Lument Finance Trust Reports Second Quarter 2026 Results and Announces Reverse Stock Split
Rhea-AI Summary
Lument Finance Trust (NYSE:LFT) reported second quarter 2026 results and approved a 1-for-10 reverse stock split of its common stock. GAAP net loss attributable to common shareholders was $9.2 million, or $(0.18) per share. Distributable Loss, a non-GAAP measure, was $5.3 million, or $(0.10) per share, based on 52.46 million weighted-average shares outstanding.
The reverse stock split is intended to help LFT regain compliance with New York Stock Exchange listing standards and support an efficient trading market. It is expected to take effect at 5:00 p.m. ET on September 9, 2026, with split-adjusted trading beginning September 10, 2026 under the ticker LFT with new CUSIP 55025L306. Every ten shares will convert into one share, reducing outstanding common shares from approximately 52.5 million to 5.3 million. No fractional shares will be issued; holders will receive cash in lieu of fractions. LFT also posted a detailed results presentation and a reverse split FAQ for investors.
Positive
- Reverse stock split to support NYSE compliance 1-for-10 split approved, aiming to regain applicable New York Stock Exchange listing requirements and support an efficient public trading market.
- Share count reduction Outstanding common shares expected to decrease from approximately 52.5 million to about 5.3 million after the 1-for-10 reverse split, with proportional ownership maintained except for fractional share cash-out.
Negative
- GAAP net loss Q2 2026 Net loss attributable to common shareholders was approximately $9.2 million, or $(0.18) per share, for the second quarter of 2026.
- Distributable Loss Q2 2026 Non-GAAP Distributable Loss totaled about $5.3 million, or $(0.10) per weighted-average share, for the three months ended June 30, 2026.
News Explained
LFT’s 1-for-10 reverse split is approved but not yet effective: it is expected at 5:00 p.m. ET on
Market Reaction – LFT
Following this news, LFT has declined 9.35%, reflecting a notable negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.63.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 10 | earnings scheduling | Neutral | +2.6% | Earnings filing and investor call dates were announced; the stock rose 2.61%. |
| Jul 30 | listing notice | Negative | -8.2% | NYSE deficiency notice cited a sub-$1.00 average closing price; shares fell 8.23%. |
| Jun 10 | dividend declaration | Positive | +7.0% | Quarterly common and preferred cash dividends were declared; shares gained 7%. |
| May 15 | 1Q26 earnings report | Negative | -7.0% | GAAP loss outweighed positive distributable earnings; shares declined 6.96%. |
| May 12 | earnings scheduling | Neutral | -2.6% | Quarterly filing and conference call timing were announced; shares fell 2.63%. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Negative or mixed company news in the recent record was followed by declines, while dividend news was followed by a gain.
Key Terms
reverse stock split financial
gaap financial
non-gaap financial measure financial
cusip number technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Results
GAAP net loss attributable to common shareholders for the second quarter was
Reverse Stock Split
The Reverse Stock Split is being implemented in order to regain compliance with applicable New York Stock Exchange listing requirements and support an efficient public trading market for the Company's common stock.
The Reverse Stock Split is expected to become effective at 5:00 pm Eastern Time on September 9, 2026 (the "Effective Time"). Accordingly, at the Effective Time, every ten issued and outstanding shares of the Company's common stock will be converted into one share of common stock. The Company's common stock is expected to begin trading on a split-adjusted basis on the New York Stock Exchange at the opening of trading on September 10, 2026 (the first trading day after the Effective Time), under the existing ticker symbol "LFT", with a new CUSIP number: 55025L306.
The Reverse Stock Split will affect all stockholders uniformly and will not alter any stockholder's percentage ownership interest in the Company, except with respect to the treatment of fractional shares. No fractional shares will be issued in connection with the Reverse Stock Split. Stockholders who would otherwise be entitled to receive a fractional share as a result of the Reverse Stock Split will receive cash in lieu of such fractional share. The Reverse Stock Split is expected to reduce the number of issued and outstanding shares of the Company's common stock from approximately 52.5 million shares to approximately 5.3 million shares.
Stockholders holding shares in book-entry form or through a bank, broker or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split and will not be required to take any action in connection with the Reverse Stock Split. The Company reserves the right to abandon or delay the Reverse Stock Split and will inform stockholders of any changes to its plans.
For the benefit of its investors, the Company has also posted a Reverse Stock Split FAQ document on the Investor Relations page of its website.
Conference Call and Webcast Information
The Company will also host a conference call on Friday, August 14, 2026, at 8:30 a.m. ET to provide a business update and discuss the financial results for the second quarter of 2026. The conference call may be accessed by dialing 1-800-836-8184 (
https://app.webinar.net/nok7BevLPR1
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 or Loss 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 | ||
June 30, 2026 | ||
Reconciliation of GAAP to non-GAAP Information | ||
Net Income attributable to common shareholders | $ (9,197,948) | |
Adjustments for non-Distributable Earnings | ||
Realized (loss) on commercial mortgage loans Realized (loss) on sale of real estate owned Unrealized loss on mortgage servicing rights Provision for credit losses Depreciation of real estate owned | (1,841,615) (3,267,833) 17,268 8,625,695 390,272 | |
Subtotal | 3,923,787 | |
Other Adjustments | ||
Adjustment for income taxes | (10,745) | |
Subtotal | (10,745) | |
Distributable Earnings | $ (5,284,906) | |
Weighted average shares outstanding - Basic and Diluted | 52,459,976 | |
Distributable Earnings per weighted share outstanding - Basic and Diluted | $ (0.10) |
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 website 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.