PART I - Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Lument Finance Trust, Inc. as of and for the three months ended March 31, 2025, including balance sheets, statements of operations, changes in equity, and cash flows, with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$1.06 billion** from **$1.13 billion** at year-end 2024, primarily due to reduced commercial mortgage loans, while total liabilities and equity also slightly declined Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $63,520 | $69,173 | | Commercial mortgage loans held-for-investment, net | $988,781 | $1,048,803 | | Allowance for credit losses | ($17,060) | ($11,320) | | **Total Assets** | **$1,061,517** | **$1,128,594** | | **Liabilities** | | | | Collateralized loan obligations and secured financings, net | $772,285 | $828,390 | | Secured term loan, net | $47,532 | $47,470 | | **Total Liabilities** | **$829,469** | **$890,695** | | **Total Equity** | **$232,048** | **$237,899** | - The company consolidates Variable Interest Entities (VIEs), which comprised **$996.2 million** of total assets and **$774.7 million** of total liabilities as of March 31, 2025[11](index=11&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a net loss of **$0.52 million**, a significant downturn from **$6.98 million** net income in Q1 2024, driven by decreased net interest income and increased provision for credit losses Statement of Operations Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $7,735 | $12,993 | | Total Expenses | $2,593 | $4,268 | | Provision for credit losses, net | ($5,698) | ($1,777) | | **Net (Loss) Income** | **($523)** | **$6,980** | | **Net (Loss) Income Attributable to Common Stockholders** | **($1,708)** | **$5,795** | | **Basic and Diluted (Loss) Income Per Share** | **($0.03)** | **$0.11** | - Dividends declared per common share were **$0.08** in Q1 2025, an increase from **$0.07** in Q1 2024[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$4.1 million** in Q1 2025 from **$9.1 million** in Q1 2024, with overall cash and equivalents decreasing by **$7.0 million** during the quarter Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4,094 | $9,078 | | Net Cash Provided by Investing Activities | $55,294 | $80,093 | | Net Cash Used in Financing Activities | ($66,430) | ($76,043) | | **Net (Decrease) Increase in Cash** | **($7,042)** | **$13,128** | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's single operating segment, use of Variable Interest Entities, application of the CECL model, a **$1.01 billion** commercial mortgage loan portfolio, and a **$17.1 million** allowance for credit losses - The company operates as a single operating segment, focusing on a portfolio of leveraged commercial real estate loans[24](index=24&type=chunk) - The company has elected to be taxed as a REIT and must comply with relevant IRS code sections to maintain this status[23](index=23&type=chunk) - The allowance for credit losses is estimated using a probability of default and loss given default method, utilizing a third-party model with historical CRE loan data, with key variables including debt service coverage ratio and LTV ratio[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **$1.7 million** net loss for Q1 2025, driven by lower net interest income and higher credit loss provisions, detailing the **$1.0 billion** senior loan portfolio and sufficient short-term liquidity Q1 2025 Key Performance Indicators | Metric | Value | Per Share | | :--- | :--- | :--- | | Net loss attributable to common stockholders | ($1.7 million) | ($0.03) | | Distributable Earnings (Non-GAAP) | $4.0 million | $0.08 | | Common Dividend Declared | - | $0.08 | | Book Value of Common Stock | $171.9 million | $3.29 | - The investment portfolio consists of **$1.0 billion** in senior loans, which are **100% floating rate** with an average spread of **3.55%** over 30-day term SOFR[169](index=169&type=chunk) - The company's financing is **100% non-mark-to-market**, totaling **$0.8 billion** as of March 31, 2025[164](index=164&type=chunk) [Investment Portfolio Analysis](index=31&type=section&id=Investment%20Portfolio%20Analysis) As of March 31, 2025, the commercial mortgage loan portfolio decreased to **$1.01 billion** across **61 loans**, with **91.7%** in multifamily assets and **$108.4 million** in 'Default Risk' loans, leading to a **$17.1 million** allowance for credit losses Loan Portfolio Risk Rating (by Principal Balance) | Risk Rating | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 1 (Very Low) | $0 | $0 | | 2 (Low) | $76.8M | $57.8M | | 3 (Moderate) | $520.7M | $616.6M | | 4 (High) | $305.0M | $292.8M | | 5 (Default) | $108.4M | $98.3M | | **Total** | **$1,010.9M** | **$1,065.6M** | - During Q1 2025, the company experienced **$55.0 million** in loan payoffs[169](index=169&type=chunk) - The allowance for credit losses increased by **$5.7 million** during Q1 2025, primarily due