Lument Finance Trust (LFT) investor relations material

Executive summary

• Reported a GAAP net loss attributable to common stockholders of $9.2 million ($0.18 per share) and a distributable loss of $5.3 million ($0.10 per share) for Q2 2026, with a quarterly dividend of $0.04 per share and $0.49219 per share for Series A Preferred Stock.

• Book value per share declined to $2.76 as of June 30, 2026.

• Management remains focused on resolving legacy assets, protecting book value, and redeploying capital into high-quality multifamily investments.

• Board approved a 1-for-10 reverse stock split, effective September 9, 2026, to maintain NYSE compliance and support an orderly market.

Financial highlights

• Net interest income for Q2 2026 was $4.5 million, down from $5.7 million in Q1, with total operating expenses rising to $3.9 million, mainly due to higher reimbursable and professional fees.

• $8.6 million net provision for credit losses recorded, primarily on risk-rated five loans.

• Realized losses of $5.1 million related to three fully resolved assets, including discounted payoffs and an REO sale.

• Book value per share decreased to $2.76 from $2.97 sequentially.

• Cash, cash equivalents, and restricted cash increased by $28.1 million during the first half of 2026.

Outlook and guidance

• Management expects continued market volatility and uncertainty related to interest rates, inflation, and capital market dynamics.

• Plans to utilize available borrowing capacity to fund new investments, with future growth dependent on market conditions and access to capital.

• Intends to maintain REIT status and regular quarterly distributions, subject to liquidity and NYSE compliance.

• Focus remains on disciplined redeployment of capital and maintaining liquidity for asset resolutions.

• No exposure to hospitality, retail, self-storage, or office loan assets; limited exposure to seniors housing and healthcare.