[8-K] Lument Finance Trust, Inc. Reports Material Event
Rhea-AI Filing Summary
Lument Finance Trust, Inc. reported a GAAP net loss attributable to common shareholders of $8.9 million, or $(0.17) per share, for Q4 2025 and a full-year 2025 GAAP net loss of $7.5 million, or $(0.14) per share. Despite the GAAP loss, full-year Distributable Earnings were $7.6 million, or $0.14 per share, while Q4 showed a small distributable loss.
The board declared a $0.04 per-share common dividend for Q1 2026 and a $0.4921875 per-share dividend on its 7.875% Series A preferred, both payable April 15, 2026. For 2025, cumulative common dividends were $0.22 per share and preferred dividends were $1.96876 per share.
As of December 31, 2025, book value per share of common stock was $3.03 and the company’s $1.1 billion floating-rate commercial real estate loan portfolio was about 92.6% multifamily, with a weighted average spread of SOFR + 3.33% and a leverage ratio of 4.6x.
Positive
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On March 23, 2026, Lument Finance Trust, Inc. (the “Company”) issued a press release (the “Earnings Release”) and supplemental financial information announcing its financial results for fourth quarter and fiscal year ended December 31, 2025. The Earnings Release and supplemental financial information are attached hereto as Exhibit 99.2 and Exhibit 99.3, respectively, and are incorporated herein by reference.
The information disclosed in “Item 2.02 Results of Operations and Financial Condition,” including Exhibits 99.2 and 99.3 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 7.01 | Regulation FD Disclosure. |
On March 19, 2026, the Company issued a press release announcing the declaration of a cash dividend of $0.04 per share of common stock, as further described in the dividend press release. The Company also announced a cash dividend of $0.4921875 per share of 7.875% Cumulative Redeemable Series A Preferred Stock, as further described in the dividend press release. A copy of the dividend press release is furnished herewith as Exhibit 99.1 to this Form 8-K.
The information disclosed under this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Exhibits. |
(d) Exhibits.
| 99.1 | Press Release of Lument Finance Trust, Inc., dated March 19, 2026 | |
| 99.2 | Press Release of Lument Finance Trust, Inc., dated March 23, 2026 | |
| 99.3 | Supplemental Financial Information for the fourth quarter ended December 31, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LUMENT Finance Trust, Inc. | ||
| Date: March 23, 2026 | By: | /s/ James A. Briggs |
| James A. Briggs | ||
| Chief Financial Officer | ||
Exhibit 99.1
Lument Finance Trust, Inc. Declares Quarterly Cash Dividends for its Common and Preferred Stock and Announces Year-End Earnings Release and Investor Call Dates
NEW YORK, NY, March 19, 2026/PRNewswire/ — Lument Finance Trust, Inc. (NYSE: LFT) (“LFT” or the “Company”) announced the declaration of a cash dividend of $0.04 per share of common stock with respect to the first quarter of 2026. The dividend is payable on April 15, 2026, to common stockholders of record as of the close of business on March 31, 2026.
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, 2026, to preferred stockholders of record as of the close of business April 1, 2026.
Additionally, the Company announced that it expects to file its Annual Report on Form 10-K for the year ended December 31, 2025 with the Securities and Exchange Commission on Monday, March 23, 2026, after the market closes, and invites investors and other interested parties to listen to its live conference call via telephone or webcast on Tuesday, March 24, 2026, at 8:30 a.m. Eastern Time.
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.
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, 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 https://www.sec.gov/, the Company website at https://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. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. 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 our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us 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, and Part II, Item 1A “Risk Factors” in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and September 30, 2025, which are available on the Securities and Exchange Commission’s (“SEC”) website at www.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 our 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.
Investor
Relations Contact:
James Briggs
Chief Financial Officer
(212) 521-6323
james.briggs@lument.com
Media Contact:
Tyler Howard
Associate Director
(614) 453-7523
tyler.howard@lument.com
Exhibit 99.2
Lument Finance Trust Reports 2025 Results
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.
