Ladder Capital CorpLADR
Ladder Capital Corp Fair Value Disclosure
13. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing.
Fair Value Summary Table
The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis or amortized cost/par, at December 31, 2025 and December 31, 2024 are as follows ($ in thousands):
December 31, 2025
| Weighted Average | |||||||||||||||||||||||||||||||||||
| Assets: | Principal Amount | Amortized Cost Basis/Purchase Price | Fair Value | Fair Value Method | Yield % | Remaining Maturity/Duration (years) | |||||||||||||||||||||||||||||
| CMBS(1) | $ | 2,070,492 | $ | 2,069,307 | $ | 2,064,922 | Internal model | 5.31 % | 2.97 | ||||||||||||||||||||||||||
| CMBS interest-only(1) | 347,200 | (2) | 1,283 | 1,275 | Internal model | 8.63 % | 0.52 | ||||||||||||||||||||||||||||
| GNMA interest-only(3) | 29,203 | (2) | 95 | 167 | Internal model | 9.24 % | 3.27 | ||||||||||||||||||||||||||||
| Agency securities(1) | 2 | 2 | 2 | Internal model | 3.04 % | 0.19 | |||||||||||||||||||||||||||||
| Corporate bonds(1) | 9,250 | 9,231 | 9,240 | Internal model | 8.58 | % | 2.60 | ||||||||||||||||||||||||||||
| Equity securities(3) | N/A | 12,910 | 12,699 | Observable market prices | N/A | N/A | |||||||||||||||||||||||||||||
| Mortgage loan receivables held for investment, net, at amortized cost(4) | 2,234,346 | 2,217,375 | 2,214,987 | Discounted Cash Flow(5) | 7.76 | % | 1.57 | ||||||||||||||||||||||||||||
| Mortgage loan receivables held for sale | 31,350 | 27,986 | 27,986 | Internal model, third-party inputs(6) | 4.57 | % | 6.92 | ||||||||||||||||||||||||||||
| Nonhedge derivatives(1)(7) | 113,500 | 264 | 264 | Counterparty quotations | N/A | 0.22 | |||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Repurchase agreements - short-term | 627,012 | 627,012 | 627,012 | Cost plus Accrued Interest(8) | 4.29 | % | 0.04 | ||||||||||||||||||||||||||||
| Unsecured Revolving Credit Facility | 280,000 | 280,000 | 280,000 | (9) | 2.42 | % | 2.97 | ||||||||||||||||||||||||||||
| Mortgage loan financing | 386,543 | 388,195 | 385,460 | Discounted Cash Flow | 5.88 | % | 4.01 | ||||||||||||||||||||||||||||
| Senior unsecured notes | 2,233,409 | 2,215,195 | 2,265,416 | Internal model | 5.29 | % | 3.54 | ||||||||||||||||||||||||||||
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Balance does not include impact of allowance for current expected credit losses of $47.1 million at December 31, 2025.
(5)Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads since origination. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.
(6)Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.
(7)The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(8)For repurchase agreements - short term, the value approximates the cost plus accrued interest.
(9)Fair value for the Unsecured Revolving Credit Facility is estimated to approximate the outstanding face.
