Lument Finance Trust Inc (LFT) 2025 Q3 法說會逐字稿

Good morning and thank you for joining the Lument Finance Trust third quarter 2025 earnings call. Today's call is being recorded and will be made available via webcast on the company's website. I would now like to turn the call over to Andrew Tsang with investor relations at Lument Investment Management. Please go ahead.

早安，感謝各位參加 Lument Finance Trust 2025 年第三季財報電話會議。今天的電話會議將被錄音，並將透過公司網站的網路直播進行播放。現在我將把電話轉交給 Lument Investment Management 的投資者關係負責人 Andrew Tsang。請繼續。

Morning everyone.

各位早安。

Thank you for joining our call to discuss Lument Finance Trust's third quarter 2025 financial results.

感謝您參加我們的電話會議，討論 Lument Finance Trust 2025 年第三季的財務業績。

With me on the call today are Jim Flynn, our CEO, Jim Briggs, our CFO, Greg Calvert, our President, and Zach Halpern, our managing director of portfolio management.

今天和我一起參加電話會議的有：我們的執行長吉姆·弗林、我們的財務長吉姆·布里格斯、我們的總裁格雷格·卡爾弗特以及我們的投資組合管理董事總經理扎克·哈爾彭。

On Wednesday, November 12th we filed our 10Q with the SEC and issued a press release to provide details on our recent financial results.

11 月 12 日星期三，我們向美國證券交易委員會提交了 10-Q 表格，並發布新聞稿，詳細介紹了我們最近的財務表現。

We also provided a supplemental earnings presentation which can be found on our website.

我們還提供了一份補充收益報告，您可以在我們的網站上找到這份報告。

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 they constitute forward-looking statements within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

在將電話交給吉姆·弗林之前，我想提醒大家，本次電話會議期間所作的某些陳述並非基於歷史信息，而是構成 1933 年證券法第 27A 條和 1934 年證券交易法第 21E 條所指的前瞻性陳述。

Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements.

此類前瞻性陳述受各種風險和不確定性的影響，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。

These risks and uncertainties are discussed in the company's reports filed with the SEC, in particular the risk factors sections of our Form 10K and Form 10Qs.

這些風險和不確定性在公司向美國證券交易委員會提交的報告中均有討論，特別是我們的 10-K 表格和 10-Q 表格中的風險因素部分。

It is not possible to predict all or identify all such risks, and listeners are cautioned not to place undue reliance on these forward-looking statements.

無法預測或識別所有此類風險，聽眾應注意不要過度依賴這些前瞻性陳述。

The company undertakes no obligation to update any of these forward-looking statements. Further, certain non-GAAP financial measures will be discussed on this conference call.

本公司不承擔更新任何前瞻性陳述的義務。此外，本次電話會議也將討論一些非GAAP財務指標。

Presentation of this information is not intended to be considered in isolation nor as a substitute for the financial information presented in accordance with GAAP.

本資訊的呈現不應被孤立地看待，也不應被視為替代按照公認會計原則 (GAAP) 編制的財務資訊。

Reconciliations of these non-GAAP financial measures to the most comparable measures the parent importance of GAAP can be accessed through our filings with the SEC.

可以透過我們向美國證券交易委員會提交的文件來了解這些非GAAP財務指標與最可比較指標的調節情況，以及GAAP對母公司的重要性。

In the third quarter of 2025, we reported a GAAP net income of $0.01 per share and distributable earnings of $0.02 per share of common stock. In September, we declared a quarterly dividend of $0.04 per common share with respect to the 3rd quarter.

2025 年第三季度，我們公佈的 GAAP 淨收入為每股 0.01 美元，可分配收益為每股普通股 0.02 美元。9 月份，我們宣布派發第三季普通股每股 0.04 美元的季度股息。

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

現在我將把電話交給吉姆·弗林。請繼續。

Thank you, Andrew. Good morning, everyone. Welcome to the Lument Finance Trust earnings call for the third quarter of 2025. We appreciate everyone joining us today.

謝謝你，安德魯。各位早安。歡迎參加 Lument Finance Trust 2025 年第三季財報電話會議。感謝今天所有到場的朋友。

Starting out, just taking a look at where the market stands, the economy has remained resilient through this period of shifting monetary policy and geopolitical uncertainty.

首先，僅從市場現狀來看，儘管貨幣政策不斷變化，地緣政治局勢也充滿不確定性，但經濟仍維持了韌性。

On October 29th, the Fed funds cut the Fed funds rate by 25 basis points to a range of 375 to 4%.

