
graduate of the New York University Finance & Development Program.
Robert Perelman Head of Asset Management 29 years Robert Perelman is a founder and Head of Asset Management of Ladder Capital. Prior to forming Ladder Capital,
Mr. Perelman served as a Director and Head of Asset Management at UBS. Prior to UBS, Mr. Perelman served as a
Director and Head of Asset Management at Dillon Read Capital Management. In that capacity, Mr. Perelman
managed a team responsible for the portfolio management of all real estate investments globally. Before joining
Dillon Read, Mr. Perelman served as a Managing Director and Partner at Hudson Realty Capital LLC, a private
equity fund, where Mr. Perelman was responsible for loan origination, real estate investments and asset
management. Prior to joining Hudson Realty, Mr. Perelman served as a Director at Credit Suisse, where he had
significant responsibility for the structuring and closing of a wide variety of real estate investments within the U.S.
and Asia. Mr. Perelman earned a B.S. in Telecommunications Management from Syracuse University and a J.D.
from Fordham University School of Law.
MANAGEMENT BIOS
39. 39
Type of
Loan
Loan Balance
($mm)
% of Loan
Portfolio
% of Total
Assets
Business
Plan Rate
Weighted-
Average
Coupon
Weighted-
Average
LTV
Balance Sheet First
Mortgage Loans
$3,370 89% 54%
Held for
investment
Generally
floating-rate
6.9% 66%
Conduit First
Mortgage Loans
$274 7% 4% Held for sale
Generally fixed-
rate
5.1% 60%
Mezzanine and Other
CRE-Related Loans
$158 4% 3%
Held for
investment
Fixed or
floating-rate
10.8% 70%
Total $3,802 100% 61% 7.0% 66%
Note: As of 03/31/2018
LOAN PORTFOLIO KEY METRICS
40. Type of
Real Estate
Undepreciated
Asset
Value
Asset
Carrying Value
(Depreciated)
Non-Recourse
Mortgage
Financing
Net Equity
Invested
(Undepreciated)
~Total
Square
Feet
In-Place Annual
Net Operating
Income
Weighted-
Average
% Leased/
Occupied
(1)
Net Leased Commercial
Real Estate
(136 buildings)
$763 $677 $498 $264 5,091,472 $48.5 100%
Diversified Commercial
Real Estate(2)
(33 buildings)
$367 $289 $185 $182 3,758,984 $26.6 86%
Condominium
Projects(2)
(2 buildings(4)
)
$17 $15 – $17 n/a n/a n/a
Total /
Weighted-Average
(171 buildings)
$1,147 $981 $683 $463 8,850,456 $75.1 96%
40
Note: As of 03/31/2018
(1) Represents weighted-average % leased for net leased equity investments and weighted-average % occupied for diversified CRE equity investments
(2) Amounts shown on a fully-consolidated basis
(3) Excludes Condominium Projects
(4) Includes Veer Towers (Las Vegas) and Terrazas (Miami) condominium projects. Excludes projects accounted for in Investments in Unconsolidated Joint Ventures
(3)(3)(3)
CRE EQUITY PORTFOLIO KEY METRICS
($ in millions)
41. BJ's Wholesale Bank of America Walgreens Dollar Hy-Vee Inc. Additional Net Total Net Leased/
Club Inc. Office Campus Co General Corp Supermarkets Leased Properties Weighted-Avg.
(8 Buildings) (5 Buildings) (22 Buildings) (69 Buildings) (7 Buildings) (25 Buildings) (136 Buildings)
Undepreciated Asset Value $148.0 $141.6 $133.7 $86.9 $73.6 $178.9 $762.7
Asset Carrying Value (Depreciated) $118.8 $137.6 $115.3 $81.3 $65.6 $158.6 $677.3
Non-Recourse Mortgage Debt Financing $94.3 $83.5 $89.2 $59.8 $50.8 $120.9 $498.4
Weighted-Average Interest Rate on Debt 4.9% 5.0% 5.1% 5.4% 4.6% 5.0% 5.0%
Net Equity Invested $53.8 $58.1 $44.5 $27.1 $22.8 $58.0 $264.3
In-Place Annual Net Operating Income (NOI) $10.7 $7.3 $9.0 $6.0 $4.3 $11.2 $48.5
Weighted-Avg. Remaining Lease Term (years) 14.7 13.5 15.2 12.6 16.6 13.0 14.1
~Total Square Feet 831,464 822,540 392,852 629,303 516,762 1,898,551 5,091,472
Weighted-Average % Leased 100% 100% 100% 100% 100% 100% 100%
($ in millions)
41
Note: As of 03/31/2018
NET LEASED CRE PORTFOLIO KEY DETAILS
42. Richmond, VA St. Paul, MN Miami, FL Additional Diversified Total Diversified CRE/
Office Portfolio Office Portfolio Apartment Building CRE Properties Weighted-Avg.