December 31, 2024
| Weighted Average | |||||||||||||||||||||||||||||||||||
| Assets: | Principal Amount | Amortized Cost Basis/Purchase Price | Fair Value | Fair Value Method | Yield % | Remaining Maturity/Duration (years) | |||||||||||||||||||||||||||||
| CMBS(1) | $ | 1,065,985 | $ | 1,063,835 | $ | 1,058,873 | Internal model | 6.13 | % | 2.41 | |||||||||||||||||||||||||
| CMBS interest-only(1) | 769,724 | (2) | 3,149 | 3,244 | Internal model | 7.81 | % | 0.87 | |||||||||||||||||||||||||||
| GNMA interest-only(3) | 32,710 | (2) | 160 | 155 | Internal model | 9.38 | % | 3.64 | |||||||||||||||||||||||||||
| Agency securities(1) | 11 | 11 | 11 | Internal model | 2.60 | % | 0.58 | ||||||||||||||||||||||||||||
| Equity securities(3) | N/A | 19,511 | 18,575 | Observable market prices | N/A | N/A | |||||||||||||||||||||||||||||
| Mortgage loan receivables held for investment, net, at amortized cost(4) | 1,596,277 | 1,591,322 | 1,575,911 | Discounted Cash Flow(5) | 9.36 | % | 0.86 | ||||||||||||||||||||||||||||
| Mortgage loan receivables held for sale | 31,350 | 26,898 | 26,898 | Internal model, third-party inputs(6) | 4.57 | % | 7.18 | ||||||||||||||||||||||||||||
| Nonhedge derivatives(1)(9) | 90,000 | 437 | 437 | Counterparty quotations | N/A | 0.62 | |||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Repurchase agreements - short-term | 62,738 | 62,738 | 62,738 | Cost plus Accrued Interest(7) | 6.55 | % | 0.74 | ||||||||||||||||||||||||||||
| Mortgage loan financing | 443,733 | 446,397 | 435,048 | Discounted Cash Flow | 6.09 | % | 3.36 | ||||||||||||||||||||||||||||
| CLO debt | 601,464 | 601,380 | 601,430 | Discounted Cash Flow(8) | 2.01 | % | 0.98 | ||||||||||||||||||||||||||||
| Senior unsecured notes | 2,041,557 | 2,025,053 | 2,001,207 | Internal model | 5.22 | % | 3.72 | ||||||||||||||||||||||||||||
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Balance does not include impact of allowance for current expected credit losses of $52.3 million at December 31, 2024.
(5)Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads since origination. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.
(6)Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.
(7)For repurchase agreements - short term, the value approximates the cost plus accrued interest.
(8)For CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.
(9)The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2025 and December 31, 2024 ($ in thousands):
December 31, 2025
| Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition | Principal Amount | Fair Value | ||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| CMBS(1) | $ | 2,061,579 | $ | — | $ | 2,056,177 | $ | — | $ | 2,056,177 | ||||||||||||||||||||||
| CMBS interest-only(1) | 339,241 | (2) | — | 1,171 | — | 1,171 | ||||||||||||||||||||||||||
| GNMA interest-only(3) | 29,203 | (2) | — | 167 | — | 167 | ||||||||||||||||||||||||||
| Agency securities(1) | 2 | — | 2 | — | 2 | |||||||||||||||||||||||||||
| Corporate bonds(1) | 9,250 | — | 9,240 | — | 9,240 | |||||||||||||||||||||||||||
| Equity securities | N/A | 12,699 | — | — | 12,699 | |||||||||||||||||||||||||||
| Nonhedge derivatives(4) | 113,500 | 264 | — | — | 264 | |||||||||||||||||||||||||||
| $ | 12,963 | $ | 2,066,757 | $ | — | $ | 2,079,720 | |||||||||||||||||||||||||
| Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition | Principal Amount | Fair Value | ||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Mortgage loan receivables held for investment, net, at amortized cost(5) | $ | 2,234,346 | $ | — | $ | — | $ | 2,214,987 | $ | 2,214,987 | ||||||||||||||||||||||
| Mortgage loan receivable held for sale(6) | 31,350 | — | — | 27,986 | 27,986 | |||||||||||||||||||||||||||
| CMBS(7) | 8,913 | — | 8,745 | — | 8,745 | |||||||||||||||||||||||||||
| CMBS interest-only(7) | 7,958 | — | 104 | — | 104 | |||||||||||||||||||||||||||
| $ | — | $ | 8,849 | $ | 2,242,973 | $ | 2,251,822 | |||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Repurchase agreements - short-term | $ | 627,012 | $ | — | $ | 627,012 | $ | — | $ | 627,012 | ||||||||||||||||||||||
| Unsecured Revolving Credit Facility | 280,000 | — | — | 280,000 | 280,000 | |||||||||||||||||||||||||||
| Mortgage loan financing | 386,543 | — | — | 385,460 | 385,460 | |||||||||||||||||||||||||||
| Senior unsecured notes | 2,233,409 | — | 2,265,416 | — | 2,265,416 | |||||||||||||||||||||||||||
| $ | — | $ | 2,892,428 | $ | 665,460 | $ | 3,557,888 | |||||||||||||||||||||||||
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(5)Balance does not include impact of allowance for current expected credit losses of $47.1 million at December 31, 2025.