10月29日，聯準會將聯邦基金利率調降25個基點，至4%至375%的區間。

But at the same meeting, the Fed made clear that additional cuts remain far from a foregone conclusion, leaving lingering uncertainty in the near term, punctuated by the ongoing geopolitical volatility and the fast moving trade and tariff policy shifts in the US.

但在同一次會議上，聯準會明確表示，進一步降息遠未成定局，短期內仍存在諸多不確定性，持續的地緣政治波動以及美國快速變化的貿易和關稅政策加劇了這種不確定性。

Additionally, we now are dealing with the economic drag from the recent federal government shutdown and uncertainty about the future negotiations as we look to reopen the government hopefully in the coming days.

此外，我們現在還要應對近期聯邦政府停擺帶來的經濟拖累，以及未來談判的不確定性，我們希望在未來幾天內能夠重新開放政府。

The multi-family sector, fundamentals remain constructive. Rent growth is modest and stable. Occupancy remains strong. New supply, as we've discussed in past calls, is slowing meaningfully.

多戶住宅市場基本面仍保持良好。租金成長溫和穩定。入住率依然強勁。正如我們在之前的電話會議中討論的那樣，新增供應正在顯著放緩。

All conditions that support balance and potential rent recovery over the medium and long-term.

所有有利於中長期租金平衡和潛在租金恢復的條件。

Affordability challenges in the single family market, among many other factors also continue to sustain multi-family demand and credit quality at the asset level.

單戶住宅市場的可負擔性挑戰，以及其他許多因素，也持續支撐多戶住宅的需求和資產層面的信貸品質。

Review the recent Fed funds cut.

回顧一下聯準會最近的基金降息措施。

As a cautionary positive development for multi-family lending, as lower short-term index rates should in general help improve our borrowers' ability to meet their outstanding debt obligations as they work towards completion of their business plans.

對於多戶住宅貸款而言，這是一個值得警惕的積極發展，因為較低的短期指數利率總體上應該有助於提高借款人履行其未償債務義務的能力，從而幫助他們實現其商業計劃。

Meanwhile, the CECLL market continues to remain open for issuers. Year-to-date issuance now exceeds 25 billion, reflecting a healthy level of liquidity and investor confidence. This rebound compared to the prior year supports our outlook for the company's potential to return to the securitization market as a repeat issuer in the future, subject to market and pricing conditions, of course.

同時，CECLL市場繼續對發行人開放。今年迄今的發行量已超過 250 億美元，反映出市場流動性和投資者信心處於健康水平。與前一年相比，這一反彈支持了我們對該公司未來重返證券化市場並再次發行證券的前景的展望，當然，這取決於市場和定價條件。

The asset management side, we remain focused on actively managing the portfolio. Our team is closely engaged with our borrowers, proactively seeking positive resolutions through modifications, extensions. And REO strategies where appropriate on a weighted average basis, the portfolio credit ratings were relatively stable quarter over quarter, and reserves remained consistent with reasonable expectations. We continue to prioritize capital preservation and disciplined risk management across every position.

在資產管理方面，我們將繼續專注於積極管理投資組合。我們的團隊與借款人密切合作，積極尋求透過修改、延期等方式達成積極的解決方案。在適當情況下，REO策略以加權平均法計算，投資組合信用評等季度間相對穩定，準備金與合理預期保持一致。我們始終將資本保全和嚴格的風險管理放在首位，並貫穿所有投資項目。

Liquidity and financing standpoint, we continue to maintain a conservative liquidity posture this quarter, holding ample unrestricted cash to preserve flexibility while resolving legacy credits and working towards refinancing of the portfolio.

從流動性和融資角度來看，本季我們繼續保持保守的流動性策略，持有充足的非限制性現金，以保持靈活性，同時解決遺留信貸問題並努力對投資組合進行再融資。

Loan payoffs totaled approximately $49 million and those proceeds were primarily used to reduce securitization liabilities.

貸款償還總額約 4,900 萬美元，這些收益主要用於減少證券化負債。

As we've alluded to in prior quarters, the company has been very focused on putting new portfolio financing in place that provides us with flexibility to more effectively manage our capital as we work through legacy credit challenges.

正如我們在前幾個季度提到的那樣，公司一直非常注重建立新的投資組合融資機制，以便我們在應對遺留信貸挑戰的同時，能夠更靈活地有效地管理我們的資本。

Last week we entered into a new repurchase agreement with JPMorgan, providing the company with up to $450 million in aggregate advances.

