# EDGAR Filing Document

**Accession Number:** 0001547546
**File Stem:** 0001104659-25-110520
**Filing Date:** 2025-11
**Character Count:** 42226
**Document Hash:** 0ebc1d7852003fd147c7d3901fb8f1aa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-110520.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001104659-25-110520

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 38

**CONFORMED PERIOD OF REPORT**: 20251112

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lument Finance Trust, Inc.
- **CENTRAL INDEX KEY:** 0001547546
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 454966519
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35845
- **FILM NUMBER:** 251474297

**BUSINESS ADDRESS:**
- **STREET 1:** 230 PARK AVENUE
- **STREET 2:** 23RD FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10169
- **BUSINESS PHONE:** (212) 588-2051

**MAIL ADDRESS:**
- **STREET 1:** 230 PARK AVENUE
- **STREET 2:** 23RD FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10169

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Hunt Companies Finance Trust, Inc.
- **DATE OF NAME CHANGE:** 20180525

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Five Oaks Investment Corp.
- **DATE OF NAME CHANGE:** 20120417

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **November 12, 2025**

**LUMENT FINANCE TRUST, INC.** 

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Maryland** | **001-35845** | **45-4966519** |
| (State or other jurisdiction of <br> incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**230 Park Avenue, 20th Floor**

**New York, New York 10169**

(Address of principal executive offices)

**(212) 317-5700**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| |
|:---|
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which <br> registered** |
| Common Stock, $0.01 par value per share | LFT | New York Stock Exchange |
| 7.875% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share | LFTPrA | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On November 12, 2025, Lument Finance Trust, Inc. (the "Company") issued a press release (the "Release") and supplemental financial information announcing its financial results for the quarter ended September 30, 2025. The Release and supplemental financial information are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

The information disclosed in "Item 2.02 Results of Operations and Financial Condition," including Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

---

| | |
|:---|:---|
| **Item 9.01** | **Exhibits.** |

---

(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.

---

| | |
|:---|:---|
| [99.1](tm2530951d1_ex99-1.htm) | [Press Release of Lument Finance Trust, Inc., dated November 12, 2025.](tm2530951d1_ex99-1.htm) |
| [99.2](tm2530951d1_ex99-2.htm) | [Supplemental Financial Information for the third quarter ended September 30, 2025.](tm2530951d1_ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | LUMENT Finance Trust, Inc. | LUMENT Finance Trust, Inc. |
| Date: November 12, 2025 | By: | /s/ James A. Briggs |
|  |  | James A. Briggs |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Lument Finance Trust Reports Third Quarter 2025 Results**

NEW YORK, November 12, 2025 /PRNewswire/ — **Lument Finance Trust, Inc.** (NYSE: LFT) ("we", "LFT" or "the Company") today reported its third quarter results. 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 for the third quarter were $1.0 million, or $0.02 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at <u>www.lumentfinancetrust.com</u>.

**Conference Call and Webcast Information**

The Company will also host a conference call on Thursday, November 13, 2025, at 8:30 a.m. ET to provide a business update and discuss the financial results for the third quarter of 2025. The conference call may be accessed by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international). Note: there is no passcode; please ask the operator to be joined into the Lument Finance Trust call. A live webcast, on a listen-only basis, is also available and can be accessed through the URL:

<u>https://app.webinar.net/wJ5lXAJdmjN</u>

For those unable to listen to the live broadcast, a recorded replay will be available for on-demand viewing approximately one hour after the end of the event through the Company's website <u>https://lumentfinancetrust.com/</u> and by telephone dial-in. The replay call-in number is 1-888-660-6345 (U.S.) or 1-646-517-4150 (international) with passcode 39726.

**Non-GAAP Financial Measures**

In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP"). Specifically, the Company is presenting distributable earnings, which constitutes a non-GAAP financial measure within the meaning of Item 10(e) of Regulation S-K and is net income under GAAP. While we believe the non-GAAP information included in this press release provides supplemental information to assist investors in analyzing our results, and to assist investors in comparing our results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. The methods of calculating non-GAAP financial measures may differ substantially from similarly titled measures used by other companies. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.

