UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to____ Commission file number: 001-35845 LUMENT FINANCE TRUST, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Lument Finance Trust, Inc. (NYSE:LFT) Q3 2022 Earnings Conference Call November 9, 2022 8:30 AM ET Company Participants Charles Duddy - Investor Relations James Flynn - Chief Executive Officer Jim Briggs - Chief Financial Officer Michael Larsen - President Conference Call Participants Crispin Love - Piper Sandler Christopher Nolan - Ladenburg Thalmann Matthew Erdner - JonesTrading Matthew Howlett - B. Riley Operator Good morning, and thank you for joining the Lument Finance Trust Third Quarter 2022 Earning ...

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, 2022 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 https://reportify- 1252068037.cos.ap- beijing.myqcloud.com/media/productio LUMENT FINANCE TRUST, INC. (Exact n ...

Lument Finance Trust, Inc. (NYSE:LFT) Q2 2022 Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Charles Duddy - MD James Flynn - CEO & Chairman James Briggs - CFO Michael Larsen - President Conference Call Participants Crispin Love - Piper Sandler & Co. Stephen Laws - Raymond James & Associates Steven Delaney - JMP Securities Matthew Erdner - JonesTrading Operator Good morning, and thank you for joining Lument Finance Trust Second Quarter 2022 Earnings Call. Today's call is being recor ...

Company Overview - Lument Finance Trust (LFT) is a real estate investment trust (REIT) focused on commercial real estate debt investments, externally managed by Lument Investment Management, an affiliate of ORIX Corporation USA[3] - Lument leverages its platform with $50 billion servicing portfolio as of December 31, 2021[5] - Lument's combined predecessor companies rank first in HUD senior housing and healthcare lending over the past decade, with more than 1,000 closings totaling over $86 billion[5] Investment Portfolio - As of June 30, 2022, LFT's investment portfolio had a carrying value of $10 billion, with 954% invested in loans backed by multifamily assets[12] - The company has limited exposure to retail, office, and self-storage assets, accounting for less than 5% of the portfolio[12] - The company acquired $372 million of new loans during Q2 2022 at a weighted average interest rate of LIBOR/SOFR + 348% and a weighted average LIBOR/SOFR floor of 040%, with 100% of the new acquisitions being loans backed by multifamily assets[18] - The $10 billion CRE loan portfolio had a weighted average remaining term of 23 months, a weighted average interest rate of LIBOR/SOFR + 335%, and a weighted average LIBOR/SOFR floor of 024%[18] Capital Structure - The company's primary sources of financing include a match-term non-MTM CRE CLO (LMNT 2021-FL1), preferred stock, and a corporate term loan[14] - The floating-rate CRE loan portfolio is financed with $8338 million of investment-grade notes issued through LMNT 2021-FL1, a CRE CLO[18] - The company's capitalization includes $8338 million in CLO financing, $478 million in term loans, $600 million in preferred equity, and $1880 million in book value of common equity[15] Financial Performance - Q2 2022 GAAP net income attributable to common stockholders was $22 million, or $004 per share of common stock, and Distributable Earnings were $25 million, or $005 per share of common stock[18] - Q2 2022 Book Value Per Share of Common Stock was $360[18]

[PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) [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. for the quarterly period ended June 30, 2022, including balance sheets, statements of operations, changes in equity, cash flows, and accompanying notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets detail the company's financial position as of June 30, 2022, compared to December 31, 2021, showing total assets increased to $1.13 billion and total equity significantly increased to $248.1 million Consolidated Balance Sheet Highlights (unaudited) | Balance Sheet Item | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,130,311,822** | **$1,048,923,353** | | Commercial mortgage loans, net | $1,033,649,358 | $1,001,825,294 | | Cash and cash equivalents | $39,048,256 | $14,749,046 | | **Total Liabilities** | **$882,215,758** | **$879,547,853** | | Collateralized loan obligations, net | $828,036,131 | $826,782,543 | | **Total Equity** | **$248,096,064** | **$169,375,500** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show the company's revenues, expenses, and profitability for the three and six months ended June 30, 2022 and 2021, with Q2 2022 net interest income