$LFT-PA

Lument Finance Trust, Inc.

CIK:0001547546|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Commercial mortgage loans held-for-investment	$ 18,946,403	$ 19,976,355	$ 39,847,945	$ 41,661,245
Cash and cash equivalents	102,828	602,563	268,675	1,227,530
Interest expense:
Securitized debt obligations	(8,582,040)	(12,646,774)	(18,957,805)	(26,283,248)
Secured financing agreements	(4,700,649)	0	(8,555,754)	0
Secured term loan	(1,263,812)	(971,365)	(2,403,653)	(1,910,214)
Net interest income	4,502,730	6,960,779	10,199,408	14,695,313
Expenses:
Management and incentive fees	1,088,516	1,302,526	2,183,516	2,415,840
General and administrative expenses	1,409,608	1,006,961	2,476,345	1,931,021
Operating expenses reimbursable to Manager	623,404	494,801	1,089,835	899,421
Other operating expenses	622,726	240,527	1,539,898	280,536
Compensation expense	111,250	111,250	222,500	222,500
Total expenses	3,855,504	3,156,065	7,512,094	5,749,318
Other income and expense:
Provision for credit losses, net	(8,625,695)	(94,768)	(7,893,322)	(5,792,429)
Net (expense) from real estate owned operations	(210,847)	0	(302,253)	0
Gain on sale of real estate owned	145,435	0	145,435	0
Real estate owned impairment expense	0	0	(1,350,435)	0
Change in unrealized (loss) on mortgage servicing rights	(17,268)	(36,456)	(47,513)	(58,974)
Loss on extinguishment of debt	0	0	(1,152,861)	0
Servicing income, net	37,499	13,199	91,920	78,079
Total other income and expense	(8,670,876)	(118,025)	(10,509,029)	(5,773,324)
Net (loss) income before provision for income taxes	(8,023,650)	3,686,689	(7,821,715)	3,172,671
Benefit from (provision for) income taxes	10,745	4,084	15,393	(4,466)
Net (loss) income	(8,012,905)	3,690,773	(7,806,322)	3,168,205
Dividends accrued to preferred stockholders	(1,185,043)	(1,185,042)	(2,370,001)	(2,370,000)
Net (loss) income attributable to common stockholders	(9,197,948)	2,505,731	(10,176,323)	798,205
Earnings per share:
Net (loss) income attributable to common stockholders (basic)	(9,197,948)	2,505,731	(10,176,323)	798,205
Net (loss) income attributable to common stockholders (diluted)	$ (9,197,948)	$ 2,505,731	$ (10,176,323)	$ 798,205
Weighted average number of shares of common stock outstanding (in shares)	52,459,976	52,332,304	52,430,232	52,321,157
Basic income per share (in dollars per share)	$ (0.18)	$ 0.05	$ (0.19)	$ 0.02
Diluted income per share (in dollars per share)	(0.18)	0.05	(0.19)	0.02
Dividends declared per share of common stock (in dollars per share)	$ 0.04	$ 0.06	$ 0.08	$ 0.14