**Distributable Earnings**

Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for that applicable reporting period, regardless of whether such items are included in other comprehensive income (loss) or net income (loss), and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items after discussions with the Company's Board of Directors and approved by a majority of the Company's independent directors. Distributable Earnings mirrors how we calculate "Core Earnings" pursuant to the terms of our management agreement with our manager, Lument Investment Management, LLC ("Manager"), for purposes of calculating the incentive fee payable to our Manager.

While Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, or in the case of foreclosures, when the underlying asset is sold), or (ii) with respect to any amount due under any loan, when such amount is determined to be non-collectible.

We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flows from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share of common stock. As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. Furthermore, Distributable Earnings help us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations and is a performance metric we consider when declaring our dividends.

Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs.

**GAAP to Distributable Earnings Reconciliation**

---

| | |
|:---|:---|
|  | **Three Months Ended**<br>**September 30, 2025** |
| Reconciliation of GAAP to non-GAAP Information |  |
| Net Income attributable to common shareholders | $658597 |
| Adjustments for non-Distributable Earnings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on mortgage servicing rights | 24700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized provision for credit losses | (29660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of real estate owned | 344785 |
| Subtotal | 339825 |
| Other Adjustments |  |
| Adjustment for income taxes | (2902) |
| Subtotal | (2902) |
| Distributable Earnings | $995520 |
| Weighted average shares outstanding - Basic and Diluted | 52352469 |
| Distributable Earnings per weighted share outstanding - Basic and Diluted | $0.02 |

---

**About LFT**

LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments. The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets.

LFT is externally managed and advised by Lument Investment Management LLC, a Delaware limited liability company.

**Additional Information and Where to Find It**

Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's Internet site at <u>http://www.sec.gov/</u>, the Company website at <u>www.lumentfinancetrust.com</u>, or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations.

**Forward-Looking Statements**

Certain statements included in this press release constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. Forward-looking statements are subject to risks and uncertainties. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "project," "estimate," "plan," "continue," "intend," "should," "may," "will," "seek," "would," "could," or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Forward-looking statements are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company on the date of this press release or the date on which such statements are first made. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on forward-looking statements in this press release and should consider carefully the factors described in Part I, Item IA "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which are available on the SEC's website at www.sec.gov, and in the Company's other current or periodic filings with the SEC, when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.<br>**Investor Relations Contact**:

James Briggs<br> Chief Financial Officer<br> (212) 521-6323<br> <u>james.briggs@lument.com</u>

**Media Contact:**<br> Tyler Howard<br> Associate Director<br> (513) 403-1911<br> <u>tyler.howard@lument.com</u>

## Exhibit 99.2

**Exhibit 99.2**

![](tm2530951d1-ex99x2_001.jpg)

November 2025 Lument Finance Trust Q3 2025 Earnings Supplemental

![](tm2530951d1-ex99x2_002.jpg)

Disclaimer 2 This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) ("LFT," the "Company," "we," "our," or "us") with respect to, among other things, the Company's operations and financial performance. You can identify these forward - looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "projects," "intends," "plans," "estimates," or "anticipates," or the negative version of these words or other comparable words or other statements that do not relate strictly to historical or factual matters. Such forward - looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include but are not limited to those described under the section entitled "Risk Factors" in its Annual Report on Form 10 - K for the year ended December 31, 2024 and its Quarterly Report on Form 10 - Q for the quarter ended March 31, 2025, which are available on the SEC's website at www.sec.gov , and/or as disclosed in any subsequent filings. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. The forward - looking statements contained in this presentation speak only as of November 12 th , 2025. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances. This presentation includes non - GAAP financial measures, including Distributable Earnings. While we believe the non - GAAP information included in this presentation provides supplemental information to assist investors in analyzing our operating results and to assist investors in comparing our operating results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. Please refer to this presentation's Appendix for a reconciliation of the non - GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.