1
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 | (200,196 | ) | (200,196 | ) | ||||
| Unrealized loss on mortgage servicing rights | 11,367 | 95,041 | ||||||
| Unrealized provision for credit losses | 8,628,158 | 14,390,927 | ||||||
| Depreciation of real estate owned | 295,698 | 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.
2
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.
Investor Relations Contact:
James Briggs
Chief Financial Officer
(212) 521-6323
james.briggs@lument.com
Media Contact:
Tyler Howard
Associate Director
(513) 403-1911
tyler.howard@lument.com
3
Exhibit 99.3
March 2026 Lument Finance Trust Q4 2025 Earnings Supplemental
Disclaimer 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) ("LFT," the "Company," "we," "our," or "us") with respect to, among other things, the Company's operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "projects," "intends," "plans," "estimates," or "anticipates," or the negative version of these words or other comparable words or other statements that do not relate strictly to historical or factual matters. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include but are not limited to those described under the section entitled "Risk Factors" in its 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/or as disclosed in any subsequent filings. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. The forward-looking statements contained in this presentation speak only as of March 23rd, 2026. The Company assumes no obligation to update or supplement forward?looking statements that become untrue because of subsequent events or circumstances. This presentation includes non-GAAP financial measures, including Distributable Earnings. While we believe the non-GAAP information included in this presentation provides supplemental information to assist investors in analyzing our operating results and to assist investors in comparing our operating 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. Please refer to this presentation's Appendix for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
Company Overview 3 Key Investment Highlights Strong Sponsorship/Ownership • Access to extensive loan origination platform through affiliation with Lument, a premier national mortgage originator and asset manager. • Experienced management team with an average of 20+ years of industry experience across multiple economic cycles. • Affiliation with ORIX Corporation USA, the US subsidiary of ORIX Corporation, the publicly traded Tokyo - based international financial services firm. • The Company is an externally - managed real estate investment trust focused on investing in, financing and managing a portfolio of commercial real estate debt investments. • The Company is externally managed by Lument Investment Management, LLC, an affiliate of ORIX Corporation USA. Attractive Investment Profile • Emphasis on middle market multifamily debt investments which are well positioned for the current environment. • Strong credit and asset management capabilities. • Attractive non - recourse CRE CLOs, revolving repurchase agreements, term loan facilities, and other secured financing structures.
Q4 2025 Updates 4 Note: (1) We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (los s) and cash flows from operating activities determined in accordance with GAAP. Distributable Earnings mirrors how we calculated Core Earnings in the past. Please see Appendix for reconciliation to GAAP. (2) See Appendix for definition of Book Value Per Share of Common Stock. (3) Based on carrying value. (4) If all extensions are exercised by the borrowers, the CRE loan portfolio will have a weighted average remaining term of 2 1 months. • Q4 2025 and FY 2025 GAAP net loss attributable to common stockholders of $(0.17) and $(0.14) per share of common stock, respe cti vely. • Q4 2025 and FY 2025 Distributable Earnings (1) of $(0.00) and $0.14 per share of common stock, respectively. • On December 11, 2025, the Company declared a cash dividend for the quarter of $0.04 per share of common stock. Cumulative cas h d ividends declared for the year totaled $0.22 per share of common stock. • The Company also declared a cash dividend for the quarter of $0.49219 per share of 7.875% Cumulative Redeemable Series A Pref err ed Stock. Cumulative cash dividends declared for the year totaled $1.96876 per share of 7.875% Cumulative Redeemable Series A Preferred St ock. • Book Value Per Share of Common Stock was $3.03 (2) as of 12/31/2025. Financial Results • During the quarter, the Company funded $400.2 million of loan assets and experienced $104.2 million of loan payoffs. • For the full