Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Five Oaks Investment — Q3 2017 Earnings Presentation
9 slides from Lument Finance Trust's earnings presentation, Nov 6, 2017
Slide 1: Third Quarter 2017 Earnings and Performance Highlights Presentation
Investment Corp. Third Quarter 2017 Earnings and Performance Highlights Presentation November 6, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation includes "forward - looking statements" within the meaning of the U . S . securities laws that are subject to risks and uncertainties . These forward - looking statements include information about possible or assumed future results of the Company's business,
Slide 3: Performance Highlights: Third Quarter 2017
Performance Highlights: Third Quarter 2017 3 • Reported an economic loss on common equity of 2 . 59 % , comprised of a $ 0 . 29 decrease in book value per share and a $ 0 . 15 dividend per common share ( 1 ) • Decrease in book value was due to increased financing costs during the quarter which contr
Slide 4: Market Observations
Market Observations: Third Quarter 2017 4 • The treasury yield curve continued to flatten in the third quarter as short - term interest rates adjusted to the Fed’s June tightening and the September announcement of the Committee’s balance sheet normalization program to begin in October • For payments
Slide 5: Investment Strategy
Investment Strategy 5 • As we communicated previously, we intend to focus on a business strategy that is simpler to understand and more cost efficient • We have moved to an “expense light” investment strategy and have reduced the C ompany’s run - rate expenses by approximately a third • Management i
Slide 6: ARM Portfolio
ARM Portfolio 6 • Our 3 Q 17 Agency ARM Portfolio has a three month CPR of 5 . 7 % • Our weighted average coupon is 2 . 65 % • Our weighted average purchase price is $ 101 . 82 • Lower coupon and dollar price hybrids benefit from “roll down the curve” Months to Reset Avg. MTR % of ARM Portfolio Curr
Slide 7: Core Earnings Analysis
Core Earnings Analysis: Third Quarter 2017 7 Footnotes: • Core earnings does not include roll GAAP to Core Earnings Reconciliation Three Months Ended September 30, 2017 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders $ (5,136,846) Adjustments for
Slide 8: Portfolio Analysis: Third Quarter 2016 vs. 2017
Portfolio Analysis: Third Quarter 2016 vs. 2017 8 0.18% 82.05% 1.91% 1.33% 12.96% 1.09% 0.48% 3Q 2016 Agency Fixed Agency ARMs Legacy Non-Agency RMBS 2.0 Multi-Family MBS Residential Whole Loans Mortgage Servicing Rights 0.07% 95.37% 0.34% 3.89% 0.04% 0.30% 3Q 2017 Agency Fixed Agency ARMs RMBS 2.0
Slide 9: End of Presentation
End of Presentation 9 Investment Corp.