Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q1 2024 Earnings Presentation
30 slides from Lument Finance Trust's earnings presentation, May 2024
Slide 1: Lument Finance Trust Investor Presentation May 2024
Lument Finance Trust Investor Presentation May 2024
Slide 2: Disclaimer
Disclaimer 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 “Com
Slide 3: Company Overview and Key Investment Highlights
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 LLC, an affiliate of ORIX Corporation USA.
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. • Lument offers a comprehensive set of cu
Slide 5: Lument: A Platform Built for the Benefit of Investors
Lument: A Platform Built for the Benefit of Investors Diverse Opportunity • ~600 employees across 30+ offices provide clients of Lument and its affiliates with a mix of Set via Lument markets, assets, and deal types that span the breadth of commercial and multifamily real Origination Platform estate
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 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, healthcare, retail, office, industrial, and self storage Geographies Within the United States Loan to Value T
Slide 8: Investment Portfolio
Investment Portfolio • On March 31, 2024, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.3 billion. 93.6%(1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment oppor
Slide 9: Q1 2024 Capital Structure Overview
Q1 2024 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 two secured financings (LMNT 2021-FL1 and LM
Slide 10: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock Distributable Earnings(1) & Book Value Per Share of Common Dividends Per Share of Common Share Stock(2) $0.15 $3.50 $0.11 $3.46 $3.46 $0.10 $3.43 $0.07 $0.07 $0.07 $0.06 $0.04 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Distributa
Slide 11: Conclusion
Conclusion Key Investment Highlights Strong Sponsorship/Ownership Attractive Investment Profile • Access to extensive loan origination platform • Emphasis on middle market multifamily debt through affiliation with Lument, a premier investments which are well positioned for the national mortgage orig
Slide 12: Appendix: Q1 2024 Financial Updates
Appendix Q1 2024 Financial Updates
Slide 13: Q1 2024 Updates
Q1 2024 Updates • Q1 2024 GAAP net income attributable to common stockholders of $0.11 per share of common stock. • Q1 2024 Distributable Earnings(1) of $0.15 per share of common stock. Financial • On March 15, 2024, the Company declared a cash dividend for the quarter of $0.07 per share of common s
Slide 14: Q1 2024 Income Statement Summary
Q1 2024 Income Statement Summary Three Months GAAP Net Income to Distributable Three Months Summary Income Statement Ended March 31, Earnings Reconciliation Ended March (thousands) 2024 (thousands) 31, 2024 Net interest income $12,993 Net Income attributable to common $5,795 stockholders Total other
Slide 15: Q1 2024 Balance Sheet Summary
Q1 2024 Balance Sheet Summary Balance Sheet (thousands) March 31, 2024(1) Commercial mortgage loans held-for- investment (net of allowance for credit $1,285,479 losses) Cash and cash equivalents 64,573 Restricted cash(2) 72 Accrued interest receivable 8,463 Investment related receivable 17,320 Other
Slide 16: Q1 2024 Loan Activity
Q1 2024 Loan Activity • The Company experienced $97.4 million of loan payoffs during the quarter. Q1 Payoffs by Property Type(1) Portfolio Activity(2) $1,383.9 $(97.4) $(1.8) $0.8 $1,285.5 $97.4 Q4 2023 Payoffs / Provision for Other Activity Q1 2024 Multifamily, Portfolio Sales Loan Losses Portfolio
Slide 17: Portfolio Credit
Portfolio Credit • As of March 31, 2024, 97.1% of the Company’s portfolio was performing(1), with 76.9% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating(2) of 3.5 remained unchanged quarter over quarter. Asset Performance(1) Weighted Average Risk Rating(2) 98.8% 9
Slide 18: Net Interest Income Sensitivity to Shifts in Term SOFR
Net Interest Income Sensitivity to Shifts in Term SOFR • 100% floating-rate loan portfolio. • 100% of portfolio is indexed to 30-day term SOFR(1). Net Interest Income Per Share Floating-Rate Exposure(2) Sensitivity to Change in SOFR(5) $0.01 Floating Rate Assets(3) Net Exposure -$0.01 $1,300 $220 -$
Slide 19: 3/31/2024 CRE Loan Portfolio Details
3/31/2024 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread Discount/Premium (months) Origination(1) 1 Loan 1 12/16/2021 1/3/2025 Multifamily Daytona FL 51,375,000 3.16% 0 37 71.70% 2
Slide 20: 3/31/2024 CRE Loan Portfolio Details
3/31/2024 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread Discount/Premium (months) Origination(1) 22 Loan 22 6/10/2022 7/5/2025 Multifamily Various GA 20,250,372 3.75% (293,429) 37
Slide 21: 3/31/2024 CRE Loan Portfolio Details
3/31/2024 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread Discount/Premium (months) Origination(1) 45 Loan 45 4/12/2021 5/5/2024 Multifamily Cedar Park TX 13,666,721 3.86% 0 37 66.70
Slide 22: 3/31/2024 CRE Loan Portfolio Details
3/31/2024 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Unamortized Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread Discount/Premium (months) Origination(1) 67 Loan 67 6/22/2022 7/3/2025 Multifamily Des Moines IA 8,175,500 4.00% 0 36 72.03%
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets 23
Slide 24: Consolidated Statement of Income
Consolidated Statement of Income 24
Slide 25: Detailed Walk of Allowance for Loan Losses
Detailed Walk of Allowance for Loan Losses 25
Slide 26: Reconciliation of Net Income to Distributable Earnings
Reconciliation of Net Income to Distributable Earnings For the Three Months Ended December 31, September 30, GAAP to Distributable Earnings Reconciliation March 31, 2024 2023 2023 June 30, 2023 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $5,795,183 $
Slide 27: Detailed Walk of Capitalization as of 3/31/2024
Detailed Walk of Capitalization as of 3/31/2024 (in 000's) 3/31/2024 Total GAAP liabilities and stockholders' equity $1,378,092 Adjustments for Capitalization ( - ) Accrued interest payable (3,851) ( - ) Dividends payable (4,659) ( - ) Fees and expenses payable to Manager (3,073) ( - ) Other account
Slide 28: Book Value Per Share of Common Stock as of 3/31/2024
Book Value Per Share of Common Stock as of 3/31/2024 Book Value per Share (in 000's) of Common Stock Total stockholders’ equity $242,935 ( - ) Preferred equity(1) (60,000) ( - ) Non-controlling interest (100) Common equity $182,836 Shares outstanding 52,257,315 Book Value Per Share of Common Stock $
Slide 29: 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 weighted average number of
Slide 30: May 2024
=| LUMENT May 2024