year 2025, the Company funded $403.8 million of loan assets and experienced $271.0 million of loan payoffs. Notable Activity • As of December 31, 2025, the Company’s investment portfolio consisted of floating - rate CRE loans of which approximately 92.6% (3) were collateralized by multifamily assets. • As of December 31, 2025, the Company’s $1.1 billion loan portfolio had a weighted average remaining initial term of 9 months (4) , a weighted average note rate of SOFR + 3.33%, and unamortized aggregate purchase discounts of $1.7 million. • As of December 31, 2025, the Company had a Portfolio weighted average risk rating of 3.2, with 81.6% of the portfolio rated “ 3” (Moderate Risk) or better. Portfolio Performance • The floating - rate CRE loan portfolio was financed through the Company’s two outstanding non - mark - to - market securitized debt obli gations and secured financing arrangements: • $169.7 million of investment grade notes issues through LMF 2023 - 1 financing. • $585.0 million of investment grade notes issued through 2025 - FL3 CLO. • Master repurchase agreement with $450 million borrowing capacity. • Secured lending agreement with $50 million borrowing capacity. • As of December 31, 2025, the Company held cash and cash equivalents of $23.1 million, and its leverage ratio increased year - over - year from 3.7x to 4.6x. • Subsequent to year - end 2025, the Company extended the maturity of its corporate debt to 2030. Capitalization • Subsequent to Q4 2025, the Company exercised its redemption option under the LMF 2023 - 1 Financing and repaid all outstanding loa ns and notes through refinancing of underlying assets through secured financing arrangements. • Subsequent to Q4 2025, the Company entered into an amendment upsizing its corporate debt by $2.3 million, extending maturity to February 2030, and revising interest rate to a fixed 9.75%. Subsequent Events
Q4 2025 Balance Sheet Summary 5 December 31, 2025 (1) Balance Sheet (thousands) $1,114,048 Commercial mortgage loans held - for - investment (net of allowance for credit losses) 50,938 Real Estate Owned 23,113 Cash and cash equivalents 3,505 Restricted cash (2) 5,428 Accrued interest receivable 15,449 Investment related receivable 3,498 Other assets (3) $1,215,980 Total assets $748,433 Secured debt obligations (4) 191,943 Secured financing arrangements 47,719 Credit facility (4) 8,797 Other liabilities $996,893 Total liabilities $219,087 Total equity 4.6x Total liabilities / total equity $3.03 Book Value Per Share of Common Stock (5) Note: (1) See Appendix for detailed consolidated balance sheet, including the Company’s consolidated variable interest entities (“VIE’s”). (2) Restricted cash primarily comprised of REO operating cash accounts. (3) Includes mortgage servicing rights, carried at fair value of $0.6 million. (4) Outstanding principal amount of investment grade notes issued by LMF 2023 - 1 and LMNT 2025 - FL3 is $169.7 million and $585.0 million, respectively. The unpaid principal balance of the credit facility is $47.8 million. For GAAP purposes, these liabilities are carried at their outstanding unpaid principal balance, net of any una mor tized discounts and debt issuance costs. (5) See Appendix for definition of Book Value Per Share of Common Stock.
Q4 and Full Year 2025 Income Statement Summary 6 Twelve Months Ended December 31, 2025 Three Months Ended December 31, 2025 Summary Income Statement (thousands) $25,113 $5,366 Net interest income (15,328) (9,283) Total other income (loss) 12,522 (3,834) Operating expenses (8) (7) Benefit (provision) from income taxes 4,740 (1,185) Preferred dividends $(7,485) $(8,942) Net income attributable to common stockholders 52,344,316 52,372,810 Weighted average shares outstanding during the period, basic and diluted $(0.14) $(0.17) Net income attributable to common stockholders per share Twelve Months Ended December 31, 2025 Three Months Ended December 31, 2025 GAAP Net Income to Distributable Earnings Reconciliation (thousands) $(7,485) $(8,942) Net Income attributable to common stockholders Adjustments: 95 11 Unrealized (Gain) Loss on mortgage servicing rights 14,391 8,628 Unrealized provision for loan losses 779 296 Depreciation of real estate owned (200) (200) Realized loss on sale of real estate owned 8 7 Provision for (benefit from) income taxes $7,588 $(200) Distributable Earnings (1) 52,344,316 52,372,810 Weighted average shares outstanding during the period, basic and diluted $0.14 $(0.00) Distributable Earnings per share of common stock $0.22 $0.04 Dividend per share of common stock Note: (1) See Appendix for definition of Distributable Earnings and reconciliation to GAAP.
