Ladder Capital Corp Reports Fourth Quarter and Full Year 2018 Results and Announces First Quarter 2019 Dividend to Holders of Class A Common Stock
Financial Highlights
GAAP disclosures:
-
GAAP income before taxes of $27.8 million for the fourth quarter
and $228.3 million for the year ended December 31, 2018 compared to
$48.4 million and $133.6 million for the fourth quarter and year ended
December 31, 2017, respectively -
GAAP diluted EPS of $0.24 for the fourth quarter and $1.84 for the
year ended December 31, 2018 compared to $0.40 and $1.13 for the
fourth quarter and year ended December 31, 2017, respectively -
After-tax GAAP return on average equity of 6.9% for the fourth
quarter and 13.5% for the year ended December 31, 2018 compared
to 12.2% and 8.6% for the same periods in 2017, respectively -
GAAP book value per share of $13.90 at December 31, 2018, up from
$13.82 at September 30, 2018
Core (non-GAAP) disclosures:
-
Core earnings of $52.5 million for the fourth quarter and $230.1
million for the year ended December 31, 2018 compared to $60.4 million
and $178.8 million for the fourth quarter and year ended December 31,
2017, respectively -
Core EPS of $0.45 for the fourth quarter and $2.03 for the year
ended December 31, 2018 compared to $0.47 and $1.54 for the fourth
quarter and year ended December 31, 2017, respectively -
After-tax core return on average equity of 12.9% for the fourth
quarter and 14.9% for the year ended December 31, 2018 compared to
13.9% and 11.5% for the fourth quarter and year ended December 31,
2017, respectively -
Undepreciated book value per share of $15.34 at December 31, 2018,
up from $15.25 at September 30, 2018
Operating and financing statistics:
-
Increased the quarterly cash dividend rate for the sixth time since
our IPO in 2014 to $0.34/share of Class A common stock as a component
of a $0.57/share cash/stock dividend in the fourth quarter to reflect
the ongoing growth trends in recurring interest and operating lease
income, bringing total 2018 dividends to $1.535/share of Class A
common stock in 2018-
Announced today the declaration of a first quarter 2019
dividend of $0.34/share of Class A common stock
-
Announced today the declaration of a first quarter 2019
-
Raised $99.0 million of gross proceeds in a primary equity offering
in the fourth quarter of 2018 -
Originated $419.9 million of commercial mortgage loans in the
fourth quarter resulting in total originations of $2.8 billion in
2018, composed of $1.3 billion of mortgage loans held for sale and
$1.5 billion of mortgage loans held for investment -
Made $7.2 million of net leased investments in the fourth quarter
resulting in total net leased and other equity investments of $122.7
million in 2018 -
Received $5.5 million of net proceeds from sales of real estate in
the fourth quarter resulting in total proceeds from sales of real
estate in 2018 of $218.7 million and a $95.9 million GAAP gain on sale
in 2018 -
Contributed $364.8 million of loans to 3 securitization
transactions in the fourth quarter resulting in a total of $1.3
billion of loans contributed to 9 securitization transactions in 2018
NEW YORK–(BUSINESS WIRE)–Ladder Capital Corp (NYSE:LADR) (“we,” “Ladder,” or the “Company”) today
announced operating results for the quarter ended December 31, 2018.
GAAP income before taxes for the three months and year ended
December 31, 2018 was $27.8 million and $228.3 million, respectively,
compared to $48.4 million and $133.6 million for the three months and
year ended December 31, 2017, respectively. The Diluted EPS for the
three months and year ended December 31, 2018 was $0.24 and $1.84,
respectively, compared to $0.40 and $1.13 for the three months and year
ended December 31, 2017, respectively. After-tax GAAP return on average
equity was 6.9% in the fourth quarter of 2018 and 13.5% for the year.
