Ladder Capital (NYSE: LADR) Q2 results show GAAP and distributable earnings
Rhea-AI Filing Summary
Ladder Capital Corp reported second-quarter 2026 GAAP income before taxes of $16.3 million, up from $3.2 million in the first quarter, and net income attributable to Class A shareholders of $14.6 million, or $0.12 of diluted EPS versus $0.02. Distributable earnings were $30.8 million, or $0.24 of distributable EPS, compared with $28.0 million, or $0.22, in the prior quarter. After-tax distributable earnings were $29.8 million, producing an annualized after-tax distributable ROAE of 8.3% versus 7.5%.
Total assets were $5.61 billion at June 30, 2026, including $2.79 billion of mortgage loans receivable and $1.87 billion of securities, funded by $4.00 billion of debt obligations. Total shareholders’ equity was $1.43 billion. The company paid a quarterly dividend of $0.23 per Class A common share, and management highlighted growth in the loan portfolio and distributable earnings.
Positive
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Negative
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Filing Explained
The July 23 8-K reports completed second-quarter results; its distributable-earnings figures are supplemental non-GAAP measures that exclude specified non-cash and unrealized items and, as the filing cautions, are not a substitute for GAAP results or a measure of cash needed for liquidity.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP income before taxes: $16,310 (Dollars in Thousands)
Net income attributable to Class A shareholders: $14,588 (Dollars in Thousands)
Distributable earnings: $30,814 (Dollars in Thousands)
+5 more
8 metrics
GAAP income before taxes
$16,310 (Dollars in Thousands)
Three months ended June 30, 2026
Net income attributable to Class A shareholders
$14,588 (Dollars in Thousands)
Three months ended June 30, 2026
Distributable earnings
$30,814 (Dollars in Thousands)
Three months ended June 30, 2026
Distributable EPS
$0.24 per diluted share
Three months ended June 30, 2026
Total assets
$5,606,282 (Dollars in Thousands)
Balance sheet as of June 30, 2026
Debt obligations, net
$4,004,904 (Dollars in Thousands)
Balance sheet as of June 30, 2026
Total shareholders’ equity
$1,429,329 (Dollars in Thousands)
Balance sheet as of June 30, 2026
After-tax distributable ROAE
8.3%
Annualized, three months ended June 30, 2026
Key Terms
distributable earnings, after-tax distributable ROAE, consolidated variable interest entities, conduit loans, +2 more
6 terms
distributable earnings financial
"We define distributable earnings as income before taxes adjusted for certain items"
Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.
after-tax distributable ROAE financial
"After-tax distributable ROAE is presented on an annualized basis and is defined as"
consolidated variable interest entities financial
"Includes amounts relating to consolidated variable interest entities"
conduit loans financial
"We originate conduit loans, which are first mortgage loans on stabilized properties"
Conduit loans are commercial real estate loans originated specifically to be bundled and sold to investors as commercial mortgage-backed securities; the lender acts as a middleman who packages many individual loans into a single investment product. Investors care because the loan pool’s credit quality, payment schedule and the way it’s packaged determine the risk, yield and liquidity of the bonds they buy—think of it like buying a slice of a large fruit basket rather than one whole apple.
lower of cost or market financial
"Unrealized lower of cost or market adjustments related to loans held for sale"
An accounting rule that requires a company to record inventory at the lower of its original purchase cost or its current market value, so unsellable or devalued stock is not overstated on the balance sheet. For investors, it matters because it can reduce reported assets and profits when prices fall or goods become obsolete, offering a more conservative view of a company’s financial health—like marking down items on a store shelf to reflect what they can actually fetch today.
REIT taxable income financial
"Distributable earnings should not be considered the equivalent to REIT taxable income"
REIT taxable income is the portion of a real estate investment trust’s earnings that the tax code treats as subject to tax after allowable deductions and adjustments; it’s the number used to calculate what the REIT owes in taxes and how much income can be passed through to investors. It matters because it influences the size and tax character of distributions shareholders receive and whether the trust meets rules that protect its tax-advantaged status—think of it like a household’s taxable paycheck that determines how much you actually take home after taxes.