(6)A lower of cost or market adjustment was recorded as of December 31, 2025.
(7)Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost.
December 31, 2024
| Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition | Principal Amount | Fair Value | ||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| CMBS(1) | $ | 1,056,844 | $ | — | $ | 1,049,986 | $ | — | $ | 1,049,986 | ||||||||||||||||||||||
| CMBS interest-only(1) | 761,537 | (2) | — | 3,037 | — | 3,037 | ||||||||||||||||||||||||||
| GNMA interest-only(3) | 32,710 | (2) | — | 155 | — | 155 | ||||||||||||||||||||||||||
| Agency securities(1) | 11 | — | 11 | — | 11 | |||||||||||||||||||||||||||
| Equity securities | N/A | 18,575 | — | — | 18,575 | |||||||||||||||||||||||||||
| Nonhedge derivatives(4) | 90,000 | — | 437 | — | 437 | |||||||||||||||||||||||||||
| $ | 18,575 | $ | 1,053,626 | $ | — | $ | 1,072,201 | |||||||||||||||||||||||||
| Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition | Principal Amount | Fair Value | ||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Mortgage loan receivables held for investment, net, at amortized cost(5) | $ | 1,596,277 | $ | — | $ | — | $ | 1,575,911 | $ | 1,575,911 | ||||||||||||||||||||||
| Mortgage loan receivable held for sale(6) | 31,350 | — | — | 26,898 | 26,898 | |||||||||||||||||||||||||||
| CMBS(7) | 9,142 | — | 8,887 | — | 8,887 | |||||||||||||||||||||||||||
| CMBS interest-only(7) | 8,187 | — | 207 | — | 207 | |||||||||||||||||||||||||||
| $ | — | $ | 9,094 | $ | 1,602,809 | $ | 1,611,903 | |||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Repurchase agreements - short-term | $ | 62,738 | $ | — | $ | 62,738 | $ | — | $ | 62,738 | ||||||||||||||||||||||
| Mortgage loan financing | 443,733 | — | — | 435,048 | 435,048 | |||||||||||||||||||||||||||
| CLO debt | 601,464 | — | 601,430 | — | 601,430 | |||||||||||||||||||||||||||
| Senior unsecured notes | 2,041,557 | — | 2,001,207 | — | 2,001,207 | |||||||||||||||||||||||||||
| $ | — | $ | 2,665,375 | $ | 435,048 | $ | 3,100,423 | |||||||||||||||||||||||||
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(5)Balance does not include impact of allowance for current expected credit losses of $52.3 million at December 31, 2024.
(6)A lower of cost or market adjustment was recorded as of December 31, 2024.
(7)Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost.
(8)As of December 31, 2024, the Company determined that $2.0 billion of senior unsecured notes were Level 2 based on the Company’s increased observability of the inputs used to internally value the senior unsecured notes.
The Company did not have any Level 3 financial instruments as of December 31, 2025 and December 31, 2024.
Nonrecurring Fair Values
The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may be impaired. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of assets value due to impairment. Refer to Note 3, Mortgage Loan Receivables and Note 5, Real Estate and Related Lease Intangibles, Net, for disclosure of Level 3 inputs for certain assets measured on a nonrecurring basis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 9, 2026 | Showing above |
| 2024 | Feb 10, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 7, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.