Lument Finance Trust Inc (LFT) 2023 Q3 法說會逐字稿

Good morning, and thank you for joining the Lument Finance Trust's third quarter 2023 earnings call. Today's call is being recorded and will be made available via webcast on the company's website.

早安，感謝您參加 Lument Finance Trust 的 2023 年第三季財報電話會議。今天的通話正在錄音中，並將透過公司網站上的網路廣播進行播放。

I would now like to turn the floor over to Andrew Tsang with Investor Relations at Lumen Investment Management. Please go ahead.

我現在想請 Lumen 投資管理公司投資者關係部門的 Andrew Tsang 發言。請繼續。

Thank you, and good morning, everyone. Thank you for joining our call to discuss Lument Finance Trust's third quarter 2023 financial results. With me on the call today are James Flynn, CEO; James Briggs, CFO; James Henson, President; and Zachary Halpern, Senior Director of Portfolio Management. Yesterday, on Monday, November 13, we filed our 10-Q with the SEC and issued a press release to provide details on our third quarter results. We also provided a supplemental earnings presentation, which can be found on our website.

謝謝大家，大家早安。感謝您參加我們的電話會議，討論 Lument Finance Trust 2023 年第三季的財務業績。今天與我一起參加電話會議的是執行長詹姆斯‧弗林 (James Flynn)；詹姆斯‧布里格斯，財務長；詹姆斯漢森，總裁；和 Zachary Halpern，投資組合管理資深總監。昨天，即 11 月 13 日星期一，我們向 SEC 提交了 10-Q 報告，並發布了一份新聞稿，提供有關我們第三季業績的詳細資訊。我們還提供了補充收益演示，可以在我們的網站上找到。

Before handing the call over to Jim Flynn, I'd like to remind everyone that certain statements made during the course of this call are not based on historical information and may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

在將電話會議交給吉姆·弗林之前，我想提醒大家，本次電話會議期間所做的某些陳述並非基於歷史信息，可能構成美國《證券法》第 27A 條含義內的前瞻性陳述。 1933 年證券交易法及1934 年證券交易法第21E 條。

When used in this conference call, words like outlook, evaluate, indicate, believes, will, anticipates, expects, intends, and other similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties are discussed in the company's reports filed with the SEC, including its reports on Forms 8-K, 10-Q, and 10 K and in particular, the Risk Factors section of our Form 10-K.

在本次電話會議中使用諸如“展望”、“評估”、“表明”、“相信”、“將要”、“預計”、“期望”、“打算”等詞語以及其他類似表達方式時，旨在辨識前瞻性陳述。此類前瞻性陳述面臨各種風險和不確定性，可能導致實際結果與前瞻性陳述中包含的結果有重大差異。這些風險和不確定性在公司向 SEC 提交的報告中進行了討論，包括表格 8-K、10-Q 和 10 K 的報告，特別是表格 10-K 的風險因素部分。

It is not possible to predict or identify all such risks. Listeners are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements. Furthermore, certain non-GAAP financial measures will be discussed in this conference call.

不可能預測或識別所有此類風險。請聽眾不要過度依賴這些前瞻性陳述，這些陳述僅代表截至本新聞稿發布之日的情況。該公司不承擔更新任何這些前瞻性陳述的義務。此外，本次電話會議也將討論某些非公認會計準則財務措施。

Presentation of this information is not intended to be considered in isolation nor as an substitute for financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be accessed through our filings with the SEC at www.sec.gov.

此資訊的呈現不應被孤立地考慮，也不能取代根據 GAAP 呈現的財務資訊。這些非 GAAP 財務指標與根據 GAAP 制定的最具可比性的指標的對帳可透過我們向 SEC 提交的文件 www.sec.gov 進行查看。

For the third quarter, we reported GAAP net income of $0.1 per share, while distributable earnings were $0.11 per share. In October, we paid a dividend of $0.07 per share with respect to the third quarter, which represented approximately 17% quarter-over-quarter increase.

第三季度，我們公佈的 GAAP 淨利潤為每股 0.1 美元，可分配收益為每股 0.11 美元。 10 月份，我們支付了第三季每股 0.07 美元的股息，季增約 17%。

I will now turn over the call to Jim Flynn. Please go ahead.

我現在將把電話轉給吉姆·弗林。請繼續。

Thank you, Andrew. Good morning, everyone. Welcome to the Lument Finance Trust earnings call for the third quarter of 2023. We appreciate everyone joining today. The macroeconomic environment continues to be a challenging one, a mild recession beginning in the first half of 2024 remains a possible outcome as higher for longer rate environment seems to be the consensus, economic forecast. Given the surprising resiliency of the labor markets, consumption continues to outpace incomes, and government spending, and interest cost concerns.

謝謝你，安德魯。大家，早安。歡迎參加 Lument Finance Trust 2023 年第三季財報電話會議。我們感謝今天大家的加入。宏觀經濟環境仍充滿挑戰，2024 年上半年開始的溫和衰退仍然是可能的結果，因為長期利率環境較高似乎已成為共識和經濟預測。鑑於勞動市場驚人的彈性，消費持續超過收入、政府支出和利息成本擔憂。

As we await the impact of the recent and dramatic monetary policy tightening to fully work its way through the system, we are also faced with heightened geopolitical uncertainty further modeling the near-term outlook. Given the interest rate volatility, multifamily and other commercial real estate property types continue to trade thinly. Overall, US commercial real estate investment sales volume was down greater than 50% year over year in Q3.

