Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q4 2023 Earnings Presentation
25 slides from Lument Finance Trust's earnings presentation, Mar 18, 2024
Slide 1: Lument Finance Trust Q4 2023 Earnings Supplemental
Lument Finance Trust Q4 2023 Earnings Supplemental March 2024
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: Q4 2023 Updates
Q4 2023 Updates • Q4 2023 and FY 2023 GAAP net income attributable to common stockholders of $0.07 and $0.29 per share of common stock, respectively. • Q4 2023 and FY 2023 Distributable Earnings(1) of $0.10 and $0.26 per share of common stock, respectively. • On December 12, 2023, the Company declar
Slide 5: Q4 2023 Balance Sheet Summary
Q4 2023 Balance Sheet Summary Balance Sheet December 31, (thousands) 2023(1) Commercial mortgage loans held-for- investment (net of allowance for credit $1,383,881 losses) Cash and cash equivalents 51,247 Restricted cash(2) 270 Accrued interest receivable 8,589 Investment related receivable 0 Other
Slide 6: Q4 2023 Income Statement Summary
Q4 2023 Income Statement Summary Three Twelve Three Twelve Months Months GAAP Net Income to Months Months Ended Ended Distributable Earnings Ended Ended Summary Income Statement December December Reconciliation December December (thousands) 31, 2023 31, 2023 (thousands) 31, 2023 31, 2023 Net interes
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock Net Income Attributable to Common Stockholders & Distributable Earnings(1) Book Value Per Share of Common Stock(2) Per Share of Common Stock $0.11 $3.46 $3.43 $3.46 $3.46 $0.10 $0.10 $0.09 $0.07 CECL implemented on January 1, 2023. BVPS is net of CEC
Slide 8: Investment Portfolio
Investment Portfolio • On December 31, 2023, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.4 billion. 94.0%(1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment op
Slide 9: Q4 2023 Loan Activity
Q4 2023 Loan Activity • The Company experienced $42.9 million of loan payoffs during the quarter and $271.4 million throughout 2023. • The Company acquired and/or funded $77.2 million of loans during the quarter and $602.3 million throughout 2023. Q4 Payoffs by Property Type(1) Q4 Acquisitions by Pr
Slide 10: Portfolio Credit
Portfolio Credit • As of December 31, 2023, 96.7% of the Company’s portfolio was performing(1), with 75.7% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating(2) increased slightly quarter over quarter from 3.4, primarily driven by a migration of assets to “3”-rating
Slide 11: Q4 2023 Capital Structure Overview
Q4 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) $ in Thousands $ in Millions $4,919 Floating $3,689 Rate Net
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 12/31/2023 CRE Loan Portfolio Details
12/31/2023 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: 12/31/2023 CRE Loan Portfolio Details
12/31/2023 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 Spread Discount/Premium (months) Origination(1) 22 Loan 22 11/29/2022 12/5/2025 Healthcare Glendale WI 20,360,000 4.00% 0 36 45.00
Slide 16: 12/31/2023 CRE Loan Portfolio Details
12/31/2023 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% (214,653)
Slide 17: 12/31/2023 CRE Loan Portfolio Details
12/31/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State (1) (2) (3) Date Date Balance Spread Discount/Premium (months) Origination 67 Loan 67 8/5/2022 8/5/2025 Multi-Family San Antonio TX 9,127,649 4.35%
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 Net Income to Distributable Earnings
Reconciliation of Net Income to Distributable Earnings For the Three Months Ended December 31, September 30, GAAP to Distributable Earnings Reconciliation 2023 2023 June 30, 2023 March 31, 2023 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $3,828,893 $
Slide 22: Detailed Walk of Capitalization as of 12/31/2023
Detailed Walk of Capitalization as of 12/31/2023 (in 000's) 12/31/2023 Total GAAP liabilities and stockholders' equity $1,446,833 Adjustments for Capitalization ( - ) Accrued interest payable (4,093) ( - ) Dividends payable (4,655) ( - ) Fees and expenses payable to Manager (1,588) ( - ) Other accou
Slide 23: Book Value Per Share of Common Stock as of 12/31/2023
Book Value Per Share of Common Stock as of 12/31/2023 Book Value per Share of (in 000's) Common Stock Total stockholders’ equity $240,792 ( - ) Preferred equity (60,000) (1) ( - ) Non-controlling interest (100) Common equity $180,693 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: March 2024
=| LUMENT March 2024