上週我們與摩根大通達成了一項新的回購協議，為該公司提供了高達 4.5 億美元的總預付款。

With this warehouse capacity now in place, last week holders of securities issued by our 2021 CRECLO were notified that the company intends to redeem the associated notes and preferred shares later this month.

隨著倉庫容量的到位，上週我們通知了 2021 年 CRECLO 發行的證券持有人，該公司打算在本月稍後贖回相關的票據和優先股。

Closing the JPM facility was a critical step in repositioning our existing portfolio and subject to market conditions, enabling us to take advantage of new financing opportunities.

關閉摩根大通的融資安排是重新調整我們現有投資組合的關鍵一步，並且取決於市場狀況，使我們能夠抓住新的融資機會。

Our near term focus is clear driving value through active asset management, resolving legacy positions efficiently, and executing our financing strategy.

我們近期的重點很明確，就是透過積極的資產管理創造價值，有效率解決遺留問題，並執行我們的融資策略。

Looking ahead, we intend to redeploy capital into our core lending strategy focused on middle market multifamily.

展望未來，我們計劃將資金重新投入以中端市場多戶住宅為重點的核心貸款策略。

We believe this disciplined approach will position the company well as the market stabilizes and new opportunities emerge.

我們相信，這種嚴謹的方法將使公司在市場穩定和新機會出現時佔據有利地位。

Our manager's origination and asset management expertise remain a key differentiator, and we are confident that our focus, prudence, and flexibility will translate into lasting shareholder value.

我們的經理在專案開發和資產管理方面的專業知識仍然是一項關鍵優勢，我們相信，我們的專注、謹慎和靈活性將轉化為持久的股東價值。

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

接下來，我想把電話交給吉姆·布里格斯，他將詳細介紹我們的財務表現。

Thanks, Jim. Good morning, everyone.

謝謝你，吉姆。各位早安。

Last night, we filed our quarterly report on Form 10Q and provided a supplemental investor presentation on our website, which we will be referencing during our remarks.

昨晚，我們提交了季度報告（10Q 表格），並在我們的網站上提供了補充投資者演示文稿，我們將在發言中提及該演示文稿。

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.

補充投資人簡報也已上傳至網路直播平台，供您參考。在簡報的第 4 至 7 頁，您將找到重要的更新資訊和本季的收益摘要。

The third quarter of 2025, we reported net income to common stockholders of approximately $700,000 or 1 penny per share. We also reported distributable earnings of approximately 1 million or $0.02 per share. There are a few items I'd like to highlight with regards to the Q3 P&L.

2025 年第三季度，我們向普通股股東報告的淨收入約為 70 萬美元，即每股 1 美分。我們還報告了可分配收益約為 100 萬美元，即每股 0.02 美元。關於第三季損益表，我想重點說明幾點。

Our Q3 net interest income was $5.1 million, a decline from $7 million recorded in Q2. Weighted average coupon of our loan portfolio remained relatively flat sequentially. The average outstanding UPD of the portfolio declined and principal loan repayments were used to pay down a portion of our secured financings, contributing significantly to the reduction in net interest income for the period.

第三季淨利息收入為 510 萬美元，低於第二季的 700 萬美元。我們的貸款組合加權平均票息環比保持相對穩定。投資組合的平均未償還未償債務下降，本金償還用於償還部分擔保融資，從而顯著降低了該期間的淨利息收入。

Additionally, the reversal of certain accrued interest and the non-recording of interest on non-accrual loans contributed approximately $800,000 to the decrease.

此外，某些應計利息的衝回以及非應計貸款利息的未記錄，導致減少了約 80 萬美元。

Our total operating expenses, including fees to our manager, were down slightly quarter on quarter as we recognized expenses of $3.1 million in Q3 versus $3.2 million in Q2. The reduction is primarily attributable to less fees paid to our managers sequentially.

由於第三季確認的支出為 310 萬美元，而第二季確認的支出為 320 萬美元，因此我們的總營運支出（包括支付給經理的費用）較上季略有下降。減少的主要原因是支付給管理人員的費用逐週減少。

The primary difference between reported net income and distributable earnings is primarily attributable to $345,000 of depreciation on real estate owned.

報告淨收入與可分配收益之間的主要差異主要歸因於所擁有房地產的折舊 345,000 美元。

As of September 30th, we have seven loans risk rated of 5. All of these loans are collateralized by multi-family assets. Greg will provide a bit more detail in his remarks on those loans.

截至9月30日，我們有7筆貸款的風險評級為5。所有這些貸款都以多戶住宅資產為抵押。格雷格將在關於這些貸款的演講中提供更多細節。

With respect to our allowance for credit losses, we evaluated the seven risk rated 5 loans individually to determine whether assets specific reserves were necessary.

