Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q4 2018 Earnings Presentation
24 slides from Lument Finance Trust's earnings presentation, Mar 18, 2019
Slide 1: Q4 2018 Earnings Supplemental March 2019
Q4 2018 Earnings Supplemental March 2019 Hunt Companies Finance Trust
Slide 2: Disclaimer
1 Disclaimer This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to ti me 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 Exc
Slide 3: Company Overview
Strength of Ownership / Sponsorship 2 Company Overview Hunt Companies Finance Trust 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
Slide 4: Key Updates
3 Key Updates Hunt Companies Finance Trust FINANCIAL RESULTS ▪ Comprehensive loss of $(546) thousand or ($0.02) per share for the quarter ▪ Q4 2018 results were impacted by a $ 1.52 million one - time net tax expense (2 ) ▪ Core earnings attributable to common stockholders of $1.86 million or $0.08
Slide 5: Q4 2018 Earnings Summary
4 Q4 2018 Earnings Summary Hunt Companies Finance Trust Summary Income Statement (thousands) Three Months Ended December 31, 2018 FY 2018 Net interest income $4,599 $17,401 Total other income (loss) (476) (11,375) Operating expenses (2,250) (9,975) (Provision for) benefit from income taxes (1,522) (
Slide 6: Q4 2018 Balance Sheet Summary
Balance Sheet (thousands) Q4 2018 Commercial mortgage loans held - for - investment $555,173 Receivables held in securitization trusts, at fair value 24,357 Mortgage servicing rights, at fair value 3,998 Cash and cash equivalents 7,883 Restricted cash (1) 51,331 Other assets (2) 36,610 Total assets
Slide 7: Operating Performance Trending
6 Operating Performance Trending Hunt Companies Finance Trust - $0.06 - $0.02 $0.05 $0.15 - $0.02 $0.10 $0.04 $0.09 $0.10 $0.08 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Comprehensive Income/Share Core Earnings/Share $4.77 $4.65 $4.64 $4.72 $4.64 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Comprehensive I
Slide 8: Q4 2018 Summary of Investment Portfolio
7 Q4 2018 Summary of Investment Portfolio Hunt Companies Finance Trust Floating 99% Fixed 1% Interest Rate Type First Mortgages 98% Agency Multifamily MBS 1% Residential MSRs 1% Investment Type $563.9 million $563.9 million Note: (1) If all extensions are exercised by the borrowers, the CRE loan por
Slide 9: Q4 2018 CRE Loan Portfolio Activity
8 Q4 2018 CRE Loan Portfolio Activity Hunt Companies Finance Trust $544.6 $87.5 $(76.9) $555.2 Q3 2018 Portfolio Fundings / Acquisitions Pay-offs Q4 2018 Portfolio Multifamily , $82.3 , 94% Office , $5.0 , 6% Retail , $0.3 , 0% Net Funding Activity (1) Q4 2018 Loan Acquisitions (1) ▪ The CRE loan po
Slide 10: Q4 2018 CRE Loan Portfolio Snapshot
9 Q4 2018 CRE Loan Portfolio Snapshot Hunt Companies Finance Trust TX , $102.1 , 18% IL , $76.6 , 14% AZ , $59.1 , 11% MD , $28.8 , 5% CA , $22.3 , 4% Other States , $266.3 , 48% Geographic Concentration (1) Multifamily , $484.4 , 87% Office , $42.1 , 8% Mixed Use , $16.6 , 3% Retail , $6.5 , 1% Sel
Slide 11: Preferred Stock Refinance – Proforma Capital Structure
Common equity $110M (4) Term Loan $40M (3) Non - recourse: Hunt CRE 2018 - FL2 Financing $219M (1) Non - recourse: Hunt CRE 2017 - FL1 Financing $291M (1) Common equity $110M (4) Preferred equity $40M (2) Non - recourse: Hunt CRE 2018 - FL2 Financing $219M (1) Non - recourse: Hunt CRE 2017 - FL1 Fin
Slide 12: Q4 2018 Legacy Asset Portfolio Snapshot
11 Q4 2018 Legacy Asset Portfolio Snapshot Hunt Companies Finance Trust The Company continues to evaluate opportunities to monetize its remaining legacy assets in transactions that are accretive to book value. Note: (1) Agency Multifamily MBS shown above on a non - GAAP fair value basis . See Append
Slide 13: Interest Rate Sensitivity as of December 31, 2018
Floating Rate Assets (1) $563 Floating Rate Liabilities (2) - $510 Net Exposure $53 12 Interest Rate Sensitivity as of December 31, 2018 Hunt Companies Finance Trust $133 $266 $399 $531 +0 bps +25 bps +50 bps +75 bps +100 bps Thousands Change in LIBOR Note: (1) Comprised of the Company’s portfolio o
Slide 14: Appendix
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Slide 15: 12/31/2018 CRE Loan Portfolio Details
14 12/31/2018 CRE Loan Portfolio Details Hunt Companies Finance Trust Note: (1) All loan spreads are indexed to one - month LIBOR . (2) LTV as of such date the loan was originated by a Hunt affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of an
Slide 16: 12/31/2018 CRE Loan Portfolio Details
15 Hunt Companies Finance Trust 12/31/2018 CRE Loan Portfolio Details Note: (1) All loan spreads are indexed to one - month LIBOR . (2) LTV as of such date the loan was originated by a Hunt affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of an
Slide 17: Consolidated Balance Sheets
16 Consolidated Balance Sheets Hunt Companies Finance Trust
Slide 18: Consolidated Statements of Income
17 Consolidated Statements of Income Hunt Companies Finance Trust
Slide 19: Reconciliation of GAAP to Core Earnings
18 Reconciliation of GAAP to Core Earnings Hunt Companies Finance Trust GAAP to Core Earnings Reconciliation Three months Ended Three months Ended December 31, 2018 September 30, 2018 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders (546,269)$ 3,47
Slide 20: Reconciliation of Non-GAAP Basis in Multifamily MBS
19 Reconciliation of Non - GAAP Basis in Multifamily MBS Hunt Companies Finance Trust
Slide 21: Detailed Walk of Capitalization
20 Detailed Walk of Capitalization Hunt Companies Finance Trust (in 000's) 12/31/2018 Total GAAP liabilities and stockholders' equity $679,352 Adjustments for Capitalization ( - ) Multifamily securitized debt obligations ( 19,231) Accrued interest payable (1,232) Dividends payable ( 1,466) Fees and
Slide 22: GAAP Book Value and Adjusted Book Value
21 GAAP Book Value and Adjusted Book Value Hunt Companies Finance Trust As of 12/31/2018 GAAP Book Value Adjusted Book Value Total stockholders' equity $150,203,338 $150,203,338 ( - ) Preferred equity (37,156,972) (40,250,000) (1) ( - ) Noncontrolling interests (99,500) (99,500) Common equity $112,9
Slide 23: Key Definitions
22 Key Definitions Hunt Companies Finance Trust “ Adjusted Book Value Per Share ” means a non - GAAP metric of common stockholders’ equity per share calculated as: a) total stockholders’ equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its state
Slide 24: Me HUNT
Me HUNT HUNT COMPANIES FINAN
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