Lument Finance Trust Reports 2025 Results

Rhea-AI Summary

Lument Finance Trust (NYSE: LFT) reported Q4 2025 GAAP net loss attributable to common shareholders of $(8.9M) (−$0.17/share) and full-year GAAP net loss of $(7.5M) (−$0.14/share). Distributable earnings were $(0.2M) for Q4 and $7.6M for the full year, or $0.14 per share. The company provided a GAAP-to-distributable reconciliation and will host a conference call on March 24, 2026.

Positive

• Full-year distributable earnings of $7.6M
• Distributable EPS of $0.14 for 2025
• Weighted average shares outstanding ~52.34M

Negative

• GAAP net loss Q4 $(8.9M) and full-year $(7.5M)
• Q4 distributable loss $(0.2M) (negligible EPS)
• Significant unrealized credit provisions included in adjustments

Key Figures

Q4 2025 GAAP net loss: $(8.9) million Q4 2025 GAAP EPS: $(0.17) per share 2025 GAAP net loss: $(7.5) million +5 more

8 metrics

Q4 2025 GAAP net loss $(8.9) million Attributable to common shareholders, Q4 2025

Q4 2025 GAAP EPS $(0.17) per share GAAP net loss per common share, Q4 2025

2025 GAAP net loss $(7.5) million Full year 2025, attributable to common shareholders

2025 GAAP EPS $(0.14) per share Full year 2025 GAAP loss per common share

Q4 2025 distributable loss $(0.2) million Non-GAAP distributable loss, Q4 2025

2025 distributable earnings $7.6 million Non-GAAP distributable earnings, full year 2025

2025 distributable EPS $0.14 per share Distributable earnings per common share, full year 2025

Weighted avg shares 52,372,810 shares Basic and diluted, Q4 2025

Market Reality Check

Price: $1.23 Vol: Volume 181,474 is 1.15x t...

normal vol

$1.23 Last Close

Volume Volume 181,474 is 1.15x the 20-day average of 157,696, indicating moderately elevated trading activity pre-release. normal

Technical Shares at $1.38 were trading below the $1.80 200-day MA and 51.41% below the 52-week high, while only 13.11% above the 52-week low.

Peers on Argus

Momentum data flagged only CHMI among peers, moving down 3.27%. With just one pe...

1 Down

Momentum data flagged only CHMI among peers, moving down 3.27%. With just one peer in motion and no same-day peer news, the setup pointed to stock-specific factors rather than a broad REIT - Mortgage sector move.

Historical Context

5 past events · Latest: Dec 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Dividend declaration	Positive	-6.8%	Announced Q4 2025 common and preferred stock cash dividends.
Dec 10	CLO closing	Positive	+13.2%	Closed $663.8M commercial real estate CLO providing term financing.
Nov 21	CLO pricing	Positive	-0.7%	Priced $663.8M CRE CLO and redeemed prior FL1 transaction.
Nov 12	Q3 2025 earnings	Positive	-3.3%	Reported Q3 GAAP net income and positive distributable earnings.
Nov 07	Earnings call notice	Neutral	+2.0%	Announced Q3 10-Q filing date and investor conference call details.

Pattern Detected

News has often produced mixed reactions: positive operational or financing updates sometimes saw negative price moves, while one CLO closing drew a strong gain.

Recent Company History

Over the last few months, Lument Finance Trust issued several capital markets and corporate updates. On Nov 21 and Dec 10, 2025, it announced and then closed a $663.8 million commercial real estate CLO, with the closing drawing a 13.19% gain. A Dec 11, 2025 dividend declaration and Q3 2025 earnings on Nov 12 both saw modest selloffs. Conference call scheduling in early November produced a small uptick. Against this backdrop, the 2025 results add another earnings datapoint following earlier quarterly reporting and financing actions.

Market Pulse Summary

This announcement details Lument Finance Trust’s 2025 performance, with a GAAP net loss of $7.5 mill...

Analysis

This announcement details Lument Finance Trust’s 2025 performance, with a GAAP net loss of $7.5 million versus full-year distributable earnings of $7.6 million and distributable EPS of $0.14. The company emphasizes its non-GAAP framework, adjustments for credit losses, and the link between distributable earnings and dividends. Investors may focus on Q4 weakness, the reconciliation table, and how these results compare with prior quarters and recent financing activity when evaluating future dividend capacity and risk.

