Lument Finance Trust, Inc. (LFT)
NYSE:LFT
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Lument Finance Trust
(NYSE:LFT)
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Rating:46Neutral
Price Target:
$1.00
▼(-37.11% Downside)
Action:ReiteratedDate:03/26/26
The score is held down primarily by weakened 2025 financial performance (net loss and reported revenue collapse), historically high leverage risk for the business model, and bearish technicals (trading below key moving averages with negative MACD). Offsetting factors include positive (though weaker) cash generation, very high dividend yield, and earnings-call actions to improve liquidity/financing and portfolio credit metrics, but earnings and dividend coverage still need to recover.
Positive Factors
Enhanced liquidity and funding diversity
Material funding actions — a $450M JPMorgan repo line, $50M warehouse, and term‑loan extension — materially reduce near‑term refinancing risk and lengthen liability maturities. This durable funding flexibility supports selective redeployment and portfolio cleanup without forced asset sales over several quarters.
Negative Factors
Historically high leverage and balance-sheet risk
A mortgage‑REIT model with historically 3.6–5.2x debt/equity leaves the company sensitive to funding cost moves and credit stress. The 2025 zero‑debt reporting raises uncertainty about true capital structure or a forced deleveraging event, complicating near‑term strategic flexibility and capital planning.
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Positive Factors
Negative Factors
Enhanced liquidity and funding diversity
Material funding actions — a $450M JPMorgan repo line, $50M warehouse, and term‑loan extension — materially reduce near‑term refinancing risk and lengthen liability maturities. This durable funding flexibility supports selective redeployment and portfolio cleanup without forced asset sales over several quarters.
Read all positive factors
Lument Finance Trust (LFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.02M
Dividend Yield23.03%
Average Volume (3M)159.05K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth-31.69%
EPS Growth-72.10%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.00
Shares Outstanding52,399,265
10 Day Avg. Volume129,371
30 Day Avg. Volume159,048
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.34
Price to Sales (P/S)0.93
P/FCF Ratio7.31
Enterprise Value/Market Cap15.62
Enterprise Value/Revenue13.02
Enterprise Value/Gross Profit14.46
Enterprise Value/Ebitda19.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.27
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:Mar 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: management executed significant financing and portfolio actions (FL3 CLO, new repo and warehouse facilities, $400M of loan deployments) and materially improved portfolio risk metrics (83% rated 3+ vs 46%), while preserving the quarterly dividend. However, near-term fundamentals were weighed down by a Q4 GAAP net loss, zero distributable earnings for the quarter, a sizable $8.6M provision that doubled specific reserves, nonaccruals and REO with low occupancy, and a decline in book value per share. Management’s actions and liquidity initiatives are constructive, but meaningful legacy credit work and earnings recovery remain required to restore full dividend coverage.Positive Updates
Successful FL3 CLO Execution and Portfolio Deployment
Closed LMNT 2025-FL3 CLO ($664M) in December with an effective advance rate of 88% and weighted average cost of funds ~191 bps over SOFR; initial collateral acquired included ~$383M of assets from an affiliate. Deployed ~ $400M into loan assets during Q4 (majority as FL3 collateral).
Negative Updates
GAAP Net Loss and Distributable Earnings Shortfall
Reported GAAP net loss to common stockholders of $8.9M (−$0.17 per share) in Q4 and GAAP net loss of −$0.14 per share for fiscal 2025; distributable earnings for Q4 were approximately $0, indicating no distributable income in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Successful FL3 CLO Execution and Portfolio Deployment
Closed LMNT 2025-FL3 CLO ($664M) in December with an effective advance rate of 88% and weighted average cost of funds ~191 bps over SOFR; initial collateral acquired included ~$383M of assets from an affiliate. Deployed ~ $400M into loan assets during Q4 (majority as FL3 collateral).