growing to $6.4 million and net income attributable to common stockholders at $2.16 million Q2 2022 vs Q2 2021 Performance (unaudited) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net Interest Income | $6,416,584 | $5,254,447 | | Total Other (Loss) | ($214,645) | ($1,788,595) | | Total Expenses | $2,832,418 | $1,839,622 | | Net Income | $3,343,852 | $1,680,242 | | Net Income Attributable to Common Stockholders | $2,158,810 | $954,575 | | Basic and Diluted EPS | $0.04 | $0.04 | [Consolidated Statement of Changes in Equity](index=5&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement tracks the changes in the company's equity accounts for the six-month period ended June 30, 2022, primarily driven by the issuance of 27.3 million shares of common stock generating approximately $83.5 million in proceeds - Total equity increased from **$169.4 million** at the end of 2021 to **$248.1 million** as of June 30, 2022[15](index=15&type=chunk) - The company issued **27,277,269 shares** of common stock, resulting in an **$83.5 million** increase in equity before issuance costs[15](index=15&type=chunk) - Dividends paid to common and preferred stockholders during the six-month period totaled approximately **$8.6 million**[15](index=15&type=chunk)[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2022, showing a net increase in cash due to positive cash flow from operations and financing activities Cash Flow Summary for Six Months Ended June 30, 2022 (unaudited) | Activity | Cash Flow Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $8,295,434 | | Net Cash Used in Investing Activities | ($51,135,052) | | Net Cash Provided by Financing Activities | $73,267,852 | | **Net Increase in Cash, Cash Equivalents and Restricted Cash** | **$30,428,234** | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide crucial context to the financial statements, detailing accounting policies, the commercial mortgage loan portfolio, CLO financing, fair value measurements, related-party transactions, and equity details, including an impaired office loan and the LIBOR to SOFR transition - The company's commercial mortgage loan portfolio had a carrying value of **$1.034 billion** as of June 30, 2022, with **98.9%** of the portfolio rated 'Moderate Risk' or better[62](index=62&type=chunk)[63](index=63&type=chunk) - One loan collateralized by an office building, with an unpaid principal of **$11.7 million**, was identified as impaired, leading to a **$0.4 million** allowance for loan loss[68](index=68&type=chunk) - On February 22, 2022, the company closed a transferable common stock rights offering, issuing **27,277,269 shares** and raising gross proceeds of approximately **$83.5 million**[127](index=127&type=chunk) - The company consolidates LFT CRE 2021-FL1, Ltd., a CLO which is a Variable Interest Entity (VIE). The assets and liabilities of this VIE are included in the balance sheet but are non-recourse to the company[69](index=69&type=chunk)[70](index=70&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) This section provides management's perspective on the company's financial condition and operational results for Q2 2022, covering business overview, market conditions, investment portfolio analysis, operational results, and liquidity and capital resources [Overview and Market Conditions](index=27&type=section&id=Overview%20and%20Market%20Conditions) The company focuses on CRE debt, primarily transitional floating-rate loans on multifamily assets, financed through non-recourse CLOs, navigating rising interest rates and the ongoing transition from LIBOR to SOFR - The company's business model is structured such that rising interest rates generally increase net interest income, as **99.9%** of its investments have floating rates[153](index=153&type=chunk) - The Federal Reserve's rate hikes in 2022 are a key market factor, creating both opportunities (higher income) and risks (potential borrower non-performance)[154](index=154&type=chunk)[155](index=155&type=chunk) - The company is transitioning from LIBOR to SOFR. As of June 30, 2022, **91.5%** of loans were still tied to LIBOR, but all new originations since January 1, 2022, are based on 30-day term SOFR[156](index=156&type=chunk)[158](index=158&type=chunk) [Key Financial Measures and Investment Portfolio](index=30&type=section&id=Key%20Financial%20Measures%20and%20Investment%20Portfolio) For Q2 2022, key metrics included $0.04 EPS, $0.05 Distributable Earnings per share, and a book value of $3.60 per share, with the commercial mortgage loan portfolio growing to a carrying value of $1.034 billion and a stable weighted average