Ladder Capital Corp announced it is taking steps to become a Real Estate Investment Trust.
Following the proposed REIT election, the company expects to operate as an internally-managed REIT, with no changes to its business strategy or asset mix.
It will continue to focus on investments in senior secured commercial real estate assets, with the company’s core conduit securitization operations housed in a taxable REIT subsidiary.
Ladder is targeting annual cash distributions of $100 million, which equates to dividends of approximately $0.25 per quarter per share.
Brian Harris, Ladder’s chief executive officer, stated, “We believe this plan strikes a balance between enhancing earnings to our shareholders and preserving the strong operating synergies we enjoy between our established business segments.
“The company will continue to focus on investments in senior secured commercial real estate assets while delivering a well-supported cash dividend to our shareholders and preserving capital. We continue to be well-positioned for opportunities in both commercial real estate debt and equity investments.”
Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are serving as the company’s legal advisors. J.P. Morgan, Citigroup, Houlihan Lokey and Park Bridge Financial are acting as the company’s financial advisors on certain aspects of the REIT election.