當我們等待近期大幅貨幣政策緊縮的影響以充分發揮整個系統的作用時，我們也面臨地緣政治不確定性的加劇，這進一步影響了近期前景。鑑於利率波動，多戶住宅和其他商業房地產類型的交易繼續清淡。整體而言，第三季美國商業房地產投資銷售量年減超過50%。

Despite deceleration of rent growth and widening of year over year cap rates, multifamily continues to be the preferred sector and is supported by strong fundamentals. While deliveries are elevated in certain markets this year and next, muted new construction starts suggest limited supply in the medium term, which is supportive of higher asset values as we move forward. Demand for multifamily continues to be driven by historic homeownership affordability gap, of prices of single-family homes remaining high, and residential mortgage rates currently north of 7%.

儘管租金成長放緩且上限利率逐年擴大，但多戶住宅仍是首選產業，並得到強勁基本面的支持。雖然今年和明年某些市場的交付量有所增加，但新建築開工量低迷表明中期供應有限，這在我們前進的過程中支持更高的資產價值。對多戶住宅的需求繼續受到歷史性住房負擔能力差距、單戶住宅價格居高不下以及目前住宅抵押貸款利率超過 7% 的推動。

Given these positive signs in the long term, LFT remains committed to its investment roots in seeking middle market multifamily investment opportunities that are accretive to the earnings and long-term shareholder value.

鑑於這些長期的正面跡象，LFT 仍致力於其投資根源，尋找能夠增加收益和長期股東價值的中間市場多戶投資機會。

The CRE CLO market continues to see significant dysfunction with only two [manners] CRE CLO transactions, price during the third quarter and year to date. Issuance volumes through October are down 66% year over year from a already depressed prior year.

CRE CLO 市場持續出現嚴重功能障礙，只有兩種[方式] CRE CLO 交易，即第三季和今年迄今的價格。截至 10 月的發行量與去年同期相比下降了 66%。

Given the uncertainty in the capital markets, we are proud to have successfully executed on July 12, a $386 million floating rate mortgage portfolio financing transaction that we will subsequently reference as LMF 2023-1. In connection with LMF 2023-1 transaction, $270 million of an investment grade rated senior secured floating rate loan was placed with the private lender and approximately $47 million of investment grade notes were issued and sold to an affiliate of our external manager.

鑑於資本市場的不確定性，我們很自豪於 7 月 12 日成功執行了一筆 3.86 億美元的浮動利率抵押貸款組合融資交易，我們隨後將其稱為 LMF 2023-1。就 LMF 2023-1 交易而言，我們向私人貸款機構發放了 2.7 億美元的投資級優先擔保浮動利率貸款，並向我們的外部管理人的關聯公司發行了約 4700 萬美元的投資級票據。

LFT retained $67 million (sic - see slide "$68.6 million ") of subordinate notes in that transaction. The outstanding liabilities of this financing transaction have an initial weighted average spread of 314 basis points over 30-day term SOFR, excluding fees and transaction costs. The initial collateral pool consisted of 21 -- 25 first lien floating rate mortgage loans secured by 32 multifamily properties located across the United States. The majority of the collateral was acquired from the affiliate of the manager at an aggregate discount to par of approximately 1.5%.

LFT 在該交易中保留了 6700 萬美元（原文如此 - 請參閱幻燈片“6860 萬美元”）的次級票據。本次融資交易的未償負債初始加權平均利差較 30 天期限 SOFR 為 314 個基點，不包括費用和交易成本。最初的抵押品池由 21 - 25 個第一留置權浮動利率抵押貸款組成，由位於美國各地的 32 個多戶住宅提供擔保。大部分抵押品是從管理人的關聯公司處以面額總折扣約 1.5% 的價格購買的。

The weighted average spread of the initial collateral was approximately 365 basis points over 30-day term SOFR, which we estimate works out to an effective spread on the initial collateral pool north of 425 basis points. LMF 2023-1 provides for a 24-month reinvestment period that allows principal proceeds from repayments of the mortgage assets to be reinvested and qualified replacement mortgage assets subject to certain conditions.

初始抵押品的加權平均利差比 30 天期限 SOFR 約為 365 個基點，我們估計初始抵押品池的有效利差超過 425 個基點。 LMF 2023-1 規定了 24 個月的再投資期，允許償還抵押資產的本金收益進行再投資，並在一定條件下進行合格的替代抵押資產。

Consummation of this financing allowed the company to increase its investment capacity to approximately $1.4 billion at a relatively attractive incremental cost of capital. With the closing of LMF 2023-1, coupled with our CRE CLO debt previously issued in 2021 and an outstanding corporate term loan, which matures in 2026, the company currently maintains an attractively priced and elongated liabilities profile. That positions us well as we enter an uncertain part of the market cycle.

此次融資的完成使公司能夠以相對有吸引力的增量資本成本將投資能力提高至約 14 億美元。隨著 LMF 2023-1 的結束，加上我們先前於 2021 年發行的 CRE CLO 債務以及將於 2026 年到期的未償還企業定期貸款，該公司目前保持著價格有吸引力且長期的負債狀況。當我們進入市場週期的不確定部分時，這使我們處於有利地位。

LFT's investment strategy of acquiring floating-rate mortgage asset position positions it well for a higher for longer rate environment. We believe the company consistently differentiates itself from its peer group through its continued focus on middle-market multifamily credit opportunities, its culture of active asset management, and its strong sponsorship from the broader ORIX platform.

LFT 收購浮動利率抵押資產部位的投資策略使其​​能夠很好地適應長期較高的利率環境。我們相信，該公司透過持續關注中間市場多戶信貸機會、積極的資產管理文化以及更廣泛的歐力士平台的大力支持，始終在同行中脫穎而出。

With that, I'd like to turn the call over to Jim Briggs, who will provide us details on our financial results. Jim?

