Lument Finance Trust Announces Preliminary Fourth Quarter And Full Year Results
Lument Finance Trust (NYSE: LFT) has released preliminary unaudited financial results for Q4 and the full year of 2021. Net income for Q4 is estimated between $2.2 million and $2.7 million, with Distributable Earnings ranging from $2.5 million to $3.0 million. For the full year, net income is expected to be between $7.2 million and $7.7 million, while Distributable Earnings are estimated at $9.5 million to $10 million. The company's book value was around $109 million as of year-end 2021. Notably, LFT maintained a 100% collection rate on interest payments without loan defaults during the pandemic.
- Estimated Q4 net income between $2.2 million and $2.7 million.
- Distributable Earnings for Q4 expected to be $2.5 million to $3 million.
- Annual net income projected between $7.2 million and $7.7 million.
- Distributable Earnings for the year estimated at $9.5 million to $10 million.
- Book value around $109 million as of December 31, 2021.
- 100% collection rate on interest payments with no loan defaults during the pandemic.
- Preliminary estimates are subject to change and may not represent actual financial results.
NEW YORK, Feb. 2, 2022 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today announced preliminary, unaudited results for the three months and year ended December 31, 2021 based on currently available information.
For the three months ended December 31, 2021, the Company estimates its net income attributable to common stockholders to be in the range of
For the year ended December 31, 2021, the Company estimates its net income attributable to common stockholders to be in the range of
The Company estimates its book value as of December 31, 2021 to be in the range of
During the three months ended December 31, 2021, the Company collected
As of December 31, 2021, multifamily loans comprised approximately
During the three months ended December 31, 2021, the Company acquired and funded senior floating-rate loans totaling
During the year ended December 31, 2021, the Company acquired and funded senior floating-rate loans totaling
As of December 31, 2021,
The preliminary estimates set forth herein are subject to change, including as a result of the completion of customary financial statement closing and review procedures for the three months and year ended December 31, 2021. As a result, the preliminary estimates set forth herein reflect the Company's preliminary estimates with respect to such information, based on information currently available to management, and may vary materially from the Company's actual financial results as of and for the three months and year ended December 31, 2021. Further, these preliminary estimates are not a comprehensive statement or estimate of the Company's financial condition or operating results as of and for the three months and year ended December 31, 2021. These preliminary estimates should not be viewed as a substitute for complete financial statements prepared in accordance with GAAP and they are not necessarily indicative of the results to be achieved in any future period. Accordingly, you should not place undue reliance on these preliminary estimates.
These preliminary estimates are based upon a number of assumptions. Additional items that may require adjustments to these preliminary estimates may be identified and could result in material changes to these preliminary estimates. KPMG LLP, the Company's independent registered public accounting firm, has not audited, reviewed, compiled or performed any procedures with respect to the preliminary estimates. Accordingly, KPMG LLP does not express an opinion or provide any form of assurance with respect thereto. We do not intend to update or otherwise revise these preliminary estimates other than through the release of our report for the fourth quarter and year ended December 31, 2021.
Non-GAAP and Other Financial Measures
Distributable Earnings is a non-GAAP financial measure which we define as GAAP net income (loss) attributable to holders of our common stock, or, without duplication, owners of our subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for that applicable reporting period, regardless of whether such items are included in other comprehensive income (loss) or net income (loss), and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items after discussions with our board of directors and approved by a majority of our independent directors.
While Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (that is, when the loan is repaid, fully or partially, or in the case of foreclosures, when the underlying asset is sold), or (ii) with respect to any amount due under any loan, when such amount is determined to be non-collectible.
We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flows from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. As a REIT, we generally must distribute annually at least
Furthermore, Distributable Earnings help us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring our dividends.
Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.
In addition, we calculate book value per share of our common stock as (i) our total stockholders' equity computed in accordance with GAAP less the value of the issued and outstanding shares of our preferred stock at its stated liquidation preference of
Reconciliation of Expected Distributable Earnings to Expected Net Income Attributable to Common Stockholders
The tables below reconcile an estimated range of Distributable Earnings, including per diluted weighted average share amounts to the estimated range of net income attributable to common stockholders, including per diluted share amounts, for the three months and year ended December 31, 2021. Totals and per share amounts may not foot due to rounding.
Three Months Ended December 31, 2021 | |||||
$'s in millions | per Diluted | ||||
Estimated Net Income Attributable to Common Stockholders | $ | 2.2 to 2.7 | $ | 0.09 to 0.11 | |
Adjustments | |||||
Unrealized loss on mortgage servicing rights | 0.1 | - | |||
Provision for income taxes | 0.1 | - | |||
Estimated Distributable Earnings | $ | 2.5 to 3.0 | $ | 0.10 to 0.12 | |
Year Ended December 31, 2021 | |||||
$'s in millions | per Diluted | ||||
Estimated Net Income Attributable to Common Stockholders | $ | 7.2 to 7.7 | $ | 0.29 to 0.31 | |
Adjustments | |||||
Unrealized loss on mortgage servicing rights | 0.4 | 0.01 | |||
Purchase premium payoffs | 0.2 | 0.01 | |||
Loss on extinguishment of debt | 1.7 | 0.07 | |||
Recognized compensation expense related to restricted common | - | - | |||
Provision for income taxes | 0.1 | - | |||
Estimated Distributable Earnings | $ | 9.5 to 10.0 | $ | 0.38 to 0.40 | |
Non-GAAP Financial Measures
In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP"). Specifically, the Company is presenting distributable earnings, which constitutes a non-GAAP financial measure within the meaning of Item 10(e) of Regulation S-K and is net income under GAAP. While we believe the non-GAAP information included in this press release provides supplemental information to assist investors in analyzing our results, and to assist investors in comparing our results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. The methods of calculating non-GAAP financial measures may differ substantially from similarly titled measures used by other companies. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
About LFT
LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments. The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets. LFT is externally managed and advised by OREC Investment Management, LLC d/b/a Lument Investment Management, a Delaware limited liability company.
Forward-Looking Statements
Certain statements included in this press release, any related webcast / conference call, and other oral statements made by our representatives from time to time may constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "project," "estimate," "plan," "continue," "intend," "should," "may," "will," "seek," "would," "could," or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us on the date of this press release or the date on which such statements are first made. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on forward-looking statements in this press release and/or any related webcast / conference call and should consider carefully the factors described in Part I, Item IA "Risk Factors" in our annual reports on Form 10-K, our quarterly reports on Form 10-Q, and other current or periodic filings with the Securities and Exchange Commission ("SEC"), when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. Additionally, many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 outbreak. Additional information concerning these and other risk factors are contained in our Annual Report on Form 10-K for the year ended December 31, 2020, which is available on the Securities and Exchange Commission's website at www.sec.gov. Except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Lument Finance Trust, Inc.
FAQ
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