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Ladder Achieves Investment Grade Credit Rating

1. LADR received an investment grade 'BBB-' credit rating from Fitch Ratings. 2. It is now the only commercial mortgage REIT with an investment grade rating. 3. The upgrade reflects Ladder's strong liquidity and conservative risk management. 4. Access to unsecured capital markets reduces reliance on secured financing. 5. The company aims to preserve capital while generating attractive returns.

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FAQ

Why Bullish?

LADR's new investment grade rating positions it favorably compared to competitors, potentially attracting more investors and lowering borrowing costs. Historical patterns suggest upgrades often result in immediate positive stock price movements.

How important is it?

The acquisition of an investment grade credit rating fundamentally shifts LADR's financial capabilities, making it a highly relevant event for stakeholders. This accessibility to cheaper capital is crucial for a REIT focused on growth in the commercial real estate market.

Why Long Term?

The enhancement of LADR's credit rating supports long-term growth by enabling greater capital access and attracting investor confidence. In the past, companies with improved ratings have seen sustained stock performance increases over time due to lower financing costs and increased investment opportunities.

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NEW YORK--(BUSINESS WIRE)--Ladder Capital Corp (“Ladder,” the “Company,” “we” or “our”) (NYSE: LADR), a leading commercial real estate finance REIT, announced today that the Company received an investment grade credit rating from Fitch Ratings (“Fitch”). Fitch assigned a Long-Term Issuer Default Rating of ‘BBB-’ with a Stable outlook to our subsidiaries, Ladder Capital Finance Holdings LLLP and Ladder Capital Finance Corporation. Fitch also upgraded the senior unsecured debt ratings to ‘BBB-.’ Notably, Ladder solidified its market-leading position by becoming the only commercial mortgage REIT with an investment grade rating. “We are pleased with Fitch’s investment grade rating, one of our long-standing strategic goals. This upgrade affirms our uniquely resilient business model, which focuses on originating diversified mid-market commercial real estate loans and financing the Company with primarily long-term unsecured corporate debt. This rating validates our position as a market leader and rewards our conservative operating approach, all while delivering a strong return on equity,” said Brian Harris, Ladder’s Chief Executive Officer. “This investment grade rating and our access to unsecured capital markets further reduce our reliance on secured warehouse lines and CLOs, thereby enhancing our ability to deliver market-leading certainty of execution and flexible capital solutions to our clients.” Factors cited by Fitch in Ladder’s ratings upgrade include the Company’s enhanced funding flexibility with predominantly unsecured financing, strong liquidity, conservative underwriting culture, low credit losses, below target leverage, solid risk management, and experienced management team. About Ladder Ladder is a leading diversified commercial real estate finance platform that specializes in underwriting commercial real estate across the capital stack. With $4.5 billion of assets, our investment objective is to preserve and protect shareholder capital while generating attractive risk-adjusted returns. Since 2008, we have invested over $47 billion in debt and equity, serving both institutional and middle-market clients. Our primary business is originating fixed and floating rate first mortgage loans secured by all commercial real estate property types. We also own and operate commercial real estate, including net leased commercial properties, and we invest in investment grade securities secured by first mortgage loans on commercial real estate. We are internally-managed and members of our management team and board of directors collectively own more than 11% of Ladder’s equity, making them the Company’s largest shareholder and aligning their interests closely with fellow stakeholders. Since our founding, their vision has been to support the Company’s investment platform with a conservative and durable capital structure. Our industry-leading credit ratings reflect this differentiated financing strategy. Ladder is headquartered in New York City with a regional office in Miami, Florida. All amounts in this section are as of March 31, 2025.

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