Earnings Snapshot
GAAP income before taxes: $16,310 (Dollars in Thousands)
quarter ended June 30, 2026
GAAP income before taxes
$16,310 (Dollars in Thousands)
Compared with $3,169 (Dollars in Thousands) for the quarter ended March 31, 2026
Net income attributable to Class A shareholders
$14,588 (Dollars in Thousands)
Compared with $2,605 (Dollars in Thousands) for the quarter ended March 31, 2026
Diluted EPS
$0.12
Compared with $0.02 for the quarter ended March 31, 2026
Distributable earnings
$30,814 (Dollars in Thousands)
Compared with $28,006 (Dollars in Thousands) for the quarter ended March 31, 2026
Distributable EPS
$0.24
Compared with $0.22 for the quarter ended March 31, 2026
After-tax distributable ROAE
8.3%
Compared with 7.5% for the quarter ended March 31, 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Ladder Capital Corp (LADR) key GAAP results for Q2 2026?
Ladder Capital reported GAAP income before taxes of $16.3 million and net income attributable to Class A shareholders of $14.6 million for Q2 2026, equal to diluted EPS of $0.12 versus $0.02 in the first quarter of 2026.
How did Ladder Capital Corp (LADR) distributable earnings and EPS look in Q2 2026?
For Q2 2026, Ladder Capital generated distributable earnings of $30.8 million, or $0.24 of distributable EPS. This compares with distributable earnings of $28.0 million and distributable EPS of $0.22 for the quarter ended March 31, 2026.
What were Ladder Capital Corp (LADR) balance sheet totals as of June 30, 2026?
As of June 30, 2026, Ladder Capital reported total assets of $5.61 billion and total liabilities of $4.18 billion. Debt obligations were $4.00 billion, while total shareholders’ equity stood at $1.43 billion, providing the capital base for its lending and investment activities.
What return on equity did Ladder Capital Corp (LADR) report for Q2 2026?
Ladder Capital reported an annualized after-tax distributable ROAE of 8.3% for Q2 2026, compared with 7.5% in Q1 2026. After-tax distributable earnings were $29.8 million on average shareholders’ equity of approximately $1.44 billion during the quarter.
What dividend did Ladder Capital Corp (LADR) pay on its Class A common stock in Q2 2026?
For Q2 2026, Ladder Capital paid a dividend of $0.23 per share on its Class A common stock. The company states that distributable earnings and REIT taxable income help inform its regular quarterly distribution decisions to shareholders.
How does Ladder Capital Corp (LADR) define and use distributable earnings?
Ladder Capital defines distributable earnings as income before taxes adjusted for items like depreciation, certain derivative results, unrealized securities changes, loan loss provisions, stock-based compensation, and non-recurring items. Management and the board use this metric when evaluating performance and determining quarterly dividends.
What is Ladder Capital Corp (LADR) core business model and credit profile?
Ladder Capital is an internally managed, investment grade REIT focused on originating first mortgage loans on middle-market commercial properties, owning and operating real estate, and investing in highly rated commercial real estate securities. It holds investment grade ratings of Baa3 from Moody’s and BBB- from Fitch.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 23, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: 212 -715-3170
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
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Item 2.02. Results of Operations and Financial Condition.
On July 23, 2026, Ladder Capital Corp (“Ladder”) issued a press release disclosing financial results for the quarter ended June 30, 2026. The information in Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release of Ladder Capital Corp dated July 23, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 23, 2026 LADDER CAPITAL CORP
By: /s/ Paul J. Miceli
Paul J. Miceli
Chief Financial Officer
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Exhibit 99.1
Ladder Capital Corp Reports Results for the Quarter Ended June 30, 2026
NEW YORK, NY, July 23, 2026 – Ladder Capital Corp (NYSE: LADR) (“we,” “our,” “Ladder,” or the “Company”) today announced operating results for the quarter ended June 30, 2026. For the three months ended June 30, 2026, GAAP income before taxes was $16.3 million, or $0.12 of diluted earnings per share (“EPS”), and distributable earnings was $30.8 million, or $0.24 of distributable EPS.
