Mortgage Financier Ladder Taps Moelis for Financing Advice

(Bloomberg) -- Ladder Capital Corp. tapped investment bank Moelis & Co. for financing advice as the mortgage real estate investment trust grapples with the impact of the coronavirus pandemic.

The New York-based REIT will work with Moelis “to evaluate financing alternatives to enable it to both navigate potential further market dislocations as well as take advantage of opportunities created by those dislocations,” Ladder said in a statement late Thursday. Bloomberg reported the hiring earlier in the day, citing people with knowledge of the matter.

The REIT has more than $300 million of cash after paying its quarterly dividend, and has met all margin calls, according to the statement.

Shares of Ladder Capital plunged as much as 27% Friday. They’ve tumbled more than 80% this year, leaving Ladder with a market value of about $400 million, a fraction of the almost $1.5 billion Stephen Ross’s Related Cos. offered for the REIT two years ago. Related ultimately withdrew its bid.

Ladder has more than $6 billion of assets, filings show. The REIT originates and invests in commercial real estate and property-related assets. It focuses on senior secured assets, including loans with commercial properties as collateral and investment-grade securities backed by mortgages, according to its website. It also owns and operates commercial real estate.

The pandemic has roiled the U.S. mortgage market, leading some firms to amend dividend policies and quickly unload billions of dollars in mortgage-backed securities to meet investor redemptions and manage liquidity issues.

Ladder, led by Chief Executive Officer Brian Harris, raised $750 million in January by issuing bonds, with the proceeds used to repay secured indebtedness, it said at the time.

Ladder announced last week that Michael Mazzei, a member of its board, stepped down to become CEO of Colony Credit Real Estate Inc., another REIT.

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