![](tm2530951d1-ex99x2_003.jpg)

Company Overview 3 Key Investment Highlights Strong Management • Access to extensive loan origination platform through affiliation with Lument, a leading national mortgage originator and asset manager. • Experienced management team with an average of 20+ years of industry experience across multiple economic cycles. • The Manager is affiliated with ORIX Corporation USA, the US subsidiary of ORIX Corporation, the publicly traded Tokyo - based international financial services firm. • The Company is an externally - managed real estate investment trust focused on investing in, financing and managing a portfolio of commercial real estate debt investments. • The Company is externally managed by Lument Investment Management, LLC ("Manager"), an affiliate of ORIX Corporation USA. Attractive Investment Profile • Emphasis on middle market multifamily debt investments which we believe are well positioned for the current environment. • Experienced credit and asset management capabilities. • Attractive financing source via match term, non - recourse, non mark - to - market, collateralized financing structures.

![](tm2530951d1-ex99x2_004.jpg)

Q3 2025 Updates 4 Note: (1) We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (los s) and cash flows from operating activities determined in accordance with GAAP. Distributable Earnings mirrors how we calculated Core Earnings in the past. Please see Appendix for reconciliation to GAAP. (2) See Appendix for definition of Book Value Per Share of Common Stock. (3) Based on carrying value. (4) If all yet to be executed loan extensions are exercised by the borrowers, the CRE loan portfolio will have a weighted ave ra ge remaining term of 16 months. • Q3 2025 GAAP net income attributable to common stockholders of $0.01 per share of common stock. • Q3 2025 Distributable Earnings (1) of $0.02 per share of common stock. • 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 Per Share of Common Stock was $3.25 (2) as of 9/30/2025. Financial Results • During the quarter, the Company experienced $48.8 million of loan payoffs. Notable Activity • As of September 30, 2025, the Company's loan investment portfolio consisted of floating - rate CRE loans of which approximately 89.6% (3) were collateralized by multifamily assets. • As of September 30, 2025, the Company's $822 million loan portfolio had a weighted average remaining initial term of 6 months (4) , a weighted average note rate of SOFR + 3.55%, and unamortized aggregate purchase discounts of $1.9 million. • 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. • As of September 30, 2025, our REO portfolio consisted of four multifamily properties with an aggregate carrying value of $58.1 million and a weighted average occupancy of 73.5%. Portfolio Performance • The floating - rate CRE loan portfolio was financed primarily through the Company's two outstanding non - mark - to - market secured financings: • $436.6 million of investment grade notes issued through 2021 - FL1 CLO. • $234.7 million of investment grade notes issued through LMF 2023 - 1. • On November 3, 2025, 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, controlling loan participation and other commercial mortg age loan debt instruments secured by real estate. • As of September 30, 2025, the Company held cash and cash equivalents of $56.0 million, and its leverage ratio declined quarte r - over - quarter from 3.3x to 3.2x. • The Company's corporate debt matures in 2026. Capitalization

![](tm2530951d1-ex99x2_005.jpg)

Q3 2025 Balance Sheet Summary 5 September 30, 2025 (1) Balance Sheet (thousands) $821,843 Commercial mortgage loans held - for - investment (net of allowance for credit losses) 58,130 Real estate owned 56,022 Cash and cash equivalents 824 Restricted cash (2) 4,414 Accrued interest receivable 10,615 Investment related receivable 3,871 Other assets (3) $955,719 Total assets $669,775 Secured financings (4) 47,656 Credit facility (4) 8,215 Other liabilities $725,647 Total liabilities $230,072 Total equity 3.2x Total liabilities / total equity $3.25 Book Value Per Share of Common Stock (5) Note: (1) See Appendix for detailed consolidated balance sheet, including the Company's consolidated variable interest entities ("VIE's"). (2) Restricted cash primarily comprised of REO operating cash accounts. (3) Includes mortgage servicing rights, carried at fair value of $0.6 million. (4) Outstanding principal amount of investment grade notes issued by 2021 - FL1 CLO and LMF 2023 - 1 is $436.6 million and $234.7 m illion, respectively. The unpaid principal balance of the credit facility is $47.8 million. For GAAP purposes, these liabilities are carried at their outstanding unpaid principal balance, net of any una mor tized discounts and debt issuance costs. (5) See Appendix for definition of Book Value Per Share of Common Stock.

