Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q4 2020 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, Mar 15, 2021
Slide 1: Lument Finance Trust Q4 2020 Earnings Supplemental
March 2021 Lument Finance Trust Q4 2020 Earnings Supplemental
Slide 2: Disclaimer
Disclaimer 2 This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to ti me may constitute forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securi tie s E
Slide 3: Company Overview: Key Investment Highlights
Company Overview 3 Key Investment Highlights Strong Sponsorship/Ownership • Access to extensive loan origination platform through affiliation with Lument, a premier national mortgage originator and asset manager • Experienced management team with average of 23 years of industry experience across mul
Slide 4: Business Update
Business Update 4 Portfolio • 100% of the loans in our CRE investment portfolio were current as of as of 12/31/20 • During the “COVID era”, we have not granted a single forbearance nor have we experienced a single loan default • 90% of portfolio was multifamily as of 12/31/20. We have no hospitality
Slide 5: Q4 2020 Key Updates
Q4 2020 Key Updates 5 Note: (1 ) We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and ca sh flows from operating activities determined in accordance with GAAP . Distributable Earnings mirrors how we calculated Core Earnings in th
Slide 6: Q4 and Full Year 2020 Income Statement Summary
Q4 and Full Year 2020 Income Statement Summary 6 Summary Income Statement (thousands) Three Months Ended December 31, 2020 Twelve Months Ended December 31, 2020 Net interest income $ 4,639 $18,431 Total other income (loss) (54) (1,071) Operating expenses (2,155) (9,386) Benefit (provision) from inco
Slide 7: Q4 2020 Balance Sheet Summary
Q4 2020 Balance Sheet Summary 7 Balance Sheet (thousands) 12/31/2020 (1) Commercial mortgage loans held - for - investment $ 547,345 Mortgage servicing rights, at fair value 920 Cash and cash equivalents 11,376 Restricted cash (2) 57,999 Accrued interest receivable 2,016 Other assets 1,834 Total ass
Slide 8: Track Record of EPS Growth and Book Value Stability
Track Record of EPS Growth and Book Value Stability 8 $0.06 $0.08 $0.10 $0.10 $0.09 $0.09 $0.11 $0.10 Q1 2020 Q2 2020 Q3 2020 Q4 2020 GAAP Earnings/Share Distributable Earnings/Share $4.57 $4.57 $4.59 $4.56 Q1 2020 Q2 2020 Q3 2020 Q4 2020 GAAP Earnings & Distributable Earnings (1) Per Share of Commo
Slide 9: Q4 2020 Summary of Investment Portfolio
Q4 2020 Summary of Investment Portfolio 9 Floating 99.8% Fixed 0.2% First Mortgages 99.8% Residential MSRs 0.2% Investment Portfolio as of September 30, 2020 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Or
Slide 10: Net Funding Activity
Q4 2020 Balance Sheet Summary 10 Multifamily , $5.0 , 100.0% Net Funding Activity (1) Q4 2020 Loan Acquisitions (1) $5.0 million Note: (1) $ In millions. $598.9 $5.0 $(56.6) $547.3 Q3 2020 Portfolio Fundings / Acquisitions Payoffs / Sales Q4 2020 Portfolio • The CRE loan portfolio decreased by $51.6
Slide 11: Investment Portfolio
Investment Portfolio 11 TX , $211.7 , 39% IL , $82.5 , 15% GA , $43.7 , 8% VA , $40.7 , 7% MD , $33.8 , 6% Other States , $134.9 , 25% Geographic Concentration (1) Multi - Family , $490.1 , 90% Retail , $35.2 , 6% Office , $17.9 , 3% Self - Storage , $4.2 , 1% Property Type (1) $ 547.3 million $ 547
Slide 12: Capital Structure Overview
Capital Structure Overview 12 75.1% 6.5% 18.4% CLO Financing Term Loan Common Equity $ 619.3 million (4) Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $ 463.1 million includes $ 0.2 million of unamortized discounts for Hunt
Slide 13: Interest Rate Sensitivity as of December 31, 2020
Interest Rate Sensitivity as of December 31, 2020 13 Floating Rate Assets (1) $547 Floating Rate Liabilities (2) - $465 Net Exposure $82 $669 ($1,163) ($2,327) ($3,490) ($4,482) -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Floating - Rate Exposure Annual Net Interes
Slide 14: Appendix
Appendix 5] LUMENT
Slide 15: 12/31/2020 CRE Loan Portfolio Details
12/31/2020 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 an affiliate. LTV has not been updated for any subsequent draws or loan mod if ications and is not reflective of any
Slide 16: 12/31/2020 CRE Loan Portfolio Details
12/31/2020 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 an affiliate. LTV has not been updated for any subsequent draws or loan mod if ications and is not reflective of any changes in value which may have
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets 17
Slide 18: Consolidated Statement of Income
Consolidated Statement of Income 18
Slide 19: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings 19 GAAP to Distributable Earnings Reconciliation Three Months Ended December 31, 2020 Year Ended December 31, 2020 Reconciliation of GAAP to non - GAAP Information Net income attributable to common stockholders $2,464,678 $8,434,770 Adjustments for no
Slide 20: Detailed Walk of Capitalization
Detailed Walk of Capitalization 20 (in 000's) 12/31/2020 Total GAAP liabilities and stockholders' equity $ 621,490 Adjustments for Capitalization ( - ) Accrued interest payable ( 433) ( - ) Dividends payable (3,243) ( - ) Fees and expenses payable to Manager ( 1,156) ( - ) Other accounts payable and
Slide 21: Key Definitions
Key Definitions 21 “ Distributable Earnings ” is a non - GAAP measure, which we define as GAAP net income (loss) attributable to holders' of common stock, or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included
Slide 22: [3] LUMENT
[3] LUMENT March 2021