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Lument Finance Trust (LFT)
NYSE:LFT
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Lument Finance Trust
(NYSE:LFT)
Rating:58Neutral
Price Target:
$2.00
▼(-8.26% Downside)
Positive Factors
Earnings Stability
Lument Finance Trust has been able to replace portfolio run-off with additional multifamily bridge loans acquired from its manager, which has helped to stabilize earnings.
Portfolio Management
Lument Finance Trust continues to manage its existing multifamily-focused portfolio, and the company has not needed to modify loans like many larger peers, which highlights the strength of the affordable housing sector.
Negative Factors
Interest Rates Impact
Elevated interest rates continue to pressure borrowers and 5-rated loans ticked up in the fourth quarter with four new loans assigned a 5-rating.
Market Stress
Even some multifamily markets are starting to see signs of stress, driven mostly by higher interest rates.
Lument Finance Trust (LFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$111.49M
Dividend Yield17.89%
Average Volume (3M)171.51K
Price to Earnings (P/E)11.7
Beta (1Y)0.34
Revenue Growth-24.12%
EPS Growth-47.91%
CountryUS
Employees600
SectorReal Estate
Sector Strength46
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.05
Shares Outstanding52,341,045
10 Day Avg. Volume151,221
30 Day Avg. Volume171,513
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap7.80
Enterprise Value/Revenue14.58
Enterprise Value/Gross Profit20.17
Enterprise Value/Ebitda10.86
Forecast
1Y Price Target
$2.00Price Target Upside-8.26% Downside
Rating ConsensusHold
Number of Analyst Covering1
Lument Finance Trust Business Overview & Revenue Model
Company DescriptionLument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate commercial mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.
How the Company Makes MoneyLument Finance Trust generates revenue through interest income from its mortgage loans and other financing products, as well as through rental income from its real estate investments. The company's main revenue streams include the origination of mortgage loans secured by commercial real estate, income from equity interests in its properties, and asset management fees. Additionally, the company may benefit from partnerships with other financial institutions and real estate developers that enhance its investment opportunities. Market conditions, interest rates, and the overall performance of the commercial real estate sector also play significant roles in influencing LFT's earnings.
Lument Finance Trust Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: -5.63%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with stable multifamily sector conditions and encouraging CLO issuance volumes, but is offset by declines in net interest income, increased operating expenses, and a substantial portion of high-risk loans leading to foreclosures.Q2-2025 Updates
Positive Updates
Stable Multifamily Sector Outlook
The multifamily sector conditions are broadly stable with modest to flat rent growth, rebounding national occupancy, and supported supply-demand fundamentals. This outlook is constructive for multifamily credit.
Encouraging CRE CLO Issuance Volumes
The CRE CLO market saw over $17 billion in new issuances in the first half of 2025 compared to $6.5 billion in the second half of 2024, indicating improving liquidity and investor appetite.
Decrease in Specific Credit Reserves
Specific credit reserves decreased by $3.5 million, reflecting a disciplined approach in managing the investment portfolio to protect the company's downside and preserve capital.
Positive Loan Resolutions
Successfully resolved a $15 million loan collateralized by multifamily properties in Philadelphia, with the borrower resuming interest payments.
Negative Updates
Decline in Net Interest Income
Net interest income fell to $7 million from $7.7 million in Q1 due to a decline in the average outstanding UPB and principal loan repayments.
Increased Operating Expenses
Total operating expenses, including manager fees, increased to $3.2 million in Q2 from $2.6 million in Q1, driven by various expense items.
High Proportion of Risk-Rated Loans
As of June 30, 13% of the investment portfolio was classified as risk-rated 5, with significant loans in monetary default or maturity default.
Foreclosures
Foreclosed on two multifamily property loans in Texas totaling $26.9 million, and another $26.6 million loan in San Antonio was foreclosed last week.
