Lument Finance Trust, Inc.
- Open
- 0.92
- Day high
- 0.95
- Day low
- 0.92
- Prev close
- 0.92
- Volume
- 76K
- Mkt cap
- $52M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.2
- P/S
- 0.7
- Yield
- 18.18%
- Per share
- $0.18
- ▲Insiders net buying $11K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions accumulating (13F)
Lument Finance Trust, Inc. (LFT) is a Real Estate company listed on NYSE. The stock is down 56% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4).
Lument Finance Trust, Inc. (LFT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LFT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 15, 2026 | $0.06 | $0.02 | -66.7% | $21M | +360.7% |
| Mar 24, 2026 | $0.06 | $-0.17 | -383.3% | $5M | +8.1% |
| Nov 12, 2025 | $0.06 | $0.02 | -66.7% | $5M | -34.4% |
| Aug 8, 2025 | $0.07 | $0.05 | -33.3% | $21M | +147.4% |
| Mar 19, 2025 | $0.10 | $0.10 | +0.0% | $8M | -7.2% |
| May 9, 2024 | $0.13 | $0.15 | +15.4% | $10M | -68.9% |
| Mar 15, 2024 | $0.11 | $0.10 | -9.1% | $8M | -75.3% |
| Nov 13, 2023 | $0.09 | $0.11 | +22.2% | $9M | -73.8% |
| May 11, 2023 | $0.05 | $0.09 | +75.4% | $7M | -63.0% |
| Mar 23, 2023 | $0.05 | $0.06 | +20.0% | $7M | -62.3% |
| Mar 15, 2022 | $0.10 | $0.11 | +10.0% | $6M | -6.0% |
| Mar 15, 2021 | $0.09 | $0.10 | +11.1% | $5M | — |
LFT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 27, 2026 | Hunt James Christopherdirector | Grant | 22,222 | $1.13 |
| May 27, 2026 | Keenan Walter Cdirector | Grant | 12,222 | $1.13 |
| May 27, 2026 | Cummins Neil A.director | Grant | 12,222 | $1.13 |
| May 22, 2026 | HOULIHAN WILLIAM Adirector | Buy | 10,000 | $1.14 |
| Mar 27, 2026 | HOULIHAN WILLIAM Adirector | Buy | 15,000 | $1.29 |
| Mar 27, 2026 | Keenan Walter Cdirector | Sell | 400 | $19.50 |
| Mar 27, 2026 | Keenan Walter Cdirector | Sell | 3,156 | $19.70 |
| Mar 27, 2026 | Keenan Walter Cdirector | Buy | 5,000 | $19.63 |
| Mar 27, 2026 | Keenan Walter Cdirector | Sell | 44 | $19.42 |
| Mar 27, 2026 | Keenan Walter Cdirector | Buy | 1,500 | $19.50 |
| Jan 8, 2026 | Keenan Walter Cdirector | Buy | 25,000 | $1.46 |
| Dec 22, 2025 | Keenan Walter Cdirector | Buy | 9,205 | $1.49 |
| Dec 22, 2025 | Keenan Walter Cdirector | Buy | 795 | $1.50 |
| Dec 2, 2025 | BRIGGS JAMES Aofficer: Chief Financial Officer | Buy | 10,000 | $1.61 |
| Nov 28, 2025 | BRIGGS JAMES Aofficer: Chief Financial Officer | Buy | 2,000 | $1.60 |
Source: LFT SEC Form 4 filings, latest May 27, 2026. For informational purposes only — not investment advice.
See the full LFT insider & 13F page →Lument Finance Trust, Inc. company profile
Overview
Lument Finance Trust, Inc. (NYSE:LFT) is a specialized real estate investment trust (REIT) that was incorporated in 2012 and went public in March 2013. Originally known as Hunt Companies Finance Trust, the company rebranded to Lument Finance Trust in December 2020. Headquartered in New York, the company focuses exclusively on commercial real estate debt investments, primarily targeting transitional multifamily properties across the United States. As a REIT, Lument is required to distribute at least 90% of its taxable income to shareholders to maintain its tax-advantaged status.
Business
Lument Finance Trust operates as a mortgage REIT in the commercial real estate finance sector, which is fundamentally different from traditional equity REITs that own physical properties. Instead of owning buildings, mortgage REITs like Lument provide debt financing to real estate owners and developers, earning income from the interest payments on these loans. The company's core business revolves around transitional floating rate commercial mortgage loans, which are short-term bridge loans typically used by property owners during periods of property improvement, lease-up, or refinancing. These loans are called "floating rate" because their interest rates adjust with market benchmarks like the Secured Overnight Financing Rate (SOFR), providing some protection against rising interest rate environments. Lument's investment focus is highly concentrated, with approximately 92% of its $1.1 billion loan portfolio secured by multifamily properties - apartment buildings and residential complexes. The remaining 8% includes other commercial real estate assets such as seniors housing and mixed-use properties. This specialization in multifamily assets reflects the company's belief in the long-term demographic trends supporting rental housing demand. The company's loans typically serve borrowers who are in transitional situations - perhaps they've recently acquired a property that needs renovation, are completing construction on a new development, or are stabilizing occupancy rates before seeking permanent financing. These borrowers often cannot immediately qualify for traditional long-term financing from banks or insurance companies, creating a market niche for specialized lenders like Lument.