Earnings and Book Value Per Share of Common Stock 7 $0.08 $0.05 $0.02 $0.00 $0.08 $0.06 $0.04 $0.04 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Distributable Earnings Dividends $3.29 $3.27 $3.25 $3.03 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Distributable Earnings (1) & Dividends Per Share of Common Share Book Value Per Share of Common Stock (2) Note: (1) See Appendix for definition of Distributable Earnings and for reconciliation of GAAP net income to distributable ear nings. (2) See Appendix for definition of Book Value Per Share of Common Stock.
Investment Portfolio 8 Geographic Concentration (2) Multifamily , $1,032.0 , 92.6% Seniors Housing & Healthcare , $82.0 , 7.4% Property Type (2) $1,114.0 Note: (1) Based on carrying value. (2) $ In millions, based on carrying value. • On December 31, 2025, the Company owned a portfolio of floating - rate CRE loans with a carrying value of $1.1 billion. 92.6% (1) of the portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment opportunities within multifamily credit. The Company does not currently own any hospitality, retail, or office loan assets and has limited exposure to seniors housing and self - storage. TX , … FL , $188.0 , 16.9% NJ , $120.7 , 10.8% GA , $96.4 , 8.7% OH , $57.1 , 5.1% Other States , $371.6 , 33.4% $1,114.0
Q4 2025 Loan Activity 9 Multifamily , $87.8 , 88.1% Seniors Housing and Healthcare , $6.1 , 6.1% Self Storage , … Q4 Payoffs by Property Type (1) $99.8 • The Company funded $400.3 million of loan assets and experienced $99.8 million of loan payoffs during the quarter. Note: (1) $ In millions, based on UPB. (2) Portfolio balances shown based on carrying value net of allowances. “Other Activity” is comprised of changes in capitaliz ed origination fees, extension fees, and purchase discounts. Portfolio Activity (2) $821.8 $400.3 $(99.8) $(8.6) $0.3 $1,114.0 Q3 2025 Portfolio Fundings Payoffs / Sales Provision for Loan Losses Other Activity Q4 2025 Portfolio Multifamily , $391.8 , 97.9% Seniors Housing and Healthcare , $8.5 , 2.1% Q4 Fundings by Property Type (1) $400.3
FY 2025 Loan Activity 10 FY 2025 Payoffs by Property Type (1) • The Company funded $403.9 million of loan assets and experienced $266.9 million of loan payoffs during FY 2025. Note: (1) $ In millions, based on UPB. (2) Portfolio balances shown based on carrying value net of allowances. “Other Activity” is comprised of changes in capitaliz ed origination fees, extension fees, and purchase discounts. Portfolio Activity (2) FY 2025 Fundings by Property Type (1) $1,048.8 $403.9 $(266.9) $(11.3) $(62.6) $2.2 $1,114.0 Q4 2024 Portfolio Fundings Payoffs / Sales Provision for Loan Losses Conversion to REO Other Activity Q4 2025 Portfolio Multifamily , $255.0 , 95.5% Seniors Housing and Healthcare , $6.1 , 2.3% Self Storage , … $266.9 Multifamily , $391.8 , 97.0% Seniors Housing and Healthcare , $12.1 , 3.0% $403.9
