Highlights

  • Ladder shows 25.85% one-year basic EPS growth, a P/E of 11.75 and PEG of -0.56.
  • Third quarter basic earnings per share were $0.53 against $0.15 a year earlier.
  • Ladder recorded a $65,627 thousand gain on real estate in the third quarter.
  • Ladder repurchased 870,703 shares at an average $9.38 in the third quarter.

Growth, P/E and PEG sit side by side at Ladder Capital (NYSE:LADR), an undervalued growth stock: basic earnings per share grew 25.85% over one year, the trailing twelve-month P/E ratio is 11.75 and the PEG ratio, on an expected basis, is -0.56, with shares trading at USD 9.34 on October 28, 2026, down 0.16%. On the company's side, the commercial real estate finance REIT increased its unsecured revolving credit facility to $1.25 billion on February 20, authorized a $100.0 million share repurchase on April 21, and reported third quarter 2026 net income attributable to Class A common shareholders of $65,865 thousand in a quarterly report dated October 26.

Based in New York and incorporated in Delaware, Ladder Capital describes itself as an internally managed real estate investment trust and a leader in commercial real estate finance. It originates senior first mortgage loans, owns and operates commercial real estate, including net leased properties, and invests in securities secured by first mortgage loans. Its businesses are balance sheet lending, conduit lending, securities investments and real estate investments. Ladder was founded in October 2008 and completed its initial public offering in February 2014.

Growth: Third Quarter EPS, Interest Income and Property Sale

Net income attributable to Class A common shareholders was $65,865 thousand in the third quarter against $19,189 thousand a year earlier, and $83,057 thousand for the nine months against $48,293 thousand. Basic earnings per share were $0.53 against $0.15, and diluted earnings per share were $0.53 against $0.15.

Interest income was $80,446 thousand against $71,768 thousand, and interest expense was $51,616 thousand against $37,605 thousand. Net interest income was $28,830 thousand against $34,163 thousand. The company recorded a gain on real estate, net, of $65,627 thousand, which it attributed to one property sale, against no gain in the third quarter of 2025. Fee and other income was a loss of $5,526 thousand against income of $3,864 thousand.

Distributable earnings, a non-GAAP measure, were $44,667 thousand in the third quarter against $30,814 thousand in the second quarter. In the third quarter Ladder funded $200.4 million of loans and purchased $481.0 million of securities.

Valuation: P/E of 11.75, PEG of -0.56 and Management Commentary

The P/E ratio of 11.75 is measured on trailing twelve-month earnings, and the PEG ratio of -0.56 on an expected basis. Total shareholders' equity was $1,463,135 thousand at September 30, 2026 against $1,483,926 thousand at December 31, 2025. Dividends declared were $0.23 per share on September 15, 2026.

On the third quarter call on October 16, President Pamela McCormack said management believes the company's stock is undervalued and that repurchases at those levels are accretive to book value.

Capital and Balance Sheet: Unsecured Notes, Credit Facilities and Buybacks

Ladder had $2.2 billion of senior unsecured notes outstanding at September 30, 2026 and repurchased $12.5 million of the 2027 Notes during the nine months. Borrowings were $508.0 million under the unsecured revolving credit facility and $275 million under the term loan facility. Securities repurchase debt was $874.8 million. Debt obligations, net, were $4,346,438 thousand against $3,510,402 thousand at December 31, 2025. The company maintains a $4.5 billion pool of unencumbered assets and generally seeks a debt-to-equity ratio of approximately 3.0:1.0 or below.

In the third quarter Ladder repurchased 870,703 shares of Class A common stock at an average price of $9.38. The remaining authorization was $83,779 thousand at September 30, 2026.

Disclosed Risks and Outlook: Non-Accrual Loans, Rates and Origination Pace

Loans on non-accrual status had an amortized cost of $60,574 thousand against $129,679 thousand at December 31, 2025, comprising a hotel loan of $50.7 million and an office loan of $9.9 million. The company charged off $3.5 million of its credit loss allowance on a loan collateralized by an office property in Minneapolis, and the allowance for credit losses was $44.3 million. Fee and other income reflected a realized loss of $4.5 million on a fixed-rate CMBS. The company stated it is not presently a party to any material litigation.

On the call, Chief Executive Officer Brian Harris said the increase in interest rates in September would slow refinancing activity and that buyers were asking for lower purchase prices, which slowed origination pipelines. Chief Financial Officer Paul Miceli estimated that each 25-basis-point increase in SOFR adds approximately one penny per share per quarter to distributable earnings, and said the company expects to take ownership of the Minneapolis office property in the fourth quarter.