Ladder Capital CorpLADR
Ladder Capital Corp Segments Disclosure
17. SEGMENT REPORTING
The Company has determined that it has three reportable segments based on how the chief operating decision maker (“CODM”), the Chief Executive Officer, reviews and manages the business. The CODM uses net income (loss) to measure segment operating performance. All of the Company’s expenses are reviewed regularly and are included in segment operating performance. These reportable segments include loans, securities, and real estate. The loans segment includes all of the Company’s activities related to mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment includes of all of the Company’s activities related to securities, which include investments in CMBS, U.S. Agency securities, corporate bonds, equity securities and U.S. Treasury securities not classified as cash and cash equivalents. The real estate segment includes all of the Company’s activities related to net leased properties, other diversified real estate and investments in unconsolidated ventures. Corporate/other includes cash and cash equivalents, senior unsecured notes, compensation and employee benefits, operating expenses, and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals.
The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
| Year ended December 31, 2025 | Loans | Securities | Real Estate (1) | Corporate/Other(2) | Company Total | ||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | $ | 152,303 | $ | 99,689 | $ | 264 | $ | 14,638 | $ | 266,894 | |||||||||||||||||||
| Interest expense | (14,653) | (11,621) | (25,490) | (123,153) | (174,917) | ||||||||||||||||||||||||
| Net interest income (expense) | 137,650 | 88,068 | (25,226) | (108,515) | 91,977 | ||||||||||||||||||||||||
| (Provision for) release of loan loss reserves | 157 | — | — | — | 157 | ||||||||||||||||||||||||
| Net interest income (expense) after provision for (release of) loan reserves | 137,807 | 88,068 | (25,226) | (108,515) | 92,134 | ||||||||||||||||||||||||
| Other income (loss) | |||||||||||||||||||||||||||||
| Real estate operating income | — | — | 99,308 | — | 99,308 | ||||||||||||||||||||||||
| Net result from mortgage loan receivables held for sale | 4,716 | — | — | — | 4,716 | ||||||||||||||||||||||||
| Gain (loss) on real estate, net | — | — | 3,807 | — | 3,807 | ||||||||||||||||||||||||
| Fee and other income | 8,860 | 6,069 | 66 | — | 14,995 | ||||||||||||||||||||||||
| Net result from derivative transactions | 1,301 | — | 42 | 492 | 1,835 | ||||||||||||||||||||||||
| Earnings (loss) from investment in unconsolidated ventures | — | — | (1,415) | — | (1,415) | ||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | — | — | — | 151 | 151 | ||||||||||||||||||||||||
| Total other income (loss) | 14,877 | 6,069 | 101,808 | 643 | 123,397 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Compensation and employee benefits | — | — | — | (52,735) | (52,735) | ||||||||||||||||||||||||
| Operating expenses | — | — | — | (19,426) | (19,426) | ||||||||||||||||||||||||
| Real estate operating expenses | — | — | (40,475) | — | (40,475) | ||||||||||||||||||||||||
| Investment related expenses | (1,478) | (178) | (493) | (1,563) | (3,712) | ||||||||||||||||||||||||
| Depreciation and amortization | — | — | (31,550) | (445) | (31,995) | ||||||||||||||||||||||||
| Total costs and expenses | (1,478) | (178) | (72,518) | (74,169) | (148,343) | ||||||||||||||||||||||||
| Income (loss) before taxes | 151,206 | 93,959 | 4,064 | (182,041) | 67,188 | ||||||||||||||||||||||||
| Income tax (expense) benefit | — | — | — | (3,493) | (3,493) | ||||||||||||||||||||||||
| Segment net income (loss) | $ | 151,206 | $ | 93,959 | $ | 4,064 | $ | (185,534) | $ | 63,695 | |||||||||||||||||||
| Total assets as of December 31, 2025 | $ | 2,198,224 | $ | 2,088,285 | $ | 748,006 | $ | 118,035 | $ | 5,152,550 | |||||||||||||||||||
| Year ended December 31, 2024 | Loans | Securities | Real Estate (1) | Corporate/Other(2) | Company Total | ||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | $ | 247,432 | $ | 43,069 | $ | 352 | $ | 67,772 | $ | 358,625 | |||||||||||||||||||
| Interest expense | (92,187) | (61) | (32,097) | (97,192) | (221,537) | ||||||||||||||||||||||||
| Net interest income (expense) | 155,245 | 43,008 | (31,745) | (29,420) | 137,088 | ||||||||||||||||||||||||
| (Provision for) release of loan loss reserves | (13,933) | — | — | — | (13,933) | ||||||||||||||||||||||||
| Net interest income (expense) after provision for (release of) loan reserves | 141,312 | 43,008 | (31,745) | (29,420) | 123,155 | ||||||||||||||||||||||||
| Other income (loss) | |||||||||||||||||||||||||||||
| Real estate operating income | — | — | 98,681 | — | 98,681 | ||||||||||||||||||||||||
| Net result from mortgage loan receivables held for sale(3) | 2,700 | — | — | (2,670) | 30 | ||||||||||||||||||||||||
| Gain (loss) on real estate, net | — | — | 25,277 | — | 25,277 | ||||||||||||||||||||||||
| Fee and other income | 19,003 | (655) | 52 | 300 | 18,700 | ||||||||||||||||||||||||
| Net result from derivative transactions | 185 | 80 | 248 | 4,907 | 5,420 | ||||||||||||||||||||||||