![](tm2530951d1-ex99x2_006.jpg)

Q3 2025 Income Statement Summary 6 Three Months Ended September 30, 2025 Summary Income Statement (thousands) $5,051 Net interest income (134) Total other income (loss) (3,077) Operating expenses 3 Benefit (provision) from income taxes (1,185) Preferred dividends $659 Net income attributable to common stockholders 52,352,469 Weighted average shares outstanding during the period, basic and diluted $0.01 Net income attributable to common stockholders per share Three Months Ended September 30, 2025 GAAP Net Income to Distributable Earnings Reconciliation (thousands) $659 Net Income attributable to common stockholders Adjustments: 25 Unrealized (gains) losses on mortgage servicing rights (30) Unrealized provision for credit losses 345 Depreciation of real estate owned (3) Provision for (benefit from) income taxes $996 Distributable Earnings (1) 52,352,469 Weighted average shares outstanding during the period, basic and diluted $0.02 Distributable Earnings per share of common stock $0.04 Dividend per share of common stock Note: (1) See Appendix for definition of Distributable Earnings and reconciliation to GAAP.

![](tm2530951d1-ex99x2_007.jpg)

Earnings and Book Value Per Share of Common Stock 7 $0.10 $0.08 $0.05 $0.02 $0.08 $0.08 $0.06 $0.04 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Distributable Earnings Dividends $3.40 $3.29 $3.27 $3.25 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Distributable Earnings (1) & Dividends Per Share of Common Share Book Value Per Share of Common Stock (2) Note: (1) See Appendix for definition of Distributable Earnings and for reconciliation of GAAP net income to distributable ear nings. (2) See Appendix for definition of Book Value Per Share of Common Stock.

![](tm2530951d1-ex99x2_008.jpg)

Loan Investment Portfolio 8 Geographic Concentration (2) Multifamily , $736.5 , 89.6% Seniors Housing & Healthcare , $79.5 , 9.7% Self Storage , $5.8 , 0.7% Property Type (2) $821.8 Note: (1) Based on carrying value. (2) $ In millions, based on carrying value. • On September 30, 2025, the Company owned a portfolio of floating - rate CRE loans with a carrying value of $822 million. 89.6% (1) of the loan portfolio was invested in loans collateralized by multifamily assets. • The Company anticipates that it will continue to focus on investment opportunities within multifamily credit. The Company does not currently own any hospitality, retail, or office loan assets and has limited exposure to seniors housing and self - storage. TX , … FL , $194.0 , 23.6% NJ , $114.3 , 13.9% GA , $59.5 , 7.2% PA, $48.6 , 5.9% Other States , $162.7 , 19.8% $821.8

![](tm2530951d1-ex99x2_009.jpg)

Q3 2025 Loan Activity 9 Multifamily , $48.5 , 99.5% Self Storage , $0.3 , 0.5% Q3 Payoffs by Property Type (1) $48.8 • The Company experienced $48.8 million of loan payoffs during the quarter. Note: (1) $ In millions, based on UPB. (2) Loan portfolio balances shown based on carrying value net of allowances. "Other Activity" is comprised of changes in capi ta lized origination fees, extension fees, and purchase discounts. Loan Portfolio Activity (2) $905.4 ($48.8) $0.2 ($35.5) $0.4 $821.8 Q2 2025 Portfolio Payoffs / Sales Provision for Loan Losses Loans Transferred to REO Other Activity Q3 2025 Portfolio

![](tm2530951d1-ex99x2_010.jpg)

