STWD - Ladder Capital: The 9% Yield Is Relatively Stable
2024-02-19 02:11:14 ET
Summary
- Ladder Capital is a well-managed commercial mortgage real estate investment trust with strong dividend coverage and earnings fundamentals.
- Despite concerns about the commercial real estate market, Ladder Capital's 4Q-23 results were solid, with robust growth in net interest income.
- The potential delay in rate cuts by the central bank may limit Ladder Capital's origination prospects in the short term, but its dividend coverage metrics improved.
Ladder Capital ( LADR ) is a well-managed commercial mortgage real estate investment trust that makes a very convincing case for an investment based on its dividend coverage and earnings fundamentals.
Though some passive income investors are worried about the state of the commercial real estate market, particularly with respect to offices, Ladder Capital’s 4Q-23 results were as solid as ever. The mortgage trust reported robust growth in net interest income (before provisions), but produced no new originations....
Ladder Capital: The 9% Yield Is Relatively Stable