Core earnings, a non-GAAP financial measure, was $52.5 million for the
fourth quarter of 2018, compared to $60.4 million earned in the fourth
quarter of 2017. For the year ended December 31, 2018, core earnings was
$230.1 million compared to $178.8 million for the comparable period in
2017. Core EPS, a non-GAAP financial measure, was $0.45 for the fourth
quarter of 2018 and $2.03 for the year ended December 31, 2018, compared
to $0.47 and $1.54 for the fourth quarter and year ended December 31,
2017, respectively. We believe core earnings and core EPS are useful in
evaluating our earnings from operations across reporting periods as
discussed in the Non-GAAP Financial Measures section of this earnings
release.
The favorable calendar year over year earnings variances, on both GAAP
and core bases, reflect higher gains on sale of real estate partially
offset by lower realized gains (losses) on sale of loans and securities.
The quarterly results for the three months ended December 31, 2018
compared to the comparable period in the prior year reflect higher gains
on sales of loans in the fourth quarter of 2017, when we earned $29.9
million on a GAAP basis or $30.6 million on a core basis on sales of
loans in 6 securitization transactions.
Dividend Announcement
Ladder today announced the declaration by its Board of Directors
(“Board”) of a first quarter 2019 dividend of $0.34 per share of Class A
common stock. The cash dividend is payable on April 1, 2019 to
stockholders of record as of the close of business on March 11, 2019.
Portfolio Overview
The following table summarizes the book value of our investment
portfolio as of the dates indicated below ($ in thousands):
| December 31, 2018 | December 31, 2017 | |||||||||||||
| Loans | ||||||||||||||
| Balance sheet loans: | ||||||||||||||
| Balance sheet first mortgage loans | $ | 3,170,788 | 50.5 | % | $ | 3,123,268 | 51.9 | % | ||||||
| Other commercial real estate-related loans | 147,602 | 2.4 | % | 159,194 | 2.6 | % | ||||||||
| Provision for loan losses | (17,900 | ) | (0.3 | )% | (4,000 | ) | (0.1 | )% | ||||||
| Total balance sheet loans | 3,300,490 | 52.6 | % | 3,278,462 | 54.4 | % | ||||||||
| Conduit first mortgage loans | 182,439 | 2.9 | % | 230,180 | 3.8 | % | ||||||||
| Total loans | 3,482,929 | 55.5 | % | 3,508,642 | 58.2 | % | ||||||||
| Securities | ||||||||||||||
| CMBS investments | 1,308,331 | 20.8 | % | 1,066,570 | 17.7 | % | ||||||||
| U.S. Agency Securities investments | 36,374 | 0.6 | % | 39,947 | 0.7 | % | ||||||||
| Corporate bonds | 53,871 | 0.9 | % | — | — | % | ||||||||
| Equity securities | 11,550 | 0.2 | % | — | — | % | ||||||||
| Total securities | 1,410,126 | 22.5 | % | 1,106,517 | 18.4 | % | ||||||||
| Real Estate | ||||||||||||||
| Real estate and related lease intangibles, net | 998,022 | 15.9 | % | 1,032,041 | 17.1 | % | ||||||||
| Total real estate | 998,022 | 15.9 | % | 1,032,041 | 17.1 | % | ||||||||
| Other Investments | ||||||||||||||
| Investments in unconsolidated joint ventures | 40,354 | 0.6 | % | 35,441 | 0.6 | % | ||||||||
| FHLB stock | 57,915 | 0.9 | % | 77,915 | 1.3 | % | ||||||||
| Total other investments | 98,269 | 1.5 | % | 113,356 | 1.9 | % | ||||||||
| Total investments | 5,989,346 | 95.4 | % | 5,760,556 | 95.6 | % | ||||||||
| Cash, cash equivalents and restricted cash | 98,450 | 1.6 | % | 182,683 | 3.0 | % | ||||||||
| Other assets | 185,076 | 3.0 | % | 82,376 | 1.4 | % | ||||||||
| Total assets | $ | 6,272,872 | 100.0 | % | $ | 6,025,615 | 100.0 | % | ||||||
Note: Securities are carried at fair value.