“Ladder delivered a strong second quarter, growing our loan portfolio and distributable earnings while continuing to generate gains across our multi-cylinder platform. Our book value has remained stable, and we remain focused on delivering a strong total return to shareholders,” said Brian Harris, Ladder’s Chief Executive Officer.
Supplemental
The Company issued a supplemental presentation detailing its second quarter 2026 operating results and an updated investor presentation. Both are available on our website at http://ir.laddercapital.com.
Conference Call and Webcast
We will host a conference call on Thursday, July 23, 2026 at 10:00 a.m. Eastern Time to discuss second quarter 2026 results. The conference call can be accessed by dialing (877) 407-4018 domestic or (201) 689-8471 international. Individuals who dial in will be asked to identify themselves and their affiliations. For those unable to participate, an audio replay will be available until midnight on Thursday, August 6, 2026. To access the replay, please call (844) 512-2921 domestic or (412) 317-6671 international, access code 13761395. The conference call will also be webcast through a link on Ladder’s Investor Relations website at ir.laddercapital.com/event. A web-based archive of the conference call will also be available at the above website.
About Ladder
Ladder Capital Corp (NYSE: LADR) is an internally-managed, investment grade REIT. Ladder's primary business is originating first mortgage loans on all major commercial property types, with a focus on the middle market. Its multi-cylinder business model also includes owning and operating real estate and investing in highly-rated commercial real estate securities. Ladder's investment objective is to preserve and protect shareholder capital while generating attractive risk-adjusted returns — a discipline reinforced by 13% insider ownership, with management and the board of directors together constituting Ladder's largest shareholder. Since its founding in 2008, Ladder has deployed $52 billion of capital, serving institutional and middle-market clients nationwide.
Ladder maintains investment grade credit ratings of Baa3 from Moody's Ratings and BBB- from Fitch Ratings, and is rated BB+ by S&P Global Ratings. Moody's and Fitch assign Ladder a stable outlook, while S&P assigns a positive outlook. Credit ratings and outlooks are current as of the date of this press release. All other data is as of June 30, 2026.
Forward-Looking Statements
Certain statements in this release may constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results on the Company's business. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release.
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Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.
Investor Contact
Ladder Investor Relations
(917) 369-3207
investor.relations@laddercapital.com
(917) 369-3207
investor.relations@laddercapital.com
2
Ladder Capital Corp
Consolidated Balance Sheets
(Dollars in Thousands)
| June 30, | December 31, | ||||||||||
| 2026(1) | 2025(1) | ||||||||||
| (Unaudited) | |||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 37,586 | $ | 37,953 | |||||||
| Restricted cash | 16,793 | 14,888 | |||||||||
| Mortgage loan receivables held for investment, net, at amortized cost: | |||||||||||
| Mortgage loans receivable | 2,790,138 | 2,217,375 | |||||||||
| Allowance for credit losses | (47,095) | (47,137) | |||||||||
| Mortgage loan receivables held for sale | 27,205 | 27,986 | |||||||||
| Securities | 1,872,439 | 2,088,285 | |||||||||
| Real estate and related lease intangibles, net | 776,496 | 703,537 | |||||||||
| Investments in and advances to unconsolidated ventures | 41,494 | 44,468 | |||||||||
| Derivative instruments | 116 | 264 | |||||||||
| Accrued interest receivable | 16,997 | 15,890 | |||||||||
| Other assets | 74,113 | 49,041 | |||||||||
| Total assets | $ | 5,606,282 | $ | 5,152,550 | |||||||
| Liabilities and Equity | |||||||||||
| Liabilities | |||||||||||
