NEW YORK--(BUSINESS WIRE)--Ladder Capital Corp (“Ladder” or the “Company”) (NYSE:LADR) today announced the declaration by its Board of Directors (“Board”) of a fourth quarter 2016 dividend of $0.46 per share of Class A common stock.
This declaration reflects a 9.1% increase in Ladder’s recurring quarterly cash dividend, effective in the current quarter, to $0.30 per share from $0.275 per share.
The fourth quarter dividend also includes an additional year-end distribution attributable to our 2016 REIT taxable income of approximately $0.16 per share of Class A common stock. As discussed below, the full fourth quarter dividend of $0.46 per share will be paid in a combination of cash and stock on January 24, 2017 to stockholders of record as of the close of business on December 27, 2016 (the “Record Date”).
Stockholders may elect to receive the fourth quarter 2016 dividend in all cash (a “Cash Election”), or all shares of Ladder’s Class A common stock (a “Share Election”). Election forms and materials will be mailed to registered shareholders promptly after the Record Date, and will be due by January 12, 2017. Stockholders who do not return an election form, or who otherwise fail to properly complete an election form, will be deemed to have made a Share Election.
In no event will any stockholder making a Cash Election receive less than $0.30 per share of such stockholder’s dividend in cash. The Board currently intends to continue paying a regular cash dividend of $0.30 per share in subsequent quarters, subject to business and market conditions and future Board approvals.
The total amount of cash payable to all stockholders will be equal to $0.30 multiplied by the total outstanding shares of Class A common stock as of the Record Date (the “Cash Amount”). If the aggregate amount of cash to be distributed to stockholders making Cash Elections exceeds the Cash Amount, then the Cash Amount will be prorated among such stockholders, and the remaining portion of the fourth quarter 2016 dividend will be paid to such stockholders in shares of Ladder’s Class A common stock plus cash in lieu of any fractional shares.
The total number of shares of Class A common stock to be distributed pursuant to the fourth quarter 2016 dividend will be determined based on stockholder elections and the volume weighted average price per share of Class A common stock on the New York Stock Exchange for the three trading days after the date that election forms are due. Shares of Class A common stock distributed as part of Ladder’s fourth quarter 2016 dividend shall accrue dividend and other benefits together with all other shares of Ladder’s Class A common stock.
Ladder is an internally-managed real estate investment trust that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment activities include: (i) direct origination of commercial real estate first mortgage loans; (ii) investments in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) investments in net leased and other commercial real estate equity. Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Led by Brian Harris, the Company’s Chief Executive Officer, Ladder is headquartered in New York City and has branches in Los Angeles and Boca Raton.
Certain statements in this release may constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.