Loan Portfolio Credit 10 • As of September 30, 2025, 89.7 % of the Company's loan portfolio was performing (1) , with 45.7% of the loan portfolio rated "3" (Moderate Risk) or better. • Weighted average risk rating (2) of 3.6. • During the quarter, management applied a "5" risk - rating to seven loans with an aggregate principal value of $86.6 million. 90.8% 89.3% 88.7% 89.7% 4.3% 4.3% 4.3% 4.1% -1.0000% 0.0000% 1.0000% 2.0000% 3.0000% 4.0000% 5.0000% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 12/31/2024 3/31/2025 6/30/2025 9/30/2025 % Performing Average 1M SOFR Asset Performance (1) Weighted Average Risk Rating (2) Note: (1) "Performing" defined as loans that are not considered by management to be default risk. (2) Weighted average risk rating is weighted based on carrying value of loan portfolio assets. 3.5 3.5 3.5 3.6 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 12/31/2024 3/31/2025 6/30/2025 9/30/2025 1 2 3 4 5 Weighted Avg Risk Rating

![](tm2530951d1-ex99x2_011.jpg)

Q3 2025 Capital Structure Overview 11 70.7% 17.9% 6.3% 5.0% Secured Financing Common Equity Preferred Equity Term Loan $949.0 Capital Structure Composition (2) Capital Structure Detail Note: (1) Subsequent to 9/30/2025, the Company entered into an uncommitted master repurchase agreement with JPMorgan Chase Bank, N.A. (2) In millions. LFT total capitalization is a non - GAAP measure which excludes certain Balance Sheet items; Please see Appendix for reconciliation to GAAP. (3) Secured financing shown at par value. 2021 - FL1 CLO GAAP carrying value of $436.6. LMF 2023 - 1 carrying value of $233.2 milli on includes $1.5 million of unamortized debt issuance costs. (4) Term loan shown at par value. GAAP carrying value of $47.7 million includes $0.1 million of unamortized debt issuance cos ts . (5) Preferred equity shown at $60 million liquidation preference. (6) Noncontrolling interest was $99,500 as of 9/30/2025 and is excluded from common equity above. Match Term Non - Recourse Financing • The Company does not currently utilize repurchase or warehouse facility financing and therefore is not subject to margin calls on any of its loan assets from repo or warehouse lenders (1) . • Primary sources of financing include two secured financings (2021 - FL1 CLO and LMF 2023 - 1), preferred stock, and a corporate term loan. ($ in millions) Secured Financings (3) Maturity Date Rate Advance Rate Amount 2021-FL1 CLO July 2032 S + 1.79% 72.4% $436.6 LMF 2023-1 Financing June 2039 S + 3.25% 77.4% $234.7 Credit Facilities Term Loan (4) February 2026 7.88% $47.8 Total Debt $719.1 Equity Preferred Equity (5) N/A 7.875% $60.0 Book Value of Common Equity (6) N/A $170.0 Total Capitalization (2) $949.0

![](tm2530951d1-ex99x2_012.jpg)

$0.008 - $0.005 - $0.005 - $0.003 - $0.001 +25 bps 0 bps -25 bps -50 bps -75 bps -100 bps Net Interest Income Sensitivity to Shifts in Term SOFR 12 Floating Rate Assets (2) $840 Floating Rate Liabilities (3) - $671 Net Exposure $168 Floating - Rate Exposure (1) Net Interest Income Per Share Sensitivity to Change in SOFR (4) Note: (1) In millions. Net Exposure represents UPB of floating rate loan portfolio assets net of par value of secured floating rate debt outstanding. (2) Figure reflects unpaid principal balance of floating - rate loan portfolio. (3) Comprised of outstanding securitization notes related to 2021 - FL1 and LMF 2023 - 1, both of which are indexed to one - month SO FR. Figure reflects par value of notes. (4) Annualized impact per common share. Assumes starting 30 - day term SOFR of 4.13%. Our loan assets feature rate floors which p artially mitigate the adverse earnings impact of declines in SOFR. • 100% floating - rate loan portfolio. • 100% of the loan portfolio is indexed to 30 - day term SOFR.

