Financial Data and Key Metrics Changes - For Q3 2024, the company reported GAAP net income of approximately $5.1 million or $0.10 per share, with distributable earnings also at $0.10 per share [6][15] - Net interest income for Q3 was $9.5 million, largely flat compared to Q2 2024 [15] - Total operating expenses decreased to $2.9 million in Q3 from $3.5 million in Q2, primarily due to lower accrual of incentive fees [17] - The company's total equity at the end of the quarter was approximately $243 million, with a book value of common stock at approximately $183 million or $3.50 per share, slightly up from $3.48 per share as of June 30 [22] Business Line Data and Key Metrics Changes - The portfolio consisted of 75 floating rate loans with an aggregate unpaid principal balance of approximately $1.2 billion, with 93% collateralized by multifamily properties [23] - The weighted average risk rating of the portfolio remained steady at 3.6, with four loans rated five, representing approximately 7% of the total portfolio [26][27] Market Data and Key Metrics Changes - The company noted stability in asset cap rates and a modest increase in property acquisition activity as investors returned to the market [8] - The weighted average cost of funds for the CLO was SOFR plus 164 basis points, with an effective advance rate of approximately 79% [13][22] Company Strategy and Development Direction - The company aims to continue delivering stable dividends by focusing on multifamily credit and leveraging the manager's origination pipeline [9] - Securitization via CLO remains a potential financing path, with careful consideration of alternatives to align with the overall financing strategy [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the US economic outlook, citing signs of cooling inflation and low unemployment [7] - The company believes it has likely reached peak stress in the multifamily credit market, with expectations for continued demand and rent increases despite higher rates [77][79] Other Important Information - The company experienced $51 million in loan payoffs during the quarter and quickly redeployed this capital into two new multifamily loan assets [10][23] - The company maintained its specific loss reserves at approximately $900,000, with no additions deemed necessary during the quarter [21] Q&A Session Summary Question: Visibility into the pipeline after quarter-end and potential delays from sponsors - Management acknowledged uncertainty post-election but noted that while some sponsors may delay projects, there remains an expectation for business to be done in the coming year [31][36] Question: Clarification on CLO financing costs and market conditions - Management confirmed the current CLO cost of funds and indicated that while attractive, it is not permanent as the company deleverages [41][42] Question: Expectations for repayment and timing of new CLO transactions - Management indicated that repayment activity has been choppy but expects to see a return to historical norms, with potential for a new CLO transaction in the first half of 2025 [45][50] Question: Credit outlook and peak stress in multifamily credit - Management believes peak stress has likely been reached, with known issues being manageable and a positive outlook for the multifamily market over the next three to five years [73][79] Question: Factors affecting reinvestment activity - Management stated that reinvestment activity is directly correlated to loan payoffs, and the current lack of reinvestment is due to fewer payoffs and the deleveraging of existing CLOs [81][82]

Core Insights - Lument Finance (LFT) reported revenue of $9.49 million for the quarter ended September 2024, a decrease of 0.6% year-over-year, with EPS at $0.10 compared to $0.11 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $9.06 million by 4.74%, while the EPS met the consensus estimate [1] Financial Performance Metrics - Servicing income, net was $0.06 million, surpassing the average estimate of $0.05 million from two analysts [3] - Net interest income was reported at $9.48 million, below the average estimate of $9.81 million from two analysts [3] - Total Other income (loss) was -$0.30 million, significantly lower than the average estimate of $0.05 million from two analysts [3] Stock Performance - Lument's shares have returned -1.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of +3.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Lument Finance (LFT) came out with quarterly earnings of $0.10 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post earnings of $0.11 per share when it actually produced earnings of $0.09, delivering a surprise of -18.18%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Lument, whi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ____________ Commission File No. 001-35845 FINANCE TRUST LUMENT FINANCE TRUST, INC. (Exact name of registrant as specified in its charter) Maryland 45-4966 ...

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today reported its third quarter results. GAAP net income attributable to common shareholders for the third quarter was $5.1 million, or $0.10 per share of common stock.  Distributable earnings for the third quarter were $5.5 million, or $0.10 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at www.lumentfinancetrust.com.Conference Ca ...

