Ladder Capital’s fourth quarter was marked by a significant shortfall versus market expectations, with both revenue and non-GAAP profit coming in below consensus and the market responding with a meaningful share price decline. Management attributed this underperformance primarily to a combination of lower net interest income, driven by timing of loan fundings late in the quarter and continued paydowns from the loan book, as well as realized losses on a small number of office loans. CEO Brian Harris acknowledged that while loan payoff rates have slowed, the company did not fully benefit from new originations in the quarter, stating, "We did fund a lot of our loans at the end of December... we didn't really enjoy the net interest income from a lot of our new originations, but we will pick it up in the first quarter."

Is now the time to buy LADR? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Ladder Capital’s Q4 Earnings Call

• Jade Rahmani (KBW) asked about Ladder’s planned response to economic volatility and the impact of AI and interest rate changes. CEO Brian Harris replied that volatility presents opportunities rather than requiring a change in strategy, emphasizing a focus on “bricks and mortar and utility.”
• Jade Rahmani (KBW) questioned achievable return on equity and loan portfolio growth targets. Harris projected a 9-10% ROE depending on conduit activity, and stated the portfolio could rise above $6 billion by year-end.
• Timothy D'Agostino (B. Riley Securities) asked about the causes of net interest income pressure and loan funding dynamics. Harris explained that late-quarter loan fundings delayed interest income recognition, but expects a catch-up in future quarters as new originations season.
• Steve Delaney (JMP Securities) pressed for insights on bridge loan underwriting discipline after industry-wide losses. Harris acknowledged past mistakes and outlined a more cautious approach, particularly avoiding refinancing competitor loans and focusing on stable geographies.
• Gabe Pogie (Raymond James) inquired about increased competition from banks and regional lenders. Harris observed that banks are more active in construction lending, but Ladder sees a niche in mid-sized loans and remains focused on newer, quality collateral.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the pace and quality of new loan originations as Ladder reallocates capital from securities to lending, (2) the company’s ability to maintain earnings growth and dividend coverage as paydowns slow, and (3) signs of continued improvement in credit quality and asset performance, particularly in the office and multifamily sectors. The evolution of the competitive landscape and Ladder’s success in leveraging its investment-grade capital structure will also be critical to track.

Ladder Capital currently trades at $10.66, down from $11.06 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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