Lument Finance Trust Reports First Quarter 2026 Results
Rhea-AI Summary
Lument Finance Trust (NYSE:LFT) reported first quarter 2026 results, with a GAAP net loss attributable to common shareholders of $978,375, or approximately $0.02 per share. Distributable earnings, a non-GAAP measure, were $1,123,030, or $0.02 per share, on 52.4 million weighted-average shares.
The company detailed its non-GAAP adjustments, emphasizing how Distributable Earnings are used to evaluate performance and support dividend decisions as a REIT.
AI-generated analysis. Not financial advice.
Positive
- Distributable earnings of $1.12 million, or $0.02 per share, in Q1 2026
- Non-GAAP adjustments of $2.11 million turned GAAP loss into positive distributable earnings
Negative
- GAAP net loss attributable to common shareholders of $978,375 in Q1 2026
- Distributable earnings rely on sizable non-GAAP adjustments totaling about $2.11 million
Key Figures
Market Reality Check
Peers on Argus
LFT is up 3.6% while key peers are mixed: GPMT up 3.03%, ACR roughly flat (-0.1%), CHMI down 2.16%, SEVN down 0.24%, SUNS down 0.37%, pointing to a stock-specific reaction to earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Quarterly earnings | Positive | -3.3% | Q3 2025 GAAP and distributable earnings both positive with standard call. |
| Aug 08 | Quarterly earnings | Positive | -9.1% | Q2 2025 strong GAAP and distributable earnings with reconciliation details. |
| May 12 | Quarterly earnings | Positive | -8.4% | Q1 2025 GAAP loss but solid positive distributable earnings per share. |
| Nov 12 | Quarterly earnings | Positive | -2.9% | Q3 2024 GAAP and distributable earnings both strong, with non‑cash adjustments. |
| Aug 12 | Quarterly earnings | Positive | -4.3% | Q2 2024 solid GAAP income and higher distributable earnings per share. |
Earnings releases have consistently seen negative next‑day moves despite generally positive distributable earnings metrics.
Over the last five earnings releases from Aug 12, 2024 through Nov 12, 2025, Lument reported mostly positive GAAP net income and distributable earnings, with one GAAP loss in Q1 2025 offset by positive distributable earnings. Despite this, shares moved between about -2.9% and -9.1% after each report. Today’s Q1 2026 release, showing a GAAP net loss but positive distributable earnings, follows this pattern of emphasizing distributable metrics as the key REIT performance indicator.
Historical Comparison
In the past five earnings releases, LFT’s average next‑day move was -5.58%, usually negative despite mostly positive distributable earnings. Today’s Q1 2026 report again emphasizes distributable results alongside GAAP figures.
Earnings over 2024–2025 fluctuated between GAAP profits and a Q1 2025 loss, while distributable earnings remained positive in most quarters, reinforcing their role as the primary dividend capacity metric.
Market Pulse Summary
This announcement reports a Q1 2026 GAAP net loss of $1.0M (or $(0.02) per share) alongside positive distributable earnings of $1.1M, also $0.02 per share. Investors may focus on how non‑cash items, mortgage servicing rights marks, and real estate owned adjustments drive the gap between GAAP and distributable results. Comparing these figures with prior quarters’ earnings and credit loss provisions helps gauge dividend sustainability and portfolio performance trends.
Key Terms
gaap financial
non-gaap financial measures financial
distributable earnings financial
mortgage servicing rights financial
real estate owned financial
AI-generated analysis. Not financial advice.
Conference Call and Webcast Information
The Company will also host a conference call on Friday, May 15, 2026, at 1:00 p.m. ET to provide a business update and discuss the financial results for the first quarter of 2026. The conference call may be accessed by dialing 1-800-836-8184 (
https://app.webinar.net/a9jkw89JQ1r
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 lumentfinancetrust.com and by telephone dial-in. The replay call-in number is 1-888-660-6345 (
Non-GAAP Financial Measures
In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in
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
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 | ||
March 31, 2026 | ||
Reconciliation of GAAP to non-GAAP Information | ||
Net Income attributable to common shareholders | $ (978,375) | |
Adjustments for non-Distributable Earnings | ||
Unrealized loss on mortgage servicing rights (Release of) credit losses Depreciation of real estate owned Real estate owned impairment expense Loss on extinguishment of debt | 30,245 (732,373) 304,885 1,350,435 1,152,861 | |
Subtotal | 2,106,053 | |
Other Adjustments | ||
Adjustment for income taxes | (4,648) | |
Subtotal | (4,648) | |
Distributable Earnings | $ 1,123,030 | |
Weighted average shares outstanding - Basic and Diluted | 52,400,158 | |
Distributable Earnings per weighted share outstanding - Basic and Diluted | $ 0.02 |
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
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 sec.gov, the Company website at 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 sec.gov, and in the Company's 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.