Ladder Capital Realty Finance Inc shelved its planned initial public offering indefinitely, becoming the latest mortgage real estate investment trust (REIT) to struggle in its efforts to come to market.
Ladder Capital was seeking to raise $400 million with which to originate, buy and manage a portfolio of commercial real estate first mortgage loans secured by income-producing properties.
But a recent string of IPOs and new filings by mortgage REITs with similar portfolio goals may have tested the limits of investor appetite for such REITs.
Last week, two REIT IPOs, Colony Financial Inc and Apollo Commercial Real Estate Finance Inc, halved the size of their offerings before completing the deals, while a third, Foursquare Capital Corp, shelved its plans.
Ladder Capital investors include the private equity firms TowerBrook Capital Partners LP, and GI International LP.
Ladder Capital's IPO was led by J.P. Morgan, Wells Fargo Securities and Citi.
(Reporting by Phil Wahba, editing by Matthew Lewis)