to specific reserves on risk-rated '5' multifamily loans and changes in macroeconomic assumptions[75](index=75&type=chunk) - Seven loans with an aggregate unpaid principal of **$108.4 million** were rated '5' (Default Risk) and individually evaluated for specific credit loss allowances[69](index=69&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Results of Operations Comparison](index=38&type=section&id=Results%20of%20Operations%20Comparison) Net income attributable to common stockholders fell from **$5.8 million** in Q1 2024 to a **$1.7 million** loss in Q1 2025, primarily due to a **$5.3 million** decrease in net interest income and a **$3.9 million** increase in credit loss provisions Results of Operations (Q1 2025 vs Q1 2024, in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $7.7 | $13.0 | ($5.3) | | Total Expenses | $2.6 | $4.3 | ($1.7) | | Provision for credit losses, net | ($5.7) | ($1.8) | ($3.9) | | **Net (Loss) Income Attributable to Common Stockholders** | **($1.7)** | **$5.8** | **($7.5)** | - The decrease in net interest income year-over-year was driven by a **$298.9 million** decrease in the weighted-average principal balance of the loan portfolio and a **105bps** decrease in the weighted-average floating rate[243](index=243&type=chunk) - The increase in other loss was primarily due to a **$3.9 million** higher provision for credit losses, driven by specific reserves on risk-rated '5' multifamily loans in Q1 2025[242](index=242&type=chunk)[249](index=249&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by **$63.5 million** in unrestricted cash and **$0.8 billion** in non-recourse CLO financing, with a total debt-to-equity ratio of **3.6:1**, deemed sufficient for short-term needs - As of March 31, 2025, the company had **$63.5 million** in unrestricted cash and cash equivalents[257](index=257&type=chunk) Debt Profile as of March 31, 2025 | Debt Type | Outstanding Principal | Recourse Status | | :--- | :--- | :--- | | Secured Term Loan | $47.8 million | Recourse | | Collateralized Loan Obligations | $772.3 million | Non-Recourse | - The company has unfunded loan commitments totaling **$40.1 million** as of March 31, 2025, related to its CLO and financing vehicles[131](index=131&type=chunk)[132](index=132&type=chunk) - Management believes that cash flow from operations and available borrowings are sufficient to meet anticipated short-term (one year or less) liquidity requirements[265](index=265&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risks](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This section is marked as 'Not applicable' in the report - The company has indicated that this item is not applicable[272](index=272&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[274](index=274&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[275](index=275&type=chunk) PART II - Other Information [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not subject to any legal proceedings considered material, either individually or in aggregate - As of the filing date, the company is not involved in any material legal proceedings[276](index=276&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company reiterates the significant risk posed by a prolonged economic recession and declining real estate values, which could impair asset values and increase losses on its transitional multifamily and CRE loan portfolio - The company emphasizes that a prolonged economic recession and declining real estate values could impair its assets and harm operations[278](index=278&type=chunk) - Declining real estate values increase the likelihood of losses on loans in the event of default, as collateral may be insufficient to cover the outstanding principal[278](index=278&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[280](index=280&type=chunk)

Core Points - Lument Finance Trust, Inc. reported a GAAP net loss of $1.7 million, or $0.03 per share, for the first quarter of 2025 [1] - The company reported distributable earnings of $4.0 million, or $0.08 per share, for the same period [1] - A conference call is scheduled for May 13, 2025, to discuss the financial results and provide a business update [2] Financial Performance - The reconciliation of GAAP to non-GAAP information shows a net income attributable to common shareholders of $(1,707,526) for the three months ended March 31, 2025 [10] - Adjustments included unrealized losses on mortgage servicing rights of $22,518 and unrealized provisions for credit losses of $5,697,661, leading to distributable earnings of $4,021,203 [10] - The weighted average shares outstanding were 52,309,887, resulting in distributable earnings per share of $0.08 [10] Company Overview - Lument Finance Trust is focused on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans [11] - The company emphasizes middle-market multi-family assets and is externally managed by Lument Investment Management LLC [11]