![](tm2530951d1-ex99x2_013.jpg)

Appendix

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# Loan Name Closing Date Maturity Date Property Type City State Unpaid Principal Balance Note Spread Unamortized Discount/Premium Initial Term (months) As-Is LTV at Origination (1) 1 Loan 1 12/16/2021 1/5/2026 Multifamily Daytona Beach FL 51,375,000 3.16% 0 49 71.70% 2 Loan 2 3/22/2022 4/5/2026 Multifamily Seneca SC 31,627,625 3.35% (293,485) 49 74.54% 3 Loan 3 6/28/2022 4/5/2027 Multifamily Dallas TX 29,623,930 3.40% (260,221) 58 71.59% 4 Loan 4 6/8/2021 10/3/2025 Multifamily Miami FL 29,543,566 3.31% 0 52 74.26% 5 Loan 5 12/29/2021 1/6/2026 Multifamily Multi NC 27,549,146 3.96% 0 48 59.90% 6 Loan 6 11/2/2021 11/5/2025 Multifamily Melbourne FL 26,049,291 3.21% 0 48 72.09% 7 Loan 7 8/26/2021 8/5/2027 Multifamily Clarkston GA 24,468,032 3.61% 0 72 79.00% 8 Loan 8 10/18/2021 11/6/2025 Multifamily Cherry Hill NJ 23,348,000 3.11% 0 49 72.40% 9 Loan 9 8/26/2021 9/5/2025 Multifamily Union City GA 22,872,354 3.46% 0 49 70.40% 10 Loan 10 11/16/2021 12/5/2025 Multifamily Dallas TX 21,916,753 3.31% 0 49 73.54% 11 Loan 11 7/8/2022 8/5/2026 Multifamily Arlington TX 21,818,465 3.75% (170,069) 49 67.10% 12 Loan 12 4/27/2022 5/5/2026 Multifamily North Brunswick NJ 21,739,237 3.40% 0 48 79.90% 13 Loan 13 8/31/2021 10/3/2025 Multifamily Houston TX 21,644,684 3.41% 0 49 74.20% 14 Loan 14 3/22/2022 4/5/2026 Multifamily York PA 21,442,771 3.30% (262,673) 49 79.17% 15 Loan 15 11/29/2022 12/5/2025 Healthcare Glendale WI 20,360,000 4.00% 0 36 45.00% 16 Loan 16 11/5/2021 6/5/2027 Multifamily Orlando FL 19,625,274 3.11% 0 67 78.05% 17 Loan 17 11/21/2022 12/5/2025 Healthcare Houston TX 18,920,000 4.00% 0 37 67.00% 18 Loan 18 2/11/2022 3/6/2026 Multifamily Tampa FL 18,363,394 3.60% 0 49 77.99% 19 Loan 19 11/23/2021 12/5/2025 Multifamily Orange NJ 18,341,502 3.31% 0 49 78.00% 20 Loan 20 4/30/2024 11/5/2025 Multifamily Garfield NJ 18,303,744 3.50% 0 18 66.07% 21 Loan 21 2/2/2022 7/4/2026 Multifamily Houston TX 17,936,729 3.50% 0 53 77.50% 22 Loan 22 3/31/2022 4/5/2026 Multifamily Tallahassee FL 16,956,276 3.00% (183,246) 48 74.80% 23 Loan 23 11/10/2022 12/5/2025 Healthcare Austin TX 16,690,000 4.00% 0 37 65.00% 24 Loan 24 12/1/2021 12/5/2025 Multifamily Horn Lake MS 15,449,323 3.41% 0 48 75.70% 25 Loan 25 4/6/2022 6/5/2026 Multifamily Vineland NJ 15,347,180 3.75% (124,623) 50 77.00% 26 Loan 26 2/22/2022 9/5/2025 Multifamily Philadelphia PA 15,000,000 3.80% 0 43 80.00% 27 Loan 27 6/15/2022 1/5/2026 Multifamily Denton TX 14,511,455 3.90% 0 43 73.00% 28 Loan 28 4/27/2022 5/5/2026 Multifamily Houston TX 14,171,704 3.70% 0 48 79.60% 29 Loan 29 11/21/2022 12/5/2025 Healthcare Southlake TX 14,030,000 4.00% 0 37 48.00% 30 Loan 30 12/28/2021 10/3/2025 Multifamily Houston TX 13,864,376 3.25% (97,176) 45 71.22% 9/30/2025 CRE Loan Portfolio Details 14 Continued on the following page Note: (1) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of any changes in value which may have occurred subsequent to the origination date.

