Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q4 2022 Earnings Presentation
21 slides from Lument Finance Trust's earnings presentation, Mar 24, 2023
Slide 1: Q4 2022 Earnings Supplemental
Lument Finance Trust Q4 2022 Earnings Supplemental March 2023
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, an affiliate of ORIX Corporation USA Key In
Slide 4: Q4 2022 Updates
Q4 2022 Updates • Q4 2022 Distributable Earnings (1) of $3.3 million, or $0.06 per share of common stock. FY 2022 Distributable Earnings (1) of $9.2 million, or $0.19 per share of common stock • Q4 2022 GAAP net income attributable to common stockholders of $0.9 million, or $0.02 per share of common
Slide 5: Q4 2022 Balance Sheet Summary
Q4 2022 Balance Sheet Summary Balance Sheet December (thousands) 31, 2022(1) Commercial mortgage loans held-for- $1,071,890 investment (net of allowance for loan losses) Cash and cash equivalents 43,859 Restricted cash(2) 3,508 Accrued interest receivable 5,798 Investment related receivable 0 Other
Slide 6: Q4 and Full Year 2022 Income Statement Summary
Q4 and Full Year 2022 Income Statement Summary Three Twelve Three Twelve Months Months Months Months Ended Ended GAAP Net Income to Distributable Ended Ended Summary Income Statement December December Earnings Reconciliation December December (thousands) 31, 2022 31, 2022 (thousands) 31, 2022 31, 20
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock GAAP Earnings & Distributable Earnings (1) Book Value Per Share of Common Stock (2) Per Share of Common Stock $0.06 $0.05 $0.05 $0.05 $0.04 $3.62 $3.60 $3.55 $3.50 $0.03 $0.02 $0.01 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 GAAP
Slide 8: Q4 2022 Loan Acquisitions and Net Portfolio Activity
Q4 2022 Balance Sheet Summary • We originated $75.6 million of loans and experienced $45.4 million of loan payoffs during Q4. Additionally, we booked a provision for loan loss of $2.4 million during Q4. Q4 2022 Loan Acquisitions and Net Portfolio Activity(1,2,3) Fundings(1,2) by Property Type $(45.4
Slide 9: Investment Portfolio
Investment Portfolio • At December 31, 2022, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.1 billion. 89.5%(1) of the portfolio was invested in loans backed by multifamily assets • The Company anticipates that the majority of loan activity will continue to be r
Slide 10: Q4 2022 Capital Structure Overview
Q4 2022 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 (LMNT 2021-FL1),
Slide 11: Net Interest Income Sensitivity to Shifts in LIBOR and Term SOFR
Net Interest Income Sensitivity to Shifts in One-Month LIBOR and Term SOFR • 100% floating-rate loan portfolio • 77.4% of portfolio is indexed to one-month LIBOR and 22.6% of portfolio is indexed to 30-day term SOFR Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month
Slide 12: Appendix
Appendix fi] LUMENT
Slide 13: 12/31/2022 CRE Loan Portfolio Details
12/31/2022 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 Loan1 12/16/2021 1/3/2025 Multi-Family Daytona FL 51,375,000 3.05% 37 71.70% 2 Loan2 11/22/2019 1/5/2024 Multi-Family
Slide 14: 12/31/2022 CRE Loan Portfolio Details
12/31/2022 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) 37 Loan37 5/26/2022 6/6/2024 Multi-Family Brooklyn NY 13,300,000 3.75% 24 64.30% 38 Loan38 5/12/2021 6/5/2024 Multi-Fami
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets 15
Slide 16: Consolidated Statement of Income
Consolidated Statement of Income 16
Slide 17: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings For the Three Months Ended December September June 30, March 31, GAAP to Distributable Earnings Reconciliation 31, 2022 30, 2022 2022 2022 Reconciliation of GAAP to non-GAAP Information Net income attributable to common $879,776 $315,233 $2,158,810 $1
Slide 18: Detailed Walk of Capitalization as of 12/31/2022
Detailed Walk of Capitalization as of 12/31/2022 (in 000's) 12/31/2022 Total GAAP liabilities and stockholders' equity $1,127,866 Adjustments for Capitalization ( - ) Accrued interest payable (2,361) ( - ) Dividends payable (4,131) ( - ) Fees and expenses payable to Manager (1,606) ( - ) Other accou
Slide 19: Book Value Per Share of Common Stock as of 12/31/2022
Book Value Per Share of Common Stock as of 12/31/2022 Book Value per Share of (in 000's) Common Stock Total stockholders’ equity $243,001 ( - ) Preferred equity (60,000) (1) ( - ) Non-controlling interest (100) Common equity 182,902 Shares outstanding 52,231,152 Book Value Per Share of Common Stock
Slide 20: 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 weight ed average number of
Slide 21: March 2023
=|] LUMENT March 2023