Liquidity and Capital Resources
On December 27, 2018, we executed a new $100.0 million committed loan
repurchase facility with a major banking institution to finance conduit,
balance sheet and mezzanine loans. The facility has a one-year initial
term and can be extended quarterly, subject to approval from the lender,
but at no time can the maturity of the facility exceed 364 days.
The following table summarizes our debt obligations as of the following
dates ($ in thousands):
| December 31, 2018 | December 31, 2017 | |||||
| Committed loan repurchase facilities | $ | 497,531 | $ | 398,653 | ||
| Committed securities repurchase facility | — | — | ||||
| Uncommitted securities repurchase facilities | 166,154 | 74,757 | ||||
| Total repurchase facilities | 663,685 | 473,410 | ||||
| Revolving credit facility | — | — | ||||
| Mortgage loan financing(1) | 743,902 | 692,696 | ||||
| CLO debt(2) | 601,543 | 688,479 | ||||
| Participation financing – mortgage loan receivable | 2,453 | 3,107 | ||||
| Borrowings from the FHLB | 1,286,000 | 1,370,000 | ||||
| Senior unsecured notes(3) | 1,154,991 | 1,152,134 | ||||
| Total debt obligations, net | $ | 4,452,574 | $ | 4,379,826 | ||
| (1) |
Presented net of unamortized debt issuance costs of $0.7 million as of December 31, 2018. |
|
| (2) |
Presented net of unamortized debt issuance costs of $2.6 million and $6.0 million as of December 31, 2018 and December 31, 2017, respectively. |
|
| (3) |
Presented net of unamortized debt issuance costs of $11.2 million and $14.1 million at December 31, 2018 and December 31, 2017, respectively. |
|
Conference Call and Webcast
We will host a conference call on Wednesday, February 27, 2019 at 5:00
p.m. Eastern Time to discuss fourth quarter and year-end 2018 results.
The conference call can be accessed by dialing (877) 407-4018 domestic
or (201) 689-8471 international. Individuals who dial in will be asked
to identify themselves and their affiliations. For those unable to
participate, an audio replay will be available from 8:00 p.m. Eastern
Time on Wednesday, February 27, 2019 through midnight Wednesday, March
13, 2019. To access the replay, please call (844) 512-2921 domestic or
(412) 317-6671 international, access code 13686215. The conference call
will also be webcast though a link on Ladder Capital Corp’s Investor
Relations website at ir.laddercapital.com/event. A web-based archive of
the conference call will also be available at the above website.
| Ladder Capital Corp | |||||||||||||
| Consolidated Statements of Income | |||||||||||||
| (Dollars in Thousands, Except Per Share and Dividend Data) | |||||||||||||
| Year Ended December 31, | |||||||||||||
| 2018 | 2017 | 2016 | |||||||||||
| Net interest income | |||||||||||||
| Interest income | $ | 344,816 | $ | 263,667 |
$ |
236,372 |
|||||||
| Interest expense | 194,291 | 146,118 | 120,827 | ||||||||||
| Net interest income | 150,525 | 117,549 | 115,545 | ||||||||||
| Provision for loan losses | 13,900 | — | 300 | ||||||||||
| Net interest income after provision for loan losses | 136,625 | 117,549 | 115,245 | ||||||||||
| Other income | |||||||||||||
| Operating lease income | 96,506 | 89,492 | 77,277 | ||||||||||
| Tenant recoveries | 9,671 | 7,179 | 5,958 | ||||||||||
| Sale of loans, net | 16,511 | 54,046 | 26,009 | ||||||||||
| Realized gain (loss) on securities | (5,808 | ) | 17,209 | 7,724 | |||||||||
| Unrealized gain (loss) on equity securities | (1,605 | ) | — | — | |||||||||
| Unrealized gain (loss) on Agency interest-only securities | 555 | 1,405 | (56 | ) | |||||||||
| Realized gain on sale of real estate, net | 95,881 | 11,423 | 20,636 | ||||||||||
| Fee and other income | 26,285 | 18,341 | 21,365 | ||||||||||
| Net result from derivative transactions | 15,926 | (12,641 | ) | (1,409 | ) | ||||||||
