# Dear Fellow Stockholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/real-estate-reit-mortgage/NYSE_LADR_2018/NYSE_LADR_2018.mmd` · pages 4-10_

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Dear Fellow Stockholders,

2018 was a record year for Ladder Capital Corp, as we recorded our highest annual core earnings \( ^{*} \) , core EPS \( ^{*} \) , and after-tax core return on average equity \( ^{*} \)  since going public in 2014.

For the year ended December 31, 2018, Ladder earned \(230.1 million of core earnings*, a non-GAAP measure, or \)2.03 of core EPS*, generating an after-tax core return on average equity* of 14.9%. We originated \(2.8 billion of commercial mortgage loans, composed of \)1.3 billion of mortgage loans held for sale and $1.5 billion of mortgage loans held for investment. We also made $122.7 million of real estate investments during the year.

As of December 31, 2018, we had \(6.3 billion in total assets and \)1.6 billion of total equity. Our assets at year-end included \(3.5 billion of loans, \)1.4 billion of securities, and $998.0 million of real estate investments. Book value per share at December 31, 2018 was $13.90 per share on a GAAP basis and $15.34 per share on an undepreciated basis*.

In addition to realizing approximately $85 million of core gains on sales of loans, securities and real estate in 2018, Ladder also generated net interest income and net rental income that accounted for over 70% of the net revenues from our investment assets for the year. In recognition of this solid and growing stream of recurring income, we increased the quarterly cash dividend rate in the fourth quarter of 2018 to \(0.34/share of Class A common stock, representing our sixth dividend increase in four years.

Ladder also contributed \(1.3 billion of loans to 9 securitization transactions in 2018. Since Ladder's 2014 IPO, Ladder has realized \)316.9 million of core gains from loan securitization transactions in which capital is recycled multiple times annually, further enhancing Ladder's returns.

During the year, Ladder continued to strengthen and diversify its capital structure, as we issued $99 million of common stock in our first issuance since the IPO and upsized our unsecured corporate revolving credit facility to \(266.4 million while lengthening the terms of other secured funding facilities. We continue to focus on our best-in-class, "long & strong" liability structure, as we apply moderate leverage obtained from committed funding sources to a predominantly senior secured asset base. At December 31, 2018, we had \)1.165 billion of unsecured corporate bonds outstanding with no maturities until 2021, and a weighted-average remaining maturity 4.3 years.

2018 continued to be positive for the liquidity of Ladder's stock. The remaining major pre-IPO equity investors completed the sell-down of their positions during the year, and Ladder's average daily trading volume was 1.1 million shares during 2018, an increase of more than six times versus 2014, the year of our IPO. Management and directors continue to own in excess of $230 million of Ladder Capital stock (based on LADR's closing stock price of $17.12 on April 8, 2019), equal to 11.3% of total equity market capitalization.

Looking into 2019, Ladder expects to continue to benefit from our deep commercial real estate credit expertise, our unique, full-service commercial real estate platform, our robust origination team, and our internally-managed structure with industry-leading insider ownership for optimal shareholder alignment.

On behalf of everyone at Ladder, I would like to thank you for investing alongside us. We look forward to you sharing in our continued success.

* This is a non-GAAP financial measure. Additional information regarding core earnings can be found in the 2018 Annual Report and additional information regarding core EPS, after-tax core return on average equity and undepreciated book value per share can be found in the Company's Fourth Quarter Earnings Supplement, available at ir.laddercapital.com.

Sincerely,

![](images/4_0.jpg)

Brian Harris

Chief Executive Officer

Ladder Capital Corp

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