Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q1 2019 Earnings Presentation
30 slides from Lument Finance Trust's earnings presentation, May 2019
Slide 1: Hunt Companies Finance Trust Investor Presentation
Hunt Companies Finance Trust Investor Presentation May 2019 www.huntcompaniesfinancetrust.com
Slide 2: Disclaimer
Disclaimer This presentation and any related 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 Act of 1934, as amended, which
Slide 3: Company Overview
Company Overview Real estate investment trust Externally managed by Hunt focused on transitional Investment Management, multifamily and other part of Hunt Companies Inc., commercial real estate loans or a diverse real estate securitizations organization (“Hunt”) Strong focus on middle-market Emphasi
Slide 4: Leveraging the Breadth and Depth of the Hunt Platform
Leveraging the Breadth and Depth of the Hunt Platform The Company expects to leverage Hunt’s vertically integrated real estate platform and expertise across construction, development, property management, and finance when originating and underwriting investments 1 STRONG INVESTMENT SOURCING CAPABILI
Slide 5: An Integrated and Diversified Real Estate Platform
An Integrated and Diversified Real Estate Platform Hunt Companies, Inc. is a diversified global real estate organization dedicated to creating value through the development, construction, investment, management, and financing of real estate assets Privately owned and founded in 1947 Largest owne
Slide 6: An Integrated and Diversified Real Estate Platform
An Integrated and Diversified Real Estate Platform Commercial Real Estate Lender $16.5B Servicing Real Estate Owner Portfolio(1) Investment and Operator Manager Over 70,000 units, and Broker Dealer including military, SEC-Registered affordable and Investment Advisor conventional housing. 1.5mm squar
Slide 7: HCFT has Access to an Extensive Origination Platform through the Manager's Affiliation with Hunt
HCFT has Access to an Extensive Origination Platform through the Manager’s Affiliation with Hunt Real Estate Capital (“HREC”) Strong Origination Track Record. HREC has strong commercial real HREC Annual Mortgage Origination Volume estate/multifamily mortgage loan origination capabilities supported
Slide 8: Hunt Real Estate Capital – National Focus
Hunt Real Estate Capital – National Focus SEATTLE, WA BUFFALO, NY ROYAL OAK, MI CLEVELAND, OH NEW YORK, NY CHICAGO, IL PHILADELPHIA, PA SAN RAFAEL, CA COLUMBUS, OH WASHINGTON, D.C. DENVER, CO ARCADIA, CA LOS ANGELES, CA IRVINE, CA PHOENIX, AZ BIRMINGHAM, AL ATLANTA, GA CHARLESTON, SC DALLAS, TX EL P
Slide 9: Hunt Real Estate Capital – Experienced Leadership Team
Hunt Real Estate Capital – Experienced Leadership Team CHRIS HUNT JAMES FLYNN MICHAEL LARSEN JAMES BRIGGS President, Hunt Companies Interim CFO, Hunt Companies CEO, Hunt Companies Director & CEO, Hunt Companies Finance Trust Finance Trust Chairman, Hunt Companies Finance Trust CFO & COO, Hunt Real E
Slide 10: Strategic Transition
Strategic Transition 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 ✔ Capped expense reimbursements to the Manager Disposed of all of the Company’s legacy RMBS, multifamily M
Slide 11: Target Investments
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 to 80% LTC / up to 75%
Slide 12: Q1 2019 Summary of Investment Portfolio
Q1 2019 Summary of Investment Portfolio Investment Type Interest Rate Type Residential MSRs Fixed 1% 1% $589.4 million $589.4 million First Mortgages Floating 99% 99% Investment Portfolio as of March Weighted Average Weighted Average Weighted Average Net Carrying Weighted Average 31, 2019 UPB / Noti
Slide 13: Q1 2019 CRE Loan Portfolio Snapshot
Q1 2019 CRE Loan Portfolio Snapshot As of 3/31/2019, the Company owned a portfolio of floating-rate CRE loans with an aggregate UPB of $585.8 million As of 3/31/2019, all loans were current Geographic Concentration(1) Property Type(1) Self-Storage, $5.5, 1% Retail, $41.9, Mixed Use, 7% $4.4, 1%
Slide 14: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Capital Structure Detail ($ in mm) Amount ($) Match Term Non-Recourse Collateralized Loan Obligations Rate Advance Rate Am ount Financing Hunt CRE 2017-FL1(1) L + 1.38% 83.3% $290.7 Hunt CRE 2018-FL2(1) L + 1.44% 77.0% $219.4 Total Collaterali