Revenue model
Lument generates revenue primarily through net interest income - the spread between what it earns on its loan portfolio and what it pays to finance those loans. The company's loans typically carry interest rates of SOFR plus 350-360 basis points (3.5-3.6 percentage points), while its financing costs average SOFR plus 200-230 basis points, creating a net interest margin of approximately 130-160 basis points. The company finances its loan portfolio through securitization, specifically Collateralized Loan Obligations (CLOs). In this structure, Lument packages its loans into a special purpose vehicle and issues bonds backed by the loan payments. This allows the company to achieve leverage of approximately 78-80%, meaning for every dollar of equity, it can deploy $4-5 in total capital. The company's primary financing vehicle is a 2021 CLO that provides funding at SOFR plus 164 basis points. Several factors significantly impact Lument's profitability margins. Rising interest rates can be beneficial since the company's floating-rate loans reprice faster than its fixed-rate CLO financing, potentially expanding net interest margins. However, higher rates can also stress borrowers and reduce loan demand. Credit losses represent the most significant margin risk - when borrowers default, the company must write down loan values and may need to foreclose on properties. Prepayment risk also affects returns, as borrowers may refinance loans early when market conditions improve, forcing Lument to reinvest at potentially lower spreads. The company's ability to originate new loans depends heavily on commercial real estate transaction activity, which fluctuates with economic conditions, interest rates, and capital availability. Competition from banks, insurance companies, and other specialty lenders also pressures loan pricing and terms.
Competitive moat
Lument Finance Trust operates in a highly competitive lending market with limited sustainable competitive advantages. The company's primary moat lies in its specialized expertise and relationships within the multifamily bridge lending space. Through its external manager's platform, Lument benefits from established relationships with borrowers, brokers, and other market participants that can provide deal flow and market intelligence. The company's focus on transitional multifamily lending requires specific underwriting expertise, particularly in evaluating properties undergoing renovation, lease-up, or other value-add strategies. This specialized knowledge creates some barriers to entry for generalist lenders. Additionally, Lument's access to securitization markets through its CLO financing provides a cost-of-capital advantage over lenders relying solely on traditional bank financing. However, these moats are relatively weak. The commercial real estate lending market includes numerous well-capitalized competitors, including regional and national banks, insurance companies, debt funds, and other mortgage REITs. Capital is largely commoditized in this market, and borrowers typically choose lenders primarily based on pricing, terms, and execution certainty rather than unique value propositions. The company faces potential disruption from several sources. Large banks with lower cost of capital can compete aggressively on pricing during favorable economic cycles. Private credit funds, which have grown substantially in recent years, often have more flexible capital and longer investment horizons. Additionally, improving capital markets conditions could allow more borrowers to access traditional financing sources, reducing demand for bridge loans. Lument's small scale relative to larger competitors also limits its ability to diversify risk or achieve operational efficiencies. The company's $1.1 billion portfolio is modest compared to major commercial real estate lenders, potentially limiting its negotiating power with borrowers and service providers.
Risks & safety
Lument Finance Trust presents a moderate margin of safety profile with both strengths and concerns: **Liquidity and Solvency:** - Strong cash position of $64 million (6% of total assets) provides operational flexibility - Debt-to-equity ratio of 3.58x reflects high but typical leverage for mortgage REITs - No immediate refinancing pressure as primary CLO financing extends to 2026 - Positive operating cash flow of $4.1 million in Q1 2025 **Credit Quality Concerns:** - 11% of portfolio ($108 million) rated as problem loans (risk rating 5) - Specific loan loss reserves of approximately $900,000 appear conservative relative to exposure - Weighted average portfolio risk rating of 3.6 indicates moderate credit stress **Valuation Metrics:** - Price-to-book ratio of 0.59x suggests shares trade at significant discount to stated book value - However, book value may overstate true asset values given credit concerns - Distributable earnings yield of approximately 12% based on $0.08 quarterly dividend **Other Considerations:** - REIT structure requires 90% income distribution, limiting retained capital for growth - Concentration in multifamily sector reduces diversification benefits - Rising interest rate environment creates both opportunities and risks for floating-rate portfolio
Recent development
Over the past few years, Lument has navigated a challenging commercial real estate environment while implementing several strategic initiatives. The company successfully executed a $386 million CLO securitization in July 2023, providing stable financing for its loan portfolio through 2026. This financing structure allowed the company to maintain attractive leverage while reducing refinancing risk during a volatile market period. The company has significantly increased its focus on asset management and workout activities as credit stress emerged in its portfolio. Management has taken a proactive approach to managing problem loans, working closely with borrowers on asset rehabilitation strategies and exploring options such as bringing in new sponsors or providing seller financing to facilitate resolutions. Portfolio composition has evolved toward higher credit quality, with the company completely exiting office property exposure and maintaining its 92% concentration in multifamily assets. The weighted average loan spread has increased from approximately 343 basis points in 2022 to 355-360 basis points currently, reflecting both market conditions and credit selection. A significant leadership transition occurred with Jim Henson's retirement and Greg Calvert joining as the new President, bringing fresh perspective to the company's strategic direction. The management team has also been exploring alternative financing structures, including warehouse facilities and secured financing options, to potentially replace or supplement the existing CLO structure. The company has maintained a defensive posture regarding new investments, prioritizing liquidity and portfolio management over aggressive growth. This strategy reflects management's expectation that significant refinancing opportunities will emerge as over $300 billion in multifamily loans mature through 2025, potentially creating attractive investment opportunities for well-positioned lenders.
LFT company profile · for informational purposes only — not investment advice.
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