Portfolio Credit 11 • As of December 31, 2025, 91 .2 % of the Company’s portfolio was performing (1) , with 81.6% of the portfolio rated “3” (Moderate Risk) or better. • Weighted average risk rating (2) of 3.2. • During the quarter, management applied a “5” risk - rating to eight loans with an aggregate principal value of $117.4 million. Asset Performance (1) Weighted Average Risk Rating (2) Note: (1) “Performing” defined as loans that are neither in default nor on non - accrual status. (2)Weighted average risk rating is weighted based on carrying value of portfolio assets. 89.3% 88.7% 89.7% 91.2% 4.3% 4.3% 4.1% 3.7% -1.0000% 0.0000% 1.0000% 2.0000% 3.0000% 4.0000% 5.0000% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 3/31/2025 6/30/2025 9/30/2025 12/31/2025 % Performing Average 1M SOFR 3.5 3.5 3.6 3.2 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/2025 6/30/2025 9/30/2025 12/31/2025 1 2 3 4 5 Weighted Avg Risk Rating
Q4 2025 Capital Structure Overview 12 Primary sources of financing include securitized debt obligations (2025 - FL3 CLO, LMF 2023 - 1), secured financing agreements, preferred stock, and a corporate term loan. Note: (1) In millions. LFT total capitalization is a non - GAAP measure which excludes certain Balance Sheet items; Please see App endix for reconciliation to GAAP. (2) Secured financing shown at par value. 2025 - FL3 CLO GAAP carrying value of $580.1 includes $4.9 million of unamortized debt issuance costs. LMF 2023 - 1 carrying value of $168.4 million includes $1.3 million of unamortized debt issuance costs. Secured financing agreements carrying value of $191.9 million includes $2.3 million of unamo rti zed debt issuance costs. (3) Term loan shown at par value. GAAP carrying value of $47.7 million includes $0.0 million of unamortized debt issuance cos ts . (4) Preferred equity shown at $60 million liquidation preference. (5) Noncontrolling interest was $99,500 as of 12/31/2025 and is excluded from common equity above. 78.1% 13.1% 4.9% 3.9% Secured Financing Common Equity Preferred Equity Term Loan $1,215.6 Capital Structure Composition (1) Capital Structure Detail ($ in millions) Secured Financings (2) Maturity Date Rate Advance Rate Amount LMF 2023-1 Financing June 2039 S + 3.40% 71.2% $169.7 LMNT 2025-FL3 July 2043 S + 1.91% 88.1% $585.0 Secured financing agreements Various Various Various $194.2 Credit Facilities Term Loan (3) February 2030 8.38% $47.8 Total Debt $996.6 Equity Preferred Equity (4) N/A 7.875% $60.0 Book Value of Common Equity (5) N/A $159.0 Total Capitalization (1) $1,215.6
$0.00 $0.01 $0.02 $0.04 $0.06 +25 bps 0 bps -25 bps -50 bps -75 bps -100 bps Net Interest Income Sensitivity to Shifts in Term SOFR 13 Floating Rate Assets (2) $1,140 Floating Rate Liabilities (3) - $949 Net Exposure $191 Floating - Rate Exposure (1) Net Interest Income Per Share Sensitivity to Change in SOFR (4) • 100% floating - rate loan portfolio. • 100% of portfolio is indexed to 30 - day term SOFR. Note: (1) In millions. Net Exposure represents UPB of floating rate loan portfolio assets net of par value of secured floating rate debt outstanding. (2) Figure reflects unpaid principal balance of floating - rate loan portfolio. (3) Comprised of secured financing arrangements and outstanding securitization notes related to 2025 - FL3 and LMF 2023 - 1, all of which are indexed to one - month SOFR. Figure reflects par value of notes. (4) Annualized impact per common share. Assumes starting 30 - day term SOFR of 3.69%. Our loan assets feature rate floors which p artially mitigate the adverse earnings impact of declines in SOFR.