關於信貸損失準備金，我們對七筆風險評級為 5 的貸款進行了單獨評估，以確定是否需要提列特定資產準備金。

After analysis of the underlying collateral, we recorded a provision for credit losses of approximately $900,000.

在對相關抵押品進行分析後，我們提列了約 90 萬美元的信用損失準備金。

We also charged off approximately $200,000 of reserves recorded in prior quarters against the allowance for an asset that went REO in Q3.

我們還沖銷了前幾季提列的約 20 萬美元準備金，用於彌補第三季被收回的資產的損失。

Our general allowance for credit losses decreased to $5.7 million from $6.6 million in Q2, with the decrease driven primarily by a decrease in portfolio balance, largely offsetting the Pacific Reserve increase.

我們的信貸損失一般準備金從第二季的 660 萬美元減少到 570 萬美元，減少的主要原因是投資組合餘額下降，這在很大程度上抵消了太平洋儲備的增加。

We ended the second quarter with an unrestricted cash balance of $56 million and our investment capacity through our two secured financings was fully deployed.

第二季末，我們擁有 5,600 萬美元的非限制性現金餘額，並且透過兩筆擔保融資實現的投資能力已全部投入使用。

The CRECLO securitization transaction we issued in 2021 provided effective leverage of 72% to our loan assets at a weighted average cost of funds of so far plus 179 basis points.

我們在 2021 年發行的 CRECLO 證券化交易，使我們的貸款資產有效槓桿率為 72%，迄今為止的加權平均資金成本為 +179 個基點。

The 2023 LMF financing provided the portfolio with effective leverage of 77% at a weighted average cost of funds of SO plus 325.

2023 年 LMF 融資使該投資組合的有效槓桿率為 77%，加權平均資金成本為 5000 加 325。

On a combined basis, the two securitizations provided a portfolio with effective leverage of 74% and a weighted average cost of funds of SOR plus 230% as a quarter end.

綜合來看，這兩項證券化產品提供了一個有效槓桿率為 74% 的投資組合，季末加權平均資金成本為 SOR 加 230%。

As Jim previously mentioned, note holders in our 2021 CRECLO were notified that we intend to redeem the associated notes and preferred shares later this month.

正如吉姆之前提到的，我們已通知 2021 年 CRECLO 的票據持有人，我們打算在本月稍後贖回相關的票據和優先股。

The company's total equity at the end of the quarter was approximately $230 million. Total book value of common stock was approximately $670 million or $3.25 per share, decreasing sequentially from $3.27 a share as of June 30th. We'll now turn the call over to Greg Calvert to provide details on the company's investment activity and portfolio performance during the quarter. Greg.

該公司本季末的總權益約為 2.3 億美元。普通股帳面總價值約為 6.7 億美元，即每股 3.25 美元，較 6 月 30 日的每股 3.27 美元下降。現在我們將把電話交給格雷格·卡爾弗特，讓他詳細介紹公司本季的投資活動和投資組合表現。格雷格。

Thank you, Jim.

謝謝你，吉姆。

During the third quarter, LFT experienced $49 million of loan payoffs. As of September 30th, our total loan portfolio consisted of 51 floating rate loans with an aggregate unpaid principal balance of approximately $840 million a weighted average floating rate of SOPA plus 355 basis points, and an unamortized aggregate purchase discount of $1.9 million.

第三季度，LFT 償還了 4,900 萬美元的貸款。截至 9 月 30 日，我們的貸款組合共有 51 筆浮動利率貸款，未償還本金總額約為 8.4 億美元，加權平均浮動利率為 SOPA 加 355 個基點，未攤銷的累計購買折扣為 190 萬美元。

The weighted average remaining term of our book as of quarter end was approximately 16 months, assuming all available extensions are exercised by our borrowers.

截至季末，假設借款人行使所有可用的延期權利，我們帳簿的加權平均剩餘期限約為 16 個月。

100% of the portfolio was indexed to 1 month so far, and 90% of the portfolio was collateralized by multi-family properties.

到目前為止，該投資組合 100% 已與 1 個月的指數掛鉤，90% 的投資組合以多戶住宅物業為抵押。

As of September 30th, approximately 46% of the loans in our portfolio were risk rated at a 3% or better compared to 63% the prior quarter. Our weighted average risk rating quarter over quarter remained flat at 3.5%. During the period we transitioned to loans with an aggregate UPB of $44.1 million from a 5 rating as of June 30th to a 4 or better rating as of September 30th.