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported GAAP net income of approximately $3.6 million or $0.07 per share, and distributable earnings of approximately $5.4 million or $0.1 per share [4][14] - The net interest income for Q4 was $9.4 million, relatively flat compared to $9.5 million in Q3 [15] - Total operating expenses were largely flat at $2.8 million in Q4 versus $2.9 million in Q3 [16] - The company's total equity at the end of the quarter was $238 million, with a book value of common stock at approximately $178 million or $3.4 per share, decreasing from $3.5 per share as of September 30 [19] Business Line Data and Key Metrics Changes - The company experienced $144 million in loan payoffs during Q4 and acquired one new loan asset with an initial principal balance of $13 million [20] - The portfolio consisted of 65 floating rate loans with an aggregate unpaid principal balance of approximately $1.1 billion, with 92% collateralized by multifamily properties [20][21] - The weighted average risk rating improved slightly to 3.5 from 3.6 at the end of Q3, with 64% of loans rated 3 or better [21] Market Data and Key Metrics Changes - The broader macroeconomic environment is influenced by geopolitical uncertainty and financial market volatility, with interest rates expected to remain elevated [7][8] - Rental growth is anticipated in nearly all major measures this year, with transaction volumes picking up in recent months [8] Company Strategy and Development Direction - The company remains committed to its core investment strategy of deploying capital into transitional floating rate mortgages, particularly in the middle market multifamily sector [12] - The management is exploring options to refinance the investment portfolio and is engaged in discussions for secured financing to manage both performing and challenged assets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability in commercial real estate and the potential for lending activity to continue in 2025 [9] - The company is focused on proactive asset management to drive positive outcomes and maximize recovery values [10] Other Important Information - The company declared a quarterly dividend of $0.08 per share and a one-time special dividend of $0.09 per share, bringing cumulative dividends for 2024 to $0.4 per common share [5] - The company has engaged in active discussions for potential secured financing options to enhance liquidity and manage its portfolio effectively [11] Q&A Session Summary Question: How does the 2021 CLO compare to current market conditions? - Management indicated that they are exploring refinancing options and that the current cost of the 2021 CLO is still attractive, but leverage is lower compared to new market conditions [31][32] Question: Can you provide an update on originations and repayments year to date? - Management noted that there have been minimal originations due to limited capacity, with about $25 million in payoffs and around $400 million to $500 million originated at the parent level since October [35][36] Question: What are the expectations for timing of resolutions regarding the five-rated loans? - Management suggested that resolutions may be back-weighted towards the end of the year, with ongoing efforts to negotiate with existing sponsors and potential new sponsors [43][46] Question: Is there potential for expanding the portfolio with improved financing structures? - Management affirmed that there is potential for portfolio growth as liquidity improves and assets are resolved positively [48][49]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income to common stockholders of approximately $3.6 million or $0.07 per share [21] - Distributable earnings for Q4 were approximately $5.4 million or $0.10 per share [22] - The total operating expenses were largely flat at $2.8 million in Q4 compared to $2.9 million in Q3 [24] - The company ended Q4 with an unrestricted cash balance of $69 million and total equity of $238 million [27] Business Line Data and Key Metrics Changes - The company experienced $144 million in loan payoffs during Q4, significantly up from $51 million in the prior quarter [23] - The portfolio consisted of 65 floating rate loans with an aggregate unpaid principal balance of approximately $1.1 billion, with 92% collateralized by multi-family properties [31] - The weighted average floating note rate of the portfolio was SOFR plus 358 basis points [31] Market Data and Key Metrics Changes - The broader macroeconomic environment is influenced by geopolitical uncertainty and financial market volatility, with interest rates expected to remain elevated [10][11] - Rental growth is anticipated in nearly all major ventures, and transaction volumes have picked up in recent months [12] Company Strategy and Development Direction - The company remains committed to its core investment strategy of deploying capital into