Lument Finance Trust (LFT) investor relations material

Executive summary

• Reported a GAAP net loss attributable to common stockholders of $1.0 million, or $0.02 per share, and distributable earnings of $1.1 million, or $0.02 per share, for Q1 2026.

• Declared a quarterly dividend of $0.04 per common share and $0.49219 per Series A Preferred share.

• Book value per share as of March 31, 2026, was $2.97.

• Portfolio credit performance remained stable, with active management of reserves and REO assets.

• Ended Q1 with $21 million in unrestricted cash and maintained strong liquidity.

Financial highlights

• Net interest income for Q1 2026 was $5.7 million, up from $5.4 million in Q4 2025.

• Operating expenses were $3.7 million, slightly decreased from Q4 2025 but up from Q1 2025.

• Other loss for Q1 2026 was $1.8 million, mainly from a $1.2 million loss on extinguishment of debt and $1.3–$1.4 million REO impairment.

• Allowance for credit losses decreased by $3.1 million to $19.5 million.

• Dividend per share of common stock was $0.04.

Outlook and guidance

• Focus remains on resolving legacy assets, redeploying capital into new loan opportunities, and maintaining multifamily credit investments.

• Dividend sustainability depends on efficient capital deployment and potential new securitization transactions.

• Management expects to cover and potentially grow the dividend as portfolio resolutions and reinvestments progress.

• 100% of new loan fundings and payoffs in Q1 2026 were in multifamily assets.

• The company intends to maintain liquidity to meet investment and business needs amid market volatility.