A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the third of five real estate stocks striving to be picked to join the Volio folio. This could be the tenth pick for Volio!
That real estate sector includes nine industries all related to real property ownership. Like: general real estate; Real Estate Services; and seven varieties of real estate investment trusts, or REITs.
My subject today is a mid-cap diversified real estate investment trust, Ladder Capital Corp. Their trading ticker symbol is LADR. This is my first report on Ladder Capital Corp ( LADR).
Ladder Capital Corp is a commercial real estate investment trust that manages a portfolio of commercial real estate and real estate-related assets, with a focus on senior secured assets.
The company's reportable segments are loans, securities, real estate, and others. The loans segment provides first mortgage loans that are secured by the cash flows from commercial real estate income. The securities segment invests in commercial mortgage-backed securities and U.S. Agency securities, and real estate segment includes a portfolio of commercial properties and residential properties. The company generates a majority of its revenue from the Loan segment.
The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
I use three key data points to gauge dividend-paying equities or funds like Ladder Capital Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
LADR Price
Ladder's price per share closed at $17.01 yesterday. A year ago its price was $17.33. In the past year, its price fell $0.32 or nearly 1.85%.
Assuming Ladder's stock trades in a range of $16 to $20 this next year, it's recent $17.01. price could rise by $1.99 and maybe get to $19.00 by early-November, 2020, assuming more upward price momentum kicks-in.
LADR Dividends
Ladder's latest declared quarterly dividend was $0.34, paid October 1st.
That $0.34 Q dividend was raised from $0.325 in January and equates to $1.36 annually and yields 8.00% based on yesterday's $17.01 closing price.
LADR Gains?
Adding the $1.36 annual estimated dividend to my $1.99 estimate of Ladder Capital Corp's price upside shows a $3.35 potential gross gain, per share, which will be reduced by any costs to trade these shares.
Say we put a little over $1,000.00 today into Ladder Capital Corp at its recent $17.01 price, we'd buy 59 shares of LADR.
A $10 broker fee paid half at purchase and half at sale could cost us $0.53 per share.
Subtract that $0.53 brokerage cost from the estimated $3.35 gross estimated gain per share leaves a net gain of $2.82 X 59 shares = $166.38 or a 16.6% net gain on a $1,003.59 investment.
Therefore, Ladder Capital Corp, whose trading ticker symbol is LADR shows a possible 16.6% net gain including an 8.00% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Ladder Capital Corp is worth your time and money.
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