Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Investor Presentation (March 2022)
28 slides from Lument Finance Trust's investor presentation, March 2022
Slide 1: Lument Finance Trust Investor Presentation March 2022
Lument Finance Trust Investor Presentation March 2022
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 • 600+ employees across 30+ 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 • At December 31, 2021, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.0 billion. 92%(1) of the portfolio was invested in loans backed by multifamily assets • The Company anticipates that the majority of loan activity w
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 financing include a match-term non-MTM CRE CLO (L
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) Book Value Per Share of Common Stock(2) Per Share of Common Stock $4.70 $0.11 $0.11 $0.11 $4.58 $0.11 $4.60 $0.10 $4.50 $4.41 $4.40 $4.37 $4.38 $0.06 $4.30 $0.05 $0.04 $4.20 $4.10 $4.00 Q1 2021 Q2 2021 Q3
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 2021 Financial Updates
Appendix Q4 2021 Financial Updates
Slide 14: Full Year 2021 Business Update
Full Year 2021 Business Update Portfolio • 100% of the loans in our CRE investment portfolio were current as of as of 12/31/21 • Increased size of the CRE investment portfolio by 83% from $547 million as of 12/31/20 to $1.0 billion as of 12/31/21 • Achieved a dividend coverage ratio of 108% for the
Slide 15: Q4 2021 Updates
Q4 2021 Updates • Q4 2021 GAAP net income attributable to common stockholders of $2.5 million, or $0.10 per share of common stock. FY 2021 net income attributable to common stockholders of $7.4 million, or $0.30 per share of common stock Financial Results • Q4 2021 Distributable Earnings (1) of $2.6
Slide 16: Q4 and Full Year 2021 Income Statement Summary
Q4 and Full Year 2021 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, 2021 31, 2021 (thousands) 31, 2021 31, 20
Slide 17: Q4 2021 Balance Sheet Summary
Q4 2021 Balance Sheet Summary Balance Sheet December 31, (thousands) 2021(1) Commercial mortgage loans held-for-investment $1,001,825 Cash and cash equivalents 14,749 Restricted cash(2) 3,530 Accrued interest receivable 3,978 Investment Related Receivable 22,400 Other assets(3) 2,441 Total assets $1
Slide 18: Q4 2021 Balance Sheet Summary
Q4 2021 Balance Sheet Summary • The CRE loan portfolio increased by $198.8 million in Q4 2021 • We acquired $336.2 million of loans at par from an affiliate of the Manager and we experienced $137.5 million of loan payoffs Q4 2021 Loan Acquisitions and Net Funding Activity(1,2) Fundings(1,2) $336.2 $
Slide 19: Interest Rate Sensitivity as of December 31, 2021
Interest Rate Sensitivity as of December 31, 2021 Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month LIBOR(3,4,5) ($644) $ in Thousands $ in Millions ($903) Floating ($1,113) Rate Net ($1,198) Assets(1) Exposure $1,002 $168 Floating Rate Liabilities(2) -$834 +25 bps
Slide 20: 12/31/2021 CRE Loan Portfolio Details
12/31/2021 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance Date Date Spread (months) Origination (1) 1 Loan 1 11/22/2019 8/6/2022 Multi-Family Virginia Beach VA 36,781,588 2.75% 32 77.10% 2 Loan 2 6/28/2021 7/6/2024 Mult
Slide 21: 12/31/2021 CRE Loan Portfolio Details
12/31/2021 CRE Loan Portfolio Details Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance Date Date Spread (months) Origination (1) 34 Loan 34 8/16/2021 9/6/2024 Multi-Family Columbus OH 12,750,000 3.65% 37 75.00% 35 Loan 35 3/12/2021 4/5/2024 Multi-F
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 For the Three Months Ended December 31, September 30, GAAP to Distributable Earnings Reconciliation 2021 2021 June 30, 2021 March 31, 2021 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $2,478,911 $1,176,
Slide 25: Detailed Walk of Capitalization as of 12/31/2021
Detailed Walk of Capitalization as of 12/31/2021 (in 000's) 12/31/2021 Total GAAP liabilities and stockholders' equity $1,048,824 Adjustments for Capitalization ( - ) Accrued interest payable (704) ( - ) Dividends payable (3,243) ( - ) Fees and expenses payable to Manager (1,825) ( - ) Other account
Slide 26: Book Value Per Share of Common Stock as of 12/31/2021
Book Value Per Share of Common Stock as of 12/31/2021 Book Value per Share of Common (in 000's) Stock Total stockholders’ equity $169,276 ( - ) Preferred equity (60,000)(1) Common equity 109,276 Shares outstanding 24,947,883 Book Value Per Share of Common $4.38 Stock Note: (1) Reflects 2.4 million s
Slide 27: Key Definitions
Key Definitions “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 weight ed average number of
Slide 28: March 2022
=| LUMENT March 2022
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