截至 9 月 30 日，我們投資組合中約 46% 的貸款風險評級為 3% 或更低，而上一季這一比例為 63%。我們的加權平均風險評級較上季保持不變，為 3.5%。在此期間，我們將貸款總額為 4,410 萬美元的未償付餘額 (UPB) 從 6 月 30 日的 5 級評級提升至 9 月 30 日的 4 級或更高評級。

As of September 30th, we had seven loan assets risk rated 5 with an aggregate principal amount of approximately $86.4 million or approximately 10% of the unpaid principal balance of our quarter and investment portfolio.

截至 9 月 30 日，我們有 7 筆貸款資產風險評級為 5，總本金金額約為 8,640 萬美元，約占我們季度和投資組合未償還本金餘額的 10%。

Of these, 4 were risk rated 5 in the prior quarter, and these included an $11.9 million loan collateralized by a multi-family property in Clante, Michigan, a $10.3 million loan collateralized by a multi-family property in Colorado Springs, a $13.7 million loan collateralized by a multi-family property in Cedar Park, Texas, an $8.2 million loan collateralized by a multi-family property in Des Moines, Iowa. All of these loans, risk rated at 5, were in monetary default as a quarter end. The other three loan assets that were risk rated this quarter included a $10.3 million loan collateralized by a multi-family property in Clearfield, Utah, a $15 million loan collateralized by two multi-family properties in Philadelphia, Pennsylvania.

其中，有 4 筆貸款在上一季被評為 5 級風險，包括：密西根州克蘭特市以多戶住宅為抵押的 1190 萬美元貸款；科羅拉多州科羅拉多斯普林斯市以多戶住宅為抵押的 1030 萬美元貸款；德克薩斯州錫達帕克市以多戶住宅為抵押的 1370 萬美元貸款；所有這些貸款的風險評級均為 5，到季度末均已違約。本季進行風險評級的其他三筆貸款資產包括：猶他州克利爾菲爾德的一處多戶住宅物業作抵押的 1,030 萬美元貸款，以及賓州費城的兩處多戶住宅物業作抵押的 1,500 萬美元貸款。

A $17 million loan collateralized by two multi-family properties in Tallahassee, Florida. Of these 35 risk-grad loans, one was in maturity default and the other two were in monetary default as a quarter end.

一筆以佛羅裡達州塔拉哈西的兩處多戶住宅為抵押的 1700 萬美元貸款。截至季末，這 35 筆風險分級貸款中，有一筆已到期違約，另外兩筆已發生貨幣違約。

As of September 30th, our REO comprised of four multi-family properties. Three of these properties are located in San Antonio and one is located in Houston. As a quarter end, these properties had a weighted average occupancy rate of approximately 73.5%. Achieving positive asset management outcomes and maximizing our recovery values remains our priority. With that, I will pass it back to Jim Flynn for his closing remarks and questions, Jim.

截至 9 月 30 日，我們的 REO 包括四處多戶住宅物業。其中三處房產位於聖安東尼奧，一處位於休士頓。截至季末，這些物業的加權平均入住率約為 73.5%。實現積極的資產管理成果並最大限度地提高回收價值仍然是我們的首要任務。接下來，我將把麥克風交還給吉姆·弗林，請他作總結發言並回答問題。吉姆。

Thank you, Greg.

謝謝你，格雷格。

I'd like to thank our guests for joining, and at this point, I would like to open the call to questions.

感謝各位嘉賓的到來，現在，我想接受大家的提問。

Forward to hearing from you.

期待您的回覆。

(Operator Instructions)

（操作說明）

Chris Muller with Citizens Capital Market.

克里斯·穆勒，來自 Citizens Capital Market。

Hey guys, thanks for taking the questions. So I guess on the risk ratings, do you guys feel that you've identified the bulk of the issues in the portfolio at this point, or are you still kind of going through things and we could see some further downgrades coming forward?

各位好，感謝你們回答問題。所以我想問的是，關於風險評級，你們是否覺得目前已經確定了投資組合中的大部分問題，還是仍在進行評估，未來可能會出現進一步的評級下調？

So I think we have a good handle on the portfolio, know what all of the assets are and feel very comfortable with where the risk ratings are today.

所以我認為我們對投資組合有了很好的掌控，了解所有資產的情況，並且對目前的風險評級感到非常滿意。

Obviously subject to market conditions or things changing, that could change, but I, from our standpoint and from our, active management of all of these assets, we feel that we've identified all of the known issues, and if conditions kind of continue in each of the markets as they stand today, there's no expectation that there would be further change. As we all know, and we look around at the market and things that are going on, obviously.

