Want to see LFT full AI Analyst Report?
Top Page
Lument Finance Trust
(NYSE:LFT)
Select Model
Select Model
Rating:43Neutral
Price Target:
$5.00
▲(584.93% Upside)
Action:Reiterated
Date:10/07/26
The score is held down primarily by weak financial performance (TTM net loss, sharp revenue decline, and high leverage with negative ROE) and bearish technical trends (below major moving averages with negative MACD). Earnings-call details reinforce near-term credit and book-value pressure despite ongoing asset resolutions. Valuation is only modestly supportive because the very high dividend yield appears risky given recent losses, while the compliance-related corporate update is a smaller positive offset.
Positive Factors
Improving Portfolio Credit Quality
The higher share of loans rated 3 or better suggests that portfolio credit quality is stabilizing despite broader asset stress. If sustained, this improvement could reduce future loss severity, support book value protection, and strengthen the durability of earnings from CRE debt investments.
Negative Factors
Losses and Credit Costs
The combination of GAAP and distributable losses shows that current earnings are not covering the company’s operating and credit costs. Large provisions and realized losses can reduce book value, constrain dividend capacity, and weaken internal capital available for future investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Portfolio Credit Quality
The higher share of loans rated 3 or better suggests that portfolio credit quality is stabilizing despite broader asset stress. If sustained, this improvement could reduce future loss severity, support book value protection, and strengthen the durability of earnings from CRE debt investments.
Read all positive factors
Lument Finance Trust (LFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.18M
Dividend Yield30.95%
Average Volume (3M)26.39K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth-22.88%
EPS Growth-293.89%
CountryUS
Employees550
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-3.56
Shares Outstanding5,256,400
10 Day Avg. Volume38,500
30 Day Avg. Volume26,386
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.34
Price to Sales (P/S)0.93
P/FCF Ratio8.61
Enterprise Value/Market Cap35.05
Enterprise Value/Revenue12.73
Enterprise Value/Gross Profit20.35
Enterprise Value/Ebitda30.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.3
Revenue Forecast (FY)$18.63M
Lument Finance Trust Business Overview & Revenue Model
Company Description
Lument Finance Trust, Inc. functions as a real estate investment trust (REIT) with a core business centered on acquiring, financing, and managing a diverse portfolio of commercial real estate (CRE) debt investments throughout the United States. Th...
How the Company Makes Money
Lument Finance Trust primarily makes money from the spread and yield generated by its portfolio of commercial real estate debt investments. The core revenue stream is interest income earned on loans and loan-related investments it originates or ac...
Lument Finance Trust Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: management highlighted improving portfolio credit metrics (higher percentage of loans rated 3 or better), active asset resolutions, selective new originations, and a well-positioned financing profile (CLO deployment). However, material near-term headwinds dominated the quarter — GAAP and distributable losses, a sizable $8.6M credit provision, realized losses, an ~11.5% contraction in portfolio UPB, declining book value per share (~7.1% sequential), a concentrated set of troubled loans (≈$98M) and low REO occupancy (~67%). While management outlined clear remediation actions (asset resolutions, redeployment plans and a reverse split to improve marketability) and expects to be fully deployed in 2027, the near-term financial deterioration and continued asset stress weigh heavily on outlook.Positive Updates
Portfolio Risk-Profile Improvement
Percentage of loans risk-rated 3 or better increased to ~81% from 77% at March 31 (up 4 percentage points); weighted average risk rating remained stable at 3.1, indicating stabilization in overall portfolio credit quality.
Negative Updates
GAAP and Distributable Losses
Reported GAAP net loss to common stockholders of $9.2M (loss of $0.18 per share) and a distributable loss of $5.3M (loss of $0.10 per share) for Q2 2026, reflecting a weak quarter of earnings performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Portfolio Risk-Profile Improvement
Percentage of loans risk-rated 3 or better increased to ~81% from 77% at March 31 (up 4 percentage points); weighted average risk rating remained stable at 3.1, indicating stabilization in overall portfolio credit quality.
