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Lument Finance Trust, Inc. (LFT)
:LFT
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Lument Finance Trust
(NYSE:LFT)
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Rating:57Neutral
Price Target:
$1.50
▼(-17.13% Downside)
Lument Finance Trust's overall stock score reflects significant challenges in financial performance and technical analysis, with some positive aspects in valuation and strategic financing developments. The company's ability to manage credit risks and stabilize revenue will be crucial for future performance.
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 (LFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.13M
Dividend Yield22.73%
Average Volume (3M)191.27K
Price to Earnings (P/E)8.5
Beta (1Y)0.39
Revenue Growth-24.12%
EPS Growth-47.91%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.02
Shares Outstanding52,341,045
10 Day Avg. Volume247,046
30 Day Avg. Volume191,268
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)0.57
Price to Sales (P/S)3.87
P/FCF Ratio4.97
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lument Finance Trust Business Overview & Revenue Model
Company DescriptionLument Finance Trust (LFT) is a real estate investment trust (REIT) focused on investing in and managing a diversified portfolio of commercial real estate assets. The company primarily operates in the healthcare and multifamily sectors, providing financing solutions through debt and equity investments. LFT aims to generate sustainable income through its investments while seeking opportunities for capital appreciation in its targeted asset classes.
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:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 25, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strategic financing developments and resilience in the multifamily sector, which are positive. However, significant challenges remain with decreased net interest income, high-risk-rated loans, and defaults impacting the company's financial stability.Q3-2025 Updates
Positive Updates
New Repurchase Agreement with JPMorgan
Lument Finance Trust entered into a new repurchase agreement with JPMorgan providing up to $450 million in aggregate advances. This warehouse capacity is intended to provide flexibility for managing capital and refinancing the portfolio.
Multifamily Sector Resilience
The multifamily sector fundamentals remain constructive with modest rent growth, stable occupancy, and a slowdown in new supply, supporting balance and potential rent recovery.
Loan Payoffs and Use of Proceeds
Loan payoffs totaled approximately $49 million, and proceeds were primarily used to reduce securitization liabilities, reflecting effective capital management.
CRE CLO Market Rebound
Year-to-date issuance in the CRE CLO market exceeds $25 billion, indicating healthy liquidity and investor confidence, which supports the company's potential to return to the securitization market.
Negative Updates
Decrease in Net Interest Income
Net interest income decreased to $5.1 million in Q3 from $7 million in Q2, primarily due to portfolio balance decline and non-recording of interest on nonaccrual loans.
Risk-Rated Loans and Credit Losses
Seven loans were risk-rated five, with an aggregate principal amount of $86.4 million, indicating ongoing credit challenges. A provision for credit losses of approximately $900,000 was recorded.
Reduction in Book Value
The book value of common stock decreased to $3.25 per share from $3.27 per share as of June 30, reflecting challenges in maintaining shareholder value.
High Percentage of Loans in Default
Several loans collateralized by multifamily assets were in monetary or maturity default, with specific loans in Kelonte, Michigan, Colorado Springs, Cedar Park, Texas, and others.
Company Guidance
During the third quarter of 2025, Lument Finance Trust reported a GAAP net income of $0.01 per share and distributable earnings of $0.02 per share. The company declared a quarterly dividend of $0.04 per common share. The Fed funds rate was cut by 25 basis points to a range of 3.75% to 4%, impacting the multifamily sector positively by potentially improving borrowers' debt obligations. The CRE CLO market saw a year-to-date issuance exceeding $25 billion, reflecting strong liquidity. Lument Finance Trust experienced $49 million in loan payoffs, reducing securitization liabilities. The company entered a new $450 million repurchase agreement with JPMorgan, enhancing liquidity. As of September 30, the loan portfolio consisted of 51 floating-rate loans with an aggregate unpaid principal balance of approximately $840 million. The company's total equity was approximately $230 million, with a book value of common stock at $3.25 per share. The focus remains on active asset management, resolving legacy positions, and executing a financing strategy to redeploy capital into a core lending strategy focused on middle-market multifamily properties.Lument Finance Trust Financial Statement Overview
Summary
Lument Finance Trust faces challenges with fluctuating revenue and profit growth, but shows improved balance sheet stability due to reduced leverage. Strong cash flow metrics are offset by income volatility, impacting future performance.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 | 51.22M | 34.86M | 32.08M | 20.02M | 21.07M | 19.14M |
| Gross Profit | 34.71M | 34.86M | 32.08M | 20.02M | 21.07M | 19.14M |
| EBITDA | 56.11M | 103.44M | 167.06M | 57.03M | 36.59M | 23.16M |
| 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 | 0.00 | 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
Negative
1.81
Price Trends
1.88
Negative
2.02
Negative
2.24
Negative
Market Momentum
-0.10
Negative
29.25
Positive
49.82
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 1.81 is above the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.88, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 49.82 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 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $141.62M | 9.06 | 5.72% | 14.22% | -18.06% | -18.94% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $81.13M | 8.54 | 6.01% | 22.73% | -24.12% | -47.91% | |
54 Neutral | $158.17M | 22.38 | 6.58% | ― | -18.37% | 18.80% | |
54 Neutral | $87.07M | 123.44 | 4.55% | 23.21% | 22.14% | ― | |
50 Neutral | $109.46M | -52.74 | 0.31% | 9.60% | -2.17% | 98.78% | |
49 Neutral | $124.17M | -1.23 | -9.11% | 7.22% | -28.13% | 62.49% |
* Real Estate Sector Average
LFT
Lument Finance Trust
1.54
-0.60
-28.04%
ACR
ACRES Commercial Realty
21.51
5.37
33.27%
SEVN
Seven Hills Realty Trust
8.74
-2.70
-23.60%
CHMI
Cherry Hill Mortgage
2.37
0.07
3.04%
RPT
Rithm Property Trust
2.56
-0.31
-10.80%
GPMT
Granite Point Mortgage
2.77
-0.34
-10.93%
Lument Finance Trust Corporate Events
Private Placements and Financing
Lument Finance Trust Secures $450M Repurchase Agreement
Positive
Nov 7, 2025
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.
Dividends
Lument Finance Trust Declares Q3 2025 Dividends
Positive
Sep 19, 2025
On September 16, 2025, Lument Finance Trust, Inc. announced the declaration of a cash dividend of $0.04 per share for its common stock and $0.4921875 per share for its 7.875% Cumulative Redeemable Series A Preferred Stock for the third quarter of 2025. These dividends are payable on October 15, 2025, to stockholders of record as of the end of September and early October. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence investor perceptions and market positioning.
The most recent analyst rating on (LFT) stock is a Hold with a $2.50 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 Earnings Call: A Cautious Optimism
Aug 13, 2025
The recent earnings call for Lument Finance Trust, Inc. presented a mixed but cautiously optimistic outlook. The company highlighted a stable multifamily sector and a resurgence in the CRE CLO market, yet these positive notes were balanced by declines in net interest income, increased operating expenses, and significant loan defaults.
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.