Ladder Capital Corp (NYSE:LADR) Q2 2023 Earnings Conference Call July 26, 2023 4:30 PM ET
Company Participants
Pamela McCormack - President
Paul Miceli - CFO
Brian Harris - Founder and CEO
Conference Call Participants
Sarah Barcomb - BTIG
Stephen Laws - Raymond James
Steve DeLaney - JMP Securities
Operator
Good afternoon, and welcome to Ladder Capital Corp.'s Earnings Call for the Second Quarter of 2023. As a reminder, today's call is being recorded. This afternoon, Ladder released its financial results for the quarter ended June 30, 2023.
Before the call begins, I'd like to call your attention to the customary safe harbor disclosure in our earnings release regarding forward-looking statements. Today's call may include forward-looking statements and projections, and we refer you to our most recent Form 10-K for important factors that could cause actual results to differ materially from these statements and projections. We do not undertake any obligation to update our forward-looking statements or projections unless required by law.
In addition, Ladder will discuss certain non-GAAP financial measures on this call, which management believes are relevant to assessing the company's financial performance. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. These measures are reconciled to GAAP figures in our supplemental presentation, which is available in the Investor Relations section of our website. We also refer you to our Form 10-K and earnings supplement presentation for definitions of certain metrics, which we may cite on today's call.
At this time, I'd like to turn the call over to Ladder's President, Pamela McCormack.
Pamela McCormack
Good afternoon. We are pleased to report that the second quarter of 2023, Ladder generated distributable earnings of $41.5 million or $0.33 per share, reflecting an after-tax return on equity of 10.8%. Our dividend remains well covered from net interest margin and net rental income.
As of June 30, Ladder remains flush with liquidity and modestly levered with an adjusted leverage ratio of 1.7 times. As of quarter end, Ladder had $777 million or 14% of our assets in cash and cash equivalents with $1.1 billion of same-day liquidity, including our undrawn unsecured revolver.
In addition, over 50% of our assets are unencumbered and 84% of these unencumbered assets are comprised of first mortgage loans, investment-grade securities and cash and cash equivalents. Ladder continues to maintain a considerable surplus of unencumbered assets over the amount required by our covenants, currently totaling over $1 billion. This cushion provides us with a great deal of flexibility and enhances our liquidity profile as the majority of our uncumbered assets are readily financeable.