| Debt obligations, net | $ | 4,004,904 | $ | 3,510,402 | |||||||
| Dividends payable | 31,057 | 31,819 | |||||||||
| Accrued expenses | 64,359 | 76,448 | |||||||||
| Other liabilities | 79,246 | 52,524 | |||||||||
| Total liabilities | 4,179,566 | 3,671,193 | |||||||||
| Commitments and contingencies | — | — | |||||||||
| Equity | |||||||||||
Class A common stock, par value $0.001 per share, 600,000,000 shares authorized; 130,790,591 and 130,790,591 shares issued and 126,865,303 and 127,233,559 shares outstanding as of June 30, 2026 and December 31, 2025, respectively. | 127 | 127 | |||||||||
| Additional paid-in capital | 1,776,165 | 1,787,074 | |||||||||
Treasury stock, 3,925,288 and 3,557,032 shares, at cost | (40,933) | (39,056) | |||||||||
| Retained earnings (dividends in excess of earnings) | (301,417) | (260,084) | |||||||||
| Accumulated other comprehensive income (loss) | (4,613) | (4,135) | |||||||||
| Total shareholders’ equity | 1,429,329 | 1,483,926 | |||||||||
| Noncontrolling interests in consolidated ventures | (2,613) | (2,569) | |||||||||
| Total equity | 1,426,716 | 1,481,357 | |||||||||
| Total liabilities and equity | $ | 5,606,282 | $ | 5,152,550 | |||||||
(1) Includes amounts relating to consolidated variable interest entities.
3
Ladder Capital Corp
Consolidated Statements of Income
(Dollars in Thousands, Except Per Share and Dividend Data)
| Three Months Ended | |||||||||||
| June 30, | March 31, | ||||||||||
| 2026 | 2026 | ||||||||||
| (Unaudited) | |||||||||||
| Net interest income | |||||||||||
| Interest income | $ | 78,204 | $ | 74,221 | |||||||
| Interest expense | 55,617 | 51,204 | |||||||||
| Net interest income (expense) | 22,587 | 23,017 | |||||||||
| Provision for (release of) loan loss reserves, net | 122 | (28) | |||||||||
| Net interest income (expense) after provision for (release of) loan loss reserves | 22,465 | 23,045 | |||||||||
| Other income (loss) | |||||||||||
| Real estate operating income | 30,906 | 27,291 | |||||||||
| Net result from mortgage loan receivables held for sale | 174 | 73 | |||||||||
| Fee and other income | 3,564 | 1,405 | |||||||||
| Net result from derivative transactions | 203 | 350 | |||||||||
| Earnings (loss) from investment in unconsolidated ventures | 252 | (256) | |||||||||
| Gain (loss) on extinguishment of debt | 72 | — | |||||||||
| Total other income (loss) | 35,171 | 28,863 | |||||||||
| Costs and expenses | |||||||||||
| Compensation and employee benefits | 12,260 | 22,324 | |||||||||
| Operating expenses | 5,108 | 5,094 | |||||||||
| Real estate operating expenses | 12,909 | 11,258 | |||||||||
| Investment related expenses | 1,706 | 1,156 | |||||||||
| Depreciation and amortization | 9,343 | 8,907 | |||||||||
| Total costs and expenses | 41,326 | 48,739 | |||||||||
| Income (loss) before taxes | 16,310 | 3,169 | |||||||||
| Income tax expense (benefit) | 1,749 | 566 | |||||||||
| Net income (loss) | 14,561 | 2,603 | |||||||||
| Net (income) loss attributable to noncontrolling interests in consolidated ventures | 27 | 2 | |||||||||
| Net income (loss) attributable to Class A common shareholders | $ | 14,588 | $ | 2,605 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.12 | $ | 0.02 | |||||||
| Diluted | $ | 0.12 | $ | 0.02 | |||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 124,730,611 | 125,399,604 | |||||||||
| Diluted | 125,249,856 | 126,017,951 | |||||||||
| Dividends per share of Class A common stock | $ | 0.23 | $ | 0.23 | |||||||
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Non-GAAP Financial Measures
