0001547546-26-000005
SEC filingLument Finance Trust, Inc. (LFT) reported a net loss of $2.7 million for FY 2025 ending December 31, 2025, compared to net income attributable to common stockholders of $17.9 million in 2024. Net loss attributable to common stockholders was $7.5 million, or $0.14 per basic share, versus $0.34 per share in the prior year. Key drivers included net interest income of $25.1 million from a $1.14 billion commercial mortgage loan portfolio (net $1.11 billion after $22.7 million allowance), offset by $12.5 million total expenses, a $14.4 million provision for credit losses, and other losses of $15.3 million. The portfolio, 92.7% multifamily, had 61 senior secured floating-rate loans with 7.2% weighted average coupon and 1.7-year term. Total assets stood at $1.22 billion, with liabilities of $996.9 million and stockholders' equity of $219.0 million. Operating cash flow was $10.1 million, while investing activities used $142.9 million amid $403.8 million originations and $251.5 million repayments. Financing provided $87.9 million, including $585.0 million from new CLO. Common dividends declared totaled $0.22 per share. Elevated provisions reflect credit challenges in transitional CRE loans, but non-mark-to-market financing of $800 million supports matched-term funding. Forward outlook notes interest rate uncertainty, geopolitical risks, and focus on multifamily assets for risk-adjusted returns.
Lument Finance Trust reported a FY 2025 net loss of $2.7 million, or -$0.14 per basic share for common stockholders ($7.5 million loss), versus $17.9 million income or $0.34 per share in 2024. Weighted average shares were 52.3 million basic and diluted. Net interest income was $25.1 million, driven by $76.7 million interest from commercial mortgage loans held-for-investment. Total expenses reached $12.5 million, including $4.6 million management fees and $3.9 million G&A. Other losses totaled $15.3 million, primarily $14.4 million provision for credit losses. Balance sheet showed $1.22 billion total assets, with $1.11 billion net loans, $50.9 million REO, and $23.1 million cash. Equity was $219.0 million, down amid losses and $22.7 million allowance.
Primary revenue source is net interest income of $25.1 million, from interest on $1.14 billion commercial mortgage loans ($76.7 million income) less $47.6 million securitized debt, $2.3 million secured financing, and $4.0 million term loan expenses. Portfolio is 100% floating-rate senior secured loans, 92.7% multifamily, with 7.2% weighted average coupon (SOFR +3.33% spread). Originations totaled $403.8 million (net increase $74.7 million after $251.5 million repayments, $62.6 million to REO). Servicing income net $177K, but unrealized MSR loss -$95K.
No gross margin disclosed. Profitability pressured by $14.4 million credit provision (up from $5.3 million in 2024 per reconciliation), leading to pre-tax loss of $2.7 million. Expenses stable at $12.5 million (37% of net interest). Distributable Earnings $7.6 million or $0.14 per share, adjusting for unrealized items, supporting $0.22 per share dividends.
Operating cash flow $10.1 million, boosted by $14.4 million provision, $4.7 million fee accretion. Investing used $142.9 million ($403.8 million purchases offset $251.5 million principal receipts). Financing provided $87.9 million ($585.0 million CLO proceeds, $451.0 million repo, less $661.0 million CLO paydowns, $18.3 million common dividends). Net cash decrease $44.9 million; ending cash/restricted $51.5 million (from $26.6 million? note duplication). Debt: $748.4 million CLO, $191.9 million secured financing, $47.7 million term loan; total liabilities $996.9 million. Liquidity via $800 million non-MTM financing.
Management highlights interest rate cuts (Fed lowered to 3.50%-3.75%), but uncertainty on future cuts, trade policy, geopolitics, inflation. Focus on transitional multifamily loans ($5-75M, LTV up to 75% stabilized), leveraging Lument platform. Proactive asset management on risk-rated loans (avg 3.2); 97.8% current. May adjust strategy for cycles; monitor liquidity amid CLO tests, margin calls.