Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q1 2023 Earnings Presentation
24 slides from Lument Finance Trust's earnings presentation, May 12, 2023
Slide 1: Lument Finance Trust Q1 2023 Earnings Supplemental
Lument Finance Trust Q1 2023 Earnings Supplemental May 2023
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, an affiliate of ORIX Corporation USA. Key
Slide 4: Q1 2023 Updates
Q1 2023 Updates • Q1 2023 GAAP net income attributable to common stockholders of $4.6 million, or $0.09 per share of common stock. Q1 2023 Distributable Earnings(1) of $0.2 million, or $0.00 per share of common stock. Financial Results • Distributable Earnings was negatively impacted by a $4.3 milli
Slide 5: Q1 2023 Balance Sheet Summary
Q1 2023 Balance Sheet Summary Balance Sheet March 31, (thousands) 2023(1) Commercial mortgage loans held-for- $1,016,464 investment (net of allowance for credit losses) Cash and cash equivalents 98,573 Restricted cash(2) 1,946 Accrued interest receivable 5,939 Investment related receivable 489 Other
Slide 6: Q1 2023 Income Statement Summary
Q1 2023 Income Statement Summary Three Months GAAP Net Income to Distributable Three Months Summary Income Statement Ended March Earnings Reconciliation Ended March (thousands) 31, 2023 (thousands) 31, 2023 Net interest income $8,246 Net Income attributable to common stockholders $4,582 Total other
Slide 7: 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 $0.09 $3.60 $3.55 $3.50 $3.46 $0.06 CECL $0.05 implemented on January 1, $0.04 2023. BVPS is net of CECL $0.03 reserve of $0.06 as of 3/31/23.
Slide 8: Investment Portfolio
Investment Portfolio • On March 31, 2023, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.0 billion. 89.7%(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 rel
Slide 9: Q1 2023 Loan Activity
Q1 2023 Loan Activity • The Company experienced $52.1 million of loan payoffs during the quarter. • Represents annual payoff rate of 20.5%(1) of the portfolio as of 3/31/2023. • There were no new loan acquisitions during Q1 2023. Payoffs by Property Type(2) Office, $6.0, 11.5% $52.1 Multi-Family, $4
Slide 10: Portfolio Credit
Portfolio Credit • 98.8% of the Company’s portfolio is performing, which reflects our strong credit and asset management capabilities. • Increase in weighted average risk rating driven by rising interest rates and broader economic uncertainties. Asset Performance(1) Weighted Average Risk Rating 100%
Slide 11: Q1 2023 Capital Structure Overview
Q1 2023 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 12: Net Interest Income Sensitivity to Shifts in One-Month LIBOR and Term SOFR
Net Interest Income Sensitivity to Shifts in One-Month LIBOR and Term SOFR • 100% floating-rate loan portfolio. • 76.3% of portfolio is indexed to one-month LIBOR and 23.7% of portfolio is indexed to 30-day term SOFR(1). Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in One-
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 3/31/2023 CRE Loan Portfolio Details
3/31/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance 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 Mul
Slide 15: 3/31/2023 CRE Loan Portfolio Details
3/31/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread (months) Origination(1) 22 Loan 22 10/12/2021 11/5/2023 Multi-Family Atlanta GA 17,500,000 3.15% 25 42.90% 23 Loan 23 7/8/2021 8/5/2023
Slide 16: 3/31/2023 CRE Loan Portfolio Details
3/31/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance Spread (months) Origination(1) 45 Loan 45 12/2/2021 12/6/2024 Multi-Family Tomball TX 9,975,000 3.40% 36 68.50% 46 Loan 46 11/23/2021 12/5/2024
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets 17
Slide 18: Consolidated Statement of Income
Consolidated Statement of Income 18
Slide 19: Detailed Walk of Allowance for Loan Losses
Detailed Walk of Allowance for Loan Losses 19
Slide 20: 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 March 31, 2023 2022 2022 June 30, 2022 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $4,581,733 $879,77
Slide 21: Detailed Walk of Capitalization as of 3/31/2023
Detailed Walk of Capitalization as of 3/31/2023 (in 000's) 3/31/2023 Total GAAP liabilities and stockholders' equity $1,126,324 Adjustments for Capitalization ( - ) Accrued interest payable (2,505) ( - ) Dividends payable (4,135) ( - ) Fees and expenses payable to Manager (1,604) ( - ) Other account
Slide 22: Book Value Per Share of Common Stock as of 3/31/2023
Book Value Per Share of Common Stock as of 3/31/2023 Book Value per Share of (in 000's) Common Stock(1) Total stockholders’ equity $240,847 ( - ) Preferred equity (60,000) (2) ( - ) Non-controlling interest (100) Common equity 180,748 Shares outstanding 52,231,152 Book Value Per Share of Common Stoc
Slide 23: 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 24: May 2023
=| LUMENT May 2023