當然，市場狀況或情勢的變化可能會影響最終結果，但就我們本身以及我們對所有這些資產的積極管理而言，我們認為我們已經發現了所有已知的問題，如果各個市場的狀況繼續保持目前的水平，預計不會有進一步的變化。正如我們所知，看看周圍的市場和正在發生的事情，這是顯而易見的。

Any kind of market conditions are subject to change, but we certainly feel like we've done a deep dive in the portfolio, across the board.

任何市場狀況都可能發生變化，但我們確實感覺到我們已經對投資組合的各個方面進行了深入研究。

Got it. And then maybe on the flip side of that, how are you guys thinking about portfolio growth in the coming quarters? Is the primary focus going to be on asset management or could we see some new loans coming on, especially given the new financing?

知道了。那麼反過來想，你們對未來幾季的投資組合成長有什麼看法？主要重點會是資產管理，還是可能會有一些新的貸款，尤其是在新的融資背景下？

Yeah, look, I think the new financing, certainly gives us more flexibility to add assets having a little more.

是的，你看，我認為新的融資方式確實讓我們在增加資產方面有更大的靈活性。

We're having more clarity and certainty around where we feel the portfolio stands, will provide us with certainly more of an opportunity to look to add to the portfolio, we've been certainly very focused on.

我們對投資組合的現狀有了更清晰、更確定的認識，這無疑會為我們提供更多機會來擴充投資組合，而我們也一直非常關注這一點。

Asset management and cash preservation and liquidity to make sure that we positioned ourselves for, frankly where we feel we are today, so yes, certainly we hope that, things remain and that gives us an opportunity to, put more assets on the books in the coming quarters.

資產管理、現金保值和流動性，確保我們為今天的處境做好準備，坦白說，我們感覺自己已經做好了充分的準備。所以，是的，我們當然希望情況能夠保持下去，這將給我們一個機會，在未來幾季將更多資產納入帳面。

Got it. And I can squeeze one more in. Is there anything you guys can share on timing for expectations for REO sales? And can you just remind me, is there any financing against that REO or is it held on levered?

知道了。我還能再擠出一個。各位能否分享一下關於REO銷售預期時間安排方面的資訊？請問一下，這處房產是否有融資，還是透過槓桿持有的？

So today, the REO, I'll answer the second part first today we, we've all, we've consistently held our the REO that we have, this is also true at the manager, on levered, we do have, flexibility to put some financing against the value of those assets, through.

所以今天，關於REO，我先回答第二部分。今天我們一直堅持認為，對於我們擁有的REO，管理者也是如此。關於槓桿，我們確實有彈性，可以透過這些資產的價值進行一些融資。

You, debt providers and facilities, both that we entered into JP and our potential other providers. So to the extent we are planning to hold an asset, and in most cases our REO sales are wholly dependent on our view of the overall credit of the asset.

你們，債務提供者和機構，包括我們與JP簽訂合約的以及我們潛在的其他提供者。因此，就我們計劃持有資產的程度而言，在大多數情況下，我們的 REO 銷售完全取決於我們對資產整體信用狀況的看法。

Typically in these situations when you've had deterioration and you're taking an asset back, there's some very regular, upgrades and improvement in management that usually needs to occur in the, 3 to 6 month period at a minimum, and then, go forward from there is more of a value judgment and because of the team we have in place and the size and scope of the sponsor, for LFT, we've typically decided it's better to at least perform, those actions, on behalf of the LFT shareholders and perhaps then some to create, more value, so the timing for the REOs is very asset specific. We may dispose of some quickly in that kind of 3 to 6 month period as we just kind of clean up the asset. Make sure it's as occupied as it can and then perhaps sell, but typically our REO team, that as their job manages assets, takes a look at these and feels like there's, some pretty good opportunity for improvement and value, and those might be a bit longer-term hold, and that's where we would look to, some of our providers to give us some leverage against those, on a value basis.

通常情況下，當資產狀況惡化並被收回時，至少需要在 3 到 6 個月內進行一些非常常規的升級和管理改進。之後，下一步的行動更取決於價值判斷。鑑於我們現有的團隊以及發起人的規模和範圍，對於 LFT 而言，我們通常認為最好至少代表 LFT 股東採取這些行動，甚至可能採取更多行動來創造更多價值。因此，REO 的時機選擇取決於具體的資產狀況。我們可能會在 3 到 6 個月內快速處置一些資產，因為我們只是在清理這些資產。確保盡可能提高入住率，然後或許可以出售。但通常情況下，我們的 REO 團隊（他們的工作是管理資產）會查看這些房產，並認為它們有一些相當不錯的改進和價值提升機會，這些房產可能適合長期持有。這時，我們會尋求一些供應商的協助，以便在價值方面為我們提供一些議價空間。

Relatively low levered, lower than a than a traditional new loan for sure.