The Company utilizes distributable earnings, distributable EPS, and after-tax distributable return on average equity (“ROAE”), non-GAAP financial measures, as supplemental measures of our operating performance. We believe distributable earnings, distributable EPS and after-tax distributable ROAE assist investors in comparing our operating performance and our ability to pay dividends across reporting periods on a more relevant and consistent basis by excluding from GAAP measures certain non-cash expenses and unrealized results as well as eliminating timing differences related to conduit securitization gains or losses and changes in the values of assets and derivatives. In addition, we use distributable earnings, distributable EPS and after-tax distributable ROAE: (i) to evaluate our earnings from operations because management believes that they may be useful performance measures; and (ii) because our board of directors considers distributable earnings in determining the amount of quarterly dividends. Distributable EPS is defined as after-tax distributable earnings divided by the weighted average diluted shares outstanding during the period. In addition, we believe it is useful to present distributable earnings and distributable EPS prior to charge-offs of allowance for credit losses to reflect our direct operating results and help existing and potential future holders of our class A common stock assess the performance of our business excluding such charge-offs. Distributable earnings prior to charge-offs of allowance for credit losses is used as an additional performance metric to consider when declaring our dividends. Distributable EPS prior to charge-offs of allowance for credit losses is defined as after-tax distributable earnings prior to charge-offs of allowance for credit losses divided by the weighted average diluted shares outstanding during the period.
We define distributable earnings as income before taxes adjusted for: (i) net (income) loss attributable to noncontrolling interests in consolidated ventures; (ii) our share of real estate depreciation, amortization and gain adjustments and the inclusion of income distributions from investments in unconsolidated ventures; (iii) the impact of derivative gains and losses related to hedging fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk as of the end of the specified accounting period; (iv) economic gains or losses on loan sales, certain of which may not be recognized under GAAP accounting in consolidation for which risk has substantially transferred during the period, as well as the exclusion of the related GAAP economics in subsequent periods; (v) unrealized gains or losses related to our investments in securities recorded at fair value in current period earnings; (vi) unrealized and realized provision for loan losses and real estate impairment; (vii) non-cash stock-based compensation; and (viii) certain non-recurring transactional items.
We exclude the effects of our share of real estate depreciation and amortization. Given GAAP gains and losses on sales of real estate include the effects of previously-recognized real estate depreciation and amortization, our adjustment eliminates the portion of the GAAP gain or loss that is derived from depreciation and amortization.
Our derivative instruments do not qualify for hedge accounting under GAAP and, therefore, any net payments under, or fluctuations in the fair value of derivatives are recognized currently in our income statement. The Company utilizes derivative instruments to hedge exposure to interest rate risk associated with fixed rate mortgage loans, fixed rate securities, and/or overall portfolio market risks. Distributable earnings excludes the GAAP results from derivative activity until the associated mortgage loan or security for which the derivative position is hedging is sold or paid off, or the hedge position for overall portfolio market risk is closed, at which point any gain or loss is recognized in distributable earnings in that period. For derivative activity associated with securities or mortgage loans held for investment, any hedging gain or loss is amortized over the expected life of the underlying asset for distributable earnings. We believe that adjusting for these specifically identified gains and losses associated with hedging positions adjusts for timing differences between when we recognize the gains or losses associated with our assets and the gains and losses associated with derivatives used to hedge such assets.
