Ladder Capital Corp (NYSE:LADR) Q1 2023 Earnings Conference Call April 26, 2023 5:00 PM ET
Company Participants
Pamela McCormack - President
Paul Miceli - CFO
Brian Harris - Founder and CEO
Conference Call Participants
Jade Rahmani - KBW
Sarah Barcomb - BTIG
Matthew Howlett - B. Riley FBR
Chris Muller - JMP Securities
Derek Hewett - Bank of America Merrill Lynch
Operator
Good afternoon. And welcome to Ladder Capital Corp's Earnings Call for the First Quarter of 2023. As a reminder, today's call is being recorded. This afternoon, Ladder released its financial results for the quarter-ended March 31, 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
Thank you and good afternoon, everyone. We are pleased to report, for first quarter of 2023 Ladder generated distributable earnings of $47.2 million or $0.38 per share, reflecting an after-tax return on equity of 12.3%. Our dividend remains well covered from net interest margin and net rental income.
As of March 31, Ladder had over $600 million, or more than 10% of our assets in cash and cash equivalents, with $950 million of same day liquidity, including our unsecured revolver. Ladder remains modestly levered, with an adjusted leverage ratio of 1.8 times and 1.1 times net of cash and securities at quarter-end.
Subsequent to quarter-end, we forbid to leverage the company by paying down loan on securities, we vote by $87 million, both bringing our adjusted leverage ratio down to 1.7 times and reducing our interest expense by approximately $1.2 million per quarter. In the first quarter, we originated a $15 million multifamily balance sheet loan and funded $19 million on existing commitments.