槓桿率相對較低，肯定低於傳統的新貸款。

Got it. It's all very helpful. I appreciate you guys taking the questions.

知道了。這一切都很有幫助。感謝各位回答問題。

Greg Vinnett, an investor.

投資者格雷格·維內特。

Good morning. Could you, is there any change in your relationship with your sponsor Auric USA? I understand they acquired a company called Hilco.

早安.請問您與贊助商 Auric USA 的關係是否有任何變化？據我了解，他們收購了一家名為Hilco的公司。

And Hilco, I think, does lending asset-backed lending.

我認為 Hilco 提供的是資產抵押貸款。

Could you describe if there's any conflict.

請問是否有任何衝突？

First, no, there's no change in the relationship between Aix and Lument. The acquisition of Hilco is, they are an asset backed, lender.

首先，不，艾克斯和盧門特之間的關係沒有任何變化。收購 Hilco 是因為 Hilco 是一家資產抵押貸款公司。

Their business model does not really overlap with overlap in any material way with LFT.

他們的商業模式與LFT在任何實質方面都沒有重疊之處。

In the, first mortgage bridge lending business, so I don't think there's a major conflict there. They do have some asset backed real estate lending, and of course their parent or is a large lender and so in terms of expanding the overall footprint of our real estate lending business across the parent company Lument and LFT, I do expect that to continue to expand which is a positive for LFT and for the whole company, but I don't think there's any reason to think that that the Hilco acquisition would have a material impact and certainly not a negative impact on on LFT.

在首套房抵押貸款業務中，我認為這裡不存在重大衝突。他們確實有一些以資產為抵押的房地產貸款業務，當然，他們的母公司也是一家大型貸款機構，因此，就擴大我們在母公司 Lument 和 LFT 的房地產貸款業務的整體規模而言，我預計這種情況會繼續擴大，這對 LFT 和整個公司來說都是積極的，但我認為沒有任何理由認為 Hilco 的收購會對 LFT 產生實質性影響，當然也不會產生實質性影響。

Okay. Second question, on real estate owned, if you actually, if the value of that real estate owned actually increases over what the amount that is owed and you sell it.

好的。第二個問題，關於你擁有的房地產，如果你擁有的房地產的價值實際上超過了你所欠的金額，然後你把它賣掉。

Do we reap the benefit of that, or does some of that go back to the previous owner or lender?

我們能否從中受益，還是其中一部分會退還給前業主或貸款方？

Yeah, so let me clarify one thing on the REO that that to the extent that those are currently held in the securitization, they technically still have leverage against them in the pooled concept. I know I said earlier, but looking forward.

是的，關於REO（已收回的資產），讓我澄清一點：就目前證券化持有的REO而言，從技術上講，它們在資產池概念中仍然具有槓桿作用。我知道我之前說過，但還是要展望未來。

As an example, when we call FL1 or if we were to call, our second securitization and bring those on balance sheet, that's where we would use the other credit facilities to put leverage on those and then.

例如，當我們調用 FL1 或如果我們調用我們的第二筆證券化交易並將這些證券化資產納入資產負債表時，我們將使用其他信貸工具來為這些證券化資產提供槓桿。

Answering your question, once it's REO, meaning we foreclose and we own it, the, any increase in value would, go to the shareholders of LFT, go to LFT corporate.

回答你的問題，一旦房產成為 REO（即我們取消抵押品贖回權並擁有該房產），那麼任何增值都將歸 LFT 的股東所有，歸 LFT 公司所有。

Okay, on the new financing with, JPMorgan, it said something about sofa plus to be determined, and I guess I was trying to understand you mentioned on the call that you're planning on redeeming the 2021 CLO. I think that's what you said.

好的，關於與摩根大通的新融資，其中提到了沙發加待定，我想我當時是想理解您在電話會議上提到您計劃贖回 2021 年的 CLO。我想你就是這麼說的。

And yeah, I think, yeah, and I think that's sour plus 175 if am I correct?

是的，我想，是的，我想如果我沒記錯的話，那就是酸味加 175？

The 2021 correct me if that's where it's been delevering, so it changes kind of every time the loan pays off the cost changes because it goes to pay down the debt.

