Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q1 2020 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, May 11, 2020
Slide 1: Hunt Companies Finance Trust Q1 2020 Earnings Supplemental
www.huntcompaniesfinancetrust.com Hunt Companies Finance Trust Q1 2020 Earnings Supplemental May 2020 DRAFT
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: Business Update
Business Update 4 PORTFOLIO ▪ No hospitality assets and limited retail exposure ▪ LIBOR Floors on 100% of our loans that are “in the money” ▪ 100% of the loans in our CRE investment portfolio made their April payments ▪ With regards to May payment activity, as of May 11th we have received payments o
Slide 5: Q1 2020 Key Updates
Q1 2020 Key Updates 5 FINANCIAL RESULTS ▪ Q1 2020 GAAP Net Income of $1.55 million, or $0.06 per share. ▪ Q1 2020 Core Earnings of $2.21 million, or $0.09 per share. ▪ Q1 2020 Book V alue P er S hare of $4.57 HIGHLIGHTS ▪ During Q1 2020, the Company acquired $38.6 mm of new loans and participations
Slide 6: Q1 2020 Earnings Summary
Q1 2020 Earnings Summary 6 Summary Income Statement (thousands) Three Months Ended March 31, 2020 Net interest income $4,176 Total other income (loss) (684) Operating expenses (2,167) Preferred dividends (4) (Provision for) benefit from income taxes 227 Net income attributable to common stockholders
Slide 7: Q1 2020 Balance Sheet Summary
Q1 2020 Balance Sheet Summary 7 Balance Sheet (thousands) Q1 2020 Commercial mortgage loans held - for - investment $639,366 Mortgage servicing rights, at fair value 1,822 Cash and cash equivalents 11,334 Restricted cash (1) 6,914 Other assets 4,580 Total assets $664,017 Collateralized loan obligati
Slide 8: Operating Performance Trending
Operating Performance Trending 8 Comprehensive Income & Core Earnings Per Share of Common Stock Book Value Per Share - $0.09 $0.06 $0.08 $0.05 $0.06 $0.07 $0.09 $0.10 $0.06 $0.09 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Comprehensive Income/Share Core Earnings/Share $4.61 $4.60 $4.61 $4.59 $4.57 Q1 2
Slide 9: Q1 2020 Summary of Investment Portfolio
Q1 2020 Summary of Investment Portfolio 9 Floating 99.7% Fixed 0.3% First Mortgages 99.7% Residential MSRs 0.3% Investment Portfolio as of March 31, 2020 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average LTV at Loan Origin
Slide 10: Q1 2020 CRE Loan Portfolio Activity
Multifamily , $38.6 , 99.9% Retail , $0.1 , 0.1% Q1 2020 CRE Loan Portfolio Activity 10 $635.3 $38.6 $(34.5) $639.4 Q4 2019 Portfolio Fundings / Acquisitions Pay-offs / Sales Q1 2020 Portfolio Net Funding Activity (1) Q1 2020 Loan Acquisitions (1) ▪ The CRE loan portfolio increased by $4.1 million i
Slide 11: Q1 2020 CRE Loan Portfolio Snapshot
Q1 2020 CRE Loan Portfolio Snapshot 11 Geographic Concentration (1) Property Type (1) ▪ As of 3/31/2020, the Company owned a portfolio of floating - rate CRE loans with an aggregate UPB of $639 million ▪ As of 3/31/2020, all loans were current Note: (1) $ In millions TX , $210.3 , 33% IL , $82.5 , 1
Slide 12: Capital Structure Overview
76.8% 6.1% 17.2% CLO Financing Term Loan Common Equity $664.50 million (4) Capital Structure Overview 12 Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $506.4 million includes $1.1 million of unamortized discounts for Hu nt C
Slide 13: Interest Rate Sensitivity as of March 31, 2020
Interest Rate Sensitivity as of March 31, 2020 13 Floating Rate Assets (1) $639 Floating Rate Liabilities (2) - $510 Net Exposure $129 $5,090 $3,815 $2,540 $1,264 - $873 - $1,735 - $2,464 - $2,603 -100 bps -75 bps -50 bps -25 bps +0 bps +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR
Slide 14: Appendix
14 Appendix
Slide 15: 3/31/2020 CRE Loan Portfolio Details
3/31/2020 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 a Hunt affiliate. LTV has not been updated for any subsequent draws or loan m odifications and is not reflective of an
Slide 16: 3/31/2020 CRE Loan Portfolio Details
3/31/2020 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 a Hunt affiliate. LTV has not been updated for any subsequent draws or loan m odifications and is not reflective of any changes in value which may hav
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets 17
Slide 18: Consolidated Statements of Income
Consolidated Statements of Income 18
Slide 19: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings 19 GAAP to Core Earnings Reconciliation Three months Ended March 31, 2020 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders 1,547,921$ Adjustments for non-core earnings Unrealized (Gain) Loss on mortgage servi
Slide 20: Detailed Walk of Capitalization
Detailed Walk of Capitalization 20 (in 000's) 3/31/2020 Total GAAP liabilities and stockholders' equity $664,017 Adjustments for Capitalization ( - ) Accrued interest payable (564) ( - ) Dividends payable (1,874) ( - ) Fees and expenses payable to Manager (1,013) ( - ) Other accounts payable and acc
Slide 21: Key Definitions
Key Definitions “ Core Earnings ” means the net income (loss) attributable to the holders of Common Shares or, without duplication, owners of the Company’s Subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non
Slide 22: Hunt Companies Finance Trust
HUNT HUNT COMPANIES FINANCE TRUST
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