接下來，我想將電話轉給吉姆·布里格斯（Jim Briggs），他將為我們提供有關財務業績的詳細資訊。吉姆？

Thank you, Jim, and good morning, everyone. Last evening, we filed our quarterly report on Form 10-Q and provided a supplemental investor presentation on our website, which we will be referencing during our remarks. Supplemental investor presentation has been uploaded to the webcast as well for your reference. On pages 4 through 7 of the presentation, you'll find key updates and an earnings summary for the quarter.

謝謝吉姆，大家早安。昨晚，我們提交了 10-Q 表格的季度報告，並在我們的網站上提供了補充投資者演示文稿，我們將在演講中引用該演示文稿。補充投資人簡報也已上傳至網路廣播，供您參考。在簡報的第 4 頁至第 7 頁上，您將找到該季度的重要更新和收益摘要。

For the third quarter of '23, we reported net income to common stockholders of approximately $5.2 million, or $0.10 per share, for a few items I'd like to highlight with regard to the third quarter P&L. Our Q3 net interest income was $9.5 million compared to $7.5 million in Q2, primarily as a result of the growth of our loan portfolio facilitated through the execution of the LMF 2023-1 financing transaction in July.

2023 年第三季度，我們向普通股股東報告的淨利潤約為 520 萬美元，即每股 0.10 美元，其中一些項目是我想強調的第三季度損益表。我們第三季的淨利息收入為 950 萬美元，而第二季為 750 萬美元，這主要是由於 7 月執行 LMF 2023-1 融資交易促進了我們的貸款組合的成長。

SOFR increased 23 basis points during the quarter from [5 spot 9%] to 5.32%, driving an increase in the interest income on our portfolio in excess of the increase in the cost of our floating rate liabilities. Exit fees and other prepayment related income were relatively flat sequentially, despite payoffs being higher than prior quarter due to a larger portion of the multi-family payoffs this quarter being refinanced with agency debt provided by an affiliate of the manager. Note that in such situations, a portion of the managers expense reimbursements are waived pursuant to the terms of the management agreement.

本季 SOFR 增加了 23 個基點，從 [5 即期 9%] 增至 5.32%，推動我們投資組合利息收入的成長超過了浮動利率負債成本的成長。退出費和其他預付款相關收入環比相對持平，儘管收益高於上一季度，因為本季度多戶收益的大部分是透過管理公司附屬公司提供的代理債務進行再融資。請注意，在這種情況下，根據管理協議的條款，可以免除部分經理費用報銷。

Our total operating expenses were $2.4 million during Q3 versus $4.4 million in Q2. This quarter over quarter decrease was driven primarily by the $1.7 million or $0.03 per share of deal costs we expensed in Q2, and which had been incurred in pursuit of executing a broadly marketed CRE CLO securitization transaction which we ultimately abandoned in Q2 in lieu of the more attractive LMF 2023-1 private financing transaction.

第三季我們的總營運費用為 240 萬美元，而第二季為 440 萬美元。本季環比下降的主要原因是我們在第二季度支出了170 萬美元或每股0.03 美元的交易成本，這些成本是為了執行廣泛營銷的CRE CLO 證券化交易而產生的，我們最終在第二季度放棄了該交易，以代替更具吸引力的LMF 2023-1私募融資交易。

For Q3, we reported distributable earnings of approximately $6 million or $0.11 per share. The primary difference between reported net income and distributable earnings was the approximate $800,000 net increase to CECL general reserves in the quarter, primarily due to the increase in the overall size of the floating rate loan portfolio as well as changes in the macroeconomic forecast in the periods.

第三季度，我們公佈的可分配收益約為 600 萬美元，即每股 0.11 美元。報告淨利潤與可分配收益之間的主要差異是本季CECL一般準備金淨增加約80萬美元，這主要是由於浮動利率貸款組合總體規模的增加以及該期間宏觀經濟預測的變化。

As a non-cash unrealized items, these charges are adjusted out for purposes of calculating distributable earnings. We did not take any asset-specific provisions in Q3. As of September 30, the company's total equity was approximately $241 million. Total common book value was approximately $180 million, or $3.46 per share, up $0.03 per share from Q2. We ended the third quarter with an unrestricted cash balance of $43 million. We also had an additional $30 million of aggregate reinvestment capacity through our two secured financings.

作為非現金未實現項目，這些費用在計算可分配收益時會予以調整。我們在第三季沒有採取任何特定資產撥備。截至9月30日，該公司總股本約為2.41億美元。普通帳面總價值約為 1.8 億美元，即每股 3.46 美元，比第二季每股增加 0.03 美元。截至第三季末，我們的非限制現金餘額為 4,300 萬美元。透過兩項擔保融資，我們還擁有額外 3,000 萬美元的再投資能力。

I will now turn the call over to Jim Henson to provide details on the company's investment activity during the quarter and portfolio performance. Jim?

我現在將把電話轉給吉姆漢森 (Jim Henson)，他將提供有關公司本季投資活動和投資組合表現的詳細資訊。吉姆？

Pardon me. This is the conference operator.

對不起。這是會議操作員。

Mr. Henson, is it possible your phone is on mute?

