Lument Finance Trust (LFT) AI Stock Analysis

• Market Cap: $75.93M
• Dividend Yield: 23.03%
• Average Volume (3M): 253.31K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.42
• Revenue Growth: -31.69%
• EPS Growth: -72.10%
• Country: US
• Employees: 600
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.02
• Shares Outstanding: 52,364,930
• 10 Day Avg. Volume: 289,124
• 30 Day Avg. Volume: 253,315
• PEG Ratio: 0.35
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 3.87
• P/FCF Ratio: 4.97
• Enterprise Value/Market Cap: 9.71
• Enterprise Value/Revenue: 13.09
• Enterprise Value/Gross Profit: 18.52
• Enterprise Value/Ebitda: 23.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): $26.99M

• Rating: 53 Neutral
• Price Target: $1.50 ▼(-5.66% Downside)

The score is held back primarily by balance-sheet leverage and weakening recent fundamentals, alongside clearly bearish technical trends. These are partially offset by attractive income/valuation characteristics (very high dividend yield, moderate P/E) and incremental positives from financing/liquidity actions highlighted in the earnings call and recent corporate events.

Positive Factors

Balance Sheet Stability

A strong equity position with no reported debt enhances financial stability, reducing leverage risk and improving long-term financial health.

Multifamily Sector Resilience

The resilience in the multifamily sector supports LFT's core operations, providing a stable revenue base and potential for rent recovery.

Liquidity Enhancement

The new repurchase agreement enhances liquidity, offering flexibility in capital management and refinancing opportunities, crucial for strategic growth.

Negative Factors

Revenue Decline

A decline in revenue to zero poses significant challenges for sustainable income, impacting long-term profitability and operational stability.

High-Risk Loans

High-risk loans increase credit risk, potentially leading to losses, which can strain financial resources and impact long-term financial performance.

Loan Defaults

Loan defaults indicate credit quality issues, potentially leading to financial strain and impacting the company's ability to generate consistent income.

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 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 Money

Lument Finance Trust generates revenue primarily through interest income earned on the loans it originates and holds in its investment portfolio. The company provides various financing solutions, including bridge loans, permanent loans, and construction loans, which are secured by real estate assets in the healthcare sector. Additionally, LFT may earn fees associated with loan origination, servicing, and other related activities. The company also benefits from potential appreciation in the value of its real estate investments and may engage in asset sales or refinancings to realize gains. Partnerships with healthcare operators and developers can further enhance its revenue streams by providing access to a steady pipeline of financing opportunities in the growing healthcare real estate market.

Lument Finance Trust Financial Statement Overview

Summary

Profitability and cash flow are positive (TTM net margin ~23.9%; operating cash flow exceeds net income), but TTM revenue declined (-5.6%) and free cash flow fell (-25.1%). The biggest constraint is a debt-heavy balance sheet (debt-to-equity ~3.3x) with only moderate ROE (~6.0%), increasing sensitivity to funding/credit conditions.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.6%), following modest growth in prior annual periods, indicating a softer top-line backdrop. Profitability remains positive with a ~23.9% net margin in TTM, though it is well below the unusually high margins shown in recent annual reports. Overall, earnings are profitable but the recent revenue contraction and margin volatility temper the outlook.

Balance Sheet

Leverage is high, with debt-to-equity around 3.3x in TTM (still elevated, though improved versus prior years that approached ~5x). Equity is meaningful (~$230M TTM), but the capital structure remains debt-heavy for the asset base, which can amplify downside risk if funding costs rise or asset values weaken. Returns on equity are moderate (~6.0% TTM), suggesting profitability is present but not strong enough to fully offset the balance-sheet risk.