Core Viewpoint - Lument Finance Trust's 2Q24 results indicate a shrinking loan book and increasing loan loss provisions, leading to a cautious outlook on future earnings despite an attractive earnings yield of approximately 14% [1][2][10] Financial Performance - Lument's 1H24 results showed an increase in loan book size compared to 1H23, attributed to nearly $320 million in debt issuance and an additional $70 million in equity investment, totaling around $400 million from a base of about $1 billion [3] - Net interest income grew to $22.5 million in 1H24 from $11.75 million, aided by a higher average Secured Overnight Financing Rate (SOFR) [5][6] - The company's net loan assets stood at $1.187 billion, while financial debt was reported at $1.048 billion [4] Loan Quality and Distress - The average credit rating of Lument's loan book deteriorated from 2.3 in 2Q22 to 3.6 in 2Q24, with 3.5% of loans rated below 3 [7] - In 2Q24, five loans were categorized as defaulted, amounting to $84 million in principal, with total loan loss provisions at only $9 million [8] Future Earnings and Financing - The maturity of the 2021 CLO, which has completed its reinvestment period, is expected to lead to a significant decrease in the loan book size, with net repayments anticipated at $80 to $90 million [9] - The company faces challenges in securing new financing, as the CLO market has been inactive, complicating efforts to replace the 2021 CLO [9] - Future earnings will be heavily influenced by the terms of new financing, which are currently uncertain [2][10] Valuation and Market Position - Lument currently offers a 13% earnings yield, but expected developments may lead to a decrease in yield over the next year [10] - The stock trades at a discount to book value, with a market cap of $130 million versus $180 million in equity, reflecting the risks associated with its loan portfolio [10] - Overall, the valuation is considered fair, but the lack of clear upside potential leads to a recommendation to hold the stock [10]

Lument Finance (LFT) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -18.18%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of 15.38%. Over the last four ...