| Earnings (loss) from investment in unconsolidated joint ventures | 790 | 89 | 426 | ||||||||||
| Gain (loss) on extinguishment/defeasance of debt | (4,392 | ) | (73 | ) | 5,382 | ||||||||
| Total other income | 250,320 | 186,470 | 163,312 | ||||||||||
| Costs and expenses | |||||||||||||
| Salaries and employee benefits | 60,117 | 70,463 | 64,270 | ||||||||||
| Operating expenses | 21,696 | 21,421 | 20,552 | ||||||||||
| Real estate operating expenses | 29,799 | 33,216 | 30,545 | ||||||||||
| Fee expense | 5,055 | 4,996 | 3,703 | ||||||||||
| Depreciation and amortization | 41,959 | 40,332 | 39,447 | ||||||||||
| Total costs and expenses | 158,626 | 170,428 | 158,517 | ||||||||||
| Income (loss) before taxes | 228,319 | 133,591 | 120,040 | ||||||||||
| Income tax expense (benefit) | 6,643 | 7,712 | 6,320 | ||||||||||
| Net income (loss) | 221,676 | 125,879 | 113,720 | ||||||||||
|
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures |
(15,864 | ) | (226 | ) | 138 | ||||||||
|
Net (income) loss attributable to noncontrolling interest in operating partnership |
(25,797 | ) | (30,377 | ) | (47,131 | ) | |||||||
| Net income (loss) attributable to Class A common shareholders | $ | 180,015 | $ | 95,276 |
$ |
66,727 |
|||||||
| Earnings per share: | |||||||||||||
| Basic | $ | 1.85 | $ | 1.16 |
$ |
1.08 |
|||||||
| Diluted | $ | 1.84 | $ | 1.13 |
$ |
1.06 |
|||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 97,226,027 | 81,902,524 | 61,998,089 | ||||||||||
| Diluted | 97,652,065 | 109,704,880 | 107,638,788 | ||||||||||
| Dividends per share of Class A common stock: | $ | 1.535 | $ | 1.215 |
$ |
1.285 |
|||||||
| Ladder Capital Corp | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Dollars in Thousands) | ||||||||
| December 31, 2018(1) | December 31, 2017(1) | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 67,878 | $ | 76,674 | ||||
| Restricted cash | 30,572 | 106,009 | ||||||
|
Mortgage loan receivables held for investment, net, at amortized cost: |
||||||||
| Mortgage loans held by consolidated subsidiaries | 3,318,390 | 3,282,462 | ||||||
| Provision for loan losses | (17,900 | ) | (4,000 | ) | ||||
| Mortgage loan receivables held for sale | 182,439 | 230,180 | ||||||
| Real estate securities | 1,410,126 | 1,106,517 | ||||||
| Real estate and related lease intangibles, net | 998,022 | 1,032,041 | ||||||
| Investments in unconsolidated joint ventures | 40,354 | 35,441 | ||||||
| FHLB stock | 57,915 | 77,915 | ||||||
| Derivative instruments | — | 888 | ||||||
| Accrued interest receivable | 27,214 | 25,875 | ||||||
| Other assets | 157,862 | 55,613 | ||||||
| Total assets | $ | 6,272,872 | $ | 6,025,615 | ||||
| Liabilities and Equity | ||||||||
| Liabilities | ||||||||
| Debt obligations, net | $ | 4,452,574 | $ | 4,379,826 | ||||
| Due to brokers | 1,301 | 14 | ||||||
| Derivative instruments | 975 | 2,606 | ||||||
| Amount payable pursuant to tax receivable agreement | 1,570 | 1,656 | ||||||
| Dividends payable | 37,316 | 30,528 | ||||||
| Accrued expenses | 82,425 | 59,619 | ||||||
| Other liabilities | 53,076 | 63,220 | ||||||
| Total liabilities | 4,629,237 | 4,537,469 | ||||||
| Commitments and contingencies | — | — | ||||||
| Equity | ||||||||
|
Class A common stock, par value $0.001 per share, 600,000,000 |
105 | 94 | ||||||
|
Class B common stock, par value $0.001 per share, 100,000,000 |
13 | 18 | ||||||
| Additional paid-in capital | 1,471,157 | 1,306,136 | ||||||
| Treasury stock, 2,701,162 and 2,617,587 shares, at cost | (32,815 | ) | (31,956 | ) | ||||
| Retained earnings (dividends in excess of earnings) | 11,342 | (39,112 | ) | |||||
| Accumulated other comprehensive income (loss) | (4,649 | ) | (212 | ) | ||||
| Total shareholders’ equity | 1,445,153 | 1,234,968 | ||||||
| Noncontrolling interest in operating partnership | 188,427 | 240,861 | ||||||