Key Terms

gaap, non-gaap, distributable earnings, real estate owned, +4 more

8 terms

gaap financial

"financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP")."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"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"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

distributable earnings financial

"Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock"

Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.

real estate owned financial

"Realized loss on real estate owned Unrealized loss on mortgage servicing rights Unrealized provision for credit losses Depreciation of real estate owned"

Real estate owned (REO) describes properties that a lender has taken ownership of after a borrower failed to keep up mortgage payments and the bank completed the repossession process. It matters to investors because REO shows up on a lender’s books as unsold inventory—affecting the lender’s financial health, cash flow and future profits—and presents buying opportunities or risks for real estate investors due to repair, holding, and resale costs.

mortgage servicing rights financial

"Realized loss on real estate owned Unrealized loss on mortgage servicing rights Unrealized provision for credit losses"

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

provision for credit losses financial

"While Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

reconciliation financial

"GAAP to Distributable Earnings Reconciliation"

Reconciliation is the process of comparing two sets of financial records and fixing any differences so they match, like balancing a checkbook to ensure receipts agree with the bank statement. For investors, reconciliation matters because it confirms that reported numbers are accurate and complete, highlights mistakes or irregularities, and helps ensure that financial performance and cash positions used to value a company are reliable.

regulation s-k regulatory

"constitutes a non-GAAP financial measure within the meaning of Item 10(e) of Regulation S-K"

A set of U.S. Securities and Exchange Commission rules that tell public companies which narrative and qualitative details must be disclosed in filings, such as risk factors, management discussion, executive pay, legal proceedings and business description. Think of it as a standardized checklist or blueprint that ensures investors get the same types of background information from every company so they can compare risks, management quality and strategy before making investment decisions.

AI-generated analysis. Not financial advice.

NEW YORK, March 23, 2026 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today reported its fourth quarter and full year 2025 results. GAAP net loss attributable to common shareholders for the fourth quarter was $(8.9) million, or $(0.17) per share of common stock, and for the full year was $(7.5) million, or $(0.14) per share of common stock. Distributable loss for the fourth quarter was $(0.2) million, or $(0.00) per share of common stock. Distributable earnings for the full year were $7.6 million or $0.14 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at www.lumentfinancetrust.com.

Conference Call and Webcast Information

The Company will host a conference call on Tuesday, March 24, 2026, at 8:30 a.m. ET to provide a business update and discuss the financial results for the fourth quarter of 2025. 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/506xR8EYDLz

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 16975.

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, 2025	December 31, 2025
Reconciliation of GAAP to non-GAAP Information
Net Income attributable to common shareholders		$                  (8,942,111)	$                 (7,485,309)
Adjustments for non-Distributable Earnings
Realized loss on real estate owned Unrealized loss on mortgage servicing rights Unrealized provision for credit losses Depreciation of real estate owned		(200,196) 11,367 8,628,158 295,698	(200,196) 95,041 14,390,927 779,260
Subtotal		8,735,027	15,065,032
Other Adjustments
Adjustment for income taxes		6,629	8,193
Subtotal		6,629	8,193
Distributable Earnings		$                    (200,455)	$                     7,587,916
Weighted average shares outstanding - Basic and Diluted		52,372,810	52,344,316
Distributable Earnings per weighted share outstanding - Basic and Diluted		$                          (0.00)	$                              0.14

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, 2025, 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 were Lument Finance Trust (LFT) GAAP results for Q4 2025?

Lument reported a GAAP net loss of $(8.9 million) for Q4 2025. According to the company, that equals $(0.17) per share attributable to common shareholders, as disclosed in its March 23, 2026 report.

How much distributable earnings did LFT report for the full year 2025?

Lument reported $7.6 million in distributable earnings for 2025. According to the company, that equates to $0.14 per weighted share and is reconciled from GAAP net loss in its tables.

Why does Lument present distributable earnings versus GAAP net income for LFT?

Distributable earnings exclude certain non-cash GAAP items and one-time adjustments to reflect core performance. According to the company, it mirrors its management agreement "Core Earnings" for incentive fee calculations.

When and how can investors access the LFT Q4 2025 earnings call and replay?

The company will host a live call on March 24, 2026 at 8:30 a.m. ET with a webcast link. According to the company, a recorded replay will be available on its investor website and by telephone afterward.

What was LFT's distributable result for Q4 2025 per share?

Distributable loss for Q4 2025 was reported as $(0.2 million), or $(0.00) per share. According to the company, the reconciliation shows adjustments that produced the near-zero distributable EPS.

How large is LFT's share count used to calculate distributable EPS for 2025?

Lument used a weighted average share count of about 52.34 million shares for 2025. According to the company, that figure was used to compute distributable earnings per share of $0.14.