| Earnings (loss) from investment in unconsolidated ventures | — | — | (79) | — | (79) | ||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | — | — | — | 188 | 188 | ||||||||||||||||||||||||
| Total other income (loss) | 21,888 | (575) | 124,179 | 2,725 | 148,217 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Compensation and employee benefits | — | — | — | (60,671) | (60,671) | ||||||||||||||||||||||||
| Operating expenses | — | — | — | (19,193) | (19,193) | ||||||||||||||||||||||||
| Real estate operating expenses | — | — | (40,568) | — | (40,568) | ||||||||||||||||||||||||
| Investment related expenses | (4,946) | (183) | (573) | (2,016) | (7,718) | ||||||||||||||||||||||||
| Depreciation and amortization | — | — | (31,888) | (439) | (32,327) | ||||||||||||||||||||||||
| Total costs and expenses | (4,946) | (183) | (73,029) | (82,319) | (160,477) | ||||||||||||||||||||||||
| Income (loss) before taxes | 158,254 | 42,250 | 19,405 | (109,014) | 110,895 | ||||||||||||||||||||||||
| Income tax (expense) benefit | — | — | — | (3,448) | (3,448) | ||||||||||||||||||||||||
| Segment net income (loss) | $ | 158,254 | $ | 42,250 | $ | 19,405 | $ | (112,462) | $ | 107,447 | |||||||||||||||||||
| Total assets as of December 31, 2024 | $ | 1,565,897 | $ | 1,080,839 | $ | 690,726 | $ | 1,507,611 | $ | 4,845,073 | |||||||||||||||||||
| Year ended December 31, 2023 | Loans | Securities | Real Estate (1) | Corporate/Other(2) | Company Total | ||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | $ | 341,840 | $ | 32,479 | $ | 12 | $ | 32,953 | $ | 407,284 | |||||||||||||||||||
| Interest expense | (122,420) | (3,177) | (31,443) | (88,057) | (245,097) | ||||||||||||||||||||||||
| Net interest income (expense) | 219,420 | 29,302 | (31,431) | (55,104) | 162,187 | ||||||||||||||||||||||||
| (Provision for) release of loan loss reserves | (25,096) | — | — | — | (25,096) | ||||||||||||||||||||||||
| Net interest income (expense) after provision for (release of) loan reserves | 194,324 | 29,302 | (31,431) | (55,104) | 137,091 | ||||||||||||||||||||||||
| Other income (loss) | |||||||||||||||||||||||||||||
| Real estate operating income | — | — | 96,950 | — | 96,950 | ||||||||||||||||||||||||
| Net result from mortgage loan receivables held for sale | (523) | — | — | — | (523) | ||||||||||||||||||||||||
| Gain (loss) on real estate, net | — | — | 8,808 | — | 8,808 | ||||||||||||||||||||||||
| Fee and other income | 8,237 | (232) | 300 | 626 | 8,931 | ||||||||||||||||||||||||
| Net result from derivative transactions | 404 | 595 | 482 | — | 1,481 | ||||||||||||||||||||||||
| Earnings (loss) from investment in unconsolidated ventures | — | — | 758 | — | 758 | ||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | — | — | — | 10,718 | 10,718 | ||||||||||||||||||||||||
| Total other income (loss) | 8,118 | 363 | 107,298 | 11,344 | 127,123 | ||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||
| Compensation and employee benefits | — | — | — | (63,618) | (63,618) | ||||||||||||||||||||||||
| Operating expenses | — | — | — | (19,503) | (19,503) | ||||||||||||||||||||||||
| Real estate operating expenses | — | — | (37,587) | — | (37,587) | ||||||||||||||||||||||||
| Investment related expenses | (6,310) | (191) | (903) | (1,443) | (8,847) | ||||||||||||||||||||||||
| Depreciation and amortization | — | — | (29,482) | (432) | (29,914) | ||||||||||||||||||||||||
| Total costs and expenses | (6,310) | (191) | (67,972) | (84,996) | (159,469) | ||||||||||||||||||||||||
| Income (loss) before taxes | 196,132 | 29,474 | 7,895 | (128,756) | 104,745 | ||||||||||||||||||||||||
| Income tax (expense) benefit | — | — | — | (4,244) | (4,244) | ||||||||||||||||||||||||
| Segment net income (loss) | $ | 196,132 | $ | 29,474 | $ | 7,895 | $ | (133,000) | $ | 100,501 | |||||||||||||||||||
| Total assets as of December 31, 2023 | $ | 3,138,794 | $ | 485,533 | $ | 733,319 | $ | 1,155,031 | $ | 5,512,677 | |||||||||||||||||||
(1)Includes the Company’s investment in unconsolidated ventures that held real estate of $44.5 million, $19.9 million and $6.9 million as of December 31, 2025, 2024 and 2023, respectively. This segment also includes the Company’s capital improvements of real estate of $8.3 million, $6.5 million and $4.4 million as of December 31, 2025, 2024 and 2023, respectively.
(2)Corporate/Other represents all corporate level and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals. Corporate/Other includes the Company’s investment in FHLB stock of $5.2 million as of December 31, 2023 and the Company’s senior unsecured notes of $2.2 billion, $2.0 billion and $1.6 billion as of December 31, 2025, 2024 and 2023, respectively. Corporate/Other also includes the Company’s stock-based compensation expense of $20.3 million, $18.8 million and $18.6 million, within compensation and employee benefits as of December 31, 2025, 2024 and 2023, respectively.
(3)Includes $3.6 million of realized gains from sales of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment that eliminate in consolidation for the year ended December 31, 2025.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.