risk rating of 2.3 Key Metrics for Q2 2022 | Metric | Value | | :--- | :--- | | Net Income per Share (EPS) | $0.04 | | Distributable Earnings per Share | $0.05 | | Book Value per Share | $3.60 | | Dividend Declared per Share | $0.06 | Loan Portfolio Growth | Metric | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Carrying Value | $1,033,649,358 | $1,001,825,294 | | Loan Count | 69 | 66 | - Management identified one office loan with an **$11.7 million** unpaid principal balance as impaired, recording a **$0.4 million** reserve. This loan was subsequently placed in maturity default after the quarter ended[186](index=186&type=chunk) [Results of Operations Analysis](index=36&type=section&id=Results%20of%20Operations%20Analysis) Net income attributable to common stockholders for Q2 2022 was $2.16 million, up from $0.95 million in Q2 2021, driven by higher net interest income from a larger loan portfolio and rising rates, partially offset by a provision for loan losses and increased total expenses - Net interest income for Q2 2022 increased to **$6.4 million** from **$5.25 million** in Q2 2021, primarily due to a **$522.6 million** increase in the weighted-average principal of the loan portfolio and a **65bps** increase in the weighted-average floating rate[209](index=209&type=chunk) - Other loss for Q2 2022 was **$214,645**, mainly due to a **$351,914** provision for loan losses. This compares to a **$1.8 million** loss in Q2 2021, which was driven by a **$1.7 million** loss on debt extinguishment[213](index=213&type=chunk)[214](index=214&type=chunk) - Total expenses increased to **$2.8 million** in Q2 2022 from **$1.8 million** in Q2 2021, reflecting higher management fees and an increase in general and administrative costs[218](index=218&type=chunk)[219](index=219&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is sourced from equity offerings, debt, and operating cash flow, with a February 2022 rights offering providing $81.1 million in net proceeds and $39 million in unrestricted cash as of June 30, 2022 - The company enhanced its liquidity by raising **$81.1 million** in net proceeds from a common stock rights offering in February 2022[223](index=223&type=chunk) - As of June 30, 2022, unrestricted cash and cash equivalents stood at **$39 million**[225](index=225&type=chunk) - The total GAAP debt-to-equity ratio was **3.6:1**. The majority of debt (**$828.0 million**) is non-recourse, related to the consolidated CLO[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risks](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This section is stated as not applicable in the report - The company has indicated that this disclosure is not applicable for this reporting period[239](index=239&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - Management's evaluation concluded that the company's disclosure controls and procedures were effective as of the end of the period[241](index=241&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[242](index=242&type=chunk) [PART II - Other Information](index=43&type=section&id=PART%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any material legal proceedings - As of the filing date, the company is not subject to any legal proceedings that it considers to be material[243](index=243&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 - There have been no material changes to the Risk Factors disclosed in the company's 2021 Form 10-K[245](index=245&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&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[244](index=244&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None[246](index=246&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with the report include Sarbanes-Oxley certifications from the CEO and CFO, as well as XBRL interactive data files[252](index=252&type=chunk)

Lument Finance Trust, Inc. (NYSE:LFT) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Charles Duddy – IR James P. Flynn – CEO James Briggs – CFO Michael Larsen – President Precilla Torres – Senior Managing Director & Head of Real Estate Investment Strategies Conference Call Participants Crispin Love – Piper Sandler Stephen Laws – Raymond James Steven Delaney – JMP Securities Matthew Erdner – Jones Trading Christopher Nolan - Ladenburg, Thalmann & Company Matthew Howlett – B. Ri ...

Lument Finance Trust Q1 2022 Earnings Supplemental May 2022 Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) ("LFT," the "Company," "we," "our," or "us") with respect to, among other things, the Company's operations and financial performance. You can identify these forward-loo ...

[PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Total assets grew to **$1.13 billion** by Q1 2022, while net income attributable to common stockholders declined to **$1.77 million** due to increased expenses and preferred dividends [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.13 billion** by March 31, 2022, driven by commercial mortgage loans, while stockholders' equity rose significantly to **$249.0 million** from common stock issuance Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $45,847 | $14,749 | | Commercial mortgage loans held-for-investment | $1,077,516 | $1,001,825 | | **Total Assets** | **$1,129,858** | **$1,048,923** | | **Liabilities** | | | | Collateralized loan obligations, net | $827,406 | $826,783 | | Secured term loan, net | $46,783 | $46,846 | | **Total Liabilities** | **$880,777** | **$879,548** | | **Total Stockholders' Equity** | **$248,981** | **$169,276** | - The company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities (VIEs), with assets totaling **$1.003 billion** and liabilities **$828.1 million** as of March 31, 2022[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net interest income increased to **$5.09 million** in Q1 2022, but higher expenses and preferred stock dividends led to a decrease in net income attributable to common stockholders to **$1.77 million** Condensed Consolidated Statement of Operations (in thousands) | Metric | Three Months Ended Mar 31, 2022 | Three Months Ended Mar 31, 2021 | | :--- | :--- | :--- | | Net Interest Income | $5,087 | $4,517 | | Total Other Income (Loss) | $215 | $104 | | Total Expenses | $2,295 | $1,798 | | Net Income | $2,955 | $2,809 | | Dividends Accrued to Preferred Stockholders | ($1,185) | ($4) | | **Net Income Attributable to Common Stockholders** | **$1,770** | **$2,805** | | **Basic and Diluted EPS** | **$0.05** | **$0.11** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity significantly increased to **$249.1 million** by March 31, 2022, primarily driven by **$83.5 million** from common stock issuance, partially offset by **$4.3 million** in dividends - In Q1 2022, the company issued **27,277,269 shares** of common stock, raising **$83.5 million** in capital before issuance costs[19](index=19&type=chunk) - Total dividends declared and paid during the quarter amounted to **$3.13 million** for common stock and **$1.18 million** for preferred stock[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$4.6 million** in Q1 2022, while financing activities provided **$77.6 million**, leading to a **$28.9 million** net increase in cash Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2022 | Three Months Ended Mar 31, 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $4,556 | $3,172 | | Net Cash from Investing Activities | ($53,236) | $28,641 | | Net Cash from Financing Activities | $77,590 | ($57,317) | | **Net Increase in Cash** | **$28,910** | **($25,503)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial instruments, highlighting the **$1.08 billion** commercial mortgage loan portfolio, **$827.4 million** in CLOs, and **$83.5 million** raised from a common stock rights offering - The commercial mortgage loan portfolio grew to a carrying value of **$1.078 billion** as of March 31, 2022, up from **$1.002 billion** at year-end 2021, consisting of **71 senior secured loans**[64](index=64&type=chunk)[65](index=65&type=chunk) - The company consolidates one CRE CLO with third-party liabilities of **$827.4 million** as of March 31, 2022, which are non-recourse to the company[70](index=70&type=chunk)[74](index=74&type=chunk) - A transferable common stock rights offering closed on February 22, 2022, issuing **27,277,269 shares** at **$3.06 per share** for gross proceeds of approximately **$83.5 million**[121](index=121&type=chunk) - As of March 31, 2022, unfunded commitments totaled **$81.8 million** for CLO loans and **$9.1 million** for Lument Commercial Mortgage Trust (LCMT) loans[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's focus on transitional floating-rate CRE mortgage loans, with Q1 2022 GAAP EPS and Distributable Earnings at **$0.05** per share, and a **$1.08 billion** performing loan portfolio - The company's primary investment strategy focuses on transitional floating-rate CRE mortgage loans, emphasizing middle-market multifamily assets[141](index=141&type=chunk) - An affiliate of ORIX Corporation USA increased its beneficial ownership to approximately **27.4%** in February 2022 after participating in the rights offering[139](index=139&type=chunk) - As of March 31, 2022, **93.9%** of the commercial mortgage loan portfolio was indexed to one-month U.S. LIBOR, with active management for SOFR transition on new originations[151](index=151&type=chunk) [Key Financial Measure and