| Noncontrolling interest in consolidated joint ventures | 10,055 | 12,317 | ||||||
| Total equity | 1,643,635 | 1,488,146 | ||||||
| Total liabilities and equity | $ | 6,272,872 | $ | 6,025,615 | ||||
|
__________________________ |
||
| (1) | Includes amounts relating to consolidated variable interest entities. | |
Non-GAAP Financial Measures
We present core earnings, core EPS, and after-tax core return on average
equity (“after-tax core ROAE”), which are non-GAAP financial measures,
as supplemental measures of our performance. We believe core earnings,
core EPS and after-tax core ROAE assist investors in comparing our
performance across reporting periods on a more relevant and consistent
basis by excluding certain non-cash expenses and unrecognized results as
well as eliminating timing differences related to securitization gains
and changes in the values of assets and derivatives. We use core
earnings, core EPS and after-tax core ROAE: (i) to evaluate our earnings
from operations and (ii) because management believes that they may be
useful performance measures for us. In addition, core earnings is used
as a factor in determining the annual incentive compensation of our
senior managers and other employees.
We consider the Class A common shareholders of the Company and limited
partners of Ladder Capital Finance Holdings LLLP other than Ladder
Capital Corp (“Continuing LCFH Limited Partners”) to have fundamentally
equivalent interests in our pre-tax earnings and net income.
Accordingly, for purposes of computing core earnings, core EPS and
after-tax core ROAE, we start with pre-tax earnings or net income and
adjust for other noncontrolling interest in consolidated joint ventures
but we do not adjust for amounts attributable to noncontrolling interest
held by Continuing LCFH Limited Partners. Similarly, when calculating
undepreciated book value per share we include total shareholders’ equity
and the noncontrolling interest held by Continuing LCFH Limited
Partners, but exclude noncontrolling interest in consolidated joint
ventures.
Core earnings
We define core earnings as income before taxes adjusted for (i) real
estate depreciation and amortization, (ii) the impact of derivative
gains and losses related to the hedging of assets on our balance sheet
as of the end of the specified accounting period, (iii) unrealized
gains/(losses) related to our investments in fair value securities and
passive interest in unconsolidated joint ventures, (iv) economic gains
on securitization transactions not recognized under GAAP accounting for
which risk has substantially transferred during the period and the
exclusion of resultant GAAP recognition of the related economics during
the subsequent periods, (v) non-cash stock-based compensation and (vi)
certain transactional items.
For core earnings, we include adjustments for economic gains on
securitization transactions not recognized under GAAP accounting for
which risk has substantially transferred during the period and exclusion
of resultant GAAP recognition of the related economics during the
subsequent periods. This adjustment is reflected in core earnings when
there is a true risk transfer on the mortgage loan transfer and
settlement. Historically, this has represented the impact of economic
gains/(discounts) on intercompany loans secured by our own real estate
which we had not previously recognized because such gains were
eliminated in consolidation. Conversely, if the economic risk was not
substantially transferred, no adjustments to net income would be made
relating to those transactions for core earnings purposes. Management
believes recognizing these amounts for core earnings purposes in the
period of transfer of economic risk is a reasonable supplemental measure
of our performance.