漢森先生，您的電話有可能處於靜音狀態嗎？

Yes. Thank you. Thank you, Jim Briggs, and thank you. I will now provide a brief summary of our recent activity within our investment portfolio. During the third quarter, we experienced a net $341 million increase in our loan portfolio after accounting for a $111 million of loan payoffs. The $111 million of loan payoffs experienced during the quarter represented approximately 33% annualized payout rate, which is relatively in line with the long-term historical averages and our short-term expectations.

是的。謝謝。謝謝你，吉姆·布里格斯，謝謝你。我現在將簡要總結我們最近在投資組合中的活動。第三季度，在計入 1.11 億美元的貸款還款後，我們的貸款組合淨增加了 3.41 億美元。本季的貸款償還額為 1.11 億美元，年化償還率約為 33%，與長期歷史平均值和我們的短期預期相對一致。

Of the $452 million of loan investments acquired or funded during the quarter, 99% are collateralized by multifamily properties. Loans acquired during the quarter from an affiliate of the manager were acquired at an aggregate discount to par of $7.1 million. As of September 30, our portfolio consisted of 87 floating rate loans with an aggregate unpaid principal balance of approximately $1.4 billion, of which 93% was collateralized by multifamily properties.

在本季收購或資助的 4.52 億美元貸款投資中，99% 由多戶型房產抵押。本季從管理人的附屬公司獲得的貸款以面額總計折扣 710 萬美元的價格獲得。截至 9 月 30 日，我們的投資組合包括 87 筆浮動利率貸款，未付本金餘額總計約 14 億美元，其中 93% 由多戶房產抵押。

100% of our portfolio rate -- that floating rate portfolio is indexed to one-month SOFR. Our investment portfolio performed well. We ended the third quarter with 75% of the portfolio risk rated a 3 or better, and we have maintained a weighted average risk rating of 3.4 quarter over quarter.

我們的投資組合利率的 100%——浮動利率投資組合與一個月 SOFR 掛鉤。我們的投資組合表現良好。截至第三季末，我們 75% 的投資組合風險評級為 3 或更高，我們季度環比保持了 3.4 的加權平均風險評級。

Several offsetting factors impacted the average risk rating for the quarter. On one hand, the average risk rating would have shifted toward improvement during the quarter due to the company acquiring four new 2 rated loan investments with an aggregate unpaid principal balance of $64 million and two existing loan investments totaling $31 million of unpaid principal balance moving to a 2 rating during the quarter due to improved property performance metrics.

一些抵銷因素影響了本季的平均風險評級。一方面，由於該公司收購了四項新的2 級貸款投資，未付本金餘額總計為6,400 萬美元，而兩項現有貸款投資的未付本金餘額總計為3,100 萬美元，因此本季度的平均風險評級將轉向改善。由於房地產績效指標的改善，本季獲得 2 級評級。

In addition, several assets migrated from a 3 to a 4 rating and two loan assets migrated from a 4 to a 5 rating. We had 300 investments, each collateralized by multifamily property, which were rated a 5 for the third quarter. These loans with an aggregate unpaid principal balance of $69 million are currently considered collateral dependent due to actual or expected monetary default.

此外，多項資產評級從 3 級遷移至 4 級，兩項貸款資產評級從 4 級遷移至 5 級。我們有 300 項投資，每一項都以多戶型房產作為抵押，第三季的評級為 5。由於實際或預期的貨幣違約，這些未付本金餘額總計為 6,900 萬美元的貸款目前被視為依賴抵押品。

One of these three loans we have discussed in prior quarters, and we continue to pursue all available remedies with regard to that loan. After conducting our analysis of the underlying collateral, we have conclude -- we have not recorded any specific reserves with respect to these investments. We continue to proactively monitor the health of our portfolio, and we rely on the depth and breadth of our managed capabilities to drive positive asset management outcomes while protecting shareholder value.

我們在前幾季討論過這三筆貸款中的一筆，我們將繼續尋求與該貸款有關的所有可用補救措施。在對基礎抵押品進行分析後，我們得出的結論是——我們沒有記錄與這些投資相關的任何特定準備金。我們持續主動監控投資組合的健康狀況，並依靠管理能力的深度和廣度來推動積極的資產管理成果，同時保護股東價值。

With that I will pass it back to Jim Flynn for some closing remarks.

在此之後，我將把它傳回給吉姆·弗林，讓他發表一些結束語。

Thank you, Jim Henson. Appreciate everyone's time and interest. I want to open the call up for questions. I know there's a few already in the queue.

謝謝你，吉姆漢森。感謝每個人的時間和興趣。我想打開電話提問。我知道已經有一些人在排隊了。

(Operator Instructions)

（操作員說明）

Stephen Laws, Raymond James.

史蒂芬勞斯，雷蒙德詹姆斯。

Hi, good morning. Let's start with the three multifamily loans. Can you give us some details kind of where the -- they should talked about one before, but where are they located? Are they look the with same borrower different sponsors there? And what's the timeline and kind of resolving that and recycling capital to performing investments?

早安.讓我們從三筆多戶家庭貸款開始。你能給我們一些細節嗎——他們之前應該討論過，但他們在哪裡？相同借款人不同贊助商的情況看起來是否相同？解決這個問題以及將資本回收到執行投資的時間表和方式是什麼？

So I will let Zac Halpern talk on the details. They're all different sponsors, all different locations, and in different stages of underperformance. But as Jim pointed out, we still feel comfortable that we're going to be repaid on the collateral. But we're working with the borrower. They all have different issues.

所以我會讓 Zac Halpern 談談細節。他們都是不同的贊助商，都在不同的地點，並且處於表現不佳的不同階段。但正如吉姆指出的那樣，我們仍然對抵押品償還感到放心。但我們正在與借款人合作。他們都有不同的問題。

And so I'll let Zac give you the high level of kind of generally where they are. But one is primarily a partnership dispute, one is behind this business plan, and one had significant issues at the physical property and is working through proceeds on insurance, et cetera. Zac, you want to go ahead and give a high level?