(19 Buildings) (4 Buildings) (1 Building) (9 Buildings ) (33 Buildings)
Undepreciated Asset Value $132.1 $69.0 $38.0 $128.4 $367.5
Asset Carrying Value (Depreciated) $95.3 $49.5 $36.3 $107.5 $288.7
Non-Recourse Mortgage Debt Financing $91.0 $47.4 – $46.6 $185.1
Weighted-Average Interest Rate on Debt 4.5% 4.7% – 4.7% 4.6%
Net Equity Invested $41.1 $21.6 $38.0 $81.7 $182.4
In-Place Annual Net Operating Income (NOI) $9.4 $8.1 $2.3 $6.9 $26.6
~Total Square Feet 1,189,921 760,318 166,176 1,642,569 3,758,984
Weighted-Average Occupancy 89% 100% 93% 74% 86%
Weighted-Average Ladder Ownership 77.5% 80.0% 80.0% 95.1% 84.8%
($ in millions)
42
Note: As of 03/31/2018
(1) Property types include office, multi-family, grocery-anchored shopping center and industrial
(1)
DIVERSIFIED CRE PORTFOLIO KEY DETAILS
43. 43
Note: As of 03/31/2018
(1) Based on “Core gain on sale of securitized loans” as reported in Company filings. For reconciliation, see page S-11 of Ladder’s Q1 2018 Earnings Supplement
(2) All metrics shown on a consolidated basis, except Weighted-Average % Owned by Ladder
(3) Excludes two unconsolidated joint venture investments with total book value of $34.6 million as of 03/31/2018
(4) For a description of these financial measures, see Selected Definitions on page 44
(5) For a description of these non-GAAP financial measures, see Selected Definitions on page 44
LADDER FINANCIAL SNAPSHOT
($ in millions, except per share amounts)
Snapshot of Business Lines Total Assets & Liabilities, Book Equity, Leverage and ROE
Conduit Loans Net Leased Commercial Real Estate (100% Owned) Total Assets
Carrying Value of Assets $274 Carrying Value of Assets $677 Cash & Cash Equivalents $68
Secured Financing on Assets 161 Undepreciated Book Value of Assets 763 Loans, CMBS Bonds & Real Estate 6,049
Net Equity Invested (excl. Corporate Debt) 113 Secured Financing on Assets 498 Accumulated Depreciation & Amortization (166)
Weighted-Average Coupon 5.1% Net Equity Invested (excl. Corporate Debt) 264 Other Assets(4)
280
Origination and Purchase Volume (LTM) $1,719 Total Square Feet 5,091,472 Total Assets 6,231
Securitization Volume (LTM) 1,913 Weighted-Average % Leased 100%
Securitization Profit Margin (LTM)(1)
3.3% In-Place Annual Net Operating Income (NOI) $48.5 Total Liabilities
Number of Securitizations (LTM) 9 Accounting method: carried at depreciated book value Unsecured Corporate Bonds $1,153
Net Revenue Contribution (LTM) $69 Unsecured Revolving Credit Facility –
Accounting method: carried at lower of cost or FMV Total Unsecured Debt 1,153
Diversified Commercial Real Estate(2)(3)
Secured Financing 3,472
Carrying Value of Assets $289 Total Debt 4,625
Balance Sheet Loans Undepreciated Book Value of Assets 367 Other Liabilities(4)
103
Carrying Value of Assets $3,528 Secured Financing on Assets 185 Total Liabilities 4,728
Secured Financing on Assets 1,710 Net Equity Invested (excl. Corporate Debt) 182
Net Equity Invested (excl. Corporate Debt) 1,818 Total Square Feet 3,758,984 Book Equity Value
% First Mortgage 96% Weighted-Average Occupancy 86% GAAP Book Equity Value (excl. NCI in JVs) $1,494
% Other (Mezzanine/Subordinate) 4% In-Place Annual Net Operating Income (NOI) $26.6 Total Shares Outstanding (mm) 111.3
Weighted-Average Coupon 7.1% Weighted-Average % Owned by Ladder 86.5% GAAP Book Value per Share(4)
$13.37