We do not designate derivatives as hedges to qualify for hedge
accounting and therefore any net payments under, or fluctuations in the
fair value of, our derivatives are recognized currently in our income
statement. However, fluctuations in the fair value of the related assets
are not included in our income statement. We consider the gain or loss
on our hedging positions related to assets that we still own as of the
reporting date to be “open hedging positions.” While recognized for GAAP
purposes, we exclude the results on the hedges from core earnings until
the related asset is sold and the hedge position is considered “closed,”
whereupon they would then be included in core earnings in that period.
These are reflected as “adjustments for unrecognized derivative results”
for purposes of computing core earnings for the period. We believe that
excluding these specifically identified gains and losses associated with
the open hedging positions adjusts for timing differences between when
we recognize changes in the fair values of our assets and changes in the
fair value of the derivatives used to hedge such assets.
Our investments in Agency interest-only securities and equity securities
are recorded at fair value with changes in fair value recorded in
current period earnings. We believe that excluding these specifically
identified gains and losses associated with the fair value securities
adjusts for timing differences between when we recognize changes in the
fair values of our assets.
Core EPS
Core EPS is defined as after-tax core earnings divided by the adjusted
weighted average diluted shares outstanding during the period. The
adjusted weighted average diluted shares outstanding is defined as the
GAAP weighted average diluted shares outstanding, adjusted for shares
issuable upon conversion of all Class B shares, if excluded from the
GAAP measure because they would have an anti-dilutive effect. The
inclusion of shares issuable upon conversion of Class B shares is
consistent with the inclusion of income attributable to noncontrolling
interest in operating partnership in core earnings and after-tax core
earnings.
Set forth below is an unaudited reconciliation of net income to
after-tax core earnings, and an unaudited computation of core EPS ($ in
thousands, except per share data):
|
Three Months Ended |
Year Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net income (loss) | $ | 26,846 | $ | 45,370 | $ | 221,676 | $ | 125,879 | ||||||||
| Income tax expense (benefit) | 964 | 3,058 | 6,643 | 7,712 | ||||||||||||
| Income (loss) before taxes | 27,810 | 48,428 | 228,319 | 133,591 | ||||||||||||
|
Net (income) loss attributable to noncontrolling interest in |
261 | (101 | ) | (15,895 | ) | (258 | ) | |||||||||
|
Our share of real estate depreciation, amortization and gain adjustments(2) |
7,536 | 9,372 | 9,935 | 35,891 | ||||||||||||
| Adjustments for unrecognized derivative results(3) | 16,301 | (3,651 | ) | (19 | ) | (10,139 | ) | |||||||||
| Unrealized (gain) loss on fair value securities | 1,506 | (371 | ) | 1,050 | (1,405 | ) | ||||||||||
|
Adjustment for economic gain on securitization transactions not |
(258 | ) | (1,942 | ) | (788 | ) | 1,026 | |||||||||
| Non-cash stock-based compensation | 1,807 | 8,621 | 9,994 | 20,043 | ||||||||||||
| Transactional adjustments(4) | (2,488 | ) | — | (2,488 | ) | — | ||||||||||
| Core earnings | 52,475 | 60,356 | 230,108 | 178,749 | ||||||||||||
| Core estimated corporate tax benefit (expense)(5) | (1,255 | ) | (9,014 | ) | (3,680 | ) | (9,265 | ) | ||||||||
| After-tax core earnings | $ | 51,220 | $ | 51,342 | $ | 226,428 | $ | 169,484 | ||||||||
| Adjusted weighted average diluted shares outstanding(6) | 113,683 | 109,783 | 111,280 | 109,705 | ||||||||||||
