Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q4 2019 Earnings Presentation
27 slides from Lument Finance Trust's earnings presentation, Mar 16, 2020
Slide 1: Q4 2019 Earnings Supplemental
www.huntcompaniesfinancetrust.com Hunt Companies Finance Trust Q4 2019 Earnings Supplemental March 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 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 OREC Investment Management
Slide 4: The ORIX Transaction
4 The ORIX Transaction
Slide 5: ORIX Transaction Overview
ORIX Transaction Overview 5 ▪ On January 6, 2020, Hunt Companies Finance Trust, Inc. (NYSE: HCFT) (“ HCFT” or “the Company”) announced that its independent directors unanimously approved the entry into a new management agreement with OREC Investment Management, LLC (the “Manager”), a subsidiary of O
Slide 6: ORIX Transaction Overview
ORIX Transaction Overview 6 ▪ The terms of the new management agreement, which are further described in the Company’s Form 8 - K, align with the terms of HCFT’s prior management agreement with HIM in all material respects, including a cap on reimbursable expenses. ▪ Pursuant to the terms of the term
Slide 7: ORIX Corporation at a Glance
ORIX Corporation at a Glance 7 Founded in 1964, ORIX Corporation is a publicly traded, Tokyo - based international financial services company with over 32,000 employees worldwide. ORIX USA, a subsidiary of ORIX Corporation, has provided innovative capital solutions that clients need to propel their
Slide 8: ORIX Commercial Lending Business
ORIX Real Estate Capital, as of December 2019: ▪ $10 billion of originations in 2019 ▪ $41 billion servicing portfolio ▪ 600+ employees across ORIX Real Estate Capital (OREC) nationwide ▪ 160+ employees focused on production across OREC nationwide ▪ 35+ offices nationwide ▪ OREC Investment Managemen
Slide 9: Q4 and Full Year 2019 Results
9 Q4 and Full Year 2019 Results
Slide 10: Q4 2019 Key Updates
Q4 2019 Key Updates 10 FINANCIAL RESULTS ▪ Q4 2019 GAAP Net Income of $1.22 million, or $0.05 per share. FY19 GAAP Net Income of $2.66 million, or $0.11 per share ▪ Q4 2019 Core Earnings of $1.32 million, or $0.06 per share. FY19 Core Earnings of $7.55 million, or $0.32 per share ▪ Q4 2019 Book V al
Slide 11: Q4 2019 Earnings Summary
Q4 2019 Earnings Summary 11 Summary Income Statement (thousands) Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 Net interest income $3,365 $15,414 Total other income (loss) 178 (444) Operating expenses (2,238) (8,765) Preferred dividends (4) (492) (Provision for) benefit
Slide 12: Q4 2019 Balance Sheet Summary
Q4 2019 Balance Sheet Summary 12 Balance Sheet (thousands) Q4 2019 Commercial mortgage loans held - for - investment $635,260 Mortgage servicing rights, at fair value 2,700 Cash and cash equivalents 10,942 Restricted cash (1) 5,070 Other assets 3,930 Total assets $657,902 Collateralized loan obligat
Slide 13: Operating Performance Trending
Operating Performance Trending 13 Comprehensive Income & Core Earnings Per Share of Common Stock Adjusted Book Value Per Share (1) - $0.02 - $0.09 $0.06 $0.09 $0.05 $0.08 $0.07 $0.09 $0.10 $0.06 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Comprehensive Income/Share Core Earnings/Share $4.64 $4.61 $4.60
Slide 14: Q4 2019 Summary of Investment Portfolio
Q4 2019 Summary of Investment Portfolio 14 Floating 99.6% Fixed 0.4% First Mortgages 99.6% Residential MSRs 0.4% Investment Portfolio as of December 31, 2019 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Or
Slide 15: Q4 2019 CRE Loan Portfolio Activity
Multifamily , $116.3 , 95.9% Self Storage , $4.2 , 3.5% Office , $0.7 , 0.6% Retail , $0.0 , 0.0% Q4 2019 CRE Loan Portfolio Activity 15 $559.5 $121.2 $(45.5) $635.3 Q3 2019 Portfolio Fundings / Acquisitions Pay-offs / Sales Q4 2019 Portfolio Net Funding Activity (1) Q4 2019 Loan Acquisitions (1) ▪
Slide 16: Q4 2019 CRE Loan Portfolio Snapshot
Q4 2019 CRE Loan Portfolio Snapshot 16 TX , $205.5 , 32% IL , $82.5 , 13% VA , $49.4 , 8% AZ , $40.3 , 6% GA , $38.0 , 6% Other States , $219.4 , 35% Geographic Concentration (1) Multi - Family , $596.7 , 94% Retail , $17.1 , 3% Office , $12.8 , 2% Mixed Use , $4.4 , 1% Self Storage , $4.2 , 0% Prop
Slide 17: Capital Structure Overview
77.4% 6.1% 16.5% CLO Financing Term Loan Common Equity $659.1 million (4) Capital Structure Overview 17 Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $505.9 million includes $1.3 million of unamortized discounts for Hu nt CR
Slide 18: Interest Rate Sensitivity as of December 31, 2019
Interest Rate Sensitivity as of December 31, 2019 18 Floating Rate Assets (1) $635 Floating Rate Liabilities (2) - $510 Net Exposure $125 $3,812 $2,572 $1,794 $1,020 $313 $625 $938 $1,251 -100 bps -75 bps -50 bps -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Floating
Slide 19: Appendix
19 Appendix
Slide 20: 12/31/2019 CRE Loan Portfolio Details
12/31/2019 CRE Loan Portfolio Details 20 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 21: 12/31/2019 CRE Loan Portfolio Details
12/31/2019 CRE Loan Portfolio Details 21 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 22: Consolidated Balance Sheets
Consolidated Balance Sheets 22
Slide 23: Consolidated Statements of Income
Consolidated Statements of Income 23
Slide 24: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings 24 GAAP to Core Earnings Reconciliation Three months Ended Year-Ended December 31, 2019 September 30, 2019 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders 1,218,497$ 2,664,098$ Adjustments for non-core earni
Slide 25: Detailed Walk of Capitalization
Detailed Walk of Capitalization 25 (in 000's) 9/30/2019 Total GAAP liabilities and stockholders' equity $657,902 Adjustments for Capitalization ( - ) Accrued interest payable (805) ( - ) Dividends payable (1,777) ( - ) Fees and expenses payable to Manager (992) ( - ) Other accounts payable and accru
Slide 26: 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 27: Hunt Companies Finance Trust
HUNT HUNT COMPANIES FINANCE TRUST
Hunt Companies Finance Trust — Q4 2019 Earnings Presentation on 6ix