# Dear Fellow Stockholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/real-estate-reit-mortgage/NYSE_LADR_2021/NYSE_LADR_2021.mmd` · pages 2-8_

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Dear Fellow Stockholders,

In last year's letter, I described the steps we took to position Ladder Capital Corp ("Ladder") to take advantage of the attractive opportunities we expected 2021 to bring to our business. After an initial emphasis on raising liquidity and reducing leverage at the onset of the Covid-19 pandemic, Ladder resumed making new loans in March of 2021, and I am pleased to report that we ended the year having originated the highest annual volume of balance sheet loans in Ladder's history. As of December 31, 2021, over 65% of our $3.5 billion balance sheet loan portfolio was comprised of post-COVID originated loans with fresh valuations and new business plans.

During 2021, we invested the outsized cash balance we built during 2020, replenishing our base of income-producing assets and laying the groundwork for renewed earnings momentum. This action led to successive earnings growth in each quarter during 2021, as well as full dividend coverage by the fourth quarter.

For the year ended December 31, 2021, Ladder generated \(61.3 million of distributable earnings*, or \)0.49 of distributable EPS.* As of December 31, 2021, we had total liquidity of over $800 million, an adjusted leverage ratio of 1.8x, and an adjusted leverage ratio net of cash* of 1.5x.

As of December 31, 2021, we had \(5.9 billion in total assets and \)1.5 billion of total equity. Our assets at year-end included \(3.5 billion of loans, \)1.1 billion of real estate investments and \(703 million of securities. Book value per share at December 31, 2021 was \)12.01 per share on a GAAP basis and $13.79 per share on an undepreciated basis*.

Turning to our capitalization, in 2021 our robust loan origination volume was supported by \(1.6 billion of capital raised through two managed collateralized loan obligation ("CLO") issuances and an unsecured bond issuance. Our \)566 million managed CLO offering in the fourth quarter complemented our prior \(498 million managed CLO and the \)650 million eight-year unsecured corporate bond we issued earlier in 2021. These offerings further solidified and lengthened our liability structure while reducing our use of mark-to-market financing. By maintaining a differentiated approach to our capital structure within the commercial mortgage REIT space through our continued use of unsecured debt, we believe Ladder is making substantial progress on our path towards becoming an investment grade company. We are proud to have the highest corporate credit ratings in the space, with ratings only one notch away from investment grade from two of the three major rating agencies.

As of December 31, 2021, 39% of our total debt was comprised of unsecured bonds and 83% of our total debt was comprised of unsecured bonds and non-recourse financings. In addition to supporting our path to investment grade, our financing posture also positions us well to benefit from a potential rising interest rate environment both by way of our large and growing portfolio of floating-rate loans, which stand to generate a higher level of interest income as short-term rates rise, as well as our significant base of fixed-rate liabilities.

Our management team and our Board of Directors remain committed to optimizing long-term stockholder value and, with our over 10% ownership of Ladder, we remain aligned with our stockholders. We continue to expect Ladder's strong originations momentum and our long-term investment in our capital structure to payoff for Ladder's stockholders in the quarters and years to come. We are also preparing Ladder for the long-term through our ongoing commitment to sound corporate governance, environmental stewardship, and social responsibility. We believe that the proactive development and oversight of the environmental, social, and governance ("ESG") factors that matter most to our business are essential to long-term value creation for our stockholders, employees, clients, communities, and other stakeholders. You can visit our Investor Relations site for more information about our ESG efforts.

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We look forward to what lies ahead for Ladder and our stockholders. On behalf of everyone at Ladder, thank you again for investing alongside us.

Sincerely,

![](images/3_0.jpg)

Brian Harris

Chief Executive Officer

Ladder Capital Corp