| Core EPS | $ | 0.45 | $ | 0.47 | $ | 2.03 | $ | 1.54 | ||||||||
| (1) |
Includes $8 thousand and $8 thousand of net income attributable to noncontrolling interest in consolidated joint ventures which are included in net (income) loss attributable to noncontrolling interest in operating partnership on the consolidated statements of income for the three months ended December 31, 2018 and 2017, respectively. Includes $31 thousand and $32 thousand of net income attributable to noncontrolling interest in consolidated joint ventures which are included in net (income) loss attributable to noncontrolling interest in operating partnership on the consolidated statements of income for the year ended December 31, 2018 and 2017, respectively. |
| (2) |
The following is a reconciliation of GAAP depreciation and amortization to our share of real estate depreciation, amortization and gain adjustments presented in the computation of core earnings in the preceding table ($ in thousands): |
|
Three Months Ended |
Year Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Total GAAP depreciation and amortization | $ | 10,063 | $ | 11,009 | $ | 41,959 | $ | 40,332 | ||||||||
|
Less: Depreciation and amortization related to non-rental property fixed assets |
(19 |
) | (23 | ) | (75 | ) | (93 | ) | ||||||||
|
Less: Non-controlling interest in consolidated joint ventures’ |
(1,640 | ) | (465 | ) | (4,087 | ) | (1,290 | ) | ||||||||
| Our share of real estate depreciation and amortization |
8,404 |
10,521 | 37,797 | 38,949 | ||||||||||||
|
Realized gain from accumulated depreciation and amortization on |
(416 | ) | (818 | ) | (27,968 | ) | (2,277 | ) | ||||||||
|
Less: Non-controlling interest in consolidated joint ventures’ |
2 | 5 | 1,845 | 17 | ||||||||||||
|
Our share of accumulated depreciation and amortization on real |
(414 | ) | (813 | ) | (26,123 | ) | (2,260 | ) | ||||||||
|
Less: Operating lease income on above/below market lease intangible amortization |
(454 | ) | (336 | ) | (1,739 | ) | (798 | ) | ||||||||
|
Our share of real estate depreciation, amortization and gain adjustments |
$ |
7,536 |
$ | 9,372 | $ | 9,935 | $ | 35,891 | ||||||||
GAAP gains/losses on sales of real estate include the effects of
previously recognized real estate depreciation and amortization. For
purposes of core earnings, our share of real estate depreciation and
amortization is eliminated and, accordingly, the resultant gains/losses
also must be adjusted. Following is a reconciliation of the related
consolidated GAAP amounts to the amounts reflected in core earnings:
|
Three Months Ended |
Year Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| GAAP realized gain on sale of real estate, net | $ | (460 | ) | $ | 3,633 | $ | 95,881 | $ | 11,423 | |||||||
|
Adjusted gain/loss on sale of real estate for purposes of core earnings |
874 | (2,820 | ) | (69,758 | ) | (9,163 | ) | |||||||||
|
Our share of accumulated depreciation and amortization on real estate sold |
$ | 414 | $ | 813 | $ | 26,123 | $ | 2,260 | ||||||||
| (3) |
The following is a reconciliation of GAAP net results from derivative transactions to our unrecognized derivative result presented in the computation of core earnings in the preceding table ($ in thousands): |
|
Three Months Ended |
Year Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net results from derivative transactions | $ | (13,230 | ) | $ | 5,710 | $ | 15,926 | $ | (12,641 | ) | ||||||
| Hedging interest expense | 1,445 | 2,749 | 7,234 | 15,320 | ||||||||||||
| Hedging realized result | (4,516 | ) | (4,808 | ) | (23,141 | ) | 7,460 | |||||||||
| Adjustments for unrecognized derivative results | $ | (16,301 | ) | $ | 3,651 | $ | 19 | $ | 10,139 | |||||||
Contacts
Investors
Ladder Capital Corp Investor Relations
(917)
369-3207
investor.relations@laddercapital.com
