Lument Finance Trust, Inc. (LFT)
NYSE:LFT
Want to see LFT full AI Analyst Report?
Top Page
Lument Finance Trust
(NYSE:LFT)
Select Model
Select Model
Rating:47Neutral
Price Target:
$1.00
▼(-37.11% Downside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by weakening financial performance (revenue decline and ongoing losses) and bearish technicals (price below key moving averages and negative MACD). A very high dividend yield provides some support, but the earnings call underscored dividend coverage shortfall and ongoing credit stress, which limits the upside to the valuation signal.
Positive Factors
Floating-rate, high-spread loan portfolio
A portfolio fully indexed to 1-month SOFR with a large average spread and high coupon supports durable net interest margin as rates reset. With ~93% multifamily collateral and ~19 months average remaining term, the asset mix and repricing cadence underpin recurring interest income and margin resilience over months.
Negative Factors
Declining revenue and profitability
A sustained decline in revenue (-28.3% TTM) and a swing to TTM net losses weaken the core earnings engine of a mortgage REIT. Reduced interest income and negative profitability undermine distributable earnings and limit reinvestment and dividend sustainability unless underlying loan yields or portfolio size materially improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Floating-rate, high-spread loan portfolio
A portfolio fully indexed to 1-month SOFR with a large average spread and high coupon supports durable net interest margin as rates reset. With ~93% multifamily collateral and ~19 months average remaining term, the asset mix and repricing cadence underpin recurring interest income and margin resilience over months.
Read all positive factors
Lument Finance Trust (LFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.21M
Dividend Yield23.03%
Average Volume (3M)129.77K
Price to Earnings (P/E)79.9
Beta (1Y)0.45
Revenue Growth-28.61%
EPS Growth-164.74%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.13
Shares Outstanding52,439,465
10 Day Avg. Volume160,216
30 Day Avg. Volume129,766
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.34
Price to Sales (P/S)0.93
P/FCF Ratio8.61
Enterprise Value/Market Cap17.29
Enterprise Value/Revenue13.42
Enterprise Value/Gross Profit28.12
Enterprise Value/Ebitda36.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.24
Revenue Forecast (FY)$22.47M
Lument Finance Trust Business Overview & Revenue Model
Company Description
Lument 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 ...
How the Company Makes Money
Lument Finance Trust makes money primarily by earning interest income and related fees from its commercial real estate loan investments. Its core revenue model is the net interest margin: the company receives interest (and, where applicable, origi...
Lument Finance Trust Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call conveyed a cautiously constructive tone: management demonstrated active portfolio management, liquidity preservation and some successful asset resolutions (sale of San Antonio REO, redeployment of payoffs into new loans), and sequential improvement in net interest income. However, the quarter included notable credit stress (REO impairments, charge-offs, and a concentration of seven risk-rated 5 loans representing ~10% of UPB), GAAP net loss, and distributable earnings that did not cover the declared dividend on a quarterly basis. Management emphasized cautious, selective redeployment and reliance on future securitization to restore full earnings coverage.Positive Updates
Distributable Earnings and Dividend Maintained
Reported distributable earnings of $1.1 million ($0.02 per share) for Q1 2026; declared quarterly dividend of $0.04 per common share, unchanged from prior quarter.
Negative Updates
Concentration of Higher-Risk Loans
Had seven risk-rated 5 loans with aggregate UPB of approximately $108 million, representing ~10% of the portfolio UPB; loans in maturity or monetary default located across multiple markets (e.g., Philadelphia, Tampa, Texas markets, Des Moines, Michigan).
Read all updates
Q1-2026 Updates
Positive
Negative
Distributable Earnings and Dividend Maintained
Reported distributable earnings of $1.1 million ($0.02 per share) for Q1 2026; declared quarterly dividend of $0.04 per common share, unchanged from prior quarter.
