Ladder Capital Corp. (NYSE:LADR) Q3 2022 Earnings Conference Call October 27, 2022 5:00 PM ET
Company Participants
Pamela McCormack - Founder & President
Brian Harris - Founder & Chief Executive Officer
Paul Miceli - Chief Financial Officer
Conference Call Participants
Chris Muller - JMP Securities
Jade Rahmani - KBW
Rich Gross - Columbia Threadneedle Investments
Matthew Howlett - B. Riley Securities
Operator
Good afternoon and welcome to Ladder Capital Corp's Earnings Call for the Third Quarter of 2022. As a reminder, today's call is being recorded. This afternoon Ladder released its financial results for the quarter ended September 30, 2022.
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.
At this time, I'd like to turn the call over to Ladder's President, Pamela McCormack.
Pamela McCormack
Thank you and good evening everyone. For the third quarter of 2022, Ladder generated distributable earnings of $34.3 million or $0.27 per share. In September, following continued earnings and portfolio growth, we increased our quarterly dividend for the second straight quarter to $0.23 per share, representing a 15% increase to date this year. Our dividend was well covered by distributable earnings, the 9.1% ROE we generated this quarter was driven primarily by strong net interest margin and rental income.
As of September 30, our adjusted leverage ratio was only 1.8 times and our undepreciated book value increased to $13.63 per share. As an internally managed company with high insider ownership, we run an inherently conservative and simple business that is primarily focused on senior secured assets and exclusively focused on domestic commercial real estate.
Management and the board continue to own over 10% of the company, which we believe should give a lot of confidence to our fellow shareholders and partners, perhaps now more than ever. In the third quarter, we originated $159 million of balance sheet loans, 86% of which were either multifamily or manufactured housing with our multifamily originations focused on newly constructed properties. As of September 30, our balance sheet loan portfolio had a weighted average loan to value of 68%. And the portfolio is primarily comprised of lightly transitional middle market loans, with an average loan size of $25 million.