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9/30/2025 CRE Loan Portfolio Details 15 Note: (1) LTV as of the date the loan was originated by an affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of any changes in value which may have occurred subsequent to the origination date. # Loan Name Closing Date Maturity Date Property Type City State Unpaid Principal Balance Note Spread Unamortized Discount/Premium Initial Term (months) As-Is LTV at Origination (1) 31 Loan 31 4/12/2021 5/5/2025 Multifamily Cedar Park TX 13,666,721 3.86% 0 49 66.70% 32 Loan 32 6/10/2022 10/3/2025 Multifamily Blakely PA 13,625,505 3.90% (53,799) 40 75.00% 33 Loan 33 10/6/2023 10/3/2025 Multifamily Garfield NJ 13,191,852 4.50% 0 24 65.50% 34 Loan 34 12/20/2024 1/5/2028 Multifamily Olympia WA 13,000,000 3.75% 0 37 68.49% 35 Loan 35 7/26/2022 8/5/2027 Multifamily Atlanta GA 12,905,495 3.65% (149,420) 61 65.15% 36 Loan 36 12/28/2021 10/3/2025 Multifamily Houston TX 12,203,341 3.25% 0 45 71.20% 37 Loan 37 5/12/2022 6/5/2025 Multifamily Ypsilanti MI 11,926,591 3.50% (101,696) 37 68.40% 38 Loan 38 1/25/2022 6/9/2027 Multifamily Corpus Christi TX 11,261,792 3.55% (69,694) 65 78.76% 39 Loan 39 10/28/2021 11/6/2025 Multifamily Tampa FL 11,202,535 3.06% 0 49 75.70% 40 Loan 40 5/3/2022 11/5/2025 Multifamily Port Richey FL 10,818,945 3.55% (118,614) 42 79.05% 41 Loan 41 6/28/2022 7/4/2025 Multifamily Colorado Springs CO 10,531,845 3.90% 0 36 73.06% 42 Loan 42 9/30/2021 10/6/2025 Multifamily Clearfield UT 10,305,308 3.26% 0 48 67.98% 43 Loan 43 7/14/2022 8/5/2026 Multifamily Bradenton FL 9,429,206 3.90% (43,522) 49 74.40% 44 Loan 44 6/22/2022 7/3/2025 Multifamily Des Moines IA 8,175,500 4.00% 0 36 72.03% 45 Loan 45 9/28/2021 10/6/2025 Multifamily Chicago IL 7,286,000 3.76% 0 48 75.90% 46 Loan 46 10/7/2022 11/5/2025 Multifamily Fairborn OH 7,000,000 4.10% 0 37 79.10% 47 Loan 47 10/24/2022 11/6/2025 Healthcare Various FL 6,100,000 4.50% 0 36 71.00% 48 Loan 48 6/3/2022 6/5/2026 Self Storage Deer Park NY 5,815,886 3.60% 0 48 72.50% 49 Loan 49 10/6/2023 10/3/2025 Multifamily Garfield NJ 4,808,148 4.50% 0 24 65.50% 50 Loan 50 4/23/2025 12/5/2025 Healthcare Austin TX 1,900,000 4.00% 0 7 65.00% 51 Loan 51 4/23/2025 12/5/2025 Healthcare Southlake TX 1,705,000 4.00% 0 7 48.00% Total / Average 839,749,479 3.55% (1,928,239) 47 71.70%

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Consolidated Balance Sheets 16

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Consolidated Statement of Income 17

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Detailed Walk of Allowance for Loan Losses 18

