10 Cheap REITs with Huge Upside

3. Ladder Capital Corp (NYSE:LADR)

Average Upside Potential: 23.06%

Forward P/E: 8.96

Number of Hedge Funds: 12

Ladder Capital Corp (NYSE:LADR) is an internally managed commercial real estate investment trust. The firm originates and invests in a diverse portfolio of commercial real estate and real estate-related assets. Ladder Capital Corp was founded in 2008 and is headquartered in New York City.

Ladder Capital Corp (NYSE:LADR) serves as one of the nation’s leading commercial real estate capital providers. The REIT has a diversified CRE investment portfolio with $5.5 billion of investment assets and unrestricted cash, including CRE loans, equities, and securities. This includes $2.0 billion of first mortgage loans, $946 million of CRE equity, and $853 million of securities. The loan portfolio stands solid with 88% of it comprising of post-COVID originations.

For the third quarter of 2024, the firm reported distributable EPS of $0.30. In regards to investment activity, LADR originated a $24 million first mortgage loan secured by a multifamily property in Phoenix subsequent to the quarter-end while it funded $3 million of advances on previously originated loans. Furthermore, LADR issued $500 million of new unsecured corporate bonds due 2031.

The CEO Brian Harris reiterated that the REIT has significant liquidity and is engaging in new origination opportunities considering real estate markets stabilizing and the recent $500 million unsecured corporate bond offering. The average upside potential for Ladder Capital Corp (NYSE:LADR) is 23.06%, as of October 24.