Our analysis is based on comparing Ladder Capital Corp. with the following peers – Walker & Dunlop, Inc., PennyMac Financial Services, Inc. Class A, Ellington Financial LLC, Vestin Realty Mortgage I, Inc., Walter Investment Management Corp., America First Multifamily Investors, L.P. and Hannon Armstrong Sustainable Infrastructure Capital, Inc. (WD-US, PFSI-US, EFC-US, VRTA-US, WAC-US, ATAX-US and HASI-US).
Ladder Capital Corp.’s dividend yield is 12.27 percent and its dividend payout is 98.36 percent. This compares to a peer median dividend yield of 9.97 percent and a payout level of 189.36 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking at this peer group. The downside is the company’s relatively low dividend quality score of 17 out of a possible score of 100.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), LADR-US paid a low quality dividend, which represents a yield of 8.79% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), LADR-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of -2.39x), investing cash flow (coverage of 1.57x), issuance cash flow (coverage of 1.68x) and twelve-month prior cash (coverage of 0.98x), for a total dividend coverage of 1.98x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||N/A||N/A||0||5.82||6.84||12.27|
|Dividend Payout (%)||N/A||N/A||0||93.31||106.13||98.36|
A complete list of metrics and analysis is available on the company page.
Ladder Capital Corp. operates as a holding company, which engages in commercial real estate finance services. The company invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. It operates three business lines: commercial mortgage lending, investments in securities secured by first mortgage loans and investments in selected net leased and other commercial real estate assets. Ladder Capital was founded on May 21, 2013 and is headquartered in New York, NY.
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