Company Guidance
During the Lument Finance Trust Second Quarter 2025 Earnings Call, the company reported a GAAP net income of $0.05 per share and distributable earnings of $0.05 per share of common stock. The quarterly dividend declared for the second quarter was $0.06 per common share. The company's net interest income decreased to $7 million from $7.7 million in Q1, while their unrestricted cash balance stood at $59 million. The portfolio consisted of 56 floating rate loans with a principal balance of approximately $924 million and a weighted average floating rate of SOFR plus 356 basis points. Additionally, the company reported total equity of approximately $231 million and a book value of common stock at $3.27 per share, slightly down from $3.29 in the previous quarter. The call emphasized a focus on asset management, with loan payoffs totaling $63 million and new loan financings of $3.6 million.Lument Finance Trust Financial Statement Overview
Summary
Lument Finance Trust faces challenges in sustaining revenue and profit growth, with zero revenue reported recently. However, the balance sheet shows improved stability due to reduced leverage, and cash flow metrics are strong despite some volatility.Income Statement
Lument Finance Trust has shown fluctuating revenue trends with a notable decline to zero revenue in the most recent year. The gross profit margin has been volatile, and the net income has varied, reflecting inconsistent profit margins. The revenue growth has been unstable, which poses a challenge for sustainable income performance.45
Neutral
Balance Sheet
The company exhibits a strong equity position with no total debt reported for the latest period, significantly improving the debt-to-equity ratio. The equity ratio indicates a stable financial structure, although past liabilities were high relative to equity. This suggests improved financial health and reduced leverage risk.60
Neutral
Cash Flow
Lument Finance Trust has demonstrated healthy free cash flow growth and a strong operating cash flow to net income ratio. The positive cash flow metrics indicate good cash management, although the recent investment cash flow fluctuations suggest potential volatility in future free cash flow.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.64M | 34.86M | 32.08M | 20.02M | 21.07M | 19.14M |
| Gross Profit | 43.13M | 34.86M | 32.08M | 20.02M | 21.07M | 19.14M |
| EBITDA | 80.10M | 103.44M | 94.52M | 42.68M | 28.15M | 23.16M |
| Net Income | 14.24M | 22.65M | 19.71M | 9.86M | 10.53M | 8.45M |
Balance Sheet | ||||||
| Total Assets | 998.39M | 1.13B | 1.45B | 1.13B | 1.05B | 621.49M |
| Cash, Cash Equivalents and Short-Term Investments | 59.40M | 69.17M | 51.25M | 43.86M | 14.75M | 11.38M |
| Total Debt | 757.46M | 875.86M | 1.19B | 876.28M | 873.63M | 502.62M |
| Total Liabilities | 766.93M | 890.70M | 1.21B | 884.96M | 879.55M | 507.79M |
| Stockholders Equity | 231.36M | 237.80M | 240.69M | 242.90M | 169.28M | 113.60M |
Cash Flow | ||||||
| Free Cash Flow | 20.26M | 27.13M | 24.74M | 16.29M | 13.85M | 12.22M |
| Operating Cash Flow | 20.26M | 27.13M | 24.74M | 16.29M | 13.85M | 12.22M |
| Investing Cash Flow | 287.78M | 334.09M | -316.72M | -51.83M | -477.29M | 87.92M |
| Financing Cash Flow | -313.88M | -341.17M | 296.13M | 64.63M | 412.35M | -46.77M |
Lument Finance Trust Technical Analysis
Neutral
2.18
Price Trends
2.23
Negative
2.36
Negative
2.40
Negative
Market Momentum
-0.03
Positive
48.60
Neutral
22.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFT, the sentiment is Neutral. The current price of 2.18 is below the 20-day moving average (MA) of 2.20, below the 50-day MA of 2.23, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LFT.
Lument Finance Trust Risk Analysis
Lument Finance Trust disclosed 102 risk factors in its most recent earnings report. Lument Finance Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lument Finance Trust Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $232.92M | 8.50 | 8.66% | 10.70% | 22.45% | -44.01% | |
66 Neutral | $157.06M | 10.09 | 5.71% | 12.68% | -16.74% | -32.89% | |
63 Neutral | $150.23M | 66.03 | 5.05% | ― | -16.01% | -98.23% | |
63 Neutral | C$2.01B | 5.92 | -0.84% | 5.17% | 1.83% | -19.11% | |
60 Neutral | $210.71M | 14.98 | 6.89% | 16.70% | 271.03% | 31.81% | |
58 Neutral | $111.49M | 11.73 | 6.01% | 17.89% | -24.12% | -47.91% | |
54 Neutral | $104.53M | 43.78 | -2.56% | 20.41% | -2.02% | -20.61% |
* Real Estate Sector Average
Performance Comparison
LFT
Lument Finance Trust
2.18
0.10
4.81%
ACR
ACRES Commercial Realty
20.40
4.67
29.69%
SEVN
Seven Hills Realty Trust
10.49
-1.74
-14.23%
MITT
AG Mortgage
7.26
0.98
15.61%
EARN
Ellington Residential Mortgage
5.83
-0.05
-0.85%
CHMI
Cherry Hill Mortgage
2.89
0.00
0.00%
Lument Finance Trust Corporate Events
DividendsBusiness Operations and Strategy
Lument Finance Trust Declares Second Quarter Dividends
Positive
Jun 25, 2025
On June 20, 2025, Lument Finance Trust, Inc. announced the declaration of a cash dividend of $0.06 per share for common stock and $0.4921875 per share for 7.875% Cumulative Redeemable Series A Preferred Stock for the second quarter of 2025. These dividends are payable on July 15, 2025, to stockholders of record at the end of June and early July. CEO James P. Flynn emphasized the decision to adjust the dividend to preserve book value and support long-term earnings, aiming to maximize flexibility and manage liquidity effectively, thereby creating long-term value for shareholders.
The most recent analyst rating on (LFT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Lument Finance Trust Holds Annual Stockholders Meeting
Neutral
Jun 18, 2025
On June 12, 2025, Lument Finance Trust, Inc. held its annual stockholders meeting where shareholders re-elected six directors, approved executive compensation, and ratified KPMG, LLP as the accounting firm for 2025. The board decided to conduct annual advisory votes on executive compensation, reflecting shareholder preferences and aligning with the board’s recommendations.
The most recent analyst rating on (LFT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.