Ladder Capital Corp closed $675 million in new unsecured capital commitments, comprising a $400 million expansion of its unsecured revolving credit facility and a $275 million delayed‑draw term loan. The revolving facility now has a total capacity of $1.25 billion and carries a cost of 125 basis points over SOFR, while the term loan, which matures on February 20 2030 and can be drawn through February 20 2027, costs 140 basis points over SOFR.
The financing is designed to lower Ladder’s overall cost of capital and reduce reliance on secured repo funding, thereby improving margin potential on new loans. It also provides a liquidity buffer for the company’s ongoing CMBS securitization activities, allowing Ladder to take advantage of favorable market conditions without depending on external debt markets. The capital will be deployed primarily to accelerate originations in the $25‑$100 million middle‑market segment, where the firm has already originated over $1.3 billion in loans since June 30 2025 and recorded $1.4 billion in 2025, the highest annual volume since 2021.
Ladder’s investment‑grade ratings—Moody’s Baa3, Fitch BBB‑, and S&P BB+ (one notch below investment grade)—have been a key enabler for securing these favorable unsecured terms. The company’s shift toward a predominantly unsecured liability structure differentiates it from many peers in the commercial mortgage REIT space. Ladder also maintains a diversified business model that includes loan origination, real‑estate equity investments, and securitized products, and it targets a $6 billion asset base by year‑end 2026.
Management highlighted the strategic importance of the new capital. CEO Brian Harris said, “Having originated over $1.3 billion in loans since June 30 2025, this capital strengthens our ability to continue expanding our loan originations, delivering tailored solutions to our clients and driving earnings growth for our shareholders.” CFO Paul Miceli noted that the company generated distributable earnings of $21.4 million or $0.17 per share in the fourth quarter, with earnings of $0.21 per share after excluding a previously reserved loan loss. President Pamela McCormack added, “Our robust positioning enables us to enter 2026 with a dedicated focus on driving earnings growth.”
The lower cost of unsecured funding, combined with the company’s strong credit profile and loan‑originating momentum, positions Ladder to capture margin gains and maintain financial flexibility. The financing also mitigates exposure to office‑asset risk by providing a buffer for CMBS issuances, while the company’s diversified portfolio helps spread credit risk. Overall, the $675 million commitment strengthens Ladder’s balance sheet and supports its growth strategy in a competitive middle‑market lending environment.
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