Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q3 2023 Earnings Presentation
25 slides from Lument Finance Trust's earnings presentation, Nov 14, 2023
Slide 1: Lument Finance Trust Q3 2023 Earnings Supplemental
Lument Finance Trust Q3 2023 Earnings Supplemental November 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) (“LFT,” the “Com
Slide 3: Company Overview and Key Investment Highlights
Company Overview • The Company is an externally-managed real estate investment trust focused on investing in, financing and managing a portfolio of commercial real estate debt investments. • The Company is externally managed by Lument Investment Management, an affiliate of ORIX Corporation USA. Key
Slide 4: Q3 2023 Updates
Q3 2023 Updates • Q3 2023 GAAP net income attributable to common stockholders of $5.2 million, or $0.10 per share of common stock. Q3 2023 Distributable Earnings(1) of $6.0 million, or $0.11 per share of common stock. Financial • On September 14, 2023, the Company declared a cash dividend of $0.07 p
Slide 5: Q3 2023 Balance Sheet Summary
Q3 2023 Balance Sheet Summary Balance Sheet September (thousands) 30, 2023(1) Commercial mortgage loans held-for- $1,350,832 investment (net of allowance for credit losses) Cash and cash equivalents 43,409 Restricted cash(2) 6,225 Accrued interest receivable 8,608 Investment related receivable 31,12
Slide 6: Q3 2023 Income Statement Summary
Q3 2023 Income Statement Summary Three Months Three Months Ended GAAP Net Income to Distributable Ended Summary Income Statement September 30, Earnings Reconciliation September (thousands) 2023 (thousands) 30, 2023 Net interest income $9,544 Net Income attributable to common stockholders $5,175 Tota
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock GAAP Earnings & Distributable Earnings(1) Book Value Per Share of Common Stock(2) Per Share of Common Stock $0.11 $3.50 $3.46 $3.43 $3.46 $0.10 $0.09 CECL implemented $0.06 on January 1, 2023. BVPS is net of CECL reserve of $0.04 $0.06 as of 3/31/23.
Slide 8: Investment Portfolio
Investment Portfolio • On September 30, 2023, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.4 billion. 93.0%(1) of the portfolio was invested in loans backed by multifamily assets. • The Company anticipates that the majority of loan activity will continue to be
Slide 9: Q3 2023 Loan Activity
Q3 2023 Loan Activity • The Company experienced $111.0 million of loan payoffs during the quarter. • The Company acquired $452.1 million of loans during the quarter. Payoffs by Property Type(1) Acquisitions by Property Type(1) Healthcare, $6.1, 1.3% $111.0 $452.1 $72.9 Multi-Family, Multi-Family, $1
Slide 10: Portfolio Credit
Portfolio Credit • 95.0% of the Company’s portfolio is performing, with 75% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating remained stable quarter over quarter. Asset Performance(1) Weighted Average Risk Rating(2) 100% 98.9% 99.0% 97.9% 98.8% 98.8% 95.0% 6.00% 1
Slide 11: Q3 2023 Capital Structure Overview
Q3 2023 Capital Structure Overview • The Company does not currently utilize repurchase or warehouse facility financing and therefore is not subject to margin calls on any of its assets from repo or warehouse lenders. • Primary sources of financing include two secured financings (LMNT 2021-FL1 and LM
Slide 12: Net Interest Income Sensitivity to Shifts in Term SOFR
Net Interest Income Sensitivity to Shifts in Term SOFR • 100% floating-rate loan portfolio. • 100% of portfolio is indexed to 30-day term SOFR(1). Annual Net Interest Income Sensitivity to Floating-Rate Exposure(2) Shifts in Term SOFR (5) Floating $ in Thousands $ in Millions Rate Net $3,989 Assets(
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 9/30/2023 CRE Loan Portfolio Details
9/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread Discount/Premium (months) Origination 1 Loan 1 12/16/2021 1/3/2025 Multi-Family Daytona FL 51,375,000 3.05% 0 37 71.70%
Slide 15: 9/30/2023 CRE Loan Portfolio Details
9/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread Discount/Premium (months) Origination 22 Loan 22 10/13/2017 11/20/2023 Self Storage Seattle WA 19,648,818 3.60% 3,052 74
Slide 16: 9/30/2023 CRE Loan Portfolio Details
9/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread Discount/Premium (months) Origination 45 Loan 45 12/28/2021 1/3/2025 Multi-Family Houston TX 14,000,000 3.25% (230,075)
Slide 17: 9/30/2023 CRE Loan Portfolio Details
9/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance(1) Spread(2) Discount/Premium (months) Origination(3) 67 Loan 67 10/21/2021 11/5/2024 Multi-Family Madison TN 9,100,000 3.20% 0 37
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets 18
Slide 19: Consolidated Statement of Income
Consolidated Statement of Income 19
Slide 20: Detailed Walk of Allowance for Loan Losses
Detailed Walk of Allowance for Loan Losses 20
Slide 21: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings For the Three Months Ended September 30, December 31, GAAP to Distributable Earnings Reconciliation 2023 June 30, 2023 March 31, 2023 2022 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $5,174,685 $1,389,
Slide 22: Detailed Walk of Capitalization as of 9/30/2023
Detailed Walk of Capitalization as of 9/30/2023 (in 000's) 9/30/2023 Total GAAP liabilities and stockholders' equity $1,443,232 Adjustments for Capitalization ( - ) Accrued interest payable (3,833) ( - ) Dividends payable (4,657) ( - ) Fees and expenses payable to Manager (1,364) ( - ) Other account
Slide 23: Book Value Per Share of Common Stock as of 9/30/2023
Book Value Per Share of Common Stock as of 9/30/2023 Book Value per Share of (in 000's) Common Stock Total stockholders’ equity $240,595 ( - ) Preferred equity (60,000) (1) ( - ) Non-controlling interest (100) Common equity 180,496 Shares outstanding 52,231,152 Book Value Per Share of Common Stock $
Slide 24: Key Definitions
Key Definitions “Book Value Per Share of Common Stock” is calculated as: a) total stockholders’ equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its stated liquidation preference of $25.00 per share, divided by b) the weighted average number of
Slide 25: November 2023
=| LUMENT November 2023