2024-03-13 02:54:45 ET
Summary
- Ladder Capital's shares went into a new up-leg after Q4'23 results were submitted.
- Concerns have been raised about the REIT's loan book and deteriorating provision trend. However, overall risks appear relatively low as the CECL reserve represents only 1.4% of CRE loan investments.
- LADR's dividend is well-supported, with a FY 2023 distribution coverage ratio of 1.46X.
Ladder Capital ( LADR ) is a mortgage lender focused chiefly on short term, variable rate balance sheet first mortgage loans. The REIT has been confronted with concerns about the quality of its loan book due to a growing CECL reserve. While there are risks in the portfolio, especially as they concern office investments, I believe that Ladder Capital, at this point, provides a well-supported dividend. Since the REIT's shares have gone into a new up-leg after the submission of fourth quarter earnings and the discount to book value has narrowed again, a hold rating makes the most sense, in my opinion....
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Ladder Capital: Is The Dividend Safe In 2024?