Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q3 2019 Earnings Presentation
21 slides from Lument Finance Trust's earnings presentation, Nov 7, 2019
Slide 1: Hunt Companies Finance Trust Q3 2019 Earnings Supplemental
www.huntcompaniesfinancetrust.com Hunt Companies Finance Trust Q3 2019 Earnings Supplemental November 2019
Slide 2: Disclaimer
Disclaimer This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to time may constitute forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchan
Slide 3: Company Overview
Company Overview 3 Strength of Ownership / Sponsorship Access to Extensive Loan Origination Platform Experienced Management Team Real estate investment trust focused on transitional multifamily and other commercial real estate loans or securitizations Externally managed by Hunt Investment Management
Slide 4: Q3 2019 Key Updates
Q3 2019 Key Updates 4 FINANCIAL RESULTS ▪ Q3 2019 GAAP Net Income of $2.15 million, or $0.09 per share ▪ Q3 2019 Core Earnings of $2.33 million, or $0.10 per share ▪ Q3 2019 Book value per share of $4.61 HIGHLIGHTS ▪ On September 17, 2019, the Company announced the declaration of a cash dividend of
Slide 5: Q3 2019 Earnings Summary
Q3 2019 Earnings Summary 5 Summary Income Statement (thousands) Three Months Ended September 30, 2019 YTD Through September 30, 2019 Net interest income $3,796 $12,049 Total other income (loss) (202) (622) Operating expenses (1,703) (6,527) Preferred dividends (4) (488) (Provision for) benefit from
Slide 6: Q3 2019 Balance Sheet Summary
Q3 2019 Balance Sheet Summary 6 Balance Sheet (thousands) Q3 2019 Commercial mortgage loans held - for - investment $559,522 Mortgage servicing rights, at fair value 2,714 Cash and cash equivalents 10,301 Restricted cash (1) 81,037 Other assets 3,778 Total assets $657,351 Collateralized loan obligat
Slide 7: Operating Performance Trending
Operating Performance Trending 7 Comprehensive Income & Core Earnings Per Share of Common Stock Adjusted Book Value Per Share (1) Note: (1) See Appendix for definition of Adjusted Book Value Per Share. Due to refinance of preferred equity in Q1, the “adjusted” book value concept is no longer relevan
Slide 8: Q3 2019 Summary of Investment Portfolio
Q3 2019 Summary of Investment Portfolio 8 Floating 99.5% Fixed 0.5% First Mortgages 99.5% Residential MSRs 0.5% Investment Portfolio as of September 30, 2019 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Or
Slide 9: Q3 2019 CRE Loan Portfolio Activity
Multifamily , $58.0 , 94.2% Retail , $0.1 , 0.1% Office , $3.5 , 5.6% Q3 2019 CRE Loan Portfolio Activity 9 $599.8 $61.5 $(101.8) $559.5 Q2 2019 Portfolio Fundings / Acquisitions Pay-offs / Sales Q3 2019 Portfolio Net Funding Activity (1) Q3 2019 Loan Acquisitions (1) ▪ The CRE loan portfolio decrea
Slide 10: Q3 2019 CRE Loan Portfolio Snapshot
Q3 2019 CRE Loan Portfolio Snapshot 10 Geographic Concentration (1) Property Type (1) ▪ As of the end of Q3 2019, the Company owned a portfolio of floating - rate CRE loans with an aggregate UPB of $559.5 million ▪ As of the end of Q3 2019, all loans were current Note: (1) $ In millions TX , $161.0
Slide 11: Capital Structure Overview
77.3% 6.0% 16.7% CLO Financing Term Loan Common Equity $659.7 million (4) Capital Structure Overview 11 Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $505.4 million includes $1.6 million of unamortized discounts for Hu nt CR
Slide 12: Interest Rate Sensitivity as of September 30, 2019
Interest Rate Sensitivity as of September 30, 2019 12 Floating Rate Assets (1) $560 Floating Rate Liabilities (2) - $510 Net Exposure $49 $2,183 $1,492 $808 $234 $123 $247 $370 $493 -100 bps -75 bps -50 bps -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Floating - Rat
Slide 13: Appendix
Appendix Da\HUNT
Slide 14: CRE Loan Portfolio Details
9 /30/2019 CRE Loan Portfolio Details 14 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 a Hunt affiliate. LTV has not been updated for any subsequent draws or loan mo difications and is not reflective of a
Slide 15: CRE Loan Portfolio Details
9 /30/2019 CRE Loan Portfolio Details 15 Note: (1) All loan spreads are indexed to one - month LIBOR (2) LTV as of the date the loan was originated by a Hunt affiliate. LTV has not been updated for any subsequent draws or loan mo difications and is not reflective of any changes in value which may ha
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets 16
Slide 17: Consolidated Statements of Income
Consolidated Statements of Income 17
Slide 18: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings 18 GAAP to Core Earnings Reconciliation Three months Ended September 30, 2019 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders 2,153,956$ Adjustments for non-core earnings Realized (Gain) Loss on sale of inve
Slide 19: Detailed Walk of Capitalization
Detailed Walk of Capitalization 19 (in 000's) 9/30/2019 Total GAAP liabilities and stockholders' equity $657,351 Adjustments for Capitalization ( - ) Accrued interest payable (815) ( - ) Dividends payable (1,780) ( - ) Fees and expenses payable to Manager (736) ( - ) Other accounts payable and accru
Slide 20: Key Definitions
Key Definitions “ Adjusted Book Value Per Share ” means a non - GAAP metric of common stockholders’ equity per share 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.
Slide 21: Hunt Companies Finance Trust
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