Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q4 2021 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, Mar 15, 2022
Slide 1: Lument Finance Trust Q4 2021 Earnings Supplemental
March 2022 Lument Finance Trust Q4 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: Full Year 2021 Business Update
Full Year 2021 Business Update 4 Portfolio • 100% of the loans in our CRE investment portfolio were current as of as of 12/31/21 Highlights • Increased size of the CRE investment portfolio by 83% from $547 million as of 12/31/20 to $1.0 billion as of 12/31/21 • Achieved a dividend coverage ratio of
Slide 5: Q4 2021 Updates
Q4 2021 Updates 5 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 past
Slide 6: Q4 2021 Balance Sheet Summary
Q4 2021 Balance Sheet Summary 6 Balance Sheet (thousands) December 31, 2021 (1) Commercial mortgage loans held - for - investment $1,001,825 Cash and cash equivalents 14,749 Restricted cash (2) 3,530 Accrued interest receivable 3,978 Investment Related Receivable 22,400 Other assets (3) 2,441 Total
Slide 7: Q4 and Full Year 2021 Income Statement Summary
Q4 and Full Year 2021 Income Statement Summary 7 Summary Income Statement (thousands) Three Months Ended December 31, 2021 Twelve Months Ended December 31, 2021 Net interest income $6,174 $20,679 Total other income (loss) 6 (1,633) Operating expenses (2,407) (8,441) Benefit (provision) from income t
Slide 8: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock 8 $0.11 $0.04 $0.05 $0.10 $0.11 $0.11 $0.06 $0.11 Q1 2021 Q2 2021 Q3 2021 Q4 2021 GAAP Earnings/Share Distributable Earnings/Share $4.58 $4.41 $4.37 $4.38 $4.00 $4.10 $4.20 $4.30 $4.40 $4.50 $4.60 $4.70 Q1 2021 Q2 2021 Q3 2021 Q4 2021 GAAP Earnings &
Slide 9: Q4 2021 Net Funding Activity and Loan Acquisitions
Q4 2021 Balance Sheet Summary 9 Multifamily , $336.2 , 100.0% Net Funding Activity (1,2) Q4 2021 Loan Acquisitions and Fundings (1,2) $336.2 Note: (1) $ In millions. (2) Based on carrying value. $803.1 $336.2 $(137.5) $1,001.8 Q3 2021 Portfolio Fundings / Acquisitions Payoffs / Sales Q4 2021 Portfol
Slide 10: Investment Portfolio Geographic Concentration and Property Type
Investment Portfolio 10 Geographic Concentration (2) Multi - Family , $921.2 , 92% Retail , $17.2 , 2% Office , $11.7 , 1% Self Storage , $51.7 , 5% Property Type (2) $1001.8 Note: ( 1 ) Based on carrying value. (2) $ In millions, based on carrying value. • At December 31, 2021, the Company owned a
Slide 11: Q4 2021 Capital Structure Overview
Q4 2021 Capital Structure Overview 11 79.3% 10.4% 5.7% 4.5% CLO Financing Common Equity Preferred Equity Term Loan $1,050.8 million (5) Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $826.8 million includes $7.0 million of un
Slide 12: Interest Rate Sensitivity as of December 31, 2021
($644) ($903) ($1,113) ($1,198) +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Interest Rate Sensitivity as of December 31, 2021 12 Floating Rate Assets (1) $1,002 Floating Rate Liabilities (2) - $834 Net Exposure $168 Floating - Rate Exposure Annual Net Interest Income Sensitivity
Slide 13: Appendix
Appendix LUMENT
Slide 14: 12/31/2021 CRE Loan Portfolio Details
12/31/2021 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 t
Slide 15: 12/31/2021 CRE Loan Portfolio Details (continued)
12/31/2021 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
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 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Reconciliation of GAAP to non - GAAP Information Net income attributable to common stockholders $2,478,911 $1
Slide 19: Detailed Walk of Capitalization as of 12/31/2021
Detailed Walk of Capitalization as of 12/31/2021 19 (in 000's) 12/31/2021 Total GAAP liabilities and stockholders' equity $1,048,824 Adjustments for Capitalization ( - ) Accrued interest payable (704) ( - ) Dividends payable (3,243) ( - ) Fees and expenses payable to Manager (1,825) ( - ) Other acco
Slide 20: Book Value Per Share of Common Stock as of 12/31/2021
Book Value Per Share of Common Stock as of 12/31/2021 20 (in 000's) Book Value per Share of Common Stock Total stockholders’ equity $169,276 ( - ) Preferred equity (60,000) (1) Common equity 109,276 Shares outstanding 24,947,883 Book Value Per Share of Common Stock $4.38 Note: (1) Reflects 2.4 milli
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: SS] LUMENT
SS] LUMENT March 2022