transitional floating rate mortgages, particularly in the middle market multi-family sector [17] - The management is exploring options for refinancing the investment portfolio and is considering secured financing arrangements to enhance liquidity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability in commercial real estate and the potential for positive lending activity in 2025 [12] - The company is focused on proactive asset management to drive positive outcomes and is confident in navigating the current environment [13][14] Other Important Information - The company declared a quarterly dividend of $0.08 per share and a one-time special dividend of $0.09 per share, bringing cumulative dividends for 2024 to $0.40 per common share [8][28] - The company is required to distribute at least 90% of its taxable income to avoid corporate taxation [28] Q&A Session Summary Question: Update on the 2021 CLO and financing options - Management is considering refinancing the portfolio and exploring alternatives for flexibility in managing existing assets [45][46] Question: Year-to-date originations and repayments - The company has had minimal originations due to lack of capacity, with about $25 million in payoffs expected in the coming quarters [50][52] Question: Specific reserves and timing of resolutions - Specific reserves for five-rated loans were $3.7 million, and management expects resolutions to be more back-weighted in 2025 [57][61] Question: Potential for expanding the portfolio with improved financing - Management indicated that there is potential for portfolio growth with improved financing structures as liquidity improves [69][71] Question: Correlation between risk rating and provision charges - The company evaluates specific reserves based on the fair value of underlying collateral, with higher risk ratings correlating to higher probabilities of default [75][76] Question: Impact of rate cuts on refinancing and negotiations - Management believes that while rate cuts can help sponsors, the overall economic context is more significant for multi-family performance [81][84]

分组1 - Lument Finance (LFT) reported quarterly earnings of $0.10 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $9.36 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.99%, but showing an increase from $9.09 million year-over-year [2] - Lument shares have increased approximately 6.6% since the beginning of the year, contrasting with a -4.5% decline in the S&P 500 [3] 分组2 - The earnings outlook for Lument is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.09 on revenues of $9.19 million, and $0.38 on revenues of $37.77 million for the current fiscal year [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Q4 2024 GAAP net income attributable to common stockholders was $0.07 per share, while Distributable Earnings® were $0.10 per share[8]. - Net income for the year ended December 31, 2024, was reported at $22,649,100, with net income attributable to common stockholders at $17,909,100[44]. - The company declared dividends to preferred stockholders totaling $4,740,010, impacting the net income attributable to common stockholders[44]. - Distributable earnings for the three months ended June 30, 2024, were $4,822,392, translating to a distributable earnings per share of $0.09[49]. - Management and incentive fees for the year totaled $6,630,500, part of the total expenses of $13,508,000[44]. - The company reported a net interest income of $41,356,600 for the year, after accounting for interest expenses of $80,772,200[44]. Dividends - The Company declared a cumulative cash dividend of $0.40 per share for FY 2024, including a one-time special cash dividend of $0.09 per share[8]. Loan Portfolio - As of December 31, 2024, the Company's loan portfolio was valued at $1.0 billion, with 92.3% collateralized by multifamily assets[8][18]. - The Company funded $13.0 million of loan assets in Q4 2024 and experienced $143.6 million in loan payoffs during the same period[20]. - For FY 2024, the Company funded $58.4 million of loan assets and had $390.2 million in loan payoffs[21]. - The total unpaid principal balance of the CRE loan portfolio is $1,065,563,646 with an average spread of 3.58%[40]. - The largest individual loan is Loan 20 with an unpaid principal of $51,375,000 and a spread of 3.1696%[38]. - The portfolio includes 65 loans, primarily in the multifamily property type, indicating a focus on residential real estate[40]. - The average maturity date for the loans is between 2025 and 2028, suggesting a long-term investment strategy[40]. - Loan 31 has an unpaid principal of $20,360,000 with a spread of 4.0096%, indicating a competitive interest rate[38]. - The portfolio features loans across various states, including Texas, Florida, and California, highlighting geographic diversification[40]. - Loan 36, a healthcare property loan, has an unpaid principal of $6,100,000 with a spread