Read all positive updates
Company Guidance
Management's guidance emphasized a cautious, selective approach focused on active asset management, efficient resolution of legacy positions and disciplined balance sheet management while maintaining the quarterly dividend at $0.04 (Q4 and Q1 2026), after cumulative 2025 dividends of $0.22, and targeting a return to full dividend coverage through portfolio cleanup, redeployments and potential future portfolio-level financing (e.g., additional CLOs). Key metrics cited to support that path include available financing capacity of up to $450 million under a JPMorgan repo and $50 million from Northeast Bank, the recently closed $664 million FL3 CLO (88% effective advance rate, cost of funds ≈ SOFR +191 bps, collateral spread ≈ 321 bps, 30‑month reinvestment period), extension of the corporate term loan to 2030 at a 9.75% rate (providing ~$2.3 million incremental liquidity), approximately $23 million of unrestricted cash, $104 million of Q4 payoffs and ~$400 million of loan deployments. Portfolio and credit metrics described as guiding decisions include a $1.1 billion UPB across 61 floating‑rate loans (weighted avg floating spread 333 bps over SOFR, weighted avg coupon ~717 bps down from 777 bps, weighted avg remaining term ~21 months), 93% multifamily collateral, 83% of loans risk‑rated 3+ (weighted avg risk rating 3.2 vs 3.6 prior), eight risk‑rated 5 loans totaling ~$117 million (~10% of UPB), a $17.6 million specific allowance (general allowance $5.0 million), a $8.6 million Q4 provision, nonaccrual UPB of ~$102 million (earnings drag ≈ $0.02), three REO properties (69% occupancy), and total book equity of ~$219 million (book value of common ≈ $159 million or $3.03/share). Overall, management expects improving but uneven CRE conditions and intends to stay selective on new capital deployment to preserve capital and capture risk‑adjusted opportunities.Lument Finance Trust Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 79.18M | 34.86M | 32.08M | 20.02M | 21.07M |
| Gross Profit | 71.30M | 34.86M | 32.08M | 20.02M | 21.07M |
| EBITDA | 51.93M | 0.00 | 167.06M | 0.00 | 0.00 |
| Net Income | -2.75M | 22.65M | 19.71M | 9.86M | 10.53M |
Balance Sheet | |||||
| Total Assets | 1.22B | 1.13B | 1.45B | 1.13B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 23.11M | 69.17M | 51.25M | 43.86M | 14.75M |
| Total Debt | 988.10M | 875.86M | 1.19B | 876.28M | 873.63M |
| Total Liabilities | 996.89M | 890.70M | 1.21B | 884.96M | 879.55M |
| Stockholders Equity | 218.99M | 237.80M | 240.69M | 242.90M | 169.28M |
Cash Flow | |||||
| Free Cash Flow | 10.10M | 27.13M | 24.74M | 16.29M | 13.85M |
| Operating Cash Flow | 10.10M | 27.13M | 24.74M | 16.29M | 13.85M |
| Investing Cash Flow | -142.92M | 334.09M | -316.72M | -51.83M | -477.29M |
| Financing Cash Flow | 87.87M | -341.17M | 296.13M | 64.63M | 412.35M |
Lument Finance Trust Technical Analysis
Neutral
1.59
Price Trends
1.29
Negative
1.34
Negative
1.63
Negative
Market Momentum
-0.02
Negative
49.50
Neutral
47.38
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 1.28, above the 50-day MA of 1.29, and below the 200-day MA of 1.63, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 47.38 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $185.97M | 7.07 | 5.46% | 13.82% | -18.06% | -18.94% | |
58 Neutral | $136.92M | 7.14 | 4.99% | ― | -18.37% | 18.80% | |
51 Neutral | $96.26M | -25.12 | 2.95% | 21.65% | 22.14% | ― | |
46 Neutral | $66.02M | ― | -1.20% | 23.03% | -31.69% | -72.10% | |
45 Neutral | $68.02M | -2.79 | -7.12% | 7.97% | -28.13% | 62.49% | |
44 Neutral | $107.06M | 85.27 | 0.50% | 9.13% | -2.17% | 98.78% |
* Real Estate Sector Average
LFT
Lument Finance Trust
1.26
-0.93
-42.57%
ACR
ACRES Commercial Realty
19.20
0.05
0.26%
SEVN
Seven Hills Realty Trust
8.23
-1.95
-19.18%
CHMI
Cherry Hill Mortgage
2.62
0.34
14.91%
RPT
Rithm Property Trust
14.14
-0.72
-4.86%
GPMT
Granite Point Mortgage
1.43
-0.49
-25.60%
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.