Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Hunt Companies Finance Trust — Investor Presentation (March 2019)
32 slides from Lument Finance Trust's investor presentation, March 2019
Slide 1: Hunt Companies Finance Trust
Hunt Companies Finance Trust
Slide 2: Disclaimer
Disclaimer This presentation and any related 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 Act of 1934, as amended, which
Slide 3: Company Overview
Hunt Companies Finance Trust Company Overview Real estate investment trust Externally managed by Hunt focused °n Hronsitional Investment Management, multifamily and other part of Hunt Companies Inc., commercial real estate loans or , ° a diverse real estate securitizations < organization (“Hunt”) Em
Slide 4: Leveraging the breadth and depth of the Hunt platform
Hunt Companies Finance Trust Leveraging the breadth and depth of the Hunt platform > The Company expects to leverage Hunt's vertically integrated real estate platform and expertise across construction, development, property management, and finance when originating and underwriting investments a STRO
Slide 5: Hunt Companies, Inc.: An integrated and diversified real estate platform
Hunt Companies, Inc. An integrated and diversified real estate platform > Hunt Companies, Inc. is a diversified global real estate organization dedicated to creating value through the development, construction, investment, management, and financing of real estate assets m Privately owned and founded
Slide 6: An integrated and diversified real estate platform
Hunt Companies, Inc. An integrated and diversified real estate platform Commercial Real Estate Lender Real Estate $75 0p < Owner , Investment rel Manager and Operator / and Broker Dealer Developer of Real Estate Global Public Infrastructure ' Manager ( UM HUNT General Contractor and Construction Ser
Slide 7: 2010 2011 2012 2013 2014 2015 2016 2017 2018
2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 8: Real Estate Capital
Hunt Real Estate Capital SEATTLE, WA @ SAN RAFAEL, CA @ @ DENVER, CO ARCADIA, CA @ LOS ANGELES, CA .. @ IRVINE, CA @ @ PHOENIX, AZ @£EL PASO, TX @ HUNT LENDING OFFICE BUFFALO, NY ROYAL OAK, MI @ CLEVELAND, OH e . @ NEW YORK, NY CHICAGO, IL oe e PHILADELPHIA, PA COLUMBUS, CH@® @WASHINGTON, D.C. BIRMI
Slide 9: Experienced leadership team
Hunt Real Estate Capital Experienced leadership team CHRIS HUNT Chairman, Hunt Companies Finance Trust CEO, Hunt Companies JAMES FLYNN Director & CEO, Hunt Companies Finance Trust President, Hunt Real Estate Capital MICHAEL LARSEN d President, Hunt Companies Finance Trust CFO, Hunt Real Estate Capit
Slide 10: Target investments
Hunt Companies Finance Trust Target investments COLLATERAL PROPERTY TYPE GEOGRAPHIES LOAN TO VALUE AMORTIZATION & Cc a -| $5 million to $50+ million Primarily first lien real estate debt on stabilized or transitional assets Multifamily, retail, office, industrial, and self storage Within the United
Slide 11: Q4 2018 Summary of Investment Portfolio
Hunt Companies Finance Trust Q4 2018 Summary of Investment Portfolio Investment Type Interest Rate Type Fixed $563.9 million Agency Residential ‘Multifamily MSRs 1% MBS 1% 1% $563.9 million First Floating Mortgages 99% 98% Investment Portfolio as of Weighted Average Weighted Average Weighted Average
Slide 12: Q4 2018 CRE Loan Portfolio Snapshot
Hunt Companies Finance Trust Q4 2018 CRE Loan Portfolio Snapshot = As of 12/31/2018, the Company owned a portfolio of floating-rate CRE loans with an aggregate UPB of $555.2 million = As of 12/31/2018, all loans were current Geographic Concentration(") Property Type”) 1% Retail, $6.5, SelfStorage, $
Slide 13: Proforma Capital Structure
Hunt Companies Finance Trust Proforma Capital structurel’) Non-recourse: Hunt CRE 2017-FL1 Financing $291M() Non-recourse: Hunt CRE 2018-FL2 Financing $219M?) Term Loan $40M (3) Common Equity $110M (4) Total Capital: $660M(5)(6) Note: (1) Proforma reflects impact of @1 2019 Preferred Equi (2) CLO fi
Slide 14: Summary
Hunt Companies Finance Trust Summary > IN SUMMARY Real Estate Investment Trust focused on commercial and non-commercial real estate investments Externally managed by Hunt Investment Management, part of the diversified and vertically integrated Hunt real estate platform with expertise across construc
Slide 15: APPENDIX — Q4 2018 Earnings Supplemental
APPENDIX — Q4 2018 Earnings Supplemental
Slide 16: Key Updates
Hunt Companies Finance Trust Key Updates FINANCIAL RESULTS = Comprehensive loss of $(546) thousand or ($0.02) per share for the quarter Q4 2018 results were impacted by a $1.52 million onetime net tax expense?) . Core earnings attributable to common stockholders of $1.86 million or $0.08 per share,
Slide 17: Q4 2018 Earnings Summary
Hunt Companies Finance Trust Q4 2018 Earnings Summary Summary Income Statement (thousands) Net interest income Total other income (loss) Operating expenses (Provision for) benefit from income taxes Preferred dividends Net income attributable to common stockholders Reclassification adjustment for net
Slide 18: Q4 2018 Balance Sheet Summary
Hunt Companies Finance Trust Q4 2018 Balance Sheet Summary IHUNT Balance Sheet (thousands) Q4 2018 Note: Commercial mortgage loans held-forinvestment Receivables held in securitization trusts, at fair value Mortgage servicing rights, at fair value Cash and cash equivalents Restricted cash!) Other as
Slide 19: Operating Performance Trending
Hunt Companies Finance Trust Operating Performance Trending Comprehensive Income & Core Earnings Per Share of Common Adjusted Book Value Per Share(”) Stock v Hunt Management \ i \ t ‘ | \ $4.77 | 1 1 I ! ! i | { 1 1 $0.15 1 $4.72 H $0.10! $0.10 1 ! ! ! H $0.09 $0.08 | H i 1 1 1 $0.04 $0.05 Hy 1 1 !
