Lument Finance Trust(US:LFT)2025-11-12 22:19Financial Performance - Q3 2025 GAAP net income attributable to common stockholders was $0.01 per share, while Distributable Earnings were $0.02 per share[7]. - Net interest income for the three months ended September 30, 2025, was $2,051,462, down 78.4% from $9,484,403 for the same period in 2024[38]. - Net income attributable to common stockholders decreased significantly from $5,095,684 in September 2024 to $658,597 in September 2025, a decline of approximately 87.1%[38]. - Distributable earnings for the three months ended September 30, 2025, were $995,520, down from $2,771,648 in the previous quarter, reflecting a decrease of approximately 64.0%[43]. - Dividends declared per share of common stock decreased from $0.08 in September 2024 to $0.04 in September 2025, a reduction of 50%[38]. Asset and Liability Management - As of September 30, 2025, total assets amounted to $955.7 million, while total liabilities were $725.6 million, resulting in total equity of $230.1 million[8]. - Total assets decreased from $1,128,594,378 as of December 31, 2024, to $955,719,357 as of September 30, 2025, representing a decline of approximately 15.3%[36]. - Total liabilities decreased from $890,695,346 as of December 31, 2024, to $725,647,056 as of September 30, 2025, a reduction of about 18.5%[36]. - Total stockholders' equity decreased from $237,799,532 as of December 31, 2024, to $230,072,301 as of September 30, 2025, a decline of approximately 3.2%[36]. Loan Portfolio Details - As of September 30, 2025, the Company's loan investment portfolio was valued at $822 million, with approximately 89.6% collateralized by multifamily assets[7][18]. - The total unpaid principal across the CRE loan portfolio is approximately $839.75 million, with an average spread of 3.55%[34]. - The average loan-to-value (LTV) ratio for the portfolio stands at 71.70%[34]. - The highest unpaid principal in the portfolio is $51.38 million for a multifamily loan in Dayton Beach, with a spread of 3.16%[33]. - Loan 31 has an unpaid principal of approximately $13.67 million, with a spread of 3.86% and an LTV of 65.70%[34]. - The portfolio includes loans with varying maturities, with the earliest closing date being December 16, 2021, and the latest being December 20, 2024[33][34]. - The average initial term for loans in the portfolio is approximately 47 months[34]. - The Company has a diversified multifamily loan portfolio across various states, including Texas, Florida, and New Jersey[33][34]. Risk and Credit Quality - The weighted average risk rating of the loan portfolio was 3.6, with 45.7% rated "3" (Moderate Risk) or better[24]. - The allowance for credit losses at the end of the period was $14,020,408, down from $14,252,268 at the beginning of the period, indicating a slight improvement in credit quality[41]. - The company reported a release of provision for credit losses of $29,660 for the three months ended September 30, 2025, compared to a provision of $(317,448) in the same period of 2024[38]. Capital Structure and Financing - The leverage ratio declined from 3.3x to 3.2x quarter-over-quarter[7]. - The Company held cash and cash equivalents of $56.0 million as of September 30, 2025[8]. - The floating-rate CRE loan portfolio was primarily financed through two secured financings totaling $671.3 million[7][26]. - 100% of the loan portfolio is indexed to the 30-day term SOFR, indicating a complete floating-rate exposure[30]. - The sensitivity analysis indicates a net exposure of $840 million, with potential changes in interest rates affecting net interest income per share[29]. Dividend and Shareholder Returns - The Company declared a cash dividend of $0.04 per share of common stock for the quarter[7].