Gabe Poggi

Gabe Poggi asked about the competitive landscape for Ladder Capital, specifically regarding the return of regional banks to the fray. He inquired how Ladder views this competition, especially given their attractive Q4 loan originations at 340 basis points over SOFR.

Answer

Brian Harris, CEO of Ladder Capital Corp, acknowledged increased bank competition, particularly in construction loans, but noted that banks are not actively competing on bridge loans for stabilized cash flow. He reiterated Ladder's focus on newer properties with reset valuations and their historical avoidance of high-leverage borrowers. Mr. Harris identified an 'orphan' market segment for loans between $80M-$100M that fits Ladder well and discussed the soft conduit business, which he expects to recover.

Gabe Poggi asked about the competitive landscape for Ladder Capital in 2026, specifically regarding the return of regional banks and how this might impact Ladder's attractive loan spreads.

Answer

Brian Harris (CEO, Ladder Capital Corp) noted that banks are becoming more competitive, primarily in construction loans, while Ladder focuses on refinancing newer, recently built properties. He stated that banks are not actively competing in the bridge loan space due to regulatory scrutiny, and many former competitive bridge lenders are now 'permanently smaller.' Harris identified an 'orphan' market segment for loans between $80 million and $100 million, which fits Ladder well, and expects the conduit business to recover as cash flows stabilize.