Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Investor Presentation (December 2020)
28 slides from Lument Finance Trust's investor presentation, Dec 21, 2020
Slide 1: Hunt Companies Finance Trust Investor Presentation
December 2020 Hunt Companies Finance Trust Investor Presentation
Slide 2: Disclaimer
Disclaimer 2 This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to ti me may constitute forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securi tie s E
Slide 3: Name & Ticker Change
Name & Ticker Change 3 • On December 18th, 2020, the Company announced that it will change its name to Lument Finance Trust, Inc., effective December 28 , 2020 • In addition to the new corporate name, the Company expects to change its ticker symbol on the NYSE to “LFT” and anticipates that trading u
Slide 4: Company Overview Key Investment Highlights
Company Overview 4 Key Investment Highlights Strong Sponsorship/Ownership • Access to extensive loan origination platform through affiliation with Lument, a premier national mortgage originator and asset manager • Experienced management team with average of 23 years of industry experience across mul
Slide 5: Leveraging the Depth of the Lument Platform
Leveraging the Depth of the Lument Platform 5 • Lument is a nationally recognized leader in multifamily and seniors housing and care finance • Combining the industry expertise of legacy brands Hunt Real Estate Capital, RED Capital Group, and Lancaster Pollard, Lument offers a comprehensive set of cu
Slide 6: Lument: A Platform Built for the Benefit of Investors
Lument: A Platform Built for the Benefit of Investors 6 Diverse Opportunity Set via Lument Origination Platform • 600+ employees across 25+ offices provide clients of Lument and its affiliates with a mix of markets, assets, and deal types that span the breadth of commercial and multifamily real esta
Slide 7: Affiliation with ORIX
Affiliation with ORIX 7 ORIX CORPORATION USA – AT A GLANCE ORIX Corporation USA provides investment capital and asset management services to clients in the corporate, real estate and m uni cipal finance sectors. ORIX USA and its family of companies have $78 billion of assets under management, admini
Slide 8: Lument: Experienced Leadership Team
Lument : Experienced Leadership Team 8 JAMES FLYNN Director & CEO, Lument Finance Trust Chief Executive Officer, Lument MIKE LARSEN President, Lument Finance Trust Chief Operating Officer, Lument JAMES BRIGGS CFO, Lument Finance Trust Chief Accounting Officer, Lument PRECILLA TORRES Head of Real Est
Slide 9: Lument Finance Trust: Target Investments
Lument Finance Trust: Target Investments 9 Loan Size $5 million to $50+ million Collateral Primarily first lien real estate debt on stabilized or transitional assets Property Type Multifamily, retail, office, industrial, and self storage Geographies Within the United States Loan to Value Typically u
Slide 10: Lument Finance Trust: Investment Portfolio
Lument Finance Trust: Investment Portfolio 10 TX , $211.7 , 35% IL , $82.5 , 14% GA , $52.7 , 9% VA , $49.4 , 8% MD , $33.6 , 6% Other States , $168.9 , 28% Geographic Concentration (1) Multi - Family , $541.6 , 90% Retail , $35.2 , 6% Office , $17.9 , 3% Self - Storage , $4.2 , 1% Property Type (1)
Slide 11: Lument Finance Trust: Capital Structure Overview
Lument Finance Trust: Capital Structure Overview 11 75.7% 6.3% 18.0% CLO Financing Term Loan Common Equity $637.2 million (4) Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $479.7 million includes $0.5 million of unamortized
Slide 12: Track Record of EPS Growth and Book Value Stability
Track Record of EPS Growth and Book Value Stability 12 $0.05 $0.06 $0.08 $0.10 $0.06 $0.09 $0.09 $0.11 Q4 2019 Q1 2020 Q2 2020 Q3 2020 GAAP Earnings/Share Core Earnings/Share $4.59 $4.57 $4.57 $4.59 Q4 2019 Q1 2020 Q2 2020 Q3 2020 GAAP Earnings & Core Earnings Per Share of Common Stock Book Value Pe
Slide 13: Conclusion Key Investment Highlights