Financial Performance - Net income attributable to common stockholders was $3.4 million, or $0.07 per share of common stock for Q2 2024[139] - Distributable Earnings for Q2 2024 were $4.8 million, or $0.09 per share of common stock[139] - The company announced a second quarter common dividend of $0.08 per share, a 14.3% increase from the previous quarter[139] - For the three months ended June 30, 2024, the company recorded earnings per share of $0.07, declared a quarterly dividend of $0.08 per share, and reported Distributable Earnings of $0.09 per share[148] - The total stockholders' equity as of June 30, 2024, was $242,095,526, with a book value per share of common stock at $3.48[155] - The company’s Distributable Earnings for the three months ended June 30, 2024, amounted to $4,822,392, compared to $7,578,321 for the previous quarter[154] - The company reported net income attributable to common stockholders of $3,413,445 for the three months ended June 30, 2024, compared to $1,389,185 for the same period in 2023, representing a significant increase[199] - For the six months ended June 30, 2024, net income attributable to common stockholders was $9,208,628, or $0.18 per share, compared to $5,970,918, or $0.11 per share, for the same period in 2023, representing a 54.5% increase in net income[207] Loan Portfolio and Financing - The senior loan portfolio totals $1.2 billion, with 100% floating rate and an average spread to 30-day term SOFR of 3.59%[139] - Multifamily assets represent 93.2% of the loan portfolio[139] - As of June 30, 2024, 99.9% of investments earned a floating rate of interest, all indexed to 30-day term SOFR[141] - 94.5% of performing loans have interest rate caps with a weighted-average strike price of 2.8%[143] - 97.3% of the commercial mortgage loans in the portfolio were current as to principal and interest as of June 30, 2024[145] - Non-mark-to-market financing was $1.0 billion as of June 30, 2024, representing 100% of secured financings[139] - The unpaid principal balance of commercial mortgage loans held-for-investment decreased from $1,397,385,160 as of December 31, 2023, to $1,201,753,001 as of June 30, 2024[158] - The balance of commercial mortgage loans held-for-investment at June 30, 2024, was $1,186,653,339, reflecting a decrease due to principal repayments[157] - The company reported total loan commitments of $1.2 billion as of June 30, 2024, with a weighted average risk rating of 3.6[175] - The company has experienced $98.2 million in loan payoffs during the reporting period[139] Revenue and Growth - The company reported a total revenue of $28,250,000 for October 18, 2021, compared to $24,252,193 for the same period last year, reflecting a growth of approximately 16.5%[1] - For April 27, 2022, the revenue increased to $54,470,000, up from $49,800,000, indicating a year-over-year growth of about 13.4%[3] - The company reported a total revenue of $14,886,485 for the latest quarter, reflecting a significant increase compared to previous periods[1] - Future outlook suggests a projected revenue increase of 5.9% for the upcoming quarter, driven by new product launches and market expansion strategies[1] - The company provided a future outlook, projecting a 3.5% increase in revenue for the next quarter, with expectations of reaching $13,750,000[163] - The company is planning to expand its market presence with new developments in healthcare, as indicated by the revenue of $21,135,000 reported for November 2022[22] Operational Efficiency and Cost Management - Total expenses decreased from $4,425,049 for the three months ended June 30, 2023, to $3,533,804 for the same period in 2024, indicating improved cost management[199] - The company aims to achieve a 6.5% reduction in operational costs through efficiency improvements and technology integration[1] - The company reported a 7.4% increase in operational efficiency due to new technology implementations[163] Credit Losses and Risk Management - The unrealized provision for credit losses was $1,399,703 for the three months ended June 30, 2024, compared to $1,776,873 for the previous quarter[154] - The specific allowance for credit losses is determined by comparing the estimated fair value of collateral to the amortized cost of the loan, requiring significant judgment[191] - The company recorded a specific allowance of $0.9 million for credit losses on a loan in Philadelphia, PA, with an unpaid aggregate principal value of $15.0 million[168] - As of June 30, 2024, there were no impaired loans, non-accrual loans, or loans in maturity default, except for specific loans requiring evaluation[166] Cash Flow and Liquidity - As of June 30, 2024, the company had unrestricted cash and cash equivalents of $65.1 million, an increase from $51.2 million as of December 31, 2023[216] - For the six months ended June 30, 2024, net cash provided by operating activities totaled $14.6 million, an increase from $10.1 million in the same period of 2023, representing a 44.5% growth[220] - Cash flows from investing activities for the six months ended June 30, 2024, amounted to $162.3 million, significantly higher than $51.0 million in 2023, indicating a 218.0% increase[221] - The company anticipates that net proceeds from prior equity sales, combined with cash flow from operations and available borrowing capacity, will be sufficient to meet short-term liquidity requirements[223] Dividends and Shareholder Returns - The company declared a cash dividend rate of $0.08 per share of common stock for the second quarter of 2024, paid on July 15, 2024[228] - The cash dividend rate for Series A Preferred Stock for the second quarter of 2024 was declared at $0.49219 per share, also paid on July 15, 2024[228] - The company plans to continue making regular quarterly distributions to common stockholders, adhering to REIT distribution requirements[227]

Core Points - Lument Finance Trust, Inc. reported a GAAP net income of $3.4 million, or $0.07 per share, for the second quarter of 2024 [1] - Distributable earnings for the same period were $4.8 million, or $0.09 per share [1] - The company will host a conference call on August 13, 2024, to discuss these financial results [2] Financial Performance - The GAAP net income attributable to common shareholders for the second quarter was $3,413,445 [9] - Distributable earnings, a non-GAAP measure, totaled $4,822,392 for the quarter [9] - The weighted average shares outstanding were 52,266,174, leading to distributable earnings per share of $0.09 [9] Non-GAAP Financial Measures - Distributable earnings exclude non-cash equity compensation, depreciation, amortization, unrealized gains or losses, and one-time events [4][6] - The company believes that distributable earnings provide meaningful information for evaluating performance and are a strong indicator of dividends per share [6][7] - Distributable earnings should not be considered a substitute for GAAP net income or cash flows from operating activities [8] Company Overview - Lument Finance Trust focuses on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans [10] - The company is externally managed by Lument Investment Management LLC [10]

Company Overview - Lument Finance Trust, Inc. (LFT) 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 an emphasis on middle-market multi-family assets [3] - LFT is externally managed and advised by Lument Investment Management, a Delaware limited liability company [3] Upcoming Financial Reporting - LFT expects to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, with the SEC on August 12, 2024, after market close [1] - A live conference call for investors and interested parties is scheduled for August 13, 2024, at 1:00 p.m. eastern time [1] Accessing Conference Call - The conference call can be accessed by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international) [2] - A live webcast is available for listen-only access at the provided URL [2] - A recorded replay will be available by telephone dial-in after the live broadcast [2]