Lument Finance Trust Reports 2024 Results and Declares Quarterly Dividends for Its Common and Preferred Stock

Rhea-AI Summary

Lument Finance Trust (NYSE: LFT) has reported its Q4 and full-year 2024 financial results. The company achieved Q4 GAAP net income of $3.6 million ($0.07 per share) and full-year earnings of $17.9 million ($0.34 per share). Distributable earnings for Q4 were $5.4 million ($0.10 per share) and $23.2 million ($0.44 per share) for the full year.

The company declared a Q1 2025 cash dividend of $0.08 per common share, payable on April 15, 2025, to stockholders of record as of March 31, 2025. Additionally, a preferred stock dividend of $0.4921875 per share was declared for Series A holders, payable April 15, 2025.

In leadership changes, Greg D. Calvert will assume the role of President effective May 1, 2025, following James J. Henson's resignation. Calvert brings nearly 30 years of experience at Lument and currently serves as co-chair of the Investment Committee and Chief Credit Officer for Lument Real Estate Capital Holdings.

Positive

• Q4 distributable earnings of $5.4 million ($0.10 per share)
• Full-year 2024 distributable earnings of $23.2 million ($0.44 per share)
• Consistent dividend payment maintained at $0.08 per share
• Smooth leadership transition with experienced internal candidate

Negative

• Q4 GAAP earnings declined to $0.07 per share compared to $0.10 distributable earnings

NEW YORK, March 19, 2025 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today reported its fourth quarter and full year 2024 results. GAAP net income attributable to common shareholders for the fourth quarter was $3.6 million, or $0.07 per share of common stock, and for the full year was $17.9 million, or $0.34 per share of common stock. Distributable earnings for the fourth quarter were $5.4 million, or $0.10 per share of common stock, and for the full year were $23.2 million, or $0.44 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at www.lumentfinancetrust.com.

The Company also announced the declaration of a cash dividend of $0.08 per share of common stock with respect to the first quarter of 2025. The dividend is payable on April 15, 2025, to common stockholders of record as of the close of business on March 31, 2025.

The Company also announced the declaration of a cash dividend of $0.4921875 per share of 7.875% Cumulative Redeemable Series A Preferred Stock. The dividend is payable on April 15, 2025, to preferred stockholders of record as of the close of business on April 1, 2025.

In addition, the Company announced that its Board of Directors (the "Board") has appointed Greg D. Calvert as President of the Company, effective May 1, 2025, following James J. Henson announcing his resignation, effective May 1, 2025, to the Board on March 18, 2025. Mr. Calvert is co-chair of the Investment Committee of Lument Investment Management, LLC, the Company's external manager ("Manager"), and Chief Credit Officer for Lument Real Estate Capital Holdings, LLC, the parent company of our Manager.

"I'd like to thank Jim Henson for his valuable contributions to the Company and congratulate him on his retirement," said James P. Flynn, Chief Executive Officer and Chairman of the Board of Lument Finance Trust, Inc. "We are excited to have Greg Calvert as our next President, who, with extensive experience in multifamily credit and a nearly 30-year tenure at Lument and its predecessors, is an ideal leader for our next growth phase."

Conference Call and Webcast Information

The Company will also host a conference call on Thursday, March 20, 2025, at 8:30 a.m. ET to provide a business update and discuss the financial results for the fourth quarter of 2024. The conference call may be accessed by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international). Note: there is no passcode; please ask the operator to be joined into the Lument Finance Trust call. A live webcast, on a listen-only basis, is also available and can be accessed through the URL:

https://app.webinar.net/dk6JGge78x0

For those unable to listen to the live broadcast, a recorded replay will be available for on-demand viewing approximately one hour after the end of the event through the Company's website https://lumentfinancetrust.com/ and by telephone dial-in. The replay call-in number is 1-888-660-6345 (U.S.) or 1-646-517-4150 (international) with passcode 92435.

Non-GAAP Financial Measures

In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP"). Specifically, the Company is presenting distributable earnings, which constitutes a non-GAAP financial measure within the meaning of Item 10(e) of Regulation S-K and is net income under GAAP. While we believe the non-GAAP information included in this press release provides supplemental information to assist investors in analyzing our results, and to assist investors in comparing our results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. The methods of calculating non-GAAP financial measures may differ substantially from similarly titled measures used by other companies. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.

Distributable Earnings

Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for that applicable reporting period, regardless of whether such items are included in other comprehensive income (loss) or net income (loss), and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items after discussions with the Company's Board of Directors and approved by a majority of the Company's independent directors.  Distributable Earnings mirrors how we calculate "Core Earnings" pursuant to the terms of our management agreement with our manager, Lument Investment Management, LLC ("Manager"), for purposes of calculating the incentive fee payable to our Manager.

While Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable.  Non-recoverability is determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, or in the case of foreclosures, when the underlying asset is sold), or (ii) with respect to any amount due under any loan, when such amount is determined to be non-collectible.

We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flows from operating activities determined in accordance with GAAP.  We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share of common stock.  As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock.  Furthermore, Distributable Earnings help us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations and is a performance metric we consider when declaring our dividends.

Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs.

GAAP to Distributable Earnings Reconciliation
		Three Months Ended	Twelve Months Ended
		December 31, 2024	December 31, 2024
Reconciliation of GAAP to non-GAAP Information
Net Income attributable to common shareholders		$                    3,604,879	$                     17,909,191
Adjustments for non-Distributable Earnings
Unrealized loss (gain) on mortgage servicing rights Unrealized provision for credit losses		(8,978) 1,781,098	42,686   5,275,122
Subtotal		1,772,120	5,317,808
Other Adjustments
Adjustment for income taxes		5,457	18,808
Subtotal		5,457	18,808
Distributable Earnings		$                    5,382,456	$                   23,245,807
Weighted average shares outstanding - Basic and Diluted		52,300,100	52,274,904
Distributable Earnings per weighted share outstanding - Basic and Diluted		$                             0.10	$                              0.44

About LFT

LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments.  The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets.

LFT is externally managed and advised by Lument Investment Management, LLC, a Delaware limited liability company.

Additional Information and Where to Find It

Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's Internet site at http://www.sec.gov/ or the Company website www.lumentfinancetrust.com or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations. 

Forward-Looking Statements

Certain statements included in this press release constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. Forward-looking statements are subject to risks and uncertainties. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "project," "estimate," "plan," "continue," "intend," "should," "may," "will," "seek," "would," "could," or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Forward-looking statements are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company on the date of this press release or the date on which such statements are first made. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on forward-looking statements in this press release and should consider carefully the factors described in Part I, Item IA "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which is available on the SEC's website at www.sec.gov, and in other current or periodic filings with the SEC, when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.  Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lument Finance Trust, Inc.

FAQ

What are Lument Finance Trust's (LFT) earnings per share for full-year 2024?

LFT reported GAAP earnings of $0.34 per share and distributable earnings of $0.44 per share for full-year 2024.

When will LFT pay its next dividend and how much is it?

LFT will pay a cash dividend of $0.08 per common share on April 15, 2025, to stockholders of record as of March 31, 2025.

What is LFT's Q4 2024 distributable earnings?

LFT's distributable earnings for Q4 2024 were $5.4 million, or $0.10 per share of common stock.

Who is the new President of Lument Finance Trust (LFT) and when does he start?

Greg D. Calvert will become President of LFT effective May 1, 2025, replacing James J. Henson who is retiring.

What is the preferred stock dividend amount for LFT Series A shares?

LFT declared a preferred stock dividend of $0.4921875 per share for 7.875% Cumulative Redeemable Series A Preferred Stock, payable April 15, 2025.