Slide 20: Q4 2018 CRE Loan Portfolio Activity
Hunt Companies Finance Trust Q4 2018 CRE Loan Portfolio Activity = The CRE loan portfolio increased by $10.6 million in Q4 = The Company acquired $86.6 million of loans and participations at par from an affiliate of the Manager and funded an additional $0.9 million of future funding participations =
Slide 21: Q4 2018 Legacy Asset Portfolio Snapshot
Hunt Companies Finance Trust Q4 2018 Legacy Asset Portfolio Snapshot The Company continues to evaluate opportunities to monetize its remaining legacy assets in transactions that are accretive to book value. Notional / Portfolio UPB Net Carrying Value as of 12/31/2018 Stated Pay Rate Agency Multifami
Slide 22: Interest Rate Sensitivity as of December 31, 2018
Hunt Companies Finance Trust Interest Rate Sensitivity as of December 31, 2018 The Company's net floating-rate exposure is expected to benefit stockholders in a rising rate environment. We expect to continue to increase our net floating-rate exposure and deploy capital into new investment opportunit
Slide 23: Loan Portfolio Detail
Closing Maturity Note Initial Term As-Is LTV at # Loan Name Property Type City State Current Balance Date Date Spread(1) (months) Origination(2) 1 Loan 1 11/30/2018 12/6/2020 Multifamily Various Various 33,000,000 4.05% 24 70.39% 2 Loan 2 8/8/2018 8/6/2021 Multifamily Dallas TX 31,772,256 3.65% 36 8
Slide 24: Loan Portfolio Detail (continued)
Initial Term As-Is LTV at # Loan Name Closing Date Maturity Date Property Type City State Current Balance Note Spread(1) (months) Origination(2) 21 Loan 21 11/30/2016 12/6/2019 Office Stafford TX 4,618,553 5.50% 24 56.41% 22 Loan 22 10/10/2018 11/6/2020 Multifamily Philadelphia PA 2,684,000 4.60% 24
Slide 25: Consolidated Balance Sheets
Hunt Companies Finance Trust Consolidated Balance Sheets Ba HUNT (Cash and cash equivalents | | | : 2017) i a | i | i : H T | i | i : i | i i i | i : i i i i ; ‘Total lisbalines 529,148,697 246,749,539 ee I | f ARE ae I | (Our concolidated balance sheets include ascets and liabilities of concolidate
Slide 26: Consolidated Statements of Income
Hunt Companies Finance Trust Consolidated Statements of Income Year Ended ‘Year Ended December 31,2018 December 31, 2017 Revenues: — Interest income: Available-for-sle securities S 10,748,966 $ 29,521,893 Residential mortgage loans held-for-sale = 72,160 (Commercial mortgage loans held-for-investmen
Slide 27: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation Three months Ended Three months Ended December 31, 2018 September 30, 2018 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders $ (546,269) $ 3,472,517 Adjustments for non-core earnings Realized (Gain) Loss on sale
Slide 28: Reconciliation of Non-GAAP Basis in Multifamily MBS
Hunt Companies Finance Trust Reconciliation of Non-GAAP Basis in Multifamily MBS Non-GAAP Basis Unamortized Designated Principal Premium Credit Amortized Unrealized Balance (Discount) Reserve Cost Gain/(Loss) Fair Value $ in thousands Multi-Family MBS 8.146 (2.690) —_— 5.456 (694) 4,762 Total Multi-
Slide 29: HCFT Capitalization
Hunt Companies Finance Trust IHUNT (in 000's) Total GAAP liabilities and stockholders' equity Adjustments for Capitalization (-] Multifamily securitized debt obligations Accrued interest payable Dividends payable Fees and expenses payable to Manager Other accounts payable and accrued expenses Other
Slide 30: GAAP Book Value and Adjusted Book Value
Hunt Companies Finance Trust GAAP Book Value and Adjusted Book Value GAAP Book Adjusted Book As of 12/31/2018 Value Value Total stockholders' equity $150,203,338 $150,203,338 (-) Preferred equity (37,156,972) (40,250,000)() (-) Noncontrolling interests (99,500) (99,500) Common equity $112,946,866 $1
Slide 31: Key Definitions
Hunt Companies Finance Trust Key Definitions “Adjusted Book Value Per Share” means a non-GAAP metric of common stockholders’ equity per share calculated as: a) total stockholders’ equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its stated liqui
Slide 32: Hunt Companies Finance Trust
De HUNT HUNT COMPANIES FINANCE TRUST
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