NEW YORK, May 10, 2019 /PRNewswire/ -- Hunt
Companies Finance Trust, Inc. (NYSE: HCFT) ("we", "HCFT"
or "the Company") today reported its first quarter 2019
results. GAAP Net income (loss) attributable to common
shareholders for the quarter was ($2.1)
million, or ($0.09) per
share. Results were negatively impacted by a $3.1 million non-cash one-time charge related to
the redemption of the Company's Series A Cumulative Redeemable
Preferred Stock in Q1 2019.
Core earnings for the quarter was $1.7
million, or $0.07 per
share.
Highlights – Q1 2019
- On March 18, the Company
announced that it declared a cash dividend of $0.07 per share on its common stock for the first
quarter of 2019, which represented a 17% increase over the fourth
quarter of 2018 dividend of $0.06 per
share
- On February 14, the Company
redeemed all outstanding shares of its 8.75% Series A Cumulative
Redeemable Preferred Stock utilizing the net proceeds from its
6-year $40.25 million delayed draw
credit facility
- On March 18, the Company entered
into a support agreement with the Manager, pursuant to which the
Manager agreed to reduce the reimbursement cap by 25% per annum
(subject to such reduction not exceeding $568,000 per annum) until such time as the
aggregate support provided thereunder equals approximately
$1.96 million.
The Company has also issued a detailed presentation of its first
quarter 2019 results, which can be viewed
at www.huntcompaniesfinancetrust.com.
Conference Call and Webcast Information
The Company will host a conference call on Monday, May 13, 2019, at 8:30 AM ET to provide a business update and
discuss the financial results in its First Quarter 2019 Report. The
conference call may be accessed by dialing 1-877-870-4263 (US) or
1-412-317-0790 (International). Note: there is no passcode; please
ask the operator to be joined into the Hunt Companies 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/2022/30493
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://huntcompaniesfinancetrust.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 10131403.
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 core earnings,
which constitutes a non-GAAP financial measure within the meaning
of Item 10(e) of Regulation S-K. 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 Core
Earnings Reconciliation
|
|
Three months
Ended
|
|
|
March 31,
2019
|
Reconciliation of
GAAP to non-GAAP Information
|
|
|
Net Income (loss)
attributable to common shareholders
|
|
$
(2,098,733)
|
Adjustments for
non-core earnings
|
|
|
Realized (Gain) Loss
on investments
|
|
709,439
|
Unrealized (Gain)
Loss on mortgage servicing rights
|
|
379,998
|
Unrealized (Gain)
Loss on multi-family loans held in securitization trusts
|
|
(694,339)
|
Subtotal
|
|
395,098
|
Other
Adjustments
|
|
|
Recognized
compensation expense related to restricted common stock
|
|
3,773
|
Adjustment for
consolidated securities
|
|
3,269
|
Adjustment for
one-time charges
|
|
338,115
|
Adjustment for
(provision for) income taxes
|
|
(63,065)
|
Adjustment for deemed
dividend related to preferred stock redemptions
|
|
3,093,028
|
Subtotal
|
|
3,375,120
|
|
|
|
Core
Earnings
|
|
$
1,671,485
|
|
|
|
Weighted average
shares outstanding - Basic and Diluted
|
|
23,687,664
|
Core Earnings per
weighted share outstanding - Basic and Diluted
|
|
$
0.07
|
About HCFT
Hunt Companies Finance Trust is a Maryland corporation focused on investing in,
financing and managing transitional multifamily and other
commercial real estate loans or securitizations.
Hunt Companies Finance Trust is externally managed and advised
by Hunt Investment Management, LLC. For additional
information about Hunt Investment Management, LLC, please see its
form ADV and brochure (Part 2A of Form ADV) available at
https://www.adviserinfo.sec.gov.
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.huntcompaniesfinancetrust.com or by directing
requests to: Hunt Companies Finance Trust, 230 Park Avenue, 19th
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, 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. Additional information concerning
these and other risk factors are contained in our 2018 10-K 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 Hunt Companies Finance Trust