GICS Sector : Real Estate
Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States.The company primarily invests in transitional floating rate commercial mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments.Lument Finance Trust, Inc.
Lument Finance Trust reported net income to common stockholders of $700,000 or $0.01 per share, and distributable earnings of $1 million or $0.02 per share. The company's Q3 net interest income was $5.1 million, a decline from $7 million recorded in Q2. The actual EPS came out at $0.02, missing estimates of $0.06. The weighted average coupon of the loan portfolio remained relatively flat sequentially.
Publication Date: Nov -29
During the third quarter, LFT experienced $49 million of loan payoffs. As of September 30, the total loan portfolio consists of 51 floating rate loans with an aggregate unpaid principal balance of approximately $840 million. The weighted average remaining term of the book as of quarter-end was approximately months, assuming all available extensions are exercised by borrowers. 100% of the portfolio was indexed to one-month SOFR, and 90% of the portfolio was collateralized by multifamily properties.
According to James Peter Flynn, "We've consistently held the REO that we have, and it's held unlevered." LFT has flexibility to put some financing against the value of those assets through debt providers and facilities. The timing for the REOs is very asset-specific, and the company may dispose of some quickly in the three to six-month period.
The current P/B Ratio of 0.37 suggests that the stock may be undervalued. Analysts estimate next year's revenue growth at -9.1%. The Dividend Yield is 21.47%, which is attractive for income-seeking investors. With a disciplined approach to asset management and a focus on middle-market multifamily lending, LFT is positioned for potential growth as the market stabilizes.
LFT plans to redeem its 2021 CLO at SOFR plus 1.79, with a leverage of 72%, and is looking to restructure its debt, including a term loan due in 2026 and a corporate debt maturing in 2026. The JPMorgan line provides flexibility and liquidity, which can be used indirectly to pay off or refinance these debts.
Lument Finance Trust Announces Pricing of $664 Million Commercial Real Estate CLO
Nov -21
Lument Finance Trust, Inc. (LFT) Q3 2025 Earnings Call Transcript
Nov -13
Lument Finance Trust Reports Third Quarter 2025 Results
Nov -12
Lument Finance Trust Announces Quarter-End Earnings Release and Investor Call Dates
Nov -07
Discover 4 Wall Street Stocks with Double-Digit Yields
Oct -06
A Dovish Turn, A Hawkish Shadow
Sep -21
Lument Finance Trust, Inc. Declares Quarterly Cash Dividends for its Common and Preferred Stock
Sep -16
My Concerns About Lument Were Valid, And The Name Cut The Dividend
Aug -14
The 9% growth in Mortgage Loans and Other Mortgage-related Investments from Lument Finance Trust, Inc. is driven by increasing demand for housing, low interest rates, and government-backed mortgage programs. Additionally, the company's diversified portfolio, efficient underwriting process, and strong risk management practices have contributed to the growth.
Lument Finance Trust, Inc. offers commercial real estate loans for property owners and investors, providing financing solutions for acquisition, refinance, and redevelopment of commercial properties.
Lument Finance Trust, Inc. provides multifamily loans for apartment buildings, offering financing options for acquisition, refinance, and rehabilitation of multifamily properties.
Lument Finance Trust, Inc. offers healthcare real estate loans for medical office buildings, hospitals, and other healthcare facilities, providing financing solutions for acquisition, refinance, and redevelopment.
Lument Finance Trust, Inc. provides commercial and industrial loans for businesses, offering financing solutions for equipment, inventory, and working capital.
Lument Finance Trust, Inc. offers construction loans for commercial and residential projects, providing financing solutions for land acquisition, construction, and renovation.
Lument Finance Trust, Inc. provides bridge loans for short-term financing needs, offering flexible and customizable loan solutions.
The threat of substitutes for Lument Finance Trust, Inc. is medium due to the presence of alternative investment options for investors, such as other mortgage REITs and fixed-income securities.
The bargaining power of customers for Lument Finance Trust, Inc. is low due to the company's diversified investor base and lack of concentration of ownership.
The bargaining power of suppliers for Lument Finance Trust, Inc. is medium due to the company's reliance on a few large financial institutions for funding and the availability of alternative suppliers.
The threat of new entrants for Lument Finance Trust, Inc. is high due to the relatively low barriers to entry in the mortgage REIT industry and the potential for new competitors to enter the market.
The intensity of rivalry for Lument Finance Trust, Inc. is high due to the competitive nature of the mortgage REIT industry and the presence of several established players.
| Value | |
|---|---|
| Debt Weight | 83.22% |
| Debt Cost | 6.27% |
| Equity Weight | 16.78% |
| Equity Cost | 9.48% |
| WACC | 6.81% |
| Leverage | 495.83% |
Value: 7.8
Growth: 6.9
Quality: 7.3
Yield: 10.0
Momentum: 4.0
Volatility: 6.7
1-Year Total Return ->
Value: 6.1
Growth: 9.1
Quality: 4.3
Yield: 10.0
Momentum: 1.0
Volatility: 9.7
1-Year Total Return ->
Value: 7.6
Growth: 3.3
Quality: 5.8
Yield: 10.0
Momentum: 5.0
Volatility: 7.3
1-Year Total Return ->
Value: 7.6
Growth: 2.4
Quality: 5.4
Yield: 10.0
Momentum: 3.5
Volatility: 8.3
1-Year Total Return ->
Value: 7.3
Growth: 2.7
Quality: 7.9
Yield: 10.0
Momentum: 1.0
Volatility: 7.3
1-Year Total Return ->
Value: 8.0
Growth: 3.3
Quality: 5.6
Yield: 10.0
Momentum: 2.0
Volatility: 6.3
1-Year Total Return ->