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ (7,806,322)	$ 3,168,205
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Accretion of commercial mortgage loans held-for-investment discounts	(971,833)	(1,181,563)
Accretion of deferred loan fees	(1,270,053)	(1,192,902)
Amortization of deferred financing costs	1,402,116	627,596
Provision for credit losses, net	7,893,322	5,842,433
Depreciation and amortization	695,157	138,777
(Gain) on sale of real estate owned	(145,435)	0
Loss on extinguishment of debt	1,152,861	0
Real estate owned impairment expense	1,350,435	0
Unrealized loss on mortgage servicing rights	47,513	58,974
Non-cash compensation expense	104,999	84,987
Net change in:
Accrued interest receivable	918,694	310,299
Other assets	355,071	(542,998)
Accrued interest payable	(445,136)	(515,352)
Fees and expenses payable to Manager	1,636,549	231,869
Other liabilities	(845,837)	675,136
Net cash provided by operating activities	4,072,101	7,705,461
Cash flows from investing activities:
Purchase and funding of commercial mortgage loans held-for-investment	(138,791,911)	(3,605,000)
Purchase of real estate owned	(246,437)	0
Principal payments from commercial mortgage loans held-for-investment	244,397,863	118,376,467
Proceeds from sale of real estate owned	12,611,050	0
Cash assumed from acquisition of real estate owned	1,044,784	0
Capital expenditures on real estate owned, held-for-investment	(523,591)	0
Deferred loan fees	1,385,963	1,186,611
Net cash provided by investing activities	119,877,721	115,958,078
Cash flows from financing activities:
Dividends paid on common stock	(4,193,549)	(13,078,523)
Dividends paid on preferred stock	(2,370,001)	(2,370,000)
Proceeds from secured financing agreements	191,617,908	0
Proceeds from secured term loan	2,250,000	0
Payment of secured financing agreements	(112,814,342)	0
Payment of securitized debt obligations	(169,655,462)	(119,031,157)
Payment of deferred financing costs	(724,505)	0
Net cash (used in) financing activities	(95,889,951)	(134,479,680)
Net increase (decrease) in cash, cash equivalents and restricted cash	28,059,871	(10,816,141)
Cash, cash equivalents and restricted cash, beginning of period	26,618,082	71,564,098
Cash, cash equivalents and restricted cash, end of period	54,677,953	60,747,957
Supplemental disclosure of cash flow information
Cash paid for interest	28,977,698	28,081,380
Cash paid for income taxes	19,550	0
Non-cash investing and financing activities information
Dividends declared but not paid at end of period	3,096,945
Transfer of senior loans to real estate owned, held-for-investment	23,353,185	23,957,120
Accrued capital expenditures on real estate owned	$ 84,611	$ 0

Consolidated Balance Sheets - USD ($)

Jun. 30, 2026

Dec. 31, 2025

ASSETS

Cash and cash equivalents

^[1]

$ 28,979,474

$ 23,112,995

Restricted cash

^[1]

25,698,479

3,505,087

Commercial mortgage loans held-for-investment, at amortized cost

^[1]

1,012,913,408

1,136,706,113

Less: Allowance for credit losses

^[1]

(21,248,582)

(22,658,121)

Commercial mortgage loans held-for-investment, net of allowance for credit losses

^[1]

991,664,826

1,114,047,992

Real estate owned, held-for-investment, net

^[1]

50,724,969

26,839,010

Real estate owned, held-for-sale

^[1]

10,877,081

24,099,072

Mortgage servicing rights, at fair value

^[1]

506,733

554,246

Accrued interest receivable

^[1]

4,509,561

5,428,255

Investment related receivable

^[1]

15,449,323

Other assets

^[1]

2,498,076

2,944,179

Total assets

^[1]

1,115,459,199

1,215,980,159

LIABILITIES

Securitized debt obligations, net

^[1]

580,686,518

748,433,484

Secured financing agreements, net

^[1]

271,140,326

191,943,220

Secured term loan, net

^[1]

49,667,476

47,719,278

Accrued interest payable

^[1]

1,424,740

1,869,876

Dividends payable

^[1]

3,096,945

3,093,470

Fees and expenses payable to Manager

^[1]

3,065,049

1,428,500

Other liabilities

^[1]

1,559,776

2,405,613

Total Liabilities

^[1]

910,640,830

996,893,441

COMMITMENTS AND CONTINGENCIES (NOTE 12)

^[1]

EQUITY

Preferred Stock: par value $0.01 per share; 50,000,000 shares authorized; 7.875% Series A Cumulative Redeemable, $60,000,000 aggregate liquidation preference, 2,400,000 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

^[1]

57,254,935

Common Stock: par value $0.01 per share; 450,000,000 shares authorized, 52,486,129 and 52,399,265 shares issued and outstanding, at June 30, 2026 and December 31, 2025, respectively

^[1]

524,864

523,995

Additional paid-in capital

^[1]

314,993,330

314,889,201

Cumulative distributions to stockholders

^[1]

(227,525,727)

(220,958,702)

Accumulated earnings

^[1]

59,471,467

67,277,789

Total stockholders' equity

^[1]

204,718,869

218,987,218

Noncontrolling interests

^[1]

99,500

Total equity

^[1]

204,818,369

219,086,718

Total liabilities and equity

^[1]

$ 1,115,459,199

$ 1,215,980,159

[1]

Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of June 30, 2026 and December 31, 2025, assets of consolidated VIEs totaled $662,520,376 and $889,507,091, respectively, and the liabilities of consolidated VIEs totaled $581,587,437 and $750,274,556, respectively. See Note 4 for further discussion.