We originate conduit loans, which are first mortgage loans on stabilized, income producing commercial real estate properties that we intend to sell into third-party CMBS securitizations. Mortgage loans receivable held for sale are recorded at the lower of cost or market under GAAP. For purposes of distributable earnings, we exclude the impact of unrealized lower of cost or market adjustments on conduit loans held for sale and include the realized gains or losses in distributable earnings in the period when the loan is sold. Our conduit business includes mortgage loans made to third parties and may also include mortgage loans secured by real estate owned in our real estate segment. Such mortgage loans receivable secured by real estate owned in our real estate segment are eliminated in consolidation within our GAAP financial statements until the loans are sold in a third-party securitization. Upon the sale of a loan to a third-party securitization trust (for cash), the related mortgage note payable is recognized on our GAAP financial statements. For purposes of distributable earnings, we include adjustments for economic gains and losses related to the sale of these inter-segment loans for which risk has substantially transferred during the period and exclude the resultant GAAP recognition of amortization of any related premium/discount on such mortgage loans payable recognized in interest expense during the subsequent periods. This adjustment is reflected in distributable earnings when there is a true risk transfer on the mortgage loan sale and settlement. Conversely, if the economic risk was not substantially transferred, no adjustments to net income would be made relating to those transactions for distributable earnings purposes. Management believes recognizing these amounts for distributable earnings purposes in the period of transfer of economic risk is a useful supplemental measure of our performance.
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We invest in certain securities that are recorded at fair value with changes in fair value recorded in current period earnings. For purposes of distributable earnings, we exclude the impact of unrealized gains and losses associated with these securities and include realized gains and losses in connection with any disposition of securities. Distributable earnings includes declines in fair value deemed to be an impairment for GAAP purposes if the decline is determined to be non-recoverable and the loss to be nearly certain to be eventually realized. In those cases, an impairment is included in distributable earnings for the period in which such determination was made.
We include adjustments for unrealized provision for loan losses and real estate impairment. For purposes of distributable earnings, management recognizes realized losses on loans and real estate in the period in which the asset is sold or when the Company determines such amounts are no longer realizable and deemed non-recoverable.
Set forth below is an unaudited reconciliation of income (loss) before taxes to distributable earnings, and an unaudited computation of distributable EPS (in thousands, except per share data):
| Three Months Ended | |||||||||||
| June 30, | March 31, | ||||||||||
| 2026 | 2026 | ||||||||||
| Income (loss) before taxes | $ | 16,310 | $ | 3,169 | |||||||
| Net (income) loss attributable to noncontrolling interests in consolidated ventures | 27 | 2 | |||||||||
| Our share of real estate depreciation, amortization and real estate sale adjustments (1) | 10,354 | 8,698 | |||||||||
| Adjustments for derivative results and loan sale activity (2) | 430 | 76 | |||||||||
| Unrealized (gain) loss on securities | (81) | 1,930 | |||||||||
| Adjustment for impairment | 122 | (28) | |||||||||
| Non-cash stock-based compensation | 3,652 | 14,159 | |||||||||
| Distributable earnings | $ | 30,814 | $ | 28,006 | |||||||
| Estimated corporate tax (expense) benefit (3) | (994) | (679) | |||||||||
| After-tax distributable earnings | $ | 29,820 | $ | 27,327 | |||||||
| Weighted average diluted shares outstanding | 125,250 | 126,018 | |||||||||
| Distributable EPS | $ | 0.24 | $ | 0.22 | |||||||
(1) The following is an unaudited reconciliation of GAAP depreciation and amortization to our share of real estate depreciation, amortization and gain adjustments and adjustments to (earnings) loss from investment in unconsolidated ventures ($ in thousands):
| Three Months Ended | |||||||||||
| June 30, | March 31, | ||||||||||
| 2026 | 2026 | ||||||||||
| Total GAAP depreciation and amortization | $ | 9,343 | $ | 8,907 | |||||||
| Depreciation and amortization related to non-rental property fixed assets | (113) | (111) | |||||||||
| Non-controlling interests in consolidated ventures’ share of depreciation and amortization | (126) | (125) | |||||||||
| Our share of operating lease income from above/below market lease intangible amortization | (227) | (229) | |||||||||
| Our share of real estate depreciation and amortization and real estate adjustments | 8,877 | 8,442 | |||||||||
| Adjustment for (earnings) loss from investments in unconsolidated ventures (a) | 1,477 | 256 | |||||||||
| Our share of real estate depreciation, amortization and real estate sale adjustments | $ | 10,354 | $ | 8,698 | |||||||
(a) The three months ended June 30, 2026 adjusts for GAAP earnings from investment in unconsolidated ventures of $(252) thousand and includes an income distribution of $1.7 million.