因此，我將讓扎克向您介紹他們的整體情況。但其中一項主要是合夥糾紛，一項是該商業計劃的幕後黑手，一項在實體財產方面存在重大問題，正在透過保險收益等進行解決。扎克，你想繼續提高水平嗎？

Sure. So the asset that we've been talking about for the last three quarters is in Ohio. The asset -- there is another asset in Virginia that's the one that's in partnership dispute. And then there's an asset in Florida that's behind on this business plan. When we consider all three assets and look at them and sought information on that and site visits, et cetera. We find that with the exception of the first asset, which [but that shouldn't do that -- it shouldn't be we're] pursuing legal revenues on and also do not expect a loss.

當然。因此，我們過去三個季度一直在談論的資產位於俄亥俄州。該資產－維吉尼亞州還有另一項資產存在合夥糾紛。然後佛羅裡達州的一項資產落後於該商業計劃。當我們考慮所有三個資產並查看它們並尋求相關資訊和現場訪問等。我們發現，除了第一個資產之外，[但這不應該這樣做——我們不應該]追求合法收入，也不期望出現損失。

The other two -- while there is some monetary issue, the loan is -- appears to be lower than the value at present. And we'll borrowers/sponsors with incentive to securities and work towards resolution and therefore we're not expecting losses at present.

另外兩項——雖然存在一些貨幣問題，但貸款是——似乎低於目前的價值。我們將為借款人/發起人提供證券激勵，並努力解決問題，因此我們目前預計不會造成損失。

So on -- and you had asked, Stephen, on the type -- one, there are payments being made there in variety of ways, paying down principal, paying down -- paying interest late, those kinds of things. The timeline is, as you know, there's some uncertainty to it all, but we're certainly expecting these to be resolved in the next couple of quarters is kind of how I'm looking at it at least one or two of them and maybe all three.

等等——史蒂芬，你問過這種類型——一，有多種付款方式，償還本金，償還——遲付利息，諸如此類的事情。如你所知，時間表是存在一些不確定性的，但我們當然希望這些問題在接下來的幾個季度內得到解決，這就是我對其中至少一兩個的看法，也許三個全部。

But for better or worse things sometimes seem to take longer. For example, the partnership dispute is really -- it's impacting us as lender, but it's an issue between the owners and they have to settle their own dispute. And then I think we would be ready to move forward likely through a sale or whatever we decide to do. So we're pursuing our remedies to push them to get to their conclusion, so some of that is an example of just working through the legal process. But hopefully first half of '24 events, but it could be longer.

但無論好壞，事情有時似乎需要更長的時間。例如，合夥糾紛確實影響了我們身為貸款人，但這是業主之間的問題，他們必須解決自己的糾紛。然後我認為我們將準備好透過出售或我們決定做的任何事情來向前推進。因此，我們正在尋求補救措施，促使他們得出結論，其中一些只是透過法律程序的例子。但希望是 24 年賽事的上半場，但時間可能會更長。

Sure. That sounds like it's unique issues at each asset. Not anything that's --?

當然。這聽起來像是每種資產都有獨特的問題。不是什麼——？

Correct, it's not a (multiple speakers).

正確，這不是（多個揚聲器）。

The other thing I'll mention is that these two assets are within the securitizations whose reinvestment period is ending and there's not too much we can do near term anyway, even if we payoff to redeploy capital, like it's --. We're going to have to deal with that securitization in probably 2024. It's not like we're losing investment capacity.

我要提到的另一件事是，這兩項資產屬於再投資期間即將結束的證券化資產，無論如何，我們短期內也無能為力，即使我們能夠重新部署資本，就像這樣。我們可能需要在 2024 年處理這種證券化問題。這並不是說我們正在失去投資能力。

Understood. And then the take on a nonaccrual in the quarter, were they in interest income for the full 3Q or did some of them only contribute for partial or none of the quarter?

明白了。然後是本季的非應計利息收入，他們是整個第三季的利息收入，還是其中一些僅佔本季的部分或沒有貢獻？

We reversed out when we put it nonaccrual around $300. As Jim mentioned, we talk in our filing about them being on a cash basis. So we are seeing some payments there, which will reflect an income as we get it. It was around [$300] of income that got reversed in the quarter.

當我們將其計入非應計費用約為 300 美元時，我們取消了該計劃。正如吉姆所提到的，我們在文件中談到它們是以現金為基礎的。因此，我們在那裡看到了一些付款，這將反映我們獲得的收入。本季約有 [300 美元] 的收入發生了逆轉。

Okay. Helpful. Great. Appreciate the time this morning. Thank you.

好的。有幫助。偉大的。珍惜今天早上的時間。謝謝。

Steve Delaney, JMP Securities.

史蒂夫·德萊尼，JMP 證券。

Thanks. Good morning, Jim. Jim, and Jim. Jim Flynn, the portfolio, it's $1.3 billion, about 4.5% debt to equity. Do you consider Lument's portfolio to be fully invested currently based on your capital base? Thanks.

謝謝。早安，吉姆。吉姆，還有吉姆。吉姆·弗林（Jim Flynn）的投資組合價值 13 億美元，債務股本比率約為 4.5%。根據您的資本基礎，您認為 Lument 的投資組合目前是否已充分投資？謝謝。

Yes, thanks, Steve. Good to hear from you. We have -- so the answer is yes, it's around [$1.4 billion] is the total capacity give or take. Obviously we want some cash, we have a couple of assets that we've discussed. But generally speaking, it's upwards of [$1.3 billion and close to $1.4 billion].

