Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q2 2019 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, Aug 7, 2019
Slide 1: Hunt Companies Finance Trust Q2 2019 Earnings Supplemental
www.huntcompaniesfinancetrust.com Hunt Companies Finance Trust Q2 2019 Earnings Supplemental August 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: Strategic Transition
Strategic Transition 4 Hunt has made significant progress in its strategic transition of HCFT since becoming the Manager in Q1 2018 ✔ Hunt acquired 9.5% of outstanding common shares at book value ✔ C apped expense reimbursements to the Manager ✔ Disposed of all of the Company’s legacy RMBS, multifam
Slide 5: Q2 2019 Key Updates
Q2 2019 Key Updates 5 FINANCIAL RESULTS ▪ Q2 2019 GAAP Net Income of $1.39 million, or $0.06 per share ▪ Q2 2019 Core Earnings of $2.23 million, or $ 0.09 per share ▪ Q2 2019 Book value per share of $4.60 HIGHLIGHTS ▪ On June 10, 2019, the Company announced the declaration of a cash dividend of $0.0
Slide 6: Q2 2019 Earnings Summary
Q2 2019 Earnings Summary 6 Summary Income Statement (thousands) Three Months Ended June 30, 2019 YTD Through June 30, 2019 Net interest income $4,047 $8,253 Total other income (loss) (274) (421) Operating expenses (2,176) (4,824) Preferred dividends (4) (484) (Provision for) benefit from income taxe
Slide 7: Q2 2019 Balance Sheet Summary
Q2 2019 Balance Sheet Summary 7 Balance Sheet (thousands) Q2 2019 Commercial mortgage loans held - for - investment $599,770 Mortgage servicing rights, at fair value 3,159 Cash and cash equivalents 7,164 Restricted cash (1) 42,878 Other assets 4,384 Total assets $657,354 Collateralized loan obligati
Slide 8: Operating Performance Trending
Operating Performance Trending 8 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 necessa
Slide 9: Q2 2019 Summary of Investment Portfolio
Q2 2019 Summary of Investment Portfolio 9 Floating 99% Fixed 1% First Mortgages 99% Residential MSRs 1% Investment Portfolio as of June 30, 2019 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Origination Wei
Slide 10: Q2 2019 CRE Loan Portfolio Activity
Q2 2019 CRE Loan Portfolio Activity 10 $585.8 $52.9 $(38.9) $599.8 Q1 2019 Portfolio Fundings / Acquisitions Pay-offs Q2 2019 Portfolio Multifamily , $50.4 , 95% Retail , $1.5 , 3% Self - Storage , $0.8 , 2% Office , $0.2 , 0% Net Funding Activity (1) Q2 2019 Loan Acquisitions (1) ▪ The CRE loan por
Slide 11: Q2 2019 CRE Loan Portfolio Snapshot
Q2 2019 CRE Loan Portfolio Snapshot 11 TX , $153.8 , 26% IL , $79.1 , 13% AZ , $59.1 , 10% NC , $36.5 , 6% MD , $36.4 , 6% Other States , $234.9 , 39% Geographic Concentration (1) Multifamily , $529.9 , 88% Office , $33.7 , 6% Retail , $25.4 , 4% Self - Storage , $6.4 , 1% Mixed Use , $4.4 , 1% Prop
Slide 12: Capital Structure Overview
77.4% 6.1% 16.5% CLO Financing Term Loan Common Equity $659.3 million (4) Capital Structure Overview 12 Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value (2) Term loan shown at par value (3) Noncontrolling interest was $99,500 as of 6/30/2019 and is in
Slide 13: Interest Rate Sensitivity as of June 30, 2019
Interest Rate Sensitivity as of June 30, 2019 13 Floating Rate Assets (1) $600 Floating Rate Liabilities (2) - $510 Net Exposure $90 $799 $290 - $130 - $195 $224 $448 $672 $896 -100 bps -75 bps -50 bps -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Floating - Rate Exp
Slide 14: Appendix
Appendix De} HUNT
Slide 15: 6/30/2019 CRE Loan Portfolio Details
6/30/2019 CRE Loan Portfolio Details 15 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 an
Slide 16: 6/30/2019 CRE Loan Portfolio Details
6/30/2019 CRE Loan Portfolio Details 16 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 hav
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets 17
Slide 18: Consolidated Statements of Income
Consolidated Statements of Income 18
Slide 19: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings 19 GAAP to Core Earnings Reconciliation Three months Ended June 30, 2019 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders 1,390,378$ Adjustments for non-core earnings Realized (Gain) Loss on sale of investmen
Slide 20: Detailed Walk of Capitalization
Detailed Walk of Capitalization 20 (in 000's) 6/30/2019 Total GAAP liabilities and stockholders' equity $657,354 Adjustments for Capitalization ( - ) Multifamily securitized debt obligations 0 ( - ) Accrued interest payable (857) ( - ) Dividends payable (1,777) ( - ) Fees and expenses payable to Man
Slide 21: 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 22: De|HUNT
De|HUNT HUNT COMPANIES FINANCE TRUST Da\HUNT
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