Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q3 2021 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, Nov 9, 2021
Slide 1: Lument Finance Trust Q3 2021 Earnings Supplemental
November 2021 Lument Finance Trust Q3 2021 Earnings Supplemental
Slide 2: Disclaimer
Disclaimer 2 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
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: Q3 2021 Key Updates
Q3 2021 Key Updates 4 Note: (1) We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) a nd cash flows from operating activities determined in accordance with GAAP. Distributable Earnings mirrors how we calculated Core Earnings in the
Slide 5: Q3 2021 Balance Sheet Summary
Q3 2021 Balance Sheet Summary 5 Balance Sheet (thousands) September 30, 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 R
Slide 6: Q3 2021 Income Statement Summary
Q3 2021 Income Statement Summary 6 Summary Income Statement (thousands) Three Months Ended September 30, 2021 Net interest income $4,733 Total other income (loss) 47 Operating expenses (2,397) Benefit (provision) from income taxes (8) Preferred dividends (1,198) Net income attributable to common sto
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock 7 $0.10 $0.11 $0.04 $0.05 $0.10 $0.11 $0.11 $0.06 Q4 2020 Q1 2021 Q2 2021 Q3 2021 GAAP Earnings/Share Distributable Earnings/Share $4.56 $4.58 $4.41 $4.37 $4.00 $4.10 $4.20 $4.30 $4.40 $4.50 $4.60 $4.70 Q4 2020 Q1 2021 Q2 2021 Q3 2021 GAAP Earnings &
Slide 8: Q3 2021 Summary of Investment Portfolio
Q3 2021 Summary of Investment Portfolio 8 Floating 99.9% Fixed 0.1% First Mortgages 99.9% Residential MSRs 0.1% Investment Portfolio as of September 30, 2021 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average As - Is LTV at
Slide 9: Q3 2021 Loan Acquisitions and Fundings
Q3 2021 Balance Sheet Summary 9 Multifamily , $309.1 , 100.0% Net Funding Activity (1,2) Q3 2021 Loan Acquisitions and Fundings (1,2) $309.1 Note: (1) $ In millions. (2) Based on carrying value. $611.8 $309.1 $(117.8) $803.1 Q2 2021 Portfolio Fundings / Acquisitions Payoffs / Sales Q3 2021 Portfolio
Slide 10: Investment Portfolio Geographic Concentration and Property Type
Investment Portfolio 10 Geographic Concentration (2) Multi - Family , $717.8 , 89% Self - Storage , $56.0 , 7% Retail , $17.2 , 2% Office , $12.1 , 2% Property Type (2) $803.1 Note: ( 1) Based on carrying value. (2) $ In millions, based on carrying value. • At September 30, 2021, the Company owned a
Slide 11: Q3 2021 Capital Structure Overview
Q3 2021 Capital Structure Overview 11 79.4% 10.4% 5.7% 4.5% CLO Financing Common Equity Preferred Equity Term Loan $1,050.6 million (5) Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $826.1 million includes $7.6 million of un
Slide 12: Interest Rate Sensitivity as of September 30, 2021
($1,496) ($2,584) ($3,584) ($4,474) +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Interest Rate Sensitivity as of September 30, 2021 12 Floating Rate Assets (1) $803 Floating Rate Liabilities (2) - $834 Net Exposure - $31 Floating - Rate Exposure Annual Net Interest Income Sensitiv
Slide 13: Appendix
Appendix f]] LUMEN”
Slide 14: 9/30/2021 CRE Loan Portfolio Details
9/30/2021 CRE Loan Portfolio Details 14 Continued on the following page Note: (1 ) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modif ica tions and is not reflective of any changes in value which may have occurred subsequent to
Slide 15: 9/30/2021 CRE Loan Portfolio Details
9/30/2021 CRE Loan Portfolio Details 15 Note: (1 ) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modif ica tions and is not reflective of any changes in value which may have occurred subsequent to the origination date . # Loan N
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets 16
Slide 17: Consolidated Statement of Income
Consolidated Statement of Income 17
Slide 18: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings 18 For the Three Months Ended GAAP to Distributable Earnings Reconciliation September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Reconciliation of GAAP to non - GAAP Information Net income attributable to common stockholders $1,176,301 $9
Slide 19: Detailed Walk of Capitalization
Detailed Walk of Capitalization 19 (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 a
Slide 20: Book Value Per Share of Common Stock
Book Value Per Share of Common Stock 20 (in 000's) Book Value per Share of Common 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 Stock $4.37 Note: (1) Reflects 2.4 million shares of the
Slide 21: Key Definitions
Key Definitions 21 “ 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 numb
Slide 22: S] LUMENT
S] LUMENT November 2021