Matt DiLallo’s October 10, 2026 article argues that Ladder Capital (NYSE: LADR) is more attractive than residential mortgage REITs AGNC Investment (NASDAQ: AGNC) and Annaly Capital Management (NYSE: NLY). That is one writer’s investment opinion, not a verdict that the two residential REITs are categorically bad investments—or that Ladder is safe. The article’s quoted yields are dated figures, and a high distribution yield alone says little about whether a dividend is sustainable or what an investor’s total return will be.
What the October 10 comparison actually says
DiLallo reported yields above 16% for AGNC and Annaly and above 10% for Ladder, then said he would buy Ladder instead. Those are figures stated in his October 10, 2026 article, not independently verified live market quotes; yields move as share prices and distributions change. The article also disclosed that DiLallo held a position in Ladder. His preference should therefore be read as an attributed, individual opinion—not as personalized advice or a universal recommendation.
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The comparison is useful because the three companies have different exposures. AGNC and Annaly are centered on residential mortgage finance. Ladder combines commercial-property lending, commercial real estate securities, and property ownership. That difference changes the kinds of risks an investor needs to examine; it does not establish that one company will outperform the others.
How the three REITs differ
| Company | Main exposure | Reported leverage or scale | What to keep in mind |
|---|---|---|---|
| AGNC Investment | Residential mortgage-related investments, predominantly Agency mortgage-backed securities (MBS). | AGNC reported a $97.2 billion investment portfolio, including $86.8 billion of Agency MBS, and 7.4x tangible net book value at-risk leverage as of June 30, 2026. Source: AGNC Investment Corp., Q2 2026 results, July 20, 2026. | Agency backing reduces direct credit-loss exposure on those securities, but does not remove interest-rate, spread, funding, prepayment, or leverage risk. |
| Annaly Capital Management | Agency investments, residential credit, and mortgage servicing rights (MSRs). | Annaly reported 5.6:1 economic leverage as of June 30, 2026. Source: Annaly Capital Management, Q2 2026 results, July 21, 2026. | Annaly’s economic leverage measure is not defined identically to AGNC’s at-risk leverage, so the figures should not be treated as a direct ranking. |
| Ladder Capital | Commercial mortgage loans, commercial real estate securities, and owned real estate. | Ladder reported Q2 2026 distributable earnings of $30.8 million, or $0.24 per share, and diluted GAAP EPS of $0.12 for the quarter ended June 30, 2026. Source: Ladder Capital Corp., Q2 2026 results, July 23, 2026. | Distributable earnings is a company-defined non-GAAP measure. It is not interchangeable with GAAP earnings or automatically equivalent to cash available for every purpose. |
Why a rising-rate thesis is not a guarantee
Residential mortgage REITs
For AGNC and Annaly, changes in interest rates can affect asset yields, borrowing costs, hedges, mortgage valuations, and prepayments in different ways. AGNC’s Q2 2026 results describe its portfolio, funding, net interest spread, and hedging activity; Annaly describes income as the spread between investment-portfolio interest income and financing, hedging, and operating costs. Neither description implies that a rate increase mechanically produces a better outcome for shareholders.
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Agency MBS guarantees are relevant to credit losses on the covered securities, not a guarantee of a stable share price, dividend, or total return. They do not eliminate exposure to rate and spread changes, funding conditions, prepayment behavior, or leverage.
Ladder’s commercial-property exposure
DiLallo’s case for Ladder includes the claim that 88.9% of its loan portfolio was floating-rate while its debt was fixed-rate. If asset rates reset upward while funding costs do not rise in step, that mix could support income in some scenarios. But the result depends on the loan book, financing, hedging, borrower performance, and broader conditions. Higher rates may also increase borrowers’ debt burdens and contribute to property stress or weaker collateral values.
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The same article cited an $8 million office loan foreclosure, a $13.4 million loan placed on non-accrual in Q2, and office exposure of 21%. These details are attributed to DiLallo’s Q2 discussion; Ladder’s July 23 results release confirms company profile and earnings information but does not corroborate those particular loan and sector figures. They are reasons to examine credit quality and property concentration, not proof on their own of the scale or direction of future losses.
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Ladder reported both $0.24 per share in distributable earnings and $0.12 in diluted GAAP EPS for Q2 2026. These are distinct measures: distributable earnings is non-GAAP, while diluted EPS is based on GAAP. A reader should not substitute one for the other or assume either figure alone establishes how much cash can be distributed or whether a dividend is secure. Assess the relevant measure over time alongside loan performance, financing, and the company’s dividend history.
AGNC and Annaly also require analysis of their own earnings, portfolio, financing, hedges, and book-value movement. Their leverage figures provide context, but the definitions differ, and neither is a standalone measure of risk or expected shareholder return.
How to judge a high mortgage REIT yield
A yield is a relationship between a distribution and a share price. It can look unusually high because a distribution is substantial, because the share price has fallen, or both. It does not, by itself, establish dividend safety, business quality, or likely total return. Before treating any of the dated yields in the October 10 article as a reason to buy, compare the factors that drive each company’s results:
- Portfolio exposure: distinguish Agency MBS and residential credit from commercial loans, securities, and owned property.
- Funding and leverage: review how assets are financed, what leverage measure the company reports, and how that definition differs from peers.
- Rate and hedge sensitivity: consider asset repricing, financing costs, hedges, mortgage valuations, and prepayments together rather than assuming one rate direction determines returns.
- Credit and collateral: for commercial lending, examine defaults, non-accruals, foreclosures, property types, and the value of collateral.
- Distribution support: compare dividends with relevant earnings measures and their definitions, as well as the company’s dividend record.
- Shareholder outcomes: look at book-value changes and share-price performance as well as distributions, since total return includes both income and changes in investment value.
What the cited preference means for an investor
DiLallo’s preference for Ladder rests on a different business mix and a conditional interest-rate thesis, while acknowledging commercial-property loan risks. Ladder is not simply a higher-yield version of AGNC or Annaly: it lends against commercial property and owns real estate, so borrower and collateral outcomes matter directly. Conversely, the residential REITs’ Agency exposure does not make their shares risk-free. Choosing among them requires deciding which portfolio, funding, rate, and credit risks fit an investor’s circumstances—not selecting whichever dated yield is largest.
Ladder’s CEO said in the July 23, 2026 results release that the company’s book value had remained stable and that management was focused on shareholder total return. That is management commentary, not independent evidence of future performance. The release also cautions that forward-looking statements involve risks and actual results may differ materially from expectations.
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