of 4.5096%[39]. - Loan 62 has an unpaid principal of $13,191,852 with a spread of 4.00%, reflecting the company's strategy to secure favorable financing terms[40]. - The portfolio's loans are primarily concentrated in the multifamily sector, which may benefit from ongoing housing demand[40]. - The company is actively managing its loan portfolio to optimize returns while maintaining a focus on risk management[40]. Assets and Liabilities - As of December 31, 2024, total assets were $1.128 billion, and total liabilities were $890.7 million, resulting in total equity of $237.9 million[9]. - Total assets as of December 31, 2024, amounted to $1,128,594,378, with net commercial mortgage loans held-for-investment at $1,048,803,078 after allowance for credit losses of $11,320,220[42]. - Total liabilities as of December 31, 2024, were $890,695,346, with collateralized loan obligations netting $828,390,189[42]. - The Company's book value per share of common stock was $3.40 as of December 31, 2024[9]. - The book value per share of common stock as of December 31, 2024, was calculated at $3.40, with total stockholders' equity of $237,899,032[55]. - The Company’s corporate debt matures in 2026, with a total debt of $1.116 billion[28]. Risk Management - The weighted average risk rating of the portfolio was "3" (Moderate Risk) or better, with 90.8% of the portfolio performing[26]. - The allowance for credit losses increased to $11,320,220 by the end of the period, reflecting a provision for credit losses of $5,261,214 during the year[47]. - The weighted average number of shares of common stock outstanding was 52,274,900, contributing to the earnings per share calculation[44].

Investment Portfolio - As of December 31, 2024, the company's mortgage loan investment portfolio consisted of 65 senior secured floating rate loans with an aggregate unpaid principal balance of $1.1 billion, having a weighted average coupon of 8.1% and a weighted average term to maturity of 2.1 years[24]. - During 2024, the company originated or acquired $58.4 million in loans and realized $391.0 million of loan repayments, resulting in net repayments of $332.6 million[25]. - The company intends to focus on selectively acquiring first mortgage loans with a principal balance greater than $5 million and generally less than $75 million, with a loan-to-value ratio up to 85% of as-is value[22]. - The company’s investment strategy primarily focuses on transitional floating rate CRE mortgage loans, emphasizing middle-market multifamily assets[19]. - The company’s portfolio as of December 31, 2024, was 92.3% supported by multifamily assets[24]. Financial Performance and Strategy - The company seeks to use leverage to increase potential returns, financing its assets with match term, non-recourse CRE CLO and secured financings as of December 31, 2024[30]. - The company’s weighted average coupon assumes a 30-day term SOFR of 4.51% as of December 31, 2024, inclusive of a weighted average interest rate floor of 0.63%[26]. - The company is committed to sustainable investing, believing it improves long-term financial performance and mitigates risk[36]. - For fiscal year 2024, the company's taxable REIT subsidiary (TRS) did not generate taxable income[43]. - The company must distribute at least 90% of its REIT taxable income to stockholders to maintain its REIT status[47]. Regulatory and Compliance Risks - The company has been taxed as a REIT since December 31, 2012, and is generally not subject to U.S. federal income tax on REIT taxable income distributed to stockholders[42]. - To maintain REIT qualification, at least 75% of gross income must be derived from real property-related investments, and at least 95% must come from qualifying income sources[45]. - The company must have more than 100 stockholders and not have more than 50% of its shares owned by five or fewer individuals to maintain REIT qualification[48]. - Changes in laws and regulations could impose additional costs and negatively impact the company's operations, cash flow, and financial condition, particularly in response to regulatory pressures on financing providers[95]. Market and Economic Risks - Risks include potential inability to generate sufficient revenue for distributions and the impact of interest rate fluctuations on profitability[56]. - The U.S. Federal Reserve increased benchmark interest rates eleven times since 2022, adversely affecting commercial property values and increasing borrowers' interest payments[64]. - Despite high interest rates, the U.S. Federal Reserve began decreasing rates in 2024, but inflation remains above target levels, posing challenges to real estate valuation[65]. - The company faces risks from adverse changes in national and local economic conditions, including potential uninsured property losses and acts of God, which could lead to declines in investment value[83][85]. Credit and Default Risks - The