Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q3 2024 Earnings Presentation
24 slides from Lument Finance Trust's earnings presentation, Nov 13, 2024
Slide 1: Lument Finance Trust Q3 2024 Earnings Supplemental
Lument Finance Trust Q3 2024 Earnings Supplemental November 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: Q3 2024 Updates
Q3 2024 Updates • Q3 2024 GAAP net income attributable to common stockholders of $0.10 per share of common stock. • Q3 2024 Distributable Earnings(1) of $0.10 per share of common stock. Financial • On September 16, 2024, the Company declared a cash dividend for the quarter of $0.08 per share of comm
Slide 5: Q3 2024 Balance Sheet Summary
Q3 2024 Balance Sheet Summary Balance Sheet (thousands) September 30, 2024(1) Commercial mortgage loans held-for- $1,181,668 investment (net of allowance for credit losses) Cash and cash equivalents 45,588 Restricted cash(2) 19,491 Accrued interest receivable 6,823 Other assets(3) 2,430 Total assets
Slide 6: Q3 2024 Income Statement Summary
Q3 2024 Income Statement Summary GAAP Net Income to Three Months Distributable Earnings Three Months Summary Income Statement Ended September Reconciliation Ended September (thousands) 30, 2024 (thousands) 30, 2024 Net interest income $9,484 Net Income attributable to common $5,096 stockholders Tota
Slide 7: 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 $3.50 $3.48 $3.46 $0.10 $0.10 $0.09 $0.08 $0.08 $0.07 $0.07 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Distributa
Slide 8: Investment Portfolio
Investment Portfolio • On September 30, 2024, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.2 billion. 93.2%(1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment o
Slide 9: Q3 2024 Loan Activity
Q3 2024 Loan Activity • The Company experienced $45.4 million of loan Portfolio Activity(2) fundings and $51.4 million of loan payoffs during the quarter. $1,186.7 $45.4 $(51.4) $(0.3) $1.3 $1,181.7 Q2 2024 Fundings Payoffs / Provision for Other Q3 2024 Portfolio Sales Loan Losses Activity Portfolio
Slide 10: Portfolio Credit
Portfolio Credit • As of September 30, 2024, 93.0% of the Company’s portfolio was performing(1), with 60.6% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating(2) of 3.6. • During the quarter, management applied a “5” risk-rating to four loans with an aggregate princ
Slide 11: Q3 2024 Capital Structure Overview
Q3 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 loan assets from repo or warehouse lenders. • Primary sources of financing include two secured financings (2021-FL1 CLO an
Slide 12: 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. Net Interest Income Per Share Floating-Rate Exposure(1) Sensitivity to Change in SOFR(4) $0.01 Floating Rate Net Exposure -$0.01 Assets(2) $1,196 $238 -$0.0
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 9/30/2024 CRE Loan Portfolio Details
9/30/2024 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 Beach FL 51,375,000 3.05% 0 37 71.
Slide 15: 9/30/2024 CRE Loan Portfolio Details
9/30/2024 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) 31 Loan 31 12/1/2021 12/5/2024 Multifamily Horn Lake MS 15,449,323 3.30% (3,135) 36
Slide 16: 9/30/2024 CRE Loan Portfolio Details
9/30/2024 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) 61 Loan 61 8/5/2022 8/5/2025 Multifamily San Antonio TX 9,127,649 4.35% (35,715) 36
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 Net Income to Distributable Earnings
Reconciliation of Net Income to Distributable Earnings For the Three Months Ended GAAP to Distributable Earnings Reconciliation Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $5,095,684 $3,413,445 $5,7
Slide 21: Detailed Walk of Capitalization as of 9/30/2024
Detailed Walk of Capitalization as of 9/30/2024 LFT Capitalization Reconciliation (in 000's) 9/30/2024 Total GAAP liabilities and stockholders' equity(1) $1,255,899 Adjustments for Capitalization ( - ) Accrued interest payable (3,153) ( - ) Dividends payable (5,185) ( - ) Fees and expenses payable t
Slide 22: Book Value Per Share of Common Stock as of 9/30/2024
Book Value Per Share of Common Stock as of 9/30/2024 Book Value Per Common Share (in 000's) Sep 30, 2024 Total stockholders’ equity $243,144 ( - ) Preferred equity(1) (60,000) ( - ) Non-controlling interest (100) Common equity $183,045 Shares outstanding 52,292,107 Book Value Per Share of Common Sto
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: November 2024
=| LUMENT November 2024