Business Context and Reporting Period
This Form 8-K is a current report filed by Hunt Companies Finance Trust, Inc. (the "Company") on March 14, 2019, covering events occurring between March 14, 2019, and March 18, 2019. The filing addresses a material definitive agreement with its manager, the announcement of financial results for the fourth quarter and fiscal year ended December 31, 2018, changes in corporate governance, and a dividend declaration.
Key Financial Metrics and Agreements
The filing does not contain specific revenue, profit, or cash flow figures within the text of the 8-K itself; these are referenced in attached exhibits (Exhibits 99.1 and 99.2) which are not included in the source text. However, the following financial terms and actions are disclosed:
- Support Agreement: The Company entered into an agreement with Hunt Investment Management, LLC to reduce the reimbursement cap under the Management Agreement by 25% per annum.
- Support Cap: The annual limit on this support is $568,000.
- Total Support Target: The agreement continues until the aggregate support provided equals approximately $1.96 million.
- Dividend Declaration: A cash dividend of $0.07 per share of common stock was declared for the first quarter of 2019.
Material Changes and Corporate Governance
Significant changes in corporate leadership occurred on March 14, 2019:
- Resignation: David Oston resigned as Secretary, Treasurer, and member of the Board of Directors for personal reasons. The resignation was not due to any disagreement with the Company regarding operations, policies, or financial matters.
- Appointment: James P. Flynn, the Company's Chief Executive Officer, was appointed to the Board of Directors to fill the vacancy created by Mr. Oston's resignation. He will serve until the next annual meeting of stockholders or until a successor is elected.
Outlook, Risks, and Management Commentary
The filing indicates management's intent to reduce costs through the Support Agreement, effectively lowering the reimbursement cap payable to the Manager. The Company issued a press release on March 18, 2019, detailing the Q4 2018 results and the dividend declaration. The text notes that the financial information provided in the press release and supplemental exhibits is furnished and not deemed "filed" for purposes of Section 18 of the Exchange Act, limiting the liability associated with those specific figures in this context.
Investor Verification Checklist
- Verify the specific Q4 2018 and full-year 2018 financial results (revenue, net income, FFO) in the attached Press Release (Exhibit 99.1) and Supplemental Financial Information (Exhibit 99.2), as these numbers are not present in the 8-K text.
- Review the full text of the Support Agreement (Exhibit 10.1) to understand the specific mechanics of the 25% reimbursement cap reduction.
- Confirm the record date and payment date for the $0.07 per share dividend declared for Q1 2019.
- Monitor future filings for the election of a permanent director to replace James P. Flynn at the next annual meeting.