是的，謝謝，史蒂夫。很高興聽到你的消息。我們有 - 所以答案是肯定的，大約 [14 億美元] 是給予或拿走的總容量。顯然我們需要一些現金，我們有一些我們已經討論過的資產。但總體來說，它在[13億美元至接近14億美元]以上。

We're obviously where we have -- as loans work themselves out and things like that we've generally kind of made the decision to maintain the liquidity. We elevated liquidity for obvious reasons. But that's the kind of mass of our portfolio today as we've discussed many times, obviously, we want to think about growth. But right now, it's really focused on our portfolio, asset quality, working with sponsors, making sure that we're positioned to take advantage of the market as it improves down the road here.

顯然，我們現在所處的位置——隨著貸款自行解決以及類似的事情，我們通常會做出維持流動性的決定。我們出於顯而易見的原因提高了流動性。但這就是我們今天的投資組合的規模，正如我們多次討論的那樣，顯然，我們想要考慮成長。但現在，我們真正關注的是我們的投資組合、資產品質、與贊助商的合作，確保我們能夠在市場不斷改善的情況下利用市場。

That's helpful. I mean, we really are in a market, it would seem would emphasize quality over quantity at this point, kind of wait and see. So the net interest income that you had, $9.5 million, it was I think $7.5 million in the prior quarter. And I realize, repayments you get acceleration. Is there anything in that $9.5 million that you would point out to be materially large one-time accrual of revenue that you had on or did either discount or deferred fees that you had on the books?

這很有幫助。我的意思是，我們確實處於一個市場中，在這一點上似乎會強調品質而不是數量，有點觀望。所以你的淨利息收入是 950 萬美元，我認為上一季是 750 萬美元。我意識到，還款會加速。您認為這 950 萬美元中是否有任何內容是您所擁有的相當大的一次性應計收入，或者是您帳面上的折扣或遞延費用？

Jim, you want to go ahead on that?

吉姆，你想繼續嗎？

Yeah. No, I wouldn't say there's anything one-timer in there. As we talked about the economics around prepayment and fees there. We're relatively flat quarter on quarter. Some of that is coming through a reduction in expense reimbursements. But I don't consider there to be anything material in there, Steve.

是的。不，我不會說裡面有什麼一次性的東西。當我們談論預付款和費用的經濟學時。我們季度環比相對持平。其中一些是透過減少費用報銷來實現的。但我不認為裡面有任何實質內容，史蒂夫。

Okay, great. And then just one final point. The $7.1 million that you pointed out discount specifically to LMF 2023-1, should we look at that -- I know those loans were already originated, which would a three year average life would that be a reasonable approach to accreting that money into the net interest income?

好的，太好了。最後一點。您特別指出的 710 萬美元折扣是針對 LMF 2023-1 的，我們是否應該考慮一下——我知道這些貸款已經發放，平均期限為三年，這是否是將這筆錢計入淨值的合理方法利息收入？

Yeah, I think that's reasonable, Steve, three year. Yeah.

是的，我認為這是合理的，史蒂夫，三年。是的。

Okay. Well, great quarter and good job on the big financing and we'll look forward to fourth quarter. Thank you very much.

好的。嗯，很棒的季度，大額融資也做得很好，我們期待第四季。非常感謝。

Thanks, Steve.

謝謝，史蒂夫。

Matthew Erdner, Jones Trading.

馬修‧艾德納，瓊斯貿易公司。

Hey, good morning, guys. Thanks for taking the question. So could you just talk a little bit about what the opportunities you're seeing out there currently? I know you that you guys focus on multi-family, but can I just get an idea of what you guys are looking at the moment and just the health of the pipeline. Thanks.

嘿，早上好，夥計們。感謝您提出問題。那麼您能簡單談談目前看到的機會嗎？我知道你們專注於多戶家庭，但我能否了解一下你們目前正在關注什麼以及管道的健康狀況。謝謝。

Sure, look I mean, the opportunities are less than they've been in prior quarters, as we've discussed, just in terms of transaction volume being so significantly down. So assets aren't trading hands so that opportunity has significantly declined. But so have lenders and lenders that are either can or willing to make new loans. So when we have seen assets come in, we are looking at, generally speaking, more conservative looking underwriting, lower leverage, high-quality sponsors.

當然，我的意思是，正如我們所討論的，機會比前幾季要少，只是交易量大幅下降。因此，資產不再易手，因此機會大大減少。但貸款人和能夠或願意發放新貸款的貸款人也是如此。因此，當我們看到資產進入時，一般來說，我們會尋找更保守的承保、較低的槓桿率和高品質的贊助商。

It does have an impact, I think with rates being so high spreads have kind of stabilized around 4%, but you've seen a lot of pressure on that -- I'm sorry spread before, but I think you'd see a lot of pressure on that to be lower when you've gone with a very low levered bridge loans and kind of pushing things down closer towards 3% for those high-quality loans. I think you'll see lenders probably take a look at those deals and trade a little spread for risk or low risk.

