Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q2 2021 Earnings Presentation
22 slides from Lument Finance Trust's earnings presentation, Aug 9, 2021
Slide 1: Lument Finance Trust Q2 2021 Earnings Supplemental
August 2021 Lument Finance Trust Q2 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: Q2 2021 Key Updates
Q2 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: Q2 2021 Balance Sheet Summary
Q2 2021 Balance Sheet Summary 5 Balance Sheet (thousands) June 30, 2021 (1) Commercial mortgage loans held - for - investment $611,820 Mortgage servicing rights, at fair value 679 Cash and cash equivalents 14,577 Restricted cash (2) 330,261 Accrued interest receivable 2,812 Investment Related Receiv
Slide 6: Q2 2021 Income Statement Summary
Q2 2021 Income Statement Summary 6 Summary Income Statement (thousands) Three Months Ended June 30, 2021 Net interest income $5,254 Total other income (loss) (1,789) Operating expenses (1,839) Benefit (provision) from income taxes 54 Preferred dividends 726 Net income attributable to common stockhol
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock 7 $0.10 $0.10 $0.11 $0.04 $0.11 $0.10 $0.11 $0.11 Q3 2020 Q4 2020 Q1 2021 Q2 2021 GAAP Earnings/Share Distributable Earnings/Share $4.59 $4.56 $4.58 $4.41 $4.00 $4.20 $4.40 $4.60 $4.80 $5.00 Q3 2020 Q4 2020 Q1 2021 Q2 2021 GAAP Earnings & Distributab
Slide 8: Q2 2021 Summary of Investment Portfolio
Q2 2021 Summary of Investment Portfolio 8 Floating 99.9% Fixed 0.1% First Mortgages 99.9% Residential MSRs 0.1% Investment Portfolio as of June 30, 2021 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average As - Is LTV at Loan
Slide 9: Q2 2021 Portfolio Activity
Q2 2021 Balance Sheet Summary 9 Multifamily , $249.9 , 82.3% Self Storage , $51.8 , 17.1% Office , $1.8 , 0.6% Net Funding Activity (1,2) Q1 2021 Loan Acquisitions and Fundings (1,2) $303.4 Note: (1) $ In millions. (2) Based on carrying value. $484.2 $303.4 $(175.8) $611.8 Q1 2020 Portfolio Fundings
Slide 10: Investment Portfolio Geographic Concentration and Property Type
Investment Portfolio 10 Geographic Concentration (2) Multi - Family , $519.0 , 85% Self - Storage , $56.0 , 9% Office , $19.6 , 3% Retail , $17.2 , 3% Property Type (2) $611.8 Note: ( 1) Based on carrying value. (2) $ In millions, based on carrying value. • At June 30, 2021, the Company owned a port
Slide 11: Q2 2021 Capital Structure Overview
Q2 2021 Capital Structure Overview 11 79.6% 10.8% 5.7% 3.8% CLO Financing Common Equity Preferred Equity Term Loan $1,047.0 million (5) Capital Structure Composition Capital Structure Detail Note: (1) CLO financing shown at par value. GAAP carrying value of $826.1 million includes $7.7 million of un
Slide 12: Interest Rate Sensitivity as of June 30, 2021
($1,999) ($3,848) ($5,617) ($7,245) +25 bps +50 bps +75 bps +100 bps $ in Thousands Change in LIBOR Interest Rate Sensitivity as of June 30, 2021 12 Floating Rate Assets (1) $612 Floating Rate Liabilities (2) - $834 Net Exposure - $222 Floating - Rate Exposure Annual Net Interest Income Sensitivity
Slide 13: Appendix
Appendix |] LUMENT
Slide 14: 6/30/2021 CRE Loan Portfolio Details
6/30/2021 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: 6/30/2021 CRE Loan Portfolio Details
6/30/2021 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 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Reconciliation of GAAP to non - GAAP Information Net income attributable to common stockholders $954,575 $2,8
Slide 19: Detailed Walk of Capitalization
Detailed Walk of Capitalization 19 (in 000's) 6/30/2021 Total GAAP liabilities and stockholders' equity $1,041,963 Adjustments for Capitalization ( - ) Accrued interest payable (666) ( - ) Dividends payable (2,967) ( - ) Fees and expenses payable to Manager ( 1,528) ( - ) Other accounts payable and
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 $170,137 ( - ) Preferred equity (60,000) (1) Common equity 110,137 Shares outstanding 24,947,883 Book Value Per Share of Common Stock $4.41 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 weighted average numbe
Slide 22: S|] LUMENT
S|] LUMENT August 2021