Cash Flow

Cash generation is solid relative to reported earnings: TTM operating cash flow (~$15.2M) exceeds net income (~$9.8M), and free cash flow is positive. However, TTM free cash flow fell materially (-25.1%), signaling weaker near-term cash momentum versus prior annual periods. Overall cash flow quality is good, but the recent decline is a watch item.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.33M	34.86M	32.08M	20.02M	21.07M	19.14M
Gross Profit	39.82M	34.86M	32.08M	20.02M	21.07M	19.14M
EBITDA	31.82M	0.00	167.06M	0.00	0.00	0.00
Net Income	9.80M	22.65M	19.71M	9.86M	10.53M	8.45M
Balance Sheet
Total Assets	955.72M	1.13B	1.45B	1.13B	1.05B	621.49M
Cash, Cash Equivalents and Short-Term Investments	56.02M	69.17M	51.25M	43.86M	14.75M	11.38M
Total Debt	717.43M	875.86M	1.19B	876.28M	873.63M	502.62M
Total Liabilities	725.65M	890.70M	1.21B	884.96M	879.55M	507.79M
Stockholders Equity	229.97M	237.80M	240.69M	242.90M	169.28M	113.60M
Cash Flow
Free Cash Flow	15.18M	27.13M	24.74M	16.29M	13.85M	12.22M
Operating Cash Flow	15.18M	27.13M	24.74M	16.29M	13.85M	12.22M
Investing Cash Flow	288.08M	334.09M	-316.72M	-51.83M	-477.29M	87.92M
Financing Cash Flow	-311.49M	-341.17M	296.13M	64.63M	412.35M	-46.77M

Lument Finance Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.59 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.48, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LFT.

Lument Finance Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$207.45M	8.97	5.72%	13.82%	-18.06%	-18.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CHMI	57 Neutral	$101.40M	143.75	4.55%	21.65%	22.14%	―
LFT	53 Neutral	$75.93M	14.99	4.14%	23.03%	-31.69%	-72.10%
RPT	51 Neutral	$122.36M	-58.99	0.31%	9.13%	-2.17%	98.78%
ACR	47 Neutral	$148.05M	21.18	6.58%	―	-18.37%	18.80%
GPMT	46 Neutral	$119.94M	-1.74	-9.11%	7.97%	-28.13%	62.49%

Lument Finance Trust Corporate Events

Lument Finance Trust Closes $663.8M CRE CLO Deal

On December 10, 2025, Lument Finance Trust, Inc. announced the closing of a $663.8 million commercial real estate collateralized loan obligation (CRE CLO), named LMNT 2025-FL3. This transaction involved the issuance and sale of approximately $585.0 million in investment grade-rated notes to institutional investors and $78.8 million in below investment grade-rated notes to a subsidiary. The CRE CLO provides LFT with term financing on a non-mark-to-market, non-recourse basis, featuring a 30-month reinvestment period and a weighted average interest rate of Term SOFR plus 1.91%. Additionally, LFT declared cash dividends for its common and preferred stockholders, reflecting its ongoing commitment to shareholder returns.

The most recent analyst rating on (LFT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.

Lument Finance Trust’s Recent Forward Purchase Agreement

On November 24, 2025, Lument Commercial Mortgage Trust, a subsidiary of Lument Finance Trust, Inc., entered into a Forward Purchase Agreement to acquire seven mortgage assets valued at $135.6 million, secured by multifamily and healthcare properties across the U.S., with settlement expected by December 10, 2025. Additionally, on November 21, 2025, Lument Finance Trust announced the pricing of a $663.8 million commercial real estate collateralized loan obligation, LMNT 2025-FL3, which is expected to close around December 10, 2025, providing significant term financing and marking a strategic move following the redemption of a previous loan obligation.

The most recent analyst rating on (LFT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.

Lument Finance Trust Secures $450M Repurchase Agreement

On November 3, 2025, Lument Finance Trust, through its subsidiary LCMT Warehouse, LLC, entered into a $450 million Uncommitted Master Repurchase Agreement with JPMorgan Chase Bank to finance commercial mortgage loan debt instruments. The agreement, which matures in 2028 with potential extensions, includes a Guarantee Agreement where Lument Finance Trust ensures the subsidiary’s obligations, impacting its financial covenants and potentially enhancing its market positioning in real estate finance.

The most recent analyst rating on (LFT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lument Finance Trust stock, see the LFT Stock Forecast page.