Read all positive updates
Company Guidance
The company reiterated guidance to prioritize active asset resolution, protect book value and redeploy capital efficiently with an objective to be fully invested in 2027 and said it expects several additional resolutions over the next quarter or two; key metrics disclosed include Q2 GAAP net loss of $0.18 per share and distributable loss of $0.10 per share, a declared quarterly dividend of $0.04, Q2 net interest income of $4.5M (down from $5.7M), total operating expenses of $3.9M, an $8.6M net provision for credit losses and $5.1M of realized losses (plus $390k REO depreciation), specific reserves of $7.4M (~18% of associated UPB), ending portfolio UPB of ~ $1.0B (from $1.13B), 51 floating-rate loans with a weighted average coupon ~704 bps (down from 709 bps) and a weighted average floating spread of 330 bps over SOFR, weighted average remaining term ~18 months, 100% indexed to 1‑month SOFR and 91.7% multifamily, six risk-rated-5 loans totaling $98M (~10% of UPB), REO of 4 properties carrying ~$61.6M with ~67% occupancy, CLO capital substantially deployed at an 88% advance rate with cost of funds SOFR+1.91, warehouse financing at a 68% effective advance and SOFR+209 bps, unrestricted cash of $29M, total book equity of ~$205M and common book value of ~$145M or $2.76 per share (down from $2.97), and a Board‑approved 10‑for‑1 reverse split effective Sept. 9 to support an orderly market for the stock.Lument Finance Trust Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
30
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.79M | 79.18M | 34.86M | 32.08M | 20.02M | 21.07M |
| Gross Profit | 46.80M | 71.30M | 34.86M | 32.08M | 20.02M | 21.07M |
| EBITDA | 30.76M | 51.93M | 0.00 | 97.78M | 61.14K | 425.66K |
| Net Income | -13.72M | -2.75M | 22.65M | 19.71M | 9.86M | 10.53M |
Balance Sheet | ||||||
| Total Assets | 1.12B | 1.22B | 1.13B | 1.45B | 1.13B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 28.98M | 23.11M | 69.17M | 51.25M | 43.86M | 14.75M |
| Total Debt | 901.49M | 988.10M | 875.86M | 1.19B | 876.28M | 873.63M |
| Total Liabilities | 910.64M | 996.89M | 890.70M | 1.21B | 884.96M | 879.55M |
| Stockholders Equity | 204.72M | 218.99M | 237.80M | 240.69M | 242.90M | 169.28M |
Cash Flow | ||||||
| Free Cash Flow | 6.47M | 8.58M | 27.13M | 24.74M | 16.29M | 13.85M |
| Operating Cash Flow | 6.47M | 10.10M | 27.13M | 24.74M | 16.29M | 13.85M |
| Investing Cash Flow | -139.00M | -142.92M | 334.09M | -316.72M | -51.83M | -477.29M |
| Financing Cash Flow | 126.46M | 87.87M | -341.17M | 296.13M | 64.63M | 412.35M |
Lument Finance Trust Technical Analysis
Negative
0.73
Price Trends
6.31
Negative
7.92
Negative
10.13
Negative
Market Momentum
-0.49
Positive
37.80
Neutral
21.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFT, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 5.55, below the 50-day MA of 6.31, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFT.
Lument Finance Trust Risk Analysis
Lument Finance Trust disclosed 101 risk factors in its most recent earnings report. Lument Finance Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lument Finance Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $156.33M | 10.30 | 3.78% | 16.18% | -2.38% | -35.43% | |
59 Neutral | $95.32M | 14.59 | 7.07% | 15.50% | -13.80% | ― | |
47 Neutral | $83.79M | -37.47 | 1.03% | 13.36% | 4.53% | 74.73% | |
44 Neutral | $140.58M | -9.68 | 3.31% | 8.11% | -2.62% | -7470.75% | |
44 Neutral | $31.47M | -0.32 | -15.12% | 10.73% | -25.30% | 5.00% | |
43 Neutral | $27.18M | -1.45 | -6.31% | 30.95% | -22.88% | -293.89% |
* Real Estate Sector Average
LFT
Lument Finance Trust
5.17
-10.92
-67.86%
ACR
ACRES Commercial Realty
10.45
-10.08
-49.10%
SEVN
Seven Hills Realty Trust
6.90
-1.85
-21.13%
CHMI
Cherry Hill Mortgage
2.58
0.63
31.97%
RPT
Rithm Property Trust
10.78
-2.49
-18.76%
GPMT
Granite Point Mortgage
6.53
-18.04
-73.42%
Lument Finance Trust Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Lument Finance Trust Regains NYSE Listing Compliance Status
Positive
Oct 6, 2026
On October 1, 2026, Lument Finance Trust, Inc. announced it had received notice from the New York Stock Exchange that it regained compliance with the exchange’s minimum share price requirement, after its average stock price over the 30 tradi...
Stock Split
Lument Finance Trust Completes Reverse Stock Split
Neutral
Sep 14, 2026
After the close of business on September 9, 2026, Lument Finance Trust completed a previously announced 1-for-10 reverse stock split of its common shares, reducing the number of outstanding shares from 52,564,062 to about 5,256,400. The company...
Financial DisclosuresStock Split
Lument Finance Trust Posts Q2 Loss, Plans Reverse Split
Negative
Aug 13, 2026
On August 13, 2026, Lument Finance Trust reported a second-quarter 2026 GAAP net loss attributable to common shareholders of $9.2 million, or $0.18 per share, and a distributable loss of $5.3 million, or $0.10 per share. The company also highlight...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
Lument Finance Trust Addresses NYSE Listing Deficiency Notice
Negative
Jul 30, 2026
On July 24, 2026, Lument Finance Trust received a deficiency notice from the New York Stock Exchange after its common stock traded below an average closing price of $1.00 over a consecutive 30-day period. The notice does not constitute delisting a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.