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Reconciliation of Net Income to Distributable Earnings 19 For the Three Months Ended September 30, 2025 June 30, 2025 Mar 31, 2025 Dec 31, 2024 GAAP to Distributable Earnings Reconciliation Reconciliation of GAAP to non - GAAP Information $658,597 $2,505,731 $(1,707,526) $3,604,879 Net income attributable to common stockholders Adjustments for non - Distributable earnings 24,700 36,456 22,518 (8,978) Unrealized losses (gains) on mortgage servicing rights (29,660) 94,768 5,697,661 1,781,098 Unrealized provision for credit losses 344,785 138,777 0 0 Depreciation of real estate owned 339,825 270,001 5,720,179 1,772, 1210 Subtotal Other Adjustments (2,902) (4,084) 8,550 5,457 Adjustment for income taxes (2,902) (4,084) 8,550 5,457 Subtotal $995,520 $2,771,648 $4,021,203 $5,382,456 Distributable Earnings 52,352,469 52,332,304 52,309,887 52,300,100 Weighted average shares outstanding, b asic and diluted $0.02 $0.05 $0.08 $0.10 Distributable Earnings per share of common stock , b asic and diluted

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Detailed Walk of Capitalization as of 9/30/2025 20 9/30/2025 LFT Capitalization Reconciliation (in 000's) $957,338 Total GAAP liabilities and stockholders' equity (1) Adjustments for Capitalization (2,018) (-) Accrued interest payable (3,096) (-) Dividends payable (1,451) (-) Fees and expenses payable to Manager (3,368) (-) Other accounts payable and accrued expenses 1,642 (+) Other capitalized financing & issuance costs $949,046 LFT Capitalization Note: (1) Net of non - controlling interest.

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Book Value Per Share of Common Stock as of 9/30/2025 21 September 30, 2025 Book Value Per Common Share (in 000's) $230,072 Total stockholders' equity (60,000) (-) Preferred equity (1) (100) (-) Non - controlling interest $169,973 Common equity 52,364,930 Shares outstanding $3.25 Book Value Per Share of Common Stock Note: (1) Reflects 2.4 million shares of the Company's 7.875% Series A Cumulative Redeemable Preferred Stock outstanding at a $25 liquidation preference per share.

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Key Definitions 22 " Book Value Per Share of Common Stock " is calculated as: a) total stockholders' equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its stated liquidation preference of $25.00 per share, divided by b) the weight ed average number of shares of common stock issued and outstanding during the period, basic and diluted. " Distributable Earnings " is a non - GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock, or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not ot her wise included in GAAP net income (loss) and excluding (i) non - cash equity compensation, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non - cash items that are included in net income for that applicable reporting period, regardless of whether such items are included in other comprehensive income (loss) or net income (loss), and (iv) one - time events pursuant to changes in GAAP and certain material non - cash income or expense items after discussions with the Company's board of directors and approved by a majority of the Company's independent directors. We also add back one - time charges such as acquisition costs and one - time gains/losses on the early extinguishment of debt and redemption of preferred stock. Distributable Earnings mirrors how we calculate Core Earnings pursu ant to the terms of our management agreement with our Manager for purposes of calculating the incentive fee payable to our Manager. Whil e Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off an d r ealized through Distributable Earnings when deemed non - recoverable. Non - recoverability is determined (i) upon the resolution of a loan (i.e. wh en the loan is repaid, fully or partially, or in the case of foreclosures, when the underlying asset is sold), or (ii) with respect to any a mou nt due under any loan, when such amount is determined to be non - collectible. We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and c ash flows from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for e xis ting and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator o f o ur dividends per share. As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustment s, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. Refer to Note 16 to ou r c onsolidated financial statements for further discussion of our distribution requirements as a REIT. Furthermore, Distributable Earnings h elp us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indica tiv e of our current loan portfolio and operations and is a performance metric we consider when declaring our dividends. Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be con sid ered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an in dication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the m eth odologies employed by other companies to calculate the same or similar performance measures, and accordingly, our reported Distributabl e E arnings may not be comparable to the Distributable Earnings reported by other companies.

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November 2025