Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Five Oaks Investment — Q4 2017 Earnings Presentation
10 slides from Lument Finance Trust's earnings presentation, Mar 16, 2018
Slide 1: Fourth Quarter 2017 Earnings and Performance Highlights Presentation
Investment Corp. Fourth Quarter 2017 Earnings and Performance Highlights Presentation March 16, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation includes "forward - looking statements" within the meaning of Section 27 A of the Securities Act of 1933 , as amended, or the Securities Act, and Section 21 E of the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumption
Slide 3: Performance: Fourth Quarter & Full Year 2017
Performance: Fourth Quarter & Full Year 2017 3 Footnotes: 1) Core Earnings is a non - GAAP measure that we define as GAAP net income, excluding impairment losses, realized and unrealized gains or losses on the aggregate portfolio and certain non - recurring upfront costs related to securitization tr
Slide 4: 2017 Highlights
2017 Highlights 4 • Realized a negative economic return on our common stock of 8 . 2 % for the year accounting for dividends of $ 0 . 60 ( 1 ) • Continued the reduction of our credit risk MBS exposure – Reduced Non - Agency RMBS from $ 12 . 8 million at December 31 , 2016 to $ 4 . 4 million at Decem
Slide 5: Hunt Transaction: Overview
Hunt Transaction: 1 of 2 5 • On January 18 , 2018 , we announced a new strategic direction, and entry into a new external management agreement with Hunt Investment Management, LLC, an affiliate of the Hunt Companies Inc . and the concurrent mutual termination of our management agreement with Oak Cir
Slide 6: Hunt Transaction: Terms
Hunt Transaction: 2 of 2 6 • In connection with the transaction, an affiliate of Hunt purchased 1 , 539 , 406 shares of our common stock in a private placement, at a purchase price of $ 4 . 77 per share resulting in an aggregate capital raise of $ 7 , 342 , 967 • An affiliate of Hunt also purchased
Slide 7: Portfolio Analysis: Fourth Quarter 2016 vs. 2017
Portfolio Analysis: Fourth Quarter 2016 vs. 2017 7 0.16% 87.72% 0.26% 0.86% 10.17% 0.32% 0.51% 4Q 2016 Agency Fixed Agency ARMs Legacy Non-Agency RMBS 2.0 Multi-Family MBS Residential Whole Loans Mortgage Servicing Rights 0.06% 97.22% 0.33% 2.08% 0.00% 0.30% 4Q 2017 Agency Fixed Agency ARMs RMBS 2.0
Slide 8: Capital Allocations & ARM Portfolio
Capital Allocations & ARM Portfolio 8 • Our 4 Q 17 Agency ARM Portfolio has a three month CPR of 9 . 0 % • Our weighted average coupon is 2 . 67 % • Our weighted average purchase price is $ 101 . 83 • Lower coupon and dollar price hybrids benefit from “roll down the curve” Months to Reset Avg. MTR %
Slide 9: Core Earnings Analysis: Fourth Quarter 2017
Core Earnings Analysis: Fourth Quarter 2017 9 GAAP to Core Earnings Reconciliation Year Ended Year Ended December 31, 2017 December 31, 2016 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders $ 1,184,925 $ (11,511,991) Adjustments for non-core earnin
Slide 10: End of Presentation
End of Presentation 10 Investment Corp.