Read all positive updates
Company Guidance
Management guided that their priority is to have annual earnings cover the annual dividend and to execute a new securitization to redeploy capital when asset resolutions permit; they declared a Q1 dividend of $0.04 per common share. Key metrics cited: GAAP net loss $1.0M ($0.02/share) and distributable earnings $1.1M ($0.02/share); net interest income $5.7M (up from $5.4M); total operating expenses $3.7M (vs. $3.8M); portfolio unpaid principal balance ~ $1.1B across 57 floating‑rate loans, weighted average float 331 bps over SOFR, weighted average coupon 709 bps (down from 717 bps), weighted average remaining term ~19 months, 93% multifamily, ~77% of loans risk‑rated 3 or better (vs. 83%), seven risk‑rated 5 loans totaling ~ $108M (~10% of UPB). Liquidity and financing metrics: unrestricted cash ~$21M, FL3 CLO substantially fully deployed with ~88% advance rate, repurchase facility advance ~69% at ~SOFR+200, bank facility advance ~53% at ~SOFR+350, and available warehouse capacity plus FL3’s 30‑month reinvestment period. Activity and credit actions: Q1 funded/acquired ~$48M of loans, generated ~$47M of payoffs and used proceeds to acquire $47M (plus a $1M participation), REO carried 4 properties at ~$57M with 72% occupancy, San Antonio REO sold for net proceeds $12.4M, specific reserves totaled ~$15.8M (~15% of evaluated UPB) after a $2.4M charge‑off, and Q1 included a $1.3M unrealized REO impairment and $1.2M loss on extinguishment of debt.Lument Finance Trust Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.00M | 79.18M | 34.86M | 32.08M | 20.02M | 21.07M |
| Gross Profit | 35.78M | 71.30M | 34.86M | 32.08M | 20.02M | 21.07M |
| EBITDA | 27.53M | 51.93M | 0.00 | 167.06M | 0.00 | 0.00 |
| Net Income | -2.02M | -2.75M | 22.65M | 19.71M | 9.86M | 10.53M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 1.22B | 1.13B | 1.45B | 1.13B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 30.62M | 23.11M | 69.17M | 51.25M | 43.86M | 14.75M |
| Total Debt | 978.66M | 988.10M | 875.86M | 1.19B | 876.28M | 873.63M |
| Total Liabilities | 988.75M | 996.89M | 890.70M | 1.21B | 884.96M | 879.55M |
| Stockholders Equity | 215.96M | 218.99M | 237.80M | 240.69M | 242.90M | 169.28M |
Cash Flow | ||||||
| Free Cash Flow | 9.57M | 8.58M | 27.13M | 24.74M | 16.29M | 13.85M |
| Operating Cash Flow | 9.57M | 10.10M | 27.13M | 24.74M | 16.29M | 13.85M |
| Investing Cash Flow | -182.97M | -142.92M | 334.09M | -316.72M | -51.83M | -477.29M |
| Financing Cash Flow | 139.50M | 87.87M | -341.17M | 296.13M | 64.63M | 412.35M |
Lument Finance Trust Technical Analysis
Negative
1.59
Price Trends
1.23
Negative
1.28
Negative
1.49
Negative
Market Momentum
-0.04
Positive
40.91
Neutral
56.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFT, the sentiment is Negative. The current price of 1.59 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.23, and above the 200-day MA of 1.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 56.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFT.
Lument Finance Trust Risk Analysis
Lument Finance Trust disclosed 100 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $189.58M | 10.50 | 5.14% | 13.82% | -7.31% | -22.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $139.98M | 7.74 | 6.11% | ― | -11.12% | 106.91% | |
58 Neutral | $89.64M | 54.07 | 6.09% | 21.65% | -7.99% | ― | |
53 Neutral | $112.94M | -12.82 | 0.99% | 9.13% | 20.77% | 90.54% | |
47 Neutral | $58.21M | 79.90 | -0.90% | 23.03% | -28.61% | -164.74% | |
45 Neutral | $66.13M | -7.12 | -6.46% | 7.97% | -23.52% | 64.81% |
* Real Estate Sector Average
LFT
Lument Finance Trust
1.11
-1.14
-50.62%
ACR
ACRES Commercial Realty
19.63
1.36
7.44%
SEVN
Seven Hills Realty Trust
8.39
-2.05
-19.63%
CHMI
Cherry Hill Mortgage
2.44
-0.09
-3.67%
RPT
Rithm Property Trust
14.53
-0.35
-2.32%
GPMT
Granite Point Mortgage
1.38
-0.86
-38.39%
Lument Finance Trust Corporate Events
DividendsFinancial DisclosuresRegulatory Filings and Compliance
Lument Finance Trust Announces Quarterly Dividends, Sets 10-K Call
Positive
Mar 23, 2026
On March 19, 2026, Lument Finance Trust, Inc. declared a quarterly cash dividend of $0.04 per share for its common stock for the first quarter of 2026, payable on April 15 to shareholders of record as of March 31. The company also announced a cash...
Business Operations and StrategyPrivate Placements and Financing
Lument Finance Trust Extends and Expands Secured Term Loans
Positive
Feb 23, 2026
On February 17, 2026, Lument Finance Trust, Inc. and its guarantor subsidiaries entered into a fifth amendment to their long-standing Credit and Guaranty Agreement, extending the maturity date of the secured term loans to February 20, 2026. This s...
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.