company may experience increased defaults and credit loss severities due to borrowers' inability to repair properties after natural disasters, which are often not covered by standard insurance[85]. - Investments in non-conforming and non-investment grade rated commercial real estate (CRE) loans involve higher risks of default and loss, with no limits on the percentage of such assets in the portfolio[88]. - The company’s transitional multifamily loans and CRE loans are subject to risks of delinquency and foreclosure, heavily reliant on the net operating income from the underlying properties[89]. Interest Rate Risks - As of December 31, 2024, 100% of the company's loans by principal balance were indexed to 30-day term SOFR, making interest expense sensitive to interest rate fluctuations[63]. - Fluctuations in interest rates could reduce the company's ability to generate income and affect its investment objectives and distributions to stockholders[72]. - Interest rate fluctuations could increase borrowing costs, adversely affecting results of operations and cash flows, especially in a rising interest rate environment[150]. Operational and Management Risks - The company relies heavily on its Manager for investment decisions, which may lead to conflicts of interest and investment returns that are below expectations[162]. - The Manager is authorized to invest up to $75 million on behalf of the company without prior board approval, which could result in significant investments that may not align with stockholder interests[162]. - The company’s management agreement with its Manager automatically renews annually, but termination without a suitable replacement could hinder the execution of its business plan[163]. Environmental and Climate Risks - Climate change-related regulations may increase costs and require additional investments from borrowers, adversely affecting the company's results of operations[100]. - The company expects the frequency and impact of weather and climate-related events to increase, which may adversely affect borrowers' properties[102]. Shareholder and Governance Risks - The company has not established a minimum distribution payment level and cannot assure future distributions[183]. - The company’s board of directors can amend the charter to increase the number of shares, potentially delaying or preventing changes in control[197]. - Stockholders have limited control over major policy changes, which are determined solely by the board of directors[204].

Core Points - Lument Finance Trust, Inc. reported its fourth quarter and full year 2024 results, with GAAP net income attributable to common shareholders of $3.6 million for Q4 and $17.9 million for the full year, translating to $0.07 and $0.34 per share respectively [1] - Distributable earnings for Q4 were $5.4 million, or $0.10 per share, while for the full year, they were $23.2 million, or $0.44 per share [1] - The company declared a cash dividend of $0.08 per share for Q1 2025, payable on April 15, 2025 [2] - A cash dividend of $0.4921875 per share for the 7.875% Cumulative Redeemable Series A Preferred Stock was also announced, payable on April 15, 2025 [3] - Greg D. Calvert has been appointed as President of the company effective May 1, 2025, following the resignation of James J. Henson [4][5] Financial Performance - The reconciliation of GAAP to non-GAAP information shows that net income attributable to common shareholders for Q4 was $3.6 million, with distributable earnings of $5.4 million [13] - For the full year, net income was $17.9 million, with distributable earnings totaling $23.2 million [13] - The adjustments for non-distributable earnings included unrealized provisions for credit losses and other adjustments, leading to a subtotal for distributable earnings [13] Company Overview - Lument Finance Trust, Inc. is focused on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets [14]

Core Viewpoint - Lument Finance Trust, Inc. plans to file its Annual Report on Form 10-K for the year ended December 31, 2025, on March 19, 2025, and will host a conference call on March 20, 2025, to discuss the report [1]. Company Overview - Lument Finance Trust, Inc. is a Maryland corporation focused on investing in, financing, and managing a portfolio of commercial real estate debt investments [3]. - The company primarily invests in transitional floating rate commercial mortgage loans, with a particular emphasis on middle-market multi-family assets [3]. - LFT is externally managed and advised by Lument Investment Management, a Delaware limited liability company [3]. Conference Call Details - The conference call can be accessed by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international) [2]. - A live webcast will also be available for listening only, accessible through a provided URL [2]. - For those unable to attend the live call, a recorded replay will be available via telephone [2].