Slide 15: Summary
Summary IN SUMMARY Real Estate Investment Trust focused on commercial and non-commercial real estate investments Externally managed by Hunt Investment Management, part of the diversified and vertically integrated Hunt real estate platform with expertise across construction, development, finance,
Slide 16: Appendix – Q1 2019 Earnings
Appendix – Q1 2019 Earnings Supplemental 16
Slide 17: Q1 2019 Key Updates
Q1 2019 Key Updates Comprehensive loss of $(2.10) million or ($0.09) per share for the quarter FINANCIAL RESULTS Q1 2019 results were impacted by a $3.09 million non-cash one-time charge related to the redemption of the 8.75% Series A Cumulative Redeemable Preferred Stock (1) Core earnings att
Slide 18: Q1 2019 Earnings Summary
Q1 2019 Earnings Summary Three Months GAAP Comprehensive Income to Three Months Ended March Core Earnings Reconciliation Ended March Summary Income Statement (thousands) 31, 2019 (thousands) 31, 2019 Comprehensive income attributable to $(2,099) Net interest income $4,207 common stockholders Total o
Slide 19: Q1 2019 Balance Sheet Summary
Q1 2019 Balance Sheet Summary Balance Sheet (thousands) Q1 2019 Commercial mortgage loans held-for-investment $585,771 Mortgage servicing rights, at fair value 3,618 Cash and cash equivalents 13,640 Restricted cash(1) 52,349 Other assets 4,029 Total assets $659,407 Collateralized loan obligations(2)
Slide 20: Operating Performance Trending
Operating Performance Trending Comprehensive Income & Core Earnings Per Share of Common Adjusted Book Value Per Share(1) Stock $4.72 $0.15 $0.10 $4.65 $0.09 $4.64 $4.64 $0.08 $0.07 $0.05 $4.61 $0.04 -$0.02 -$0.02 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 -$0.09 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Slide 21: Q1 2019 CRE Loan Portfolio Activity
Q1 2019 CRE Loan Portfolio Activity The CRE loan portfolio increased by $30.6 million in Q1 The Company acquired $62.8 million of loans and participations at par from an affiliate of the Manager and funded an additional $1.8 million of future funding participations The portfolio experienced $3
Slide 22: Interest Rate Sensitivity as of March 31, 2019
Interest Rate Sensitivity as of March 31, 2019 Net Interest Income Sensitivity to Shifts in Floating-Rate Exposure One-Month LIBOR Millions Thousands Floating Rate Net Assets(1) Exposure $756 $586 $76 $567 $378 Floating $189 Rate Liabilities(2) -$510 +0 bps +25 bps +50 bps +75 bps +100 bps Change in
Slide 23: 3/31/2019 CRE Loan Portfolio Details
3/31/2019 CRE Loan Portfolio Details Initial Closing Maturity Current Note As-Is LTV at # Loan Name Property Type City State Term Date Date Balance Spread(1) Origination(2) (months) 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-Fam
Slide 24: 3/31/2019 CRE Loan Portfolio Details
3/31/2019 CRE Loan Portfolio Details Closing Maturity Current Note Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread(1) (months) Origination(2) 23 Loan 23 5/25/2018 6/6/2021 Multi-Family Phoenix AZ 9,440,000 3.90% 37 69.41% 24 Loan 24 3/12/2018 4/6/2020 Multi-Fa
Slide 25: Consolidated Balance Sheets
Consolidated Balance Sheets 25
Slide 26: Consolidated Statements of Income
Consolidated Statements of Income 26
Slide 27: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings GAAP to Core Earnings Reconciliation Three months Ended March 31, 2019 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders $ (2,098,733) Adjustments for non-core earnings Realized (Gain) Loss on investments 709,
Slide 28: Detailed Walk of Capitalization
Detailed Walk of Capitalization (in 000's) 3/31/2019 Total GAAP liabilities and stockholders' equity $659,407 Adjustments for Capitalization ( - ) Multifamily securitized debt obligations 0 ( - ) Accrued interest payable (1,018) ( - ) Dividends payable (1,662) ( - ) Fees and expenses payable to Mana
Slide 29: 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 $25.00 p
Slide 30: Me FUNT
Me FUNT HUNT COMPANIES FINANCE TRUST Ba HUNT
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