Conclusion 13 Key Investment Highlights Strong Sponsorship/Ownership • Access to extensive loan origination platform through affiliation with Lument, a premier national mortgage originator and asset manager • Experienced management team with average of 23 years of industry experience across multiple
Slide 14: Q3 2020 Financial Updates Appendix
Q3 2020 Financial Updates Appendix
Slide 15: Q3 2020 Key Updates
Q3 2020 Key Updates 15 Note: (1) If all extensions are exercised by the borrowers, the CRE loan portfolio will have a weighted average remaining term of 38 months Financial Results • Q3 2020 GAAP Net Income of $2.55 million, or $0.10 per share • Q3 2020 Core Earnings of $2.76 million, or $0.11 per s
Slide 16: Q3 2020 Income Statement Summary
Q3 2020 Income Statement Summary 16 Summary Income Statement (thousands) Three Months Ended September 30, 2020 Net interest income $4,832 Total other income (loss) (162) Operating expenses (2,261) Benefit (provision) from income taxes 143 Preferred dividends (4) Net income attributable to common sto
Slide 17: Q3 2020 Balance Sheet Summary
Q3 2020 Balance Sheet Summary 17 Balance Sheet (thousands) Q3 2020 Commercial mortgage loans held - for - investment $598,933 Mortgage servicing rights, at fair value 1,097 Cash and cash equivalents 9,720 Restricted cash (1) 14,549 Investment related receivable (2) 9,247 Accrued interest receivable
Slide 18: Q3 2020 Summary of Investment Portfolio
Q3 2020 Summary of Investment Portfolio 18 Floating 99.8% Fixed … First Mortgages 99.8% Residential MSRs 0.2% Investment Portfolio as of September 30, 2020 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Orig
Slide 19: Q3 2020 Balance Sheet Summary
Q3 2020 Balance Sheet Summary 19 Multifamily , $10.6 , 100.0% Net Funding Activity (1) Q3 2020 Loan Acquisitions (1) $10.6 million Note: (1) $ In millions $609.8 $10.6 $(21.5) $598.9 Q2 2020 Portfolio Fundings / Acquisitions Payoffs / Sales Q3 2020 Portfolio • The CRE loan portfolio decreased by $10
Slide 20: Interest Rate Sensitivity as of September 30, 2020
Interest Rate Sensitivity as of September 30, 2020 20 Floating Rate Assets (1) $599 Floating Rate Liabilities (2) - $482 Net Exposure $116 $747 ($1,254) ($2,508) ($3,762) ($4,786) -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Floating - Rate Exposure Annual Net Inter
Slide 21: 9/30/2020 CRE Loan Portfolio Details
9/30/2020 CRE Loan Portfolio Details 21 Continued on the following page Note: (1) All loan spreads are indexed to one - month LIBOR (2) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan mod if ications and is not reflective of any c
Slide 22: 9/30/2020 CRE Loan Portfolio Details
9/30/2020 CRE Loan Portfolio Details 22 Note: (1) All loan spreads are indexed to one - month LIBOR (2) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan mod if ications and is not reflective of any changes in value which may have o
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets 23
Slide 24: Consolidated Statement of Income
Consolidated Statement of Income 24
Slide 25: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings 25 GAAP to Core Earnings Reconciliation Three Months Ended September 30, 2020 Reconciliation of GAAP to non - GAAP Information Net Income (loss) attributable to common shareholders $2,547,218 Adjustments for non - core earnings Unrealized (Gain) Loss on mortga
Slide 26: Detailed Walk of Capitalization
Detailed Walk of Capitalization 26 (in 000's) 9/30/2020 Total GAAP liabilities and stockholders' equity $637,828 Adjustments for Capitalization ( - ) Accrued interest payable (412) ( - ) Dividends payable (2,124) ( - ) Fees and expenses payable to Manager (1,116) ( - ) Other accounts payable and acc
Slide 27: Key Definitions
Key Definitions 27 “ Core Earnings ” means the net income (loss) attributable to the holders of Common Shares or, without duplication, owners of the Company’s S ubs idiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (
Slide 28: Lument
[3] LUMENT December 2020
Hunt Companies Finance Trust — Investor Presentation (December 2020) on 6ix