它確實有影響，我認為利率如此之高，利差已經穩定在 4% 左右，但你已經看到了很大的壓力——我很抱歉之前的利差，但我認為你會看到當你使用非常低槓桿的過橋貸款時，就會面臨很大的壓力，要求降低槓桿率，並將那些高品質貸款的利率降低到接近3%。我認為您會看到貸方可能會考慮這些交易並進行少量風險或低風險交易。

In terms of some of the things we've talked about in the past around subordinate debt opportunities, around mezz financing, preferred equity, et cetera. There's a lot of market chatter around those particular products. There's a lot of lenders and people looking to participate in that market, including us both at LFT and in our broader platform. The reality is that there's not a tremendous amount of deals that that works for today given where the rates are expected to be for that product in the teens, mid-teens, even. And it is hard to replace your prior debt capital if you're kind of refinancing something with the mid single digit with 2x on preferred.

就我們過去討論過的有關次級債務機會、夾層融資、優先股等的一些事情而言。圍繞這些特定產品有很多市場討論。有很多貸方和個人希望參與該市場，包括我們 LFT 和我們更廣泛的平台。現實情況是，考慮到該產品的價格預計在十幾歲、十幾歲甚至十幾歲，目前沒有大量的交易適合今天。如果您要以 2 倍的優先利率為中等個位數的東西進行再融資，則很難取代您之前的債務資本。

And so there's just I think that we haven't yet seen kind of the dam break so to speak of transactions I think as values -- buyers and sellers kind of accept values, the spread between buyers and sellers narrows, I think we're going to see more opportunity for new loans for bridge for bridge transactions that are kind of moving -- finishing off a prior strategy at a different cap stack, transitioning some of these assets that are being delivered off of construction loans to lease up bridge loans.

因此，我認為我們還沒有看到大壩潰決，可以說交易是我認為的價值——買家和賣家都接受了價值，買家和賣家之間的價差縮小了，我認為我們正在我們將看到更多為橋樑交易提供新貸款的機會，這些交易正在改變——完成不同上限的先前策略，將一些從建築貸款中交付的資產轉變為租賃過橋貸款。

And I think you'll see opportunities both on the bridge space. It's not going to be 2020 or 2019, but I do think we'll see some opportunity increase. And I also think that other space of mezz capital, as you start to see actual transactions, assets changing hands, it will be more opportunity there. But we really need that transaction flow to pick up. I mean for that, I think we need buyers and sellers too, except where values are and come to a agreement narrow gap and then we'll see some of those opportunities.

我認為你會在橋樑空間上看到機會。雖然不會是 2020 年或 2019 年，但我確實認為我們會看到一些機會增加。我還認為，中間資本的其他領域，當你開始看到實際交易、資產易手時，那裡將會有更多機會。但我們確實需要交易流量的回升。我的意思是，我認為我們也需要買家和賣家，除非價值存在並達成協議縮小差距，然後我們會看到其中一些機會。

And as we noted, we retained some of the low investment grade rated bonds in our last transaction. And that was because of it was an attractive spread. So there's -- there might be some opportunistic trades in the secondary market for some of these CLOs that are out there. But that's going to be very portfolio specific.

正如我們所指出的，我們在上次交易中保留了一些低投資等級的債券。那是因為它的價差很吸引人。因此，二級市場上可能存在一些 CLO 的機會主義交易。但這將會是非常具體的投資組合。

Got it. Thank you. That's good color there. I appreciate that. And then on the recent CLO, I don't know if you mentioned it or not, but is there a reinvestment period? And then if there is, when does that expire and how much of it is open at the moment? Thanks.

知道了。謝謝。那裡的顏色很好。我很感激。然後關於最近的CLO，我不知道你有沒有提到，但有一個再投資期嗎？如果有的話，什麼時候到期？目前有多少是開放的？謝謝。

It's two years. And to be clear, I may have said CLO, but it's a financing transaction, it's not technically a CLO just to clarify. But it is a very similar structure, and it has a two-year reinvestment period.

已經兩年了。需要澄清的是，我可能說過 CLO，但這是一項融資交易，從技術上講，它不是 CLO，只是為了澄清。但它的結構非常相似，並且有兩年的再投資期。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Christopher Nolan, Ladenburg Thalmann.

克里斯多福諾蘭，拉登堡塔爾曼。

Jim Briggs, just a clarification. Were there any nonrecurring expense items in the quarter?

吉姆·布里格斯，請澄清一下。本季是否有非經常性費用項目？

No, nothing unusual or one-timer. As I pointed out, we did have the big one-timer last quarter for the deal costs for widely distributed public CLO that we expensed in Q2. But nothing I would consider one-timer in the current quarter.

不，沒有什麼異常或一次性的事情。正如我所指出的，上個季度我們確實在第二季度支出了廣泛分佈的公共 CLO 的交易成本。但我不會在本季考慮一次性的。

Great. And then I guess some [for] just depend on general. Any change in non-accruals in fourth quarter to date?

偉大的。然後我想有些只是取決於一般情況。迄今為止，第四季度的非應計費用有任何變化嗎？

Nothing to date.

到目前為止沒有什麼。

And then finally on -- looking through the deck and looking at the LTVs, which are roughly 75%, 80% or so, what sort of rent haircut are you applying when you evaluate those LTVs?

最後 - 仔細查看整個平台並查看 LTV，大約為 75%、80% 左右，當您評估這些 LTV 時，您會應用什麼樣的租金折扣？

I don't think it's -- I mean, when we are looking at the assets, each one is an individual evaluation, meaning, basically it's going to be a view of what are the in-place rents. Most markets today have either somewhere in plus maybe two or three at the max to minus the same level, but some markets and some markets are slightly different. But in general, we'd be looking at in-place rents, particularly if they're a lot of these assets are still renovating and it'll still moving through their business plans, albeit higher to whatever changes market conditions have wanted. And so there's real-time data on what does it look like for renting new units today, but we're certainly --.

