Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Investor Presentation (December 2020)
28 slides from Lument Finance Trust's investor presentation, December 2020
Slide 1: Lument Finance Trust Investor Presentation December 2020
Lument Finance Trust Investor Presentation December 2020
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 Exchange
Slide 3: Name & Ticker Change
Name & Ticker Change • 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 und
Slide 4: Company Overview
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 In
Slide 5: Leveraging the Depth of the Lument Platform
Leveraging the Depth of the Lument Platform The Company leverages Lument’s broad platform and significant expertise when originating and underwriting investments • Lument is a nationally recognized leader in multifamily and seniors housing and care finance • Combining the industry expertise of legac
Slide 6: Lument: A Platform Built for the Benefit of Investors
Lument: A Platform Built for the Benefit of Investors • 600+ employees across 25+ offices provide clients of Lument and its affiliates with a mix of Diverse Opportunity markets, assets, and deal types that span the breadth of commercial and multifamily real Set via Lument estate Origination Platform
Slide 7: Affiliation with ORIX
Affiliation with ORIX ORIX Corporation USA, a subsidiary of ORIX Corporation, is the parent of the Company’s investment manager and is also a meaningful Company shareholder ORIX CORPORATION USA – AT A GLANCE ORIX Corporation USA provides investment capital and asset management services to clients in
Slide 8: Lument: Experienced Leadership Team
Lument: Experienced Leadership Team JAMES FLYNN MIKE LARSEN JAMES BRIGGS PRECILLA TORRES Director & CEO, Lument Finance Trust President, Lument Finance Trust CFO, Lument Finance Trust Head of Real Estate Investment Chief Executive Officer, Lument Chief Operating Officer, Lument Chief Accounting Offi
Slide 9: Lument Finance Trust: Target Investments
Lument Finance Trust: Target Investments 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 up
Slide 10: Lument Finance Trust: Investment Portfolio
Lument Finance Trust: Investment Portfolio • As of Q3 2020, the Company owned a portfolio of floating-rate CRE loans with an aggregate UPB of $599 million. 90% of the portfolio was invested in loans backed by multifamily assets • The Company anticipates that the majority of loan activity will contin
Slide 11: Lument Finance Trust: Capital Structure Overview
Lument Finance Trust: 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 debt financing are two match-term non-MTM CRE CLO
Slide 12: Track Record of EPS Growth and Book Value Stability
Track Record of EPS Growth and Book Value Stability GAAP Earnings & Core Earnings Per Book Value Per Share Share of Common Stock $0.11 $0.10 $0.09 $0.09 $0.08 $4.59 $4.57 $4.57 $4.59 $0.06 $0.06 $0.05 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2019 Q1 2020 Q2 2020 Q3 2020 GAAP Earnings/Share Core Earnings/S
Slide 13: Conclusion
Conclusion Key Investment Highlights Strong Sponsorship/Ownership Attractive Investment Profile • Access to extensive loan origination platform • Emphasis on middle market multifamily through affiliation with Lument, a premier investments which are well positioned for the national mortgage originato
Slide 14: Appendix: Q3 2020 Financial Updates
Appendix Q3 2020 Financial Updates
Slide 15: Q3 2020 Key Updates
Q3 2020 Key Updates • Q3 2020 GAAP Net Income of $2.55 million, or $0.10 per share Financial Results • Q3 2020 Core Earnings of $2.76 million, or $0.11 per share • Q3 2020 Book Value Per Share of $4.59 • As previously announced, the Company increased the quarterly dividend by 13% from $0.075 per sha
Slide 16: Q3 2020 Income Statement Summary
Q3 2020 Income Statement Summary Three Months Three Months Ended GAAP Comprehensive Income to Core Ended Summary Income Statement September Earnings Reconciliation September 30, (thousands) 30, 2020 (thousands) 2020 Net interest income $4,832 Comprehensive income attributable to $2,547 common stockh
Slide 17: Q3 2020 Balance Sheet Summary
Q3 2020 Balance Sheet Summary 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 2,280 Oth
Slide 18: Q3 2020 Summary of Investment Portfolio
Q3 2020 Summary of Investment Portfolio Investment Type Interest Rate Type Residential MSRs Fixed… 0.2% $600.0 million $600.0 million First Mortgages Floating 99.8% 99.8% Investment Portfolio as of Weighted Average Weighted Average Weighted Average Net Carrying Weighted September 30, 2020 UPB / Noti
Slide 19: Q3 2020 Balance Sheet Summary
Q3 2020 Balance Sheet Summary • The CRE loan portfolio decreased by $10.9 million in Q3 • The Company acquired $9.5 million of loans at par from an affiliate of the Manager and funded an additional $1.1 million of future funding participations • The Company experienced $21.5 million of payoffs, $9.2
Slide 20: Interest Rate Sensitivity as of September 30, 2020
Interest Rate Sensitivity as of September 30, 2020 Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month LIBOR(3) $747 $ in Thousands $ in Millions Floating ($1,254) Rate Net ($2,508) Assets(1) Exposure ($3,762) $599 $116 ($4,786) Floating Rate Liabilities(2) -$482 (4)
Slide 21: 9/30/2020 CRE Loan Portfolio Details
9/30/2020 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance (1) Date Date Spread (months) Origination(2) 1 Loan 1 6/5/2018 6/4/2021 Multi-Family Palatine IL 35,625,000 4.30% 37 68.50% 2 Loan 2 11/30/2018 12/6/2020 Multi-Fa
Slide 22: 9/30/2020 CRE Loan Portfolio Details
9/30/2020 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance (1) Date Date Spread (months) Origination(2) 23 Loan 23 9/10/2020 4/6/2021 Multi-Family Winchester OH 9,527,000 4.25% 7 61.90% 24 Loan 24 9/11/2019 10/6/2022 Mult
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 Three Months Ended September 30, GAAP to Core Earnings Reconciliation 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 mortgage serv
Slide 26: Detailed Walk of Capitalization
Detailed Walk of Capitalization (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 accrue
Slide 27: Key Definitions
Key Definitions “Core Earnings” means the net income (loss) attributable to the holders of Common Shares or, without duplication, owners of the Company’s Subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-c
Slide 28: December 2020
=| LUMENT December 2020
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