Lument Finance Trust Reports Third Quarter 2026 Results

Rhea-AI Summary

Lument Finance Trust (NYSE: LFT) reported a third-quarter 2026 GAAP net loss attributable to common shareholders of $13.5 million. The loss was $2.57 per common share. Distributable Loss, a non-GAAP measure, was $685,191, or $0.13 per share, for the three months ended September 30, 2026.

The reconciliation included an $8,599,694 provision for credit losses and $3,892,329 of real estate owned impairment expense. Other adjustments included $318,237 of depreciation of real estate owned, a $3,436 unrealized loss on mortgage servicing rights and a $9,231 income-tax adjustment. Distributable Loss excludes unrealized credit-loss provisions, but loan losses enter the measure when deemed non-recoverable. A business update and results conference call is scheduled for November 13, 2026, at 8:30 a.m. ET.

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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Negative

• Major pointGAAP net loss attributable to common shareholders totaled $13.5 million, or $2.57 per share, in third-quarter 2026.
• Minor pointDistributable Loss was $685,191, or $0.13 per share, in third-quarter 2026.
• Minor pointProvision for credit losses totaled $8,599,694 for the three months ended September 30, 2026.
• Minor pointReal estate owned impairment expense totaled $3,892,329 in third-quarter 2026.
• Minor pointDepreciation of real estate owned totaled $318,237 in third-quarter 2026.
• Minor pointUnrealized loss on mortgage servicing rights totaled $3,436 in third-quarter 2026.

News Explained

The reported Distributable Loss measure mirrors the “Core Earnings” calculation under Lument Finance Trust’s management agreement for calculating the manager’s incentive fee.

Key Figures

GAAP net loss: $13.5 million GAAP loss per share: $2.57 per share Distributable Loss: $0.7 million +1 more

GAAP net loss

$13.5 million

Third quarter 2026; attributable to common shareholders

GAAP loss per share

$2.57 per share

Third quarter 2026; common stock

Distributable Loss

$0.7 million

Third quarter 2026; non-GAAP measure

Distributable Loss per share

$0.13 per share

Third quarter 2026; non-GAAP measure

Previous Earnings Reports

3 past events · Latest: Aug 13

Same Type 3 events

1. Aug 13

   Quarterly earnings

   24h Move

   -5.1%

   Q2 2026 reported GAAP and distributable losses; the release also announced a reverse split.

2. May 15

   Quarterly earnings

   24h Move

   -7.0%

   Q1 2026 reported a GAAP loss alongside positive distributable earnings.

3. Nov 12

   Quarterly earnings

   24h Move

   -3.3%

   Q3 2025 reported GAAP net income and positive distributable earnings.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap financial measure, regulation s-k, mortgage servicing rights

4 terms

gaap financial

"GAAP net loss attributable to common shareholders"

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.

View in glossary

non-gaap financial measure financial

"Distributable Loss, a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

regulation s-k regulatory

"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.

mortgage servicing rights financial

"Unrealized loss on mortgage servicing rights"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Nov. 12, 2026 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today reported its third quarter results. GAAP net loss attributable to common shareholders for the third quarter was $13.5 million, or $2.57 per share of common stock. Distributable Loss, a non-GAAP financial measure, for the third quarter was $0.7 million, or $0.13 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at lumentfinancetrust.com.

Conference Call and Webcast Information

The Company will also host a conference call on Friday, November 13, 2026, at 8:30 a.m. ET to provide a business update and discuss the financial results for the third quarter of 2026. 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/OM2lgaX83oV

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 (U.S.) or 1-646-517-4150 (international) with passcode 61002.

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 or Loss, 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 or Loss

Distributable Earnings or Loss is a non-GAAP financial 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 or Loss 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 or Loss excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off and realized through Distributable Earnings or Loss 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 or Loss 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 or Loss is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings or Loss has been a strong indicator of our dividends per share of common stock.  Dividends are one of the principal reasons investors invest in REITs.  As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustments.  Furthermore, we use Distributable Earnings or Loss to 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. We also consider Distributable Earnings or Loss as a performance metric when considering and declaring dividends on our common stock.

Distributable Earnings or Loss 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 or Loss Reconciliation

		Three Months Ended
		September 30, 2026
Reconciliation of GAAP to non-GAAP Information
Net (Loss) Income attributable to common shareholders		$                    (13,508,118)
Adjustments for non-Distributable Earnings
Unrealized loss on mortgage servicing rights Provision for credit losses Depreciation of real estate owned Real estate owned impairment expense		3,436 8,599,694 318,237 3,892,329
Subtotal		12,813,696
Other Adjustments
Adjustment for income taxes		9,231
Subtotal		9,231
Distributable (Loss) Earnings		$                   (685,191)
Weighted average shares outstanding - Basic and Diluted		5,252,331
Distributable (Loss) Earnings per weighted share outstanding - Basic and Diluted		$                            (0.13)

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 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, and Part II, Item IA "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2026, which are 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.

FAQ

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What were Lument Finance Trust's third-quarter 2026 earnings?

Lument Finance Trust reported a GAAP net loss attributable to common shareholders of $13.5 million, or $2.57 per common share. Its non-GAAP Distributable Loss was $685,191, or $0.13 per share, for the three months ended September 30, 2026.

How does Lument Finance Trust use Distributable Earnings or Loss when considering dividends?

Lument Finance Trust uses Distributable Earnings or Loss as a performance metric when considering and declaring common-stock dividends. The measure also mirrors the calculation of Core Earnings under its management agreement for determining the manager's incentive fee. It is not a measure of liquidity or funds available for cash needs.