I am going to take some profits in real estate finance company Ladder Capital Corp. (LADR) this week after the commercial mortgage REIT's share price rebounded from the May sell-off. Ladder Capital Corp. has a strong loan investment portfolio and respectable distribution coverage, but I think Ladder Capital Corp.'s large floating-rate asset base will hurt the commercial mortgage REIT once interest rates start to decline. Further, after a 10-year bull run in the stock market, a recession is overdue and downside risks are growing.
Ladder Capital Corp. - Previous Recommendation
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