Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q4 2024 Earnings Presentation
25 slides from Lument Finance Trust's earnings presentation, Mar 20, 2025
Slide 1: Lument Finance Trust Q4 2024 Earnings Supplemental
Lument Finance Trust Q4 2024 Earnings Supplemental March 2025
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: Q4 2024 Updates
Q4 2024 Updates • Q4 2024 and FY 2024 GAAP net income attributable to common stockholders of $0.07 and $0.34 per share of common stock, respectively. • Q4 2024 and FY 2024 Distributable Earnings(1) of $0.10 and $0.44 per share of common stock, respectively. • On December 12, 2024, the Company declar
Slide 5: Q4 2024 Balance Sheet Summary
Q4 2024 Balance Sheet Summary Balance Sheet (thousands) December 31, 2024(1) Commercial mortgage loans held-for- $1,048,803 investment (net of allowance for credit losses) Cash and cash equivalents 69,173 Restricted cash(2) 2,391 Accrued interest receivable 5,946 Other assets(3) 2,281 Total assets $
Slide 6: Q4 and Full Year 2024 Income Statement Summary
Q4 and Full Year 2024 Income Statement Summary Three Twelve Twelve Months Months GAAP Net Income to Three Months Months Summary Income Ended Ended Distributable Earnings Ended Ended Statement December 31, December 31, Reconciliation December 31, December 31, (thousands) 2024 2024 (thousands) 2024 20
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) $3.50 $3.50 $3.48 $0.15 $3.40 $0.10 $0.10 $0.09 $0.08 $0.08 $0.08 $0.07 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Distributa
Slide 8: Investment Portfolio
Investment Portfolio • On December 31, 2024, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.0 billion. 92.3%(1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment op
Slide 9: Q4 2024 Loan Activity
Q4 2024 Loan Activity • The Company funded $13.0 million of loan assets Portfolio Activity(2Use portfolio and experienced $143.6 million of loan payoffs during the quarter. $1,181.7 $13.0 $(143.6) $(1.8) $(0.5) $1,048.8 Q3 2024 Fundings Payoffs / Provision for Other Q4 2024 Portfolio Sales Loan Loss
Slide 10: FY 2024 Loan Activity
FY 2024 Loan Activity • The Company funded $58.4 million of loan assets Portfolio Activity(2) and experienced $390.2 million of loan payoffs during FY 2024. $1,383.9 $58.4 $(390.2) $(5.3) $2.0 $1,048.8 Q4 2023 Fundings Payoffs / Provision for Other Q4 2024 Portfolio Sales Loan Losses Activity Portfo
Slide 11: Portfolio Credit
Portfolio Credit • As of December 31, 2024, 90.8% of the Company’s portfolio was performing(1), with 63.7% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating(2) of 3.5. • During the quarter, management applied a “5” risk-rating to six loans with an aggregate princip
Slide 12: Q4 2024 Capital Structure Overview
Q4 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 13: 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 -$0.01 Floating Rate Assets(2) Net Exposure -$0.02 $1,066 $23
Slide 14: Appendix
Appendix fa] LUMENT
Slide 15: 12/31/2024 CRE Loan Portfolio Details
12/31/2024 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 4/12/2021 5/5/2025 Multifamily Cedar Park TX 13,666,721 3.86% 0 49 66.70%
Slide 16: 12/31/2024 CRE Loan Portfolio Details
12/31/2024 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) 31 Loan 31 11/29/2022 12/5/2025 Healthcare Glendale WI 20,360,000 4.00% 0 36 45.00
Slide 17: 12/31/2024 CRE Loan Portfolio Details
12/31/2024 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) 61 Loan 61 10/7/2022 11/5/2025 Multifamily Fairborn OH 7,000,000 4.10% 0 37 79.10%
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 GAAP to Distributable Earnings Reconciliation Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $5,795,183 $3,413,445 $5,0
Slide 22: Detailed Walk of Capitalization as of 12/31/2024
Detailed Walk of Capitalization as of 12/31/2024 LFT Capitalization Reconciliation (in 000's) 12/31/2024 Total GAAP liabilities and stockholders' equity(1) $1,128,495 Adjustments for Capitalization ( - ) Accrued interest payable (2,698) ( - ) Dividends payable (9,890) ( - ) Fees and expenses payable
Slide 23: Book Value Per Share of Common Stock as of 12/31/2024
Book Value Per Share of Common Stock as of 12/31/2024 Book Value Per Common Share (in 000's) Dec 31, 2024 Total stockholders’ equity $237,899 ( - ) Preferred equity(1) (60,000) ( - ) Non-controlling interest (100) Common equity $177,800 Shares outstanding 52,300,286 Book Value Per Share of Common St
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: March 2025
=| LUMENT March 2025