Ladder Capital Finance Holdings LLLP

Steady asset quality Diverse revenue sources Ample liquidity Concentration in commercial real estate (CRE), including transitional properties for on-balance-sheet loans More than 30% exposure to the office market which could come under pressure over the next few years Modest exposure to secured financing with the potential for margin calls The stable outlook reflects our expectation that over the next year, Ladder Capital Finance Holdings LLLP,--helped by the rebounding economy, will report mostly stable asset quality trends while maintaining adequate liquidity and leverage of 2.5x-3.5x, as measured by debt to ATE. Pandemic-related changes and pressures in commercial real estate, like the office market, could still create challenges for the company and other lenders in the coming years, but we expect Ladder

...Strengths: Weaknesses: + Steady asset quality + Diverse revenue sources + Ample liquidity + Concentration in commercial real estate (CRE), including transitional properties for on-balance-sheet loans + More than 30% exposure to the office market which could come under pressure over the next few years + Modest exposure to secured financing with the potential for margin calls Outlook The stable outlook reflects our expectation that over the next year, Ladder Capital Finance Holdings LLLP,--helped by the rebounding economy, will report mostly stable asset quality trends while maintaining adequate liquidity and leverage of 2.5x-3.5x, as measured by debt to ATE. Pandemic-related changes and pressures in commercial real estate, like the office market, could still create challenges for the company and other lenders in the coming years, but we expect Ladder to work through those while maintaining current leverage levels and adequate liquidity. We could lower the rating in the next 12 months if...

Full Report