Lument Finance Trust | 8-K: FY2025 Q3 EPS: USD 0.01

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

Net Income

• GAAP net income attributable to common shareholders for the third quarter was $0.7 million, or $0.01 per share of common stock.

Distributable Earnings

• Distributable earnings for the third quarter were $1.0 million, or $0.02 per share of common stock.

Reconciliation of GAAP to Distributable Earnings

• Net Income attributable to common shareholders: $658,597.
• Adjustments for non-Distributable Earnings include unrealized loss on mortgage servicing rights: $24,700, unrealized provision for credit losses: -$29,660, and depreciation of real estate owned: $344,785, leading to a subtotal of $339,825.
• Other adjustments include adjustment for income taxes: -$2,902, leading to a subtotal of -$2,902.
• Distributable Earnings: $995,520.

Dividends

• On September 16, 2025, the Company declared a cash dividend for the quarter of $0.04 per share of common stock.
• The Company also declared a cash dividend for the quarter of $0.49219 per share of 7.875% Cumulative Redeemable Series A Preferred Stock.

Book Value

• Book Value Per Share of Common Stock was $3.25 as of September 30, 2025.

Loan Payoffs

• During the quarter, the Company experienced $48.8 million of loan payoffs.

Loan Portfolio

• As of September 30, 2025, the Company’s loan investment portfolio consisted of floating-rate CRE loans of which approximately 89.6% were collateralized by multifamily assets.
• The Company’s $822 million loan portfolio had a weighted average remaining initial term of 6 months, a weighted average note rate of SOFR + 3.55%, and unamortized aggregate purchase discounts of $1.9 million.

Risk Rating

• As of September 30, 2025, the Company had a loan portfolio weighted average risk rating of 3.6, with 45.7% of the loan portfolio rated “3” (Moderate Risk) or better.

REO Portfolio

• As of September 30, 2025, the REO portfolio consisted of four multifamily properties with an aggregate carrying value of $58.1 million and a weighted average occupancy of 73.5%.

Cash and Cash Equivalents

• As of September 30, 2025, the Company held cash and cash equivalents of $56.0 million.

Leverage Ratio

• The leverage ratio declined quarter-over-quarter from 3.3x to 3.2x.

Outlook / Guidance

• The Company anticipates continuing to focus on investment opportunities within multifamily credit and does not currently own any hospitality, retail, or office loan assets.
• The Company entered into an uncommitted master repurchase agreement with JPMorgan Chase Bank, N.A. to provide up to $450 million to finance first mortgage loans and other commercial mortgage loan debt instruments secured by real estate.
• The Company does not utilize repurchase or warehouse facility financing and is not subject to margin calls on any of its loan assets from repo or warehouse lenders.