我不認為這是——我的意思是，當我們查看資產時，每一項都是單獨的評估，這意味著，基本上它將是對就地租金的看法。如今，大多數市場要么處於正值，最多可能有兩個或三個負值，但有些市場和某些市場略有不同。但總的來說，我們會考慮就地租金，特別是如果其中許多資產仍在翻新，並且仍將按照其業務計劃進行，儘管會根據市場條件所希望的任何變化而提高。因此，現在有關於租用新單位的即時數據，但我們當然是——。

So you're using this stated rent, right?

所以你用的是這個規定的租金，對嗎？

We're often getting rent rolls, right? So this is real information. I think that, perhaps it's helpful to make a distinction between evaluating something like a CMBS bond in which you're looking at a tape of data provided to you by the server servers. Looking at multifamily loans, the way we're looking at it, which is asset management data, rent rolls, information that's coming directly from the borrower that's not necessarily been passed through data teach, et cetera. So it's a lot more foods on the ground and then you might see versus looking at CMBS bonds (inaudible).

我們常常收到租金單，對嗎？所以這是真實的訊息。我認為，也許區分評估諸如 CMBS 債券之類的東西是有幫助的，在 CMBS 債券中，您正在查看伺服器向您提供的資料磁帶。看看多戶家庭貸款，我們看待它的方式是資產管理數據、租金單、直接來自借款人的信息，這些信息不一定是透過數據教學傳遞的，等等。因此，地面上有更多的食物，然後您可能會看到 CMBS 債券（聽不清楚）。

[Well, here's an issue]-- (multiple speakers), and then -- just FYI, I used to run a portfolio of four rent-stabilized apartment buildings in New York City was 218, rent-stabilized units. And when you talk to bankers in this space, at least in New York City, they give a haircut to their reported revenue of 20% -- 25%. Simply because what your reported rent is could be different to what the actual rent is. Like you get one month free or something like that. And if you're using what the stated rent roll is, doesn't that sort of overly inflate the value of the property on LTV basis?

[嗯，這是一個問題]--（多個發言者），然後--僅供參考，我曾經在紐約市經營過一個由四棟租金穩定公寓樓組成的投資組合，共有218 套租金穩定單元。當你與這個領域的銀行家交談時，至少在紐約市，他們會將報告的收入削減 20% 至 25%。原因很簡單，因為您報告的租金可能與實際租金不同。例如你可以免費獲得一個月之類的。如果您使用規定的租金，這是否會過度誇大以 LTV 計算的房產價值？

So let me just address that specifically. So when we look at rents, we are taking into account the leases, the concessions. We're not saying someone's giving two months free and then charging, we're using what the real rent is. So concessions and things like that or not. But just also for context, we've seen or will see by the end of this month, every asset in our portfolio within the last since June or July summer. So over four months, we've gone out and visited every asset with someone from our team and visiting with the sponsor.

所以讓我具體談談這個問題。因此，當我們考慮租金時，我們會考慮租賃和優惠。我們並不是說有人免費提供兩個月然後收費，我們使用的是實際租金。所以讓步之類的事情與否。但同樣就背景而言，我們已經看到或將在本月底看到自六月或七月夏季以來我們投資組合中的每項資產。在四個多月的時間裡，我們與我們團隊的人員一起出去參觀了每一項資產，並拜訪了贊助商。

So to Zac's point, just these are transitional assets that had a business plan. They're not stabilized assets where a servicer pay someone to go out every two years to look at the asset. We are in contact with our sponsors on a regular basis, weekly, monthly, quarterly, whatever is appropriate for the given asset and are physically out there seeing them.

因此，在札克看來，這些都是有商業計畫的過渡性資產。它們不是穩定的資產，服務商每兩年付錢讓人出去查看資產。我們定期、每週、每月、每季與贊助商聯繫，只要適合特定資產，我們就會親自到場與他們會面。

So there's a little bit more engagement there and real-time access to financial information than receiving a -- to the point of visits of large portfolio where you're receiving information secondhand and you're making some assumptions. We don't have to make those assumptions because we have the real data. There's (multiple speakers) know what it is.

因此，與接收大量投資組合相比，那裡有更多的參與度和對財務資訊的即時訪問，您可以在其中接收二手資訊並做出一些假設。我們不必做出這些假設，因為我們有真實的數據。 （多個發言者）知道它是什麼。

Yeah, I would layer on top of that. So a couple of things, one is the LTVs that are reported on the earnings supplemental or LTVs at time of origination, which is denoted there. But the underwriting that is done evaluating these assets is layering on all that nuance and not simply taking what the bar gives us as our underwriting.

是的，我會在上面分層。因此，有幾件事，其中之一是在收益補充中報告的 LTV 或起始時的 LTV，在那裡註明。但評估這些資產的承保是對所有細微差別進行分層，而不是簡單地將標準給我們的內容作為我們的承保。

Any nuance whether it be free rent for a month or two or negotiations on stabilization or issues on occupancy, that's all put into our underwriting and analysis as we're evaluating these loans both at underwriting and an ongoing basis.

任何細微差別，無論是一兩個月的免租，還是穩定談判或入住問題，都將納入我們的承保和分析中，因為我們正在承保和持續評估這些貸款。

Okay. Thank you.

好的。謝謝。

Ladies and gentlemen, with that, we'll close today's question-and-answer session as well as today's presentation. We thank everyone for joining today's conference call. You may now disconnect your lines.

女士們、先生們，我們今天的問答環節和演講就到此結束。我們感謝大家參加今天的電話會議。現在您可以斷開線路。