Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Q2 2018 Earnings Presentation
23 slides from Lument Finance Trust's earnings presentation, Aug 9, 2018
Slide 1: Q2 2018 Earnings Supplemental
Q2 2018 Earnings Supplemental August 2018 Hunt Companies Finance Trust
Slide 2: Disclaimer & Name Change
1 Disclaimer & Name Change This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, an d Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Hunt Companies Finance Trust, Inc. (
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 multi - family and other commercial real estate loans or securitizations Externally manag
Slide 4: Q2 2018 Key Highlights
3 Q2 2018 Key Highlights Hunt Companies Finance Trust FINANCIALS ▪ GAAP net loss attributable to common stockholders of $22.4 million or $0.94 loss per share for the quarter ▪ GAAP comprehensive income attributable to common stockholders of $1.1 million or $0.05 per share, up $0.07 per share quarter
Slide 5: Q2 2018 Earnings Summary
4 Q2 2018 Earnings Summary Hunt Companies Finance Trust Summary Income Statement (thousands) Three Months Ended June 30, 2018 YTD Through June 30, 2018 Net interest income $4,570 $7,687 Total other income (loss) (1) (23,670) (12,260) Operating expenses (2,390) (5,602) Preferred dividends (871) (1,75
Slide 6: Net Economic Gains (Losses) Attributable to Divested Legacy Assets
YTD Through June 30, 2018 (thousands) Net Economic Gain (Loss) (1) Divested Legacy Assets Agency RMBS $(20,152) Agency Multifamily MBS 2,503 Non - Agency RMBS (202) Derivatives Contracts 20,635 Net Economic Gain Attributable to Divested Legacy Assets $2,784 5 Net Economic Gains (Losses) Attributable
Slide 7: Q2 2018 Balance Sheet Summary
Balance Sheet (thousands) Q2 2018 Commercial mortgage loans held - for - investment $326,884 Multi - family loans held in securitization trusts, at fair value 23,842 Mortgage servicing rights, at fair value 4,106 Cash and cash equivalents 73,381 Restricted cash (1) 7,932 Other assets (2) 23,388 Tota
Slide 8: Operating Performance
7 Operating Performance Hunt Companies Finance Trust - $0.29 - $0.13 - $0.06 - $0.02 $0.05 $0.12 $0.11 $0.10 $0.04 $0.09 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Comprehensive Income/Share Core Earnings/Share $5.27 $4.98 $4.77 $4.65 $4.64 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 The Company continues
Slide 9: Q2 2018 Summary of Investment Portfolio
8 Q2 2018 Summary of Investment Portfolio Hunt Companies Finance Trust Investment Portfolio as of June 30, 2018 (thousands) UPB / Notional Net Carrying Value Weighted Average Coupon Weighted Average Remaining Term (months) Weighted Average Initial LTV Weighted Average Stabilized LTV First Mortgages
Slide 10: Q2 2018 CRE Loan Portfolio Activity
9 Q2 2018 CRE Loan Portfolio Activity Hunt Companies Finance Trust $0.0 $347.3 $( 20.4 ) $326.9 Q1 2018 Portfolio Fundings / Acquisitions Pay-offs Q2 2018 Portfolio Multifamily , $308.4 Retail , $22.1 Mixed Use , $12.2 Office , $4.5 Net Funding Activity Q2 2018 Originations/Acquisitions (1) In April
Slide 11: Q2 2018 CRE Loan Portfolio Snapshot
10 Q2 2018 CRE Loan Portfolio Snapshot Hunt Companies Finance Trust TX , $92.8 AZ , $49.6 CT , $28.1 FL , $26.8 CA , $24.8 Other States , $104.7 Geographic Concentration Multifamily , $288.0 Retail , $22.1 Mixed Use , $12.2 Office , $4.5 Property Type As of 6/30/2018, the Company owned a portfolio o
Slide 12: Q2 2018 CRE Loan Financing Summary
11 Q2 2018 CRE Loan Financing Summary Hunt Companies Finance Trust CRE Loans & Cash $349M Retained Notes / Preferred $58M Class D (BBB) $25M Class C (A) $22M Class B (AA) $23M Class AS (AAA) $17M Class A (AAA) $203M CLO Assets CLO Liabilities Attractive financing cost and effective advance rate Weig
Slide 13: Q2 2018 Legacy Asset Portfolio Snapshot
12 Q2 2018 Legacy Asset Portfolio Snapshot Hunt Companies Finance Trust During the quarter, the Company divested of 100% of its Agency RMBS portfolio and its Eurodollar futures contracts . The Company continues to evaluate opportunities to monetize its remaining legacy assets in transactions that ar
Slide 14: Interest Rate Sensitivity
Floating Rate Assets (1) $335 Floating Rate Liabilities (2) - $291 Net Exposure $44 13 Interest Rate Sensitivity Hunt Companies Finance Trust The Company’s net floating rate exposure is expected to benefit stockholders in a rising rate environment. We expect to continue to increase our net floating
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Slide 16: Q2 2018 CRE Loan Portfolio Details
15 Q2 2018 CRE Loan Portfolio Details Hunt Companies Finance Trust # Loan Name Closing Date Maturity Date Property Type City State Current Balance Note Spread (1) Initial Term (months) As - Is LTV at Origination Stabilized LTV 1 Loan 1 6/29/2016 7/5/2019 Multifamily Various TX $32,820,000 5.50% 18 7
Slide 17: Detail of Net Gains & Losses on Investments
YTD Through June 30, 2018 (thousands) Change in Unrealized Gain (Loss) (1) Realized Gain (Loss) (2) Adjustments for O ther Comprehensive Income (Loss) (3) Net Economic Gain (Loss) Sold Assets Agency RMBS $ - $(32,725) $12,573 $(20,152) Agency Multifamily MBS (3,793) 6,251 45 2,503 Non - Agency RMBS
Slide 18: Consolidated Balance Sheets
17 Consolidated Balance Sheets Hunt Companies Finance Trust
Slide 19: Consolidated Statements of Income
18 Consolidated Statements of Income Hunt Companies Finance Trust
Slide 20: Reconciliation of GAAP to Core Earnings
19 Reconciliation of GAAP to Core Earnings Hunt Companies Finance Trust
Slide 21: Key Definitions
20 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 22: Hunt
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Slide 23: Case Studies
22 Case Studies Hunt Companies Finance Trust [Typically others have shown case studies on select recent originations – let’s discuss if we should omit for Q2] Portland, Oregon $14,500,000 MULTIFAMILY Stafford, Texas $4,400,000 OFFICE Dallas, Texas $9,405,000 MULTIFAMILY Akron, Ohio $13,500,000 MIXED
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