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(2) The following is an unaudited reconciliation of GAAP net results from derivative transactions to our adjustments for derivative results and loan sale activity within distributable earnings ($ in thousands):
| Three Months Ended | |||||||||||
| June 30, | March 31, | ||||||||||
| 2026 | 2026 | ||||||||||
| GAAP net results from derivative transactions | $ | (203) | $ | (350) | |||||||
| Realized results of loan sales, net (a) | 41 | 27 | |||||||||
| Unrealized lower of cost or market adjustments related to loans held for sale | 423 | 358 | |||||||||
| Amortization of (premium)/discount on mortgage loan financing included in interest expense | (141) | (151) | |||||||||
| Recognized derivative results | 310 | 192 | |||||||||
| Adjustments for derivative results and loan sale activity | $ | 430 | $ | 76 | |||||||
(a) Includes realized loss from sales of conduit mortgage loans collateralized by net lease properties in our real estate segment of $21 thousand and net hedge related gains on such mortgage loan sales of $62 thousand for the three months ended June 30, 2026. Represents the net hedge related gain of $27 thousand on conduit sales for the three months ended March 31, 2026.
(3) Estimated corporate tax benefit (expense) is based on an effective tax rate applied to distributable earnings generated by the activity within our taxable REIT subsidiaries.
After-tax distributable ROAE is presented on an annualized basis and is defined as after-tax distributable earnings divided by the average total shareholders’ equity during the period. Set forth below is an unaudited computation of after-tax distributable ROAE ($ in thousands):
| Three Months Ended | |||||||||||
| June 30, | March 31, | ||||||||||
| 2026 | 2026 | ||||||||||
| After-tax distributable earnings | $ | 29,820 | $ | 27,327 | |||||||
| Average shareholders’ equity | 1,438,218 | 1,465,516 | |||||||||
| After-tax distributable ROAE | 8.3 | % | 7.5 | % | |||||||
Non-GAAP Measures - Limitations
Our non-GAAP financial measures have limitations as analytical tools. Some of these limitations are:
•distributable earnings, distributable EPS, after-tax distributable ROAE and distributable earnings and distributable EPS prior to charge-off of allowance for credit losses do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations and are not necessarily indicative of cash necessary to fund cash needs;
•distributable EPS, distributable EPS prior to charge-off of allowance for credit losses, and after-tax distributable ROAE are based on a non-GAAP estimate of our effective tax rate, including the impact of Unincorporated Business Tax and the impact of our election to be taxed as a REIT effective January 1, 2015. Our actual tax rate may differ materially from this estimate; and
•other companies in our industry may calculate non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
Because of these limitations, our non-GAAP financial measures should not be considered in isolation or as a substitute for net income (loss) attributable to shareholders, earnings per share or book value per share, or any other performance measures calculated in accordance with GAAP. Our non-GAAP financial measures should not be considered an alternative to cash flows from operations as a measure of our liquidity.
In addition, distributable earnings should not be considered to be the equivalent to REIT taxable income calculated to determine the minimum amount of dividends the Company is required to distribute to shareholders to maintain REIT status. In order for the Company to maintain its qualification as a REIT under the Internal Revenue Code, we must annually distribute at least 90% of our REIT taxable income. The Company has declared, and intends to continue declaring, regular quarterly distributions to its shareholders in an amount approximating the REIT’s net taxable income.
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In the future, we may incur gains and losses that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
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