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The Best Vote Of Confidence Is Having 'Skin In The Game'

Aug. 06, 2018 7:15 AM ETLadder Capital Corp (LADR)74 Comments


  • I am pleased to see this puppy bounce as I knew a long time ago that this company had all of the ingredients of something special.
  • It took a while for the big money players to get serious with Ladder, but it appears that the pre-IPO shareholders have moved on, and trading volume has picked up.
  • We believe that based on the latest earnings results and strong “skin in the game,” there’s more room to run.
  • Members of my private investing community, Intelligent REIT Investor, receive access to my breaking news coverage of this idea. Get started today >>

My first research article on Ladder Capital (NYSE:LADR) was over three years ago, and since that time I have maintained optimism regarding this uniquely-positioned commercial mortgage REIT. In November 2016 I explained,

We like LADR for all of the obvious reasons - internal management, low dividend payout ratio, diversified sources of income, and experienced management team. We would like to see LADR take a few steps to get more visibility in the marketplace - like issuing preferred shares. Also, we would like to see a more diversified ownership base, reducing concentration with some of the heavy hitters.”

A close up of a map Description generated with high confidence

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Boo-yah back at ya’. Yup, I am pleased to see this puppy bounce as I knew a long time ago that this company had all of the ingredients of something special. It took a while for the big money players to get serious with Ladder, but it appears that the pre-IPO shareholders have moved on, and the average daily trading volume has picked up quite a bit.

A close up of a map Description generated with high confidence

In addition to being internally-managed, Ladder has a few more distinct differentiators, including:

  • A robust origination team with 20 originators in 2 offices, including 7 Managing Directors
  • Long-standing direct borrower and key broker relationships nationwide
  • Loyal client base - more than 50% of balance sheet loans to repeat borrowers
  • Certainty of execution and ability to act quickly with key decision makers in the same building
  • Flexibility to originate and manage multiple CRE products
  • Leveraging deep CRE credit expertise through the capital stack

Additionally, one of the best things I like about Ladder is the fact that management and directors own over $185 million of stock (that represents over 12% of total equity market cap). That goes without saying, senior executives can talk all they want, but the best vote of confidence is putting one's own money on the line just

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This article was written by

Brad Thomas profile picture
Leader of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I am/we are long ACC, AVB, BHR, BPY, BRX, BXMT, CCI, CHCT, CIO, CLDT, CONE, CORR, CTRE, CXP, CUBE, DEA, DLR, DOC, EPR, EQIX, ESS, EXR, FRT, GEO, GMRE, GPT, HASI, HT, HTA, INN, IRET, IRM, JCAP, KIM, KREF, KRG, LADR, LAND, LMRK, LTC, MNR, NNN, NXRT, O, OFC, OHI, OUT, PEB, PEI, PK, PSB, PTTTS, QTS, REG, RHP, ROIC, SBRA, SKT, SPG, SRC, STAG, STOR, TCO, TRTX, UBA, UMH, UNIT, VER, VICI, VNO, VNQ, VTR, WPC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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