Appendix
12/31/2025 CRE Loan Portfolio Details 15 Continued on the following page Note: (1) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of any changes in value which may have occurred subsequent to the origination date. # Loan Name Closing Date Maturity Date Property Type City State Unpaid Principal Balance Note Spread Unamortized Discount/Premium Initial Term (months) As-Is LTV at Origination (1) 1 Loan 1 1/31/2025 8/5/2026 Multifamily Los Angeles CA 43,655,000 3.00% 0 32 66.10% 2 Loan 2 7/31/2025 8/5/2027 Multifamily Lincoln Park NJ 40,000,000 2.75% 0 38 62.90% 3 Loan 3 12/23/2024 1/5/2027 Multifamily Macon GA 36,800,000 2.90% 0 49 66.10% 4 Loan 4 1/16/2025 2/5/2026 Multifamily Noblesville IN 36,000,000 2.55% 0 26 67.57% 5 Loan 5 1/29/2025 2/5/2027 Multifamily Manchaca TX 35,500,000 3.00% 0 38 52.21% 6 Loan 6 12/16/2021 1/5/2026 Multifamily Daytona Beach FL 35,000,000 3.16% 0 13 71.70% 7 Loan 7 3/22/2022 4/5/2026 Multifamily Seneca SC 31,627,625 3.35% (247,300) 16 74.54% 8 Loan 8 6/28/2022 4/5/2027 Multifamily Dallas TX 29,623,930 3.40% (225,599) 19 71.59% 9 Loan 9 6/8/2021 4/3/2026 Multifamily Miami FL 29,543,566 3.31% 0 4 74.26% 10 Loan 10 4/3/2025 4/5/2027 Multifamily Lockport IL 27,500,000 2.81% 0 28 64.50% 11 Loan 11 11/2/2021 2/5/2026 Multifamily Melbourne FL 26,049,291 3.21% 0 2 72.09% 12 Loan 12 9/17/2024 10/5/2026 Multifamily Marysville OH 25,500,000 2.85% 0 22 73.80% 13 Loan 13 4/27/2022 5/5/2026 Multifamily North Brunswick NJ 24,525,000 3.40% 0 17 79.90% 14 Loan 14 8/26/2021 8/5/2027 Multifamily Clarkston GA 24,468,032 3.61% 0 32 79.00% 15 Loan 15 12/20/2024 1/5/2028 Multifamily Olympia WA 23,370,018 3.75% 0 49 68.49% 16 Loan 16 10/18/2021 8/5/2026 Multifamily Cherry Hill NJ 23,348,000 3.11% 0 11 72.40% 17 Loan 17 12/29/2021 1/6/2026 Multifamily Spring Lake NC 23,000,000 3.96% 0 13 59.90% 18 Loan 18 8/26/2021 3/6/2027 Multifamily Union City GA 22,872,354 3.46% 0 15 70.40% 19 Loan 19 12/6/2024 1/5/2028 Multifamily Groveport OH 21,990,281 3.50% 0 37 51.50% 20 Loan 20 11/16/2021 3/6/2026 Multifamily Dallas TX 21,916,753 3.31% 0 12 73.54% 21 Loan 21 7/8/2022 8/5/2026 Multifamily Arlington TX 21,818,465 3.75% (148,541) 20 67.10% 22 Loan 22 8/31/2021 1/5/2026 Multifamily Houston TX 21,644,684 3.41% 0 1 74.20% 23 Loan 23 3/22/2022 4/5/2026 Multifamily York PA 21,442,771 3.30% (221,376) 4 79.17% 24 Loan 24 11/29/2022 12/31/2026 Healthcare Glendale WI 20,360,000 4.00% 0 12 45.00% 25 Loan 25 11/5/2021 6/5/2027 Multifamily Orlando FL 19,625,274 3.11% 0 11 78.05% 26 Loan 26 11/21/2022 12/31/2026 Healthcare Houston TX 18,920,000 4.00% 0 12 67.00% 27 Loan 27 11/10/2022 12/31/2026 Healthcare Austin TX 18,590,000 4.00% 0 12 65.00% 28 Loan 28 2/11/2022 3/6/2026 Multifamily Tampa FL 18,363,394 3.60% 0 15 77.99% 29 Loan 29 11/23/2021 12/4/2026 Multifamily Orange NJ 18,341,502 3.31% 0 12 78.00% 30 Loan 30 2/2/2022 7/4/2026 Multifamily Houston TX 17,936,729 3.50% 0 19 77.50%
12/31/2025 CRE Loan Portfolio Details 16 Note: (1) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of any changes in value which may have occurred subsequent to the origination date. # Loan Name Closing Date Maturity Date Property Type City State Unpaid Principal Balance Note Spread Unamortized Discount/Premium Initial Term (months) As-Is LTV at Origination (1) 31 Loan 31 3/26/2025 4/5/2027 Multifamily Kannapolis NC 17,780,000 2.91% 0 28 60.40% 32 Loan 32 12/20/2024 1/5/2026 Multifamily Lafayette IN 17,010,000 2.65% 0 25 68.00% 33 Loan 33 3/31/2022 4/5/2026 