Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q2 2024 Earnings Presentation
25 slides from Lument Finance Trust's earnings presentation, Aug 13, 2024
Slide 1: Lument Finance Trust Q2 2024 Earnings Supplemental
Lument Finance Trust Q2 2024 Earnings Supplemental August 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 LLC, an affiliate of ORIX Corporation USA.
Slide 4: Q2 2024 Updates
Q2 2024 Updates • Q2 2024 GAAP net income attributable to common stockholders of $0.07 per share of common stock. • Q2 2024 Distributable Earnings(1) of $0.09 per share of common stock. • On June 13, 2024, the Company declared a cash dividend for the quarter of $0.08 per share of common stock, which
Slide 5: Q2 2024 Balance Sheet Summary
Q2 2024 Balance Sheet Summary Balance Sheet (thousands) June 30, 2024(1) Commercial mortgage loans held-for- investment (net of allowance for credit $1,186,653 losses) Cash and cash equivalents 65,135 Restricted cash(2) 1,457 Accrued interest receivable 7,761 Investment related receivable 33,360 Oth
Slide 6: Q2 2024 Income Statement Summary
Q2 2024 Income Statement Summary Three Months GAAP Net Income to Distributable Three Months Summary Income Statement Ended June 30, Earnings Reconciliation Ended June (thousands) 2024 (thousands) 30, 2024 Net interest income $9,523 Net Income attributable to common $3,413 stockholders Total other in
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock Distributable Earnings(1) & Book Value Per Share of Common Dividends Per Share of Common Share Stock(2) $0.15 $3.50 $3.48 $0.11 $3.46 $3.46 $0.10 $0.09 $0.08 $0.07 $0.07 $0.07 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Distributa
Slide 8: Investment Portfolio
Investment Portfolio • On June 30, 2024, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.2 billion. 93.2%(1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment opport
Slide 9: Q2 2024 Loan Activity
Q2 2024 Loan Activity • The Company experienced $98.2 million of loan payoffs during the quarter. Q2 Payoffs by Property Type(1) Portfolio Activity(2) Self Storage, $(98.2) $1,285.5 $1.3, 1.3% $0.8 $(1.4) $1,186.7 $98.2 Q1 2024 Payoffs / Provision for Other Activity Q2 2024 Multifamily, Portfolio Sa
Slide 10: Portfolio Credit
Portfolio Credit • As of June 30, 2024, 93.0% of the Company’s portfolio was performing(1), with 62.7% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating(2) of 3.6. • During the quarter, management applied a “5” risk-rating to four loans with an aggregate principal
Slide 11: Q2 2024 Capital Structure Overview
Q2 2024 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 loan assets from repo or warehouse lenders. • Primary sources of financing include two secured financings (2021-FL1 CLO an
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. Net Interest Income Per Share Floating-Rate Exposure(1) Sensitivity to Change in SOFR(4) $0.01 Floating Rate Assets(2) Net Exposure -$0.01 $1,202 $202 -$0.0
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 6/30/2024 CRE Loan Portfolio Details
6/30/2024 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) 1 Loan 1 12/16/2021 1/3/2025 Multi-Family Daytona FL 51,375,000 3.16% 0 37 71.70% 2
Slide 15: 6/30/2024 CRE Loan Portfolio Details
6/30/2024 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 11/21/2022 12/5/2025 Healthcare Houston TX 18,920,000 4.00% 0 37 67.00%
Slide 16: 6/30/2024 CRE Loan Portfolio Details
6/30/2024 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) 45 Loan 45 12/13/2021 1/5/2025 Multi-Family Evansville IN 12,600,000 3.41% 0 37 74.
Slide 17: 6/30/2024 CRE Loan Portfolio Details
6/30/2024 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) 67 Loan 67 9/28/2021 10/4/2024 Multi-Family Chicago IL 7,286,000 3.76% 0 36 75.90%
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 June 30, 2024 March 31, 2024 2023 2023 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $3,413,445 $
Slide 22: Detailed Walk of Capitalization as of 6/30/2024
Detailed Walk of Capitalization as of 6/30/2024 (in 000's) 6/30/2024 Total GAAP liabilities and stockholders' equity(1) $1,296,860 Adjustments for Capitalization ( - ) Accrued interest payable (3,365) ( - ) Dividends payable (5,180) ( - ) Fees and expenses payable to Manager (2,280) ( - ) Other acco
Slide 23: Book Value Per Share of Common Stock as of 6/30/2024
Book Value Per Share of Common Stock as of 6/30/2024 Book Value per Share (in 000's) of Common Stock Total stockholders’ equity $242,195 ( - ) Preferred equity(1) (60,000) ( - ) Non-controlling interest (100) Common equity $182,096 Shares outstanding 52,257,230 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: August 2024
=| LUMENT August 2024