Lument Finance Trust Reports Second Quarter Results
Lument Finance Trust (NYSE: LFT) reported second quarter 2021 results with a GAAP net income of $955 thousand, equating to $0.04 per share. Distributable earnings amounted to $2.79 million, or $0.11 per share. The company plans to host a conference call on August 10, 2021 at 8:30 AM ET to discuss these results. It is important to note that the company presents non-GAAP financial measures, specifically distributable earnings, which should be evaluated with caution as they differ from GAAP calculations.
- GAAP net income of $955 thousand for Q2 2021.
- Distributable earnings of $2.79 million, or $0.11 per share.
- The company recorded a loss on extinguishment of debt totaling $1.66 million.
- Unrealized losses on mortgage servicing rights amounted to $220 thousand.
NEW YORK, Aug. 9, 2021 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today reported its second quarter 2021 results. GAAP net income attributable to common shareholders for the quarter was
Conference Call and Webcast Information
The Company will also host a conference call on Tuesday, August 10, 2021, at 8:30 AM ET to provide a business update and discuss the financial results for the second quarter of 2021. The conference call may be accessed by dialing 1-888-336-7151 (US) or 1-412-902-4251 (International). Note: there is no passcode; please ask the operator to be joined into the Lument Finance Trust call. A live webcast, on a listen-only basis, is also available and can be accessed through the URL:
https://www.webcaster4.com/Webcast/Page/2022/42422
For those unable to listen to the live broadcast, a recorded replay will be available for on-demand viewing approximately one hour after the end of the event through the Company's website https://lumentfinancetrust.com/ and by telephone dial-in. The replay call-in number is 1-877-344-7529 (US) or 1-412-317-0088 (International) with passcode 10159357.
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.
GAAP to Distributable Earnings Reconciliation
Three months Ended | ||
June 30, 2021 | ||
Reconciliation of GAAP to non-GAAP Information | ||
Net Income (loss) attributable to common shareholders | $ 954,575 | |
Adjustments for non-Distributable Earnings | ||
Unrealized (Gain) Loss on mortgage servicing rights | 220,435 | |
Loss on extinguishment of debt | 1,663,926 | |
Subtotal | 1,884,361 | |
Other Adjustments | ||
Recognized compensation expense related to restricted common stock | 3,241 | |
Adjustment for (provision for) income taxes | (54,012) | |
Subtotal | (50,771) | |
Distributable Earnings | $ 2,788,165 | |
Weighted average shares outstanding - Basic and Diluted | 24,944,075 | |
Distributable Earnings per weighted share outstanding - Basic and Diluted | $ 0.11 |
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.
Additional Information and Where to Find It
Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's Internet site at http://www.sec.gov/ or the Company website www.lumentfinancetrust.com or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations.
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.
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