Multifamily Tallahassee FL 16,956,276 3.00% (154,421) 16 74.80% 34 Loan 34 3/28/2025 4/5/2027 Multifamily Lansing MI 16,500,000 2.90% 0 28 73.50% 35 Loan 35 12/16/2021 1/5/2026 Multifamily Daytona Beach FL 16,375,000 3.16% 0 13 71.70% 36 Loan 36 11/21/2022 12/31/2026 Healthcare Southlake TX 15,735,000 4.00% 0 12 48.00% 37 Loan 37 2/22/2022 3/6/2026 Multifamily Philadelphia PA 15,524,795 3.80% (62,360) 15 80.00% 38 Loan 38 4/6/2022 6/5/2026 Multifamily Vineland NJ 15,347,180 3.75% (105,053) 6 77.00% 39 Loan 39 4/27/2022 5/5/2026 Multifamily Houston TX 14,171,704 3.70% 0 17 79.60% 40 Loan 40 12/28/2021 2/5/2026 Multifamily Houston TX 13,864,376 3.25% (78,667) 2 71.22% 41 Loan 41 4/12/2021 5/5/2025 Multifamily Cedar Park TX 13,666,721 3.86% 0 5 66.70% 42 Loan 42 12/20/2024 1/5/2028 Multifamily Olympia WA 13,000,000 3.75% 0 49 68.49% 43 Loan 43 7/26/2022 8/5/2027 Multifamily Atlanta GA 12,905,495 3.65% (130,514) 20 65.15% 44 Loan 44 11/5/2024 11/5/2026 Multifamily El Paso TX 12,851,563 3.75% 0 23 69.90% 45 Loan 45 12/28/2021 2/5/2026 Multifamily Houston TX 12,203,341 3.25% 0 2 71.20% 46 Loan 46 5/12/2022 6/5/2025 Multifamily Ypsilanti MI 11,926,591 3.50% (87,412) 18 68.40% 47 Loan 47 10/10/2024 11/5/2026 Multifamily Cottonwood AZ 11,550,000 3.25% 0 47 38.50% 48 Loan 48 1/25/2022 6/9/2027 Multifamily Corpus Christi TX 11,261,792 3.55% (57,316) 30 78.76% 49 Loan 49 10/28/2021 11/6/2026 Multifamily Tampa FL 11,202,535 3.06% 0 11 75.70% 50 Loan 50 5/3/2022 5/5/2026 Multifamily Port Richey FL 10,818,945 3.55% (101,016) 17 79.05% 51 Loan 51 6/28/2022 7/4/2025 Multifamily Colorado Springs CO 10,531,845 3.90% 0 19 73.06% 52 Loan 52 9/30/2021 10/6/2026 Multifamily Clearfield UT 9,815,615 3.26% 0 10 67.98% 53 Loan 53 7/14/2022 8/5/2026 Multifamily Bradenton FL 9,429,206 3.90% (38,011) 20 74.40% 54 Loan 54 6/22/2022 7/3/2025 Multifamily Des Moines IA 8,593,992 4.00% 0 19 72.03% 55 Loan 55 4/15/2024 5/5/2026 Healthcare Meridian ID 8,500,000 4.65% 0 11 54.00% 56 Loan 56 12/19/2025 1/5/2028 Multifamily San Antonio TX 6,960,000 2.75% 0 49 76.50% 57 Loan 57 10/7/2022 11/5/2026 Multifamily Fairborn OH 6,816,701 4.10% 0 -1 79.10% 58 Loan 58 9/18/2024 4/6/2026 Multifamily Vallejo CA 6,000,000 3.35% 0 16 71.20% 59 Loan 59 12/19/2024 1/5/2026 Multifamily Bellflower CA 5,987,732 2.50% 0 25 30.40% 60 Loan 60 12/29/2021 1/6/2026 Multifamily Multi NC 4,549,146 3.96% 0 13 59.90% 61 Loan 61 10/27/2025 11/5/2027 Multifamily Columbus OH 3,100,000 2.35% 0 35 75.00% Total / Average 1,140,268,218 3.33% (1,657,584) 21 68.88%
Consolidated Balance Sheets 17
Consolidated Statement of Income 18
Detailed Walk of Allowance for Loan Losses 19
Reconciliation of Net Income to Distributable Earnings 20 For the Three Months Ended December 31, 2025 September 30, 2025 June 30, 2025 Mar 31, 2025 GAAP to Distributable Earnings Reconciliation Reconciliation of GAAP to non - GAAP Information $(8,942,111) $658,597 $2,505,731 $(1,707,526) Net income attributable to common stockholders Adjustments for non - Distributable earnings 11,367 24,700 36,456 22,518 Unrealized losses (gains) on mortgage servicing rights 8,628,158 (29,660) 94,768 5,697,661 Unrealized provision for credit losses (200,196) 0 0 0 Realized loss on sale of real estate owned 295,698 344,785 138,777 0 Depreciation of real estate owned 8,735,027 339,825 270,001 5,720,179 Subtotal Other Adjustments 6,629 (2,902) (4,084) 8,550 Adjustment for income taxes 6,629 (2,902) (4,084) 8,550 Subtotal $(200,455) $995,520 $2,771,648 $4,021,203 Distributable Earnings 52,372,810 52,352,594 52,332,304 52,309,265 Weighted average shares outstanding, b asic and diluted $(0.00) $0.02 $0.05 $0.08 Distributable Earnings per share of common stock , b asic and diluted
