NEW YORK - Ladder Capital Corp (NYSE: NYSE:LADR), a commercial real estate investment trust, has priced a private offering of $500 million of 7.000% Senior Notes due 2031. The transaction is slated for completion around July 5, 2024, subject to customary closing conditions. These senior unsecured obligations will be guaranteed by Ladder Capital and its wholly owned domestic subsidiaries that currently guarantee the company's outstanding notes.
The company intends to allocate a portion of the proceeds from this offering to repay certain existing secured debts. The remaining funds are earmarked for general corporate purposes. Rating agencies have responded to the news with Moody's (NYSE:MCO) affirming the company's Ba1 long-term corporate family rating and revising its outlook to positive.
Similarly, Fitch Ratings affirmed the long-term issuer default ratings and senior unsecured debt ratings at BB+ with a positive outlook. S&P Global Ratings has increased its issuer credit and issue ratings to BB with a stable outlook.
The notes were offered to qualified institutional buyers and to non-U.S. persons in accordance with Rule 144A under the Securities Act of 1933, as amended, and Regulation S under the same act. These notes have not been registered under the Securities Act and will not be available for sale in the United States without registration or an applicable exemption from registration requirements.
This press release, serving as the basis for this news, does not equate to an offer to sell or a solicitation of an offer to purchase the notes.
Ladder Capital, established in 2008 and headquartered in New York City, manages a diversified portfolio focusing on senior secured commercial real estate assets. With regional offices in Miami and Los Angeles, the company prides itself on its in-depth expertise across various facets of the commercial real estate industry. The management team and board of directors' substantial ownership stake in the company aligns their interests closely with those of the investors.
In other recent news, Ladder Capital Corp reported strong earnings for Q1 2024, with distributable earnings of $42.3 million or $0.33 per share. This robust performance marked a 10.8% return on equity, and the company successfully increased its liquidity to over $1.5 billion while reducing its adjusted leverage to 1.5x.
The company's board of directors also approved a quarterly dividend of $0.23 per share for Q2 2024, payable to shareholders of record as of June 28, 2024. Despite challenges in the commercial real estate sector, Ladder Capital's management expressed cautious optimism about its ability to navigate the current credit cycle.
They also expect loan closings to increase in the future due to the current steepening yield curve. These are recent developments that have shaped the company's current standing.
InvestingPro Insights
As Ladder Capital Corp (NYSE: LADR) moves forward with its private offering of senior notes, investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Ladder Capital Corp has a market capitalization of $1.43 billion and a Price/Earnings (P/E) ratio of 14.65. This valuation comes in the context of a commercial real estate market that has faced both opportunities and challenges in the current economic climate.
An important factor for income-focused investors is Ladder Capital's dividend yield, which stands at an attractive 8.27%, reflecting the company's commitment to shareholder returns. This is particularly relevant given that Ladder Capital has maintained dividend payments for 10 consecutive years, a testament to its financial resilience and operational stability. Investors looking for steady income streams in their portfolios might find Ladder Capital an appealing option, especially considering the company's track record in this area.
Furthermore, the company's stock price has shown volatility, which is a crucial consideration for investors assessing the risk profile of their investments. Despite recent market fluctuations, Ladder Capital's one-year price total return indicates a 14.21% increase, showcasing its ability to navigate through uncertain times. Moreover, with analysts predicting profitability for the current year and a solid performance over the last twelve months, Ladder Capital appears well-positioned to continue its growth trajectory.
For more detailed analysis and additional InvestingPro Tips, such as the company's liquidity position and stock price movements, investors can explore the comprehensive insights available at https://www.investing.com/pro/LADR. There are 5 additional InvestingPro Tips listed for Ladder Capital Corp, which can be accessed with a subscription. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer provides investors with the tools needed to make informed decisions in the dynamic market landscape.
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