Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Investor Presentation (March 2021)
27 slides from Lument Finance Trust's investor presentation, March 2021
Slide 1: Lument Finance Trust Investor Presentation
Lument Finance Trust Investor Presentation March 2021
Slide 2: Disclaimer
Disclaimer This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to time 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 Exchange
Slide 3: Company Overview
Company Overview • The Company is an externally-managed real estate investment trust focused on investing in, financing and managing a portfolio of commercial real estate debt investments • The Company is externally managed by Lument Investment Management, an affiliate of ORIX Corporation USA Key In
Slide 4: Leveraging the Depth of the Lument Platform
Leveraging the Depth of the Lument Platform The Company leverages Lument’s broad platform and significant expertise when originating and underwriting investments • Lument is a nationally recognized leader in multifamily and seniors housing and care finance • Combining the industry expertise of legac
Slide 5: Lument: A Platform Built for the Benefit of Investors
Lument: A Platform Built for the Benefit of Investors • 550+ employees across 25 offices provide clients of Lument and its affiliates with a mix of Diverse Opportunity markets, assets, and deal types that span the breadth of commercial and multifamily real Set via Lument estate Origination Platform
Slide 6: Affiliation with ORIX
Affiliation with ORIX ORIX Corporation USA, a subsidiary of ORIX Corporation, is the parent of the Company’s investment manager and is also a meaningful Company shareholder ORIX CORPORATION USA – AT A GLANCE ORIX Corporation USA provides investment capital and asset management services to clients in
Slide 7: Lument: Experienced Leadership Team
Lument: Experienced Leadership Team JAMES FLYNN MIKE LARSEN JAMES BRIGGS PRECILLA TORRES Director & CEO, Lument Finance Trust President, Lument Finance Trust CFO, Lument Finance Trust Head of Real Estate Investment Chief Executive Officer, Lument Chief Operating Officer, Lument Chief Accounting Offi
Slide 8: Lument Finance Trust: Target Investments
Lument Finance Trust: Target Investments Loan Size $5 million to $50+ million Collateral Primarily first lien real estate debt on stabilized or transitional assets Property Type Multifamily, retail, office, industrial, and self storage Geographies Within the United States Loan to Value Typically up
Slide 9: Lument Finance Trust: Investment Portfolio
Lument Finance Trust: Investment Portfolio • As of Q4 2020, the Company owned a portfolio of floating-rate CRE loans with an aggregate UPB of $547.3 million. 90% of the portfolio was invested in loans backed by multifamily assets • The Company anticipates that the majority of loan activity will cont
Slide 10: Lument Finance Trust: Capital Structure Overview
Lument Finance Trust: Capital Structure Overview • The Company does not currently utilize repurchase or warehouse facility financing and therefore is not subject to margin calls on any of its assets from repo or warehouse lenders • Primary sources of debt financing are two match-term non-MTM CRE CLO
Slide 11: Track Record of EPS Growth and Book Value Stability
Track Record of EPS Growth and Book Value Stability GAAP Earnings & Distributable Earnings(1) Per Share of Common Book Value Per Share Stock $0.11 $0.10 $0.10 $0.10 $0.09 $0.09 $4.57 $4.57 $4.59 $0.08 $4.56 $0.06 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 GAAP Earnings/Share Dis
Slide 12: Conclusion
Conclusion Key Investment Highlights Strong Sponsorship/Ownership Attractive Investment Profile • Access to extensive loan origination platform • Emphasis on middle market multifamily through affiliation with Lument, a premier investments which are well positioned for the national mortgage originato
Slide 13: Appendix: Q4 2020 Financial Updates
Appendix Q4 2020 Financial Updates
Slide 14: Q4 2020 Key Updates
Q4 2020 Key Updates • Q4 2020 GAAP Net Income of $2.5 million, or $0.10 per share. FY 2020 GAAP Net Income of $8.4 million, or $0.34 per share, which represents a 217% increase year-over-year Financial Results • Q4 2020 Distributable Earnings(1) of $2.6 million, or $0.10 per share. FY 2020 Distribut
Slide 15: Q4 and Full Year 2020 Income Statement Summary
Q4 and Full Year 2020 Income Statement Summary Three Twelve Three Twelve Months Months GAAP Net Income to Months Months Ended Ended Distributable Earnings Ended Ended Summary Income Statement December December Reconciliation December December (thousands) 31, 2020 31, 2020 (thousands) 31, 2020 31, 20
Slide 16: Q4 2020 Balance Sheet Summary
Q4 2020 Balance Sheet Summary Balance Sheet (thousands) 12/31/2020(1) Commercial mortgage loans held-for-investment $547,345 Mortgage servicing rights, at fair value 920 Cash and cash equivalents 11,376 Restricted cash(2) 57,999 Accrued interest receivable 2,016 Other assets 1,834 Total assets $621,
Slide 17: Q4 2020 Summary of Investment Portfolio
Q4 2020 Summary of Investment Portfolio Investment Type Interest Rate Type Residential MSRs 0.2% Fixed 0.2% $548.3 million $548.3 million First Mortgages Floating 99.8% 99.8% Investment Portfolio as of Weighted Average Weighted Average Weighted Average Net Carrying Weighted September 30, 2020 UPB /
Slide 18: Q4 2020 Balance Sheet Summary
Q4 2020 Balance Sheet Summary • The CRE loan portfolio decreased by $51.6 million in Q4 • We acquired $4.9 million of loans at par from an affiliate of the Manager and funded an additional $0.1 million of future funding participations • We experienced $56.6 million of loan payoffs. $8.0 million of t
Slide 19: Interest Rate Sensitivity as of December 31, 2020
Interest Rate Sensitivity as of December 31, 2020 Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month LIBOR(3) $669 Floating ($1,163) $ in Thousands $ in Millions Rate Net Assets(1) Exposure ($2,327) $547 $82 ($3,490) ($4,482) Floating Rate Liabilities(2) -$465 (4) -
Slide 20: 12/31/2020 CRE Loan Portfolio Details
12/31/2020 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance (1) Date Date Spread (months) Origination(2) 1 Loan 1 6/5/2018 6/4/2021 Multi-Family Palatine IL 35,625,000 4.30% 37 68.50% 2 Loan 2 11/30/2018 12/6/2021 Multi-F
Slide 21: 12/31/2020 CRE Loan Portfolio Details
12/31/2020 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance (1) Date Date Spread (months) Origination(2) 21 Loan 21 9/10/2020 4/6/2021 Multi-Family Winchester OH 9,527,000 4.25% 7 61.90% 22 Loan 22 9/11/2019 10/6/2022 Mul
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets 22
Slide 23: Consolidated Statement of Income
Consolidated Statement of Income 23
Slide 24: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings Three Months Ended December Year Ended GAAP to Distributable Earnings Reconciliation 31, 2020 December 31, 2020 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $2,464,678 $8,434,770 Adjustments for non-Dis
Slide 25: Detailed Walk of Capitalization
Detailed Walk of Capitalization (in 000's) 12/31/2020 Total GAAP liabilities and stockholders' equity $621,490 Adjustments for Capitalization ( - ) Accrued interest payable (433) ( - ) Dividends payable (3,243) ( - ) Fees and expenses payable to Manager (1,156) ( - ) Other accounts payable and accru
Slide 26: Key Definitions
Key Definitions “Distributable Earnings” is a non-GAAP measure, which we define as GAAP net income (loss) attributable to holders' of common stock, or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not ot herwise included in GA
Slide 27: March 2021
=|] LUMENT March 2021
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