Accounting method: carried at lower of cost or FMV Accounting method: carried at depreciated book value Undepreciated Book Value per Share(5)
$14.82
Leverage
Securities (CMBS Bonds) Condominium Residential Real Estate(2)
Adjusted Debt (for Adjusted Leverage Ratio)(5)
$3,942
Carrying Value of Assets $1,100 Carrying Value of Assets $15 Total GAAP Book Equity (incl. NCI in JVs) 1,503
Secured Financing on Assets 917 Undepreciated Book Value of Assets 17 Adjusted Leverage Ratio(5)
2.6x
Net Equity Invested (excl. Corporate Debt) 183 Secured Financing on Assets –
% First Mortgage Secured 100% Net Equity Invested (excl. Corporate Debt) 17 Return on Average Equity (based on Core Earnings)(5)
% AAA-Rated 79% Total Remaining Units 51 GAAP Net Income (LTM) $174
% Investment Grade-Rated 100% Unit Sale Price as % of GAAP Book Value (LTM) 144% Core Earnings (LTM) 211
Weighted-Average Duration 3.0 Years Weighted-Average % Owned by Ladder 99.7% Average Book Equity Value (LTM) 1,476
Accounting method: carried at FMV Accounting method: carried at depreciated book value After-Tax Core ROAE (LTM) 13.3%
A
B
C
D
E
F
A B C D E F
44. 44
SELECTED DEFINITIONS
• Adjusted Leverage Ratio (non-GAAP)
̶ Total debt obligations, net of deferred financing costs, adjusted for non-recourse borrowings under collateralized loan obligations, divided by total
equity.
• After-Tax Core Return on Average Equity (After-Tax Core ROAE) (non-GAAP)
̶ After-Tax Core Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• Core Earnings (non-GAAP)
̶ Income before taxes adjusted for (i) real estate depreciation and amortization, (ii) the impact of derivative gains and losses related to the hedging
of assets on our balance sheet as of the end of the specified accounting period, (iii) unrealized gains/(losses) related to our investments in Agency
interest-only securities, (iv) economic gains on securitization transactions not recognized for GAAP accounting for which risk has substantially
transferred during the period and the exclusion of resultant GAAP recognition of the related economics during the subsequent period, (v) non-
cash stock-based compensation and (vi) certain one-time transactional items.
• Core EPS (non-GAAP)
̶ After-Tax Core Earnings divided by adjusted weighted-average shares outstanding.
• GAAP Book Value per Share
̶ Total shareholders’ equity divided by Class A common shares outstanding.
• Other Assets
̶ Includes cash collateral held by broker, investments in unconsolidated joint ventures, FHLB stock, derivative instrument assets, amount due from
brokers, accrued interest receivable and other assets.
• Other Liabilities
̶ Includes amount due to brokers, derivative instrument liabilities, amount payable pursuant to tax receivable agreement, dividend payable, accrued
expenses and other liabilities.
• Pre-Tax Core Return on Average Equity (Pre-Tax Core ROAE) (non-GAAP)
̶ Core Earnings divided by average book equity balance excluding total noncontrolling interest in consolidated joint ventures.
• Undepreciated Book Equity and Undepreciated Book Value per Share (non-GAAP)
̶ Total equity, adjusted to exclude total noncontrolling interest in consolidated joint ventures and adjusted to include our share of total real estate
accumulated depreciation and amortization. Per share information is derived by dividing the preceding amount by total diluted shares
outstanding.