Indicators](index=26&type=section&id=Key%20Financial%20Measure%20and%20Indicators) Q1 2022 GAAP net income and Distributable Earnings were **$0.05** per share, while book value per common share decreased to **$3.62** due to the rights offering price Key Metrics Per Share | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income per Share (basic and diluted) | $0.05 | $0.11 | | Dividends Declared per Share | $0.06 | $0.09 | | Distributable Earnings per Share | $0.05 | $0.11 | Book Value Per Share Calculation (in dollars) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Stockholders' Equity | $248,981,343 | $169,276,000 | | Less: Preferred Stock | ($60,000,000) | ($60,000,000) | | Total Common Stockholders' Equity | $188,981,343 | $109,276,000 | | Shares of Common Stock Outstanding | 52,225,152 | 24,947,883 | | **Book Value per Share** | **$3.62** | **$4.38** | [Investment Portfolio](index=27&type=section&id=Investment%20Portfolio) The commercial mortgage loan portfolio grew to **$1.08 billion** by March 31, 2022, comprising **71 performing senior secured loans** with an improved weighted average risk rating of **2.1** Loan Portfolio Statistics (in dollars, count, and percentages) | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Carrying Value | $1,077,516,319 | $1,001,825,294 | | Loan Count | 71 | 66 | | Weighted Average Coupon | 3.8% | 3.9% | | Weighted Average Risk Rating | 2.1 | 2.3 | - During Q1 2022, the company acquired **14 new loans** with a total unpaid principal balance of **$185.0 million**[151](index=151&type=chunk)[182](index=182&type=chunk) - The loan portfolio remains **100% performing** with no impairments, monetary defaults, or non-accrual loans as of March 31, 2022[179](index=179&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Net income attributable to common stockholders decreased to **$1.77 million** in Q1 2022, primarily due to increased preferred stock dividends and higher total expenses, despite a rise in net interest income - Net interest income increased by **$0.57 million** year-over-year, driven by a **$469.8 million** increase in the weighted-average principal of the loan portfolio[197](index=197&type=chunk)[200](index=200&type=chunk) - Total expenses increased by approximately **$0.5 million** year-over-year, mainly due to higher management fees, professional fees, and expense reimbursements[198](index=198&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - No impairments were recognized on the loan portfolio for the three months ended March 31, 2022 or 2021[205](index=205&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened significantly, with unrestricted cash rising to **$45.8 million** due to **$81.1 million** from the rights offering, while the total debt-to-equity ratio stood at **3.5:1** - Unrestricted cash and cash equivalents stood at **$45.8 million** as of March 31, 2022[209](index=209&type=chunk) - The company's financing structure includes **$827.4 million** in non-recourse CLO liabilities and a **$47.8 million** secured term loan[207](index=207&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - Management believes current liquidity is sufficient for short-term requirements, with long-term needs to be met through additional debt or equity capital raises[216](index=216&type=chunk)[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures about Market Risks](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This item is not applicable for the current reporting period - Not applicable[223](index=223&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2022, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[225](index=225&type=chunk) - No changes occurred during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[226](index=226&type=chunk) [PART II - Other Information](index=38&type=section&id=PART%20II%20-%20Other%20Information) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - As of the filing date, the company is not subject to any legal proceedings considered material[227](index=227&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to the Risk Factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 have occurred[229](index=229&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the report, including CEO/CFO certifications and XBRL data files - The report includes various exhibits, such as the Fourth Amendment to the Credit and Guaranty Agreement, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL interactive data files[236](index=236&type=chunk)

Lument Finance Trust Investor Presentation March 2022 Disclaimer This presentation, any related webcast/conference call, and other oral statements made by our representatives from time to ti me may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) ("LFT" or the "Company") with respect to, among other thi ...