Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Investor Presentation (November 2022)
27 slides from Lument Finance Trust's investor presentation, November 2022
Slide 1: Lument Finance Trust Investor Presentation
Lument Finance Trust Investor Presentation November 2022
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
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 Director & CEO, Lument Finance Trust President, Lument Finance Trust CFO, Lument Finance Trust Chief Executive Officer, Lument Chief Operating Officer, Lument Chief Accounting Officer, Lument VIC CLARK BARRY FULLER PHIL GIBSON
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: Investment Portfolio
Investment Portfolio • At September 30, 2022, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.0 billion. 95%(1) of the portfolio was invested in loans backed by multifamily assets. • The Company anticipates that the majority of loan activity will continue to be r
Slide 10: Q3 2022 Capital Structure Overview
Q3 2022 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 (LMNT 2021-FL1),
Slide 11: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock GAAP Earnings & Distributable Earnings (1) Book Value Per Share of Common Stock (2) Per Share of Common Stock $0.11 $0.10 $4.38 $3.62 $3.60 $3.55 $0.05 $0.05 $0.05 $0.04 $0.03 $0.01 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 GAAP
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: Q3 2022 Financial Updates
Appendix Q3 2022 Financial Updates
Slide 14: Q3 2022 Updates
Q3 2022 Updates • Q3 2022 Distributable Earnings (1) of $1.7 million, or $0.03 per share of common stock. Q3 2022 GAAP net income attributable to common stockholders of $0.3 million, or $0.01 per share of Financial common stock. Results • Q3 2022 Book Value Per Share of Common Stock of $3.55 (2) • D
Slide 15: Q3 2022 Income Statement Summary
Q3 2022 Income Statement Summary Three Months Three Months Ended GAAP Net Income to Distributable Ended Summary Income Statement September 30, Earnings Reconciliation September 30, (thousands) 2022 (thousands) 2022 Net interest income $5,483 Net Income attributable to common $315 stockholders Total
Slide 16: Q3 2022 Balance Sheet Summary
Q3 2022 Balance Sheet Summary Balance Sheet September (thousands) 30, 2022(1) Commercial mortgage loans held-for-investment $1,044,081 (net of allowance for loan losses) Cash and cash equivalents 48,485 Restricted cash(2) 28,222 Accrued interest receivable 4,259 Investment related receivable 602 Oth
Slide 17: Q3 2022 Balance Sheet Summary
Q3 2022 Balance Sheet Summary • We acquired $47.5 million of loans at par from an affiliate of the Manager and we experienced $35.5 million of loan payoffs. Additionally, we booked a provision for loan loss of $1.5 million during Q3. Q3 2022 Loan Acquisitions and Net Portfolio Activity(1,2) Fundings
Slide 18: Net Interest Income Sensitivity to Shifts in LIBOR and Term SOFR
Net Interest Income Sensitivity to Shifts in One-Month LIBOR and Term SOFR • 100% floating-rate loan portfolio • 83.5% of portfolio is indexed to one-month LIBOR and 16.5% of portfolio is indexed to 30-day term SOFR Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-Month
Slide 19: 9/30/2022 CRE Loan Portfolio Details
9/30/2022 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 12/16/2021 1/3/2025 Multi-Family Daytona FL 51,375,000 3.05% 37 71.70% 2 Loan 2 11/22/2019 1/5/2024 Multi-Family
Slide 20: 9/30/2022 CRE Loan Portfolio Details
9/30/2022 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) 37 Loan 37 12/13/2021 1/5/2024 Multi-Family Evansville IN 12,600,000 3.30% 25 74.30% 38 Loan 38 10/1/2021 10/4/2024 Multi
Slide 21: Consolidated Balance Sheets
Consolidated Balance Sheets 21
Slide 22: Consolidated Statement of Income
Consolidated Statement of Income 22
Slide 23: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings For the Three Months Ended September 30, December 31, GAAP to Distributable Earnings Reconciliation 2022 June 30, 2022 March 31, 2022 2021 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $315,233 $2,158,81
Slide 24: Detailed Walk of Capitalization as of 9/30/2022
Detailed Walk of Capitalization as of 9/30/2022 (in 000's) 9/30/2022 Total GAAP liabilities and stockholders' equity $1,128,567 Adjustments for Capitalization ( - ) Accrued interest payable (1,662) ( - ) Dividends payable (4,135) ( - ) Fees and expenses payable to Manager (1,649) ( - ) Other account
Slide 25: Book Value Per Share of Common Stock as of 9/30/2022
Book Value Per Share of Common Stock as of 9/30/2022 Book Value per Share of (in 000's) Common Stock Total stockholders’ equity $245,267 ( - ) Preferred equity (60,000) (1) ( - ) Non-controlling interest (100) Common equity 185,167 Shares outstanding 52,231,152 Book Value Per Share of Common Stock $
Slide 26: 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 27: November 2022
=|] LUMENT November 2022
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