Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Investor Presentation (November 2021)
28 slides from Lument Finance Trust's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021
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 Exchange
Slide 3: Company Overview
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, an affiliate of ORIX Corporation USA Key In
Slide 4: Leveraging the Depth of the Lument Platform
Leveraging the Depth of the Lument Platform The Company leverages Lument’s broad platform and significant expertise when originating and underwriting investments • Lument is a nationally recognized leader in multifamily and seniors housing and care finance • Combining the industry expertise of legac
Slide 5: Lument: A Platform Built for the Benefit of Investors
Lument: A Platform Built for the Benefit of Investors • 550+ employees across 30+ offices provide clients of Lument and its affiliates with a mix of Diverse Opportunity markets, assets, and deal types that span the breadth of commercial and multifamily real Set via Lument estate Origination Platform
Slide 6: Affiliation with ORIX
Affiliation with ORIX ORIX Corporation USA, a subsidiary of ORIX Corporation, is the parent of the Company’s investment manager and is also a meaningful Company shareholder ORIX CORPORATION USA – AT A GLANCE ORIX Corporation USA provides investment capital and asset management services to clients in
Slide 7: Lument: Experienced Leadership Team
Lument: Experienced Leadership Team JAMES FLYNN MIKE LARSEN JAMES BRIGGS PRECILLA TORRES Director & CEO, Lument Finance Trust President, Lument Finance Trust CFO, Lument Finance Trust Head of Real Estate Investment Chief Executive Officer, Lument Chief Operating Officer, Lument Chief Accounting Offi
Slide 8: Lument Finance Trust: Target Investments
Lument Finance Trust: 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
Slide 9: Lument Finance Trust: Investment Portfolio
Lument Finance Trust: Investment Portfolio • At September 30, 2021, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $803.1 million. 89%(1) of the portfolio was invested in loans backed by multifamily assets • The Company anticipates that the majority of loan activit
Slide 10: Lument Finance Trust: Capital Structure Overview
Lument Finance Trust: 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 assets from repo or warehouse lenders • Primary sources of financing include a match-term non-MTM CRE CLO (L
Slide 11: Track Record of EPS Growth and Book Value Stability
Track Record of EPS Growth and Book Value Stability GAAP Earnings & Distributable Earnings(1) Book Value Per Share of Common Stock(2) Per Share of Common Stock $4.70 $0.11 $0.11 $0.11 $4.60 $4.58 $0.10 $4.56 $0.10 $4.50 $4.41 $4.40 $4.37 $0.06 $4.30 $0.05 $0.04 $4.20 $4.10 $4.00 Q4 2020 Q1 2021 Q2 2
Slide 12: Conclusion
Conclusion Key Investment Highlights Strong Sponsorship/Ownership Attractive Investment Profile • Access to extensive loan origination platform • Emphasis on middle market multifamily through affiliation with Lument, a premier investments which are well positioned for the national mortgage originato
Slide 13: Appendix: Q3 2021 Financial Updates
Appendix Q3 2021 Financial Updates
Slide 14: Q3 2021 Key Updates
Q3 2021 Key Updates • Q3 2021 GAAP net income attributable to common stockholders of $1.2 million, or $0.05 per share of Financial common stock. Q3 2021 Distributable Earnings(1) of $1.4 million, or $0.06 per share of common stock Results • Q3 2021 Book Value Per Share of Common Stock of $4.37(2) •
Slide 15: Q3 2021 Income Statement Summary
Q3 2021 Income Statement Summary Three Months Three Months Ended GAAP Net Income to Distributable Ended Summary Income Statement September Earnings Reconciliation September 30, (thousands) 30, 2021 (thousands) 2021 Net interest income $4,733 Net Income attributable to common $1,176 stockholders Tota
Slide 16: Q3 2021 Balance Sheet Summary
Q3 2021 Balance Sheet Summary Balance Sheet September 30, (thousands) 2021(1) Commercial mortgage loans held-for-investment $803,074 Mortgage servicing rights, at fair value 619 Cash and cash equivalents 44,080 Restricted cash(2) 148,066 Accrued interest receivable 3,083 Investment Related Receivabl
Slide 17: Q3 2021 Summary of Investment Portfolio
Q3 2021 Summary of Investment Portfolio Investment Type Interest Rate Type Residential MSRs 0.1% Fixed 0.1% $803.7 million $803.7 million First Mortgages Floating 99.9% 99.9% Investment Portfolio as of Weighted Average Weighted Average Weighted Average Net Carrying Weighted September 30, 2021 UPB /
Slide 18: Q3 2021 Balance Sheet Summary
Q3 2021 Balance Sheet Summary • The CRE loan portfolio increased by $191.3 million in Q3 2021. • We acquired and/or funded $309.1 million of loans at par from an affiliate of the Manager and we experienced $117.8 million of loan payoffs Q3 2021 Loan Acquisitions and Net Funding Activity(1,2) Funding
Slide 19: Interest Rate Sensitivity as of September 30, 2021
Interest Rate Sensitivity as of September 30, 2021 Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month LIBOR(3,4) ($1,496) Floating ($2,584) $ in Thousands $ in Millions Rate ($3,584) Assets(1) $803 ($4,474) Floating Net Rate Exposure Liabilities(2) -$31 -$834 +25 bp
Slide 20: 9/30/2021 CRE Loan Portfolio Details
9/30/2021 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance Date Date Spread (months) Origination(1) 1 Loan 1 11/22/2019 8/6/2022 Multi-Family Virginia Beach VA 36,781,588 2.75% 32 77.10% 2 Loan 2 11/30/2018 12/6/2021 Mult
Slide 21: 9/30/2021 CRE Loan Portfolio Details
9/30/2021 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance Date Date Spread (months) Origination(1) 28 Loan 28 12/9/2019 1/6/2022 Multi-Family Fort Worth TX 6,344,748 3.15% 25 77.70% 29 Loan 29 8/28/2019 8/6/2022 Multi-Fa
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets 22
Slide 23: Consolidated Statement of Income
Consolidated Statement of Income 23
Slide 24: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings For the Three Months Ended September 30, December 31, GAAP to Distributable Earnings Reconciliation 2021 June 30, 2021 March 31, 2021 2020 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $1,176,301 $954,57
Slide 25: Detailed Walk of Capitalization
Detailed Walk of Capitalization (in 000's) 9/30/2021 Total GAAP liabilities and stockholders' equity $1,050,018 Adjustments for Capitalization ( - ) Accrued interest payable (649) ( - ) Dividends payable (3,247) ( - ) Fees and expenses payable to Manager (1,629) ( - ) Other accounts payable and accr
Slide 26: Book Value Per Share of Common Stock
Book Value Per Share of Common Stock Book Value per Share of Common (in 000's) Stock Total stockholders’ equity $169,062 ( - ) Preferred equity (60,000)(1) Common equity 109,062 Shares outstanding 24,947,883 Book Value Per Share of Common $4.37 Stock Note: (1) Reflects 2.4 million shares of the Comp
Slide 27: 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 28: November 2021
=|] LUMENT November 2021
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