Here are 1-3 brief analogies to describe Lument Finance Trust (LFT):

• It's like Rocket Mortgage for commercial properties like apartment buildings and healthcare facilities.
• A specialized Goldman Sachs that focuses exclusively on originating and investing in debt for commercial properties such as apartment complexes and senior living communities.
• A bank dedicated solely to providing loans for commercial real estate, specifically apartment buildings, hospitals, and senior living centers.

• Commercial Mortgage Loans: LFT originates and provides floating-rate loans for various types of commercial real estate properties.
  Category: Financial Services - Commercial Real Estate Lending
• Commercial Real Estate Debt Investments: LFT acquires and manages a diversified portfolio of other debt instruments related to commercial real estate.
  Category: Financial Services - Commercial Real Estate Investment

Lument Finance Trust (LFT) is a real estate finance company that primarily originates, acquires, finances, and manages a portfolio of commercial real estate debt investments. As such, its "customers" are the borrowers to whom it provides loans.

LFT primarily sells (lends) to other companies, not individuals. These companies are typically:

• Private real estate developers and sponsors: These are companies engaged in the acquisition, development, and repositioning of commercial real estate properties (e.g., multifamily, office, industrial, retail).
• Real estate investment firms and funds: These entities acquire and manage portfolios of commercial properties on behalf of their investors.

Due to the nature of its business as a mortgage REIT, LFT typically lends to a diverse pool of borrowers and does not publicly disclose specific names of its "major customers" (borrowers). Mortgage REITs generally diversify their loan portfolios, and their borrowers are predominantly private entities rather than other large public companies that would be identified as major clients in the traditional sense.

ORIX Corporation (NYSE: IX)

James P. Flynn, Chief Executive Officer

Mr. Flynn has served as CEO and Chairman of the board since January 2018. He also holds the position of CEO of Lument, a division of ORIX USA, and an affiliate of the Manager. Mr. Flynn joined Lument, previously known as Hunt Real Estate Capital, in 2007, where he was instrumental in its growth, overseeing an increase in its servicing portfolio by more than $3 billion and annual originations by 80 percent. He was also involved in launching Lument, which was formed in 2020 from the merger of Hunt Real Estate Capital with RED Capital and Lancaster Pollard, both ORIX USA legacy brands. Before his tenure at Hunt and Centerline, Mr. Flynn practiced real estate law at Gibson, Dunn & Crutcher LLP and worked as an investment banker at Lehman Brothers.

James Briggs, Chief Financial Officer

Mr. Briggs has been the CFO of Lument Finance Trust, LLC (LFT) since January 2020, having previously served as interim CFO from September 2018. He concurrently serves as the Chief Accounting Officer of Lument, a division of ORIX Corporation USA. Mr. Briggs joined Lument's predecessor, Hunt Real Estate Capital (formerly Centerline Capital Group), in 2009. Prior to joining Hunt Real Estate Capital, he was the Director of Finance at MRU Holdings, Inc., a specialty finance company. He also spent fifteen years at JPMorgan Chase & Co. and its predecessor