2021 年，如果我沒記錯的話，它一直在去槓桿化，所以每次貸款還清時，成本都會發生變化，因為錢會用來償還債務。

Yeah, at Jim and mentioned during the remarks, it's at sour plus 179 and the important thing to note there, it's at a leverage of 72% as well.

是的，正如吉姆在演講中提到的，目前是酸值加 179，需要注意的是，槓桿率也高達 72%。

Yeah, I guess why would you pay that off versus the 2023 unless I guess it's still in the investment period which is sulfur plus 355. It's that you're paying off the less expensive.

是的，我想，除非它還在投資期間（硫磺加 355），否則為什麼要在 2023 年償還這筆款項？問題在於你先付清了價格較低的那筆款項。

So the strategy is for us to reenter the securitization market.

因此，我們的策略是重新進入證券化市場。

The size and of the FL1 provides us a better opportunity to enter that in a meaningful way.

FL1 的規模和性能為我們提供了一個以有意義的方式進入該領域的更好機會。

It's an order of operations. I mean we've been working toward.

這是操作順序。我的意思是，我們一直朝著這個方向努力。

We've been working toward.

我們一直在努力實現這個目標。

The refinance of our portfolio that includes FL1 that includes LMF that includes our term loan, so this is the first step that unlocks, close to $170 million of equity at FL1 that can be redeployed in a different vehicle, whereas LMF is under $70 million, so there's significantly more capital trapped in in FL1.

我們對包括 FL1、LMF 和定期貸款在內的投資組合進行再融資，這是釋放 FL1 近 1.7 億美元股權的第一步，這些股權可以重新部署到其他投資工具中，而 LMF 不到 7000 萬美元，因此 FL1 中還有更多被困的資本。

And to give you like a context of the securitization market leverage in in that market today is in the high 80s.

為了讓大家對證券化市場有個大致了解，目前該市場的槓桿率高達 80% 以上。

And you're in the 70s, is that correct?

你現在70多歲了，對嗎？

That's correct.

沒錯。

So is the cost of funds from a new agreement with JPMorgan, it's so for plus we don't know what, is.

所以，與摩根大通達成的新協議的資金成本是多少？是這樣的，而且我們也不知道具體是多少。

That's not, it's that it's dependent on the asset, so that, that's why it's there's not a set spread, it's an asset by asset look, but it's in the broadly speaking the. The high 100s to the low 200s over depending on the asset.

並非如此，而是取決於資產，所以，這就是為什麼沒有固定的價差，而是要逐個資產來看，但總的來說是這樣的。根據資產的不同，價格在100多美元到200多美元之間。

Okay, so can you use, you have a term loan I think coming due in 26, a corporate debt matures in 2026.

好的，所以你能用…你有一筆定期貸款，我認為會在 2026 年到期，還有一筆公司債務也會在 2026 年到期。

Can you use the JPMorgan blind to retire that debt or not.

能否利用摩根大通的盲注來償還這筆債務？

I mean, indirectly we can in the sense that it provides, the JPMorgan line provides us with.

我的意思是，從某種意義上說，我們可以間接地做到這一點，因為摩根大通的這條路線為我們提供了這樣的機會。

Leverage and liquidity that is fungible, meaning we can pay off the term loan with it or reinvest or otherwise, so.

槓桿和流動性是可互換的，這意味著我們可以用它來償還定期貸款，或進行再投資或其他用途。

The direct answer is no, not directly. The indirect answer is yes. The purpose of this vehicle is to provide us with flexibility, and liquidity, across the platform and as far as the term loan goes, we have not, we are talking to our term loan provider and you know we're still discussing the potential to either pay that off, partially pay that off or refinance.

直接的答案是否定的，不能直接回答。間接的答案是肯定的。該工具的目的是為我們在整個平台上提供靈活性和流動性，至於定期貸款，我們還沒有，我們正在與定期貸款提供者洽談，您也知道，我們仍在討論償還、部分償還或再融資的可能性。

That term loan so we haven't, that decision has not been made yet.

關於那筆定期貸款，我們還沒有做出決定。

Okay.

好的。

Thank you very much. Appreciate it.

非常感謝。謝謝。

Okay.

好的。

As there are no more questions, I will pass back to James Flynn for any closing remarks.

由於沒有其他問題，我將把發言權交還給詹姆斯·弗林，請他作總結發言。

Okay, thank, I want to thank everyone for joining us. We are certainly excited about the progress we've made here. Look forward to the upcoming quarter and speaking to you again soon. Thanks all for joining.

好的，謝謝，我要感謝大家的參與。我們對目前的進展感到非常興奮。期待即將到來的季度，並期待很快再次與您交流。感謝各位的參與。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線了。