Detailed Walk of Capitalization as of 12/31/2025 21 12/31/2025 LFT Capitalization Reconciliation (in 000's) $1,215,881 Total GAAP liabilities and stockholders' equity (1) Adjustments for Capitalization (1,870) ( - ) Accrued interest payable (3,093) ( - ) Dividends payable (1,429) ( - ) Fees and expenses payable to Manager (2,406) ( - ) Other accounts payable and accrued expenses 8,486 ( + ) Other capitalized financing & issuance costs $1,215,569 LFT Capitalization Note: (1) Net of non - controlling interest.
Book Value Per Share of Common Stock as of 12/31/2025 22 Note: (1) Reflects 2.4 million shares of the Company’s 7.875% Series A Cumulative Redeemable Preferred Stock outstanding at a $ 25 liquidation preference per share. December 31, 2025 Book Value Per Common Share (in 000's) $218,987 Total stockholders’ equity (60,000) ( - ) Preferred equity (1) (100) ( - ) Non - controlling interest $158,987 Common equity 52,399,265 Shares outstanding $3.03 Book Value Per Share of Common Stock
Key Definitions 23 “ Book Value Per Share of Common Stock ” is calculated as: a) total stockholders’ equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its stated liquidation preference of $25.00 per share, divided by b) the weight ed average number of shares of common stock issued and outstanding during the period, basic and diluted. “ Distributable Earnings ” is a non - GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock, or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not ot her wise 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. We also add back one - time charges such as acquisition costs and one - time gains/losses on the early extinguishment of debt and redemption of preferred stock. Distributable Earnings mirrors how we calculate Core Earnings pursu ant to the terms of our management agreement with our Manager for purposes of calculating the incentive fee payable to our Manager. Whil e Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off an d r ealized through Distributable Earnings when deemed non - recoverable. Non - recoverability is determined (i) upon the resolution of a loan (i.e. wh en 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 a mou nt 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 c ash flows from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for e xis ting and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator o f o ur dividends per share. As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustment s, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. Refer to Note 16 to ou r c onsolidated financial statements for further discussion of our distribution requirements as a REIT. Furthermore, Distributable Earnings h elp us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indica tiv e 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 con sid ered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an in dication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the m eth odologies employed by other companies to calculate the same or similar performance measures, and accordingly, our reported Distributabl e E arnings may not be comparable to the Distributable Earnings reported by other companies.
March 2026
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