Lument Finance Trust | 10-Q: FY2025 Q3 Revenue: USD 18.29 M

Revenue: As of FY2025 Q3, the actual value is USD 18.29 M.

EPS: As of FY2025 Q3, the actual value is USD 0.01.

EBIT: As of FY2025 Q3, the actual value is USD 15.08 M.

Interest Income: $17,696,281 for the three months ended September 30, 2025, compared to $28,926,111 for the same period in 2024. For the nine months ended September 30, 2025, interest income was $59,357,526, compared to $93,553,383 for the same period in 2024.

Net Income: $1,843,639 for the three months ended September 30, 2025, compared to $6,280,725 for the same period in 2024. For the nine months ended September 30, 2025, net income was $5,011,844, compared to $17,859,353 for the same period in 2024.
Net Income Attributable to Common Stockholders: $658,597 for the three months ended September 30, 2025, compared to $5,095,684 for the same period in 2024. For the nine months ended September 30, 2025, net income attributable to common stockholders was $1,456,802, compared to $14,304,312 for the same period in 2024.
Operating Expenses: $3,077,163 for the three months ended September 30, 2025, compared to $2,897,067 for the same period in 2024. For the nine months ended September 30, 2025, operating expenses were $8,687,704, compared to $10,698,611 for the same period in 2024.

Operating Cash Flow: $8,848,450 for the nine months ended September 30, 2025, compared to $20,800,818 for the same period in 2024.
Free Cash Flow: - $14,718,102 for the nine months ended September 30, 2025, compared to $13,561,291 for the same period in 2024.

Allowance for Credit Losses: $14,020,408 as of September 30, 2025, compared to $11,320,220 as of December 31, 2024.
Loan Portfolio: $821,843,480 as of September 30, 2025, compared to $1,048,803,078 as of December 31, 2024.
Real Estate Owned (REO): $49,258,301 held-for-investment and $8,871,841 held-for-sale as of September 30, 2025.

Investment Strategy: Focus on investing in transitional floating rate CRE mortgage loans with an emphasis on middle market multifamily assets. The company may also invest in other CRE-related investments including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments.
Financing Strategy: The company finances its investments primarily through matched term non-recourse secured borrowings, including CLOs, which are not subject to margin calls or additional collateralization requirements. The company intends to use warehouse repurchase agreements or other forms of financing in the future.

Divestitures and Foreclosures: The company foreclosed on two multifamily bridge loans with an aggregate net carrying value of $39.5 million and two multifamily bridge loans with an aggregate net carrying value of $19.9 million during the nine months ended September 30, 2025.

Loan Modifications: The company may amend or modify loans depending on the specific facts and circumstances. These modifications typically include additional time for a borrower to refinance or sell their property, adjustment or waiver of performance tests, modification of terms of interest rate cap agreements, and/or deferral of scheduled principal payments.

The company expects to continue focusing on investing in transitional floating rate CRE mortgage loans with an emphasis on middle market multifamily assets. The company also plans to use warehouse repurchase agreements or other forms of financing in the future to support its investment strategy.