LADR
Ladder Capital Corp
$9.11
Real Estate Investment Trust
85%
P/FFO × Default REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 29.3% below fair value
You pay
$9.11
Bear
$10.61
Fair
$12.89
Bull
$15.16
Bear
$10.61
+16.5%
$0.76 FFO × 14x
Fair
$12.89
+41.5%
$0.76 FFO × 17x
Bull
$15.16
+66.4%
$0.76 FFO × 20x
Adjust Assumptions
17.0x
$
Key Value Driver
FFO/share ($0.76) × default P/FFO multiple
Implied Market Multiple
12.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (17 analysts)
$10.25
Divergence from AlphaVal
26%
Summary
At $0.76 FFO/share with a 17x default REIT multiple, the base-case value is $12.89 per share. Dividend yield: 10.1%. DDM cross-check: $14.59.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Dividend yield of 10.1% is unusually high — make sure the company generates enough cash to keep paying it.
Wall Street's average price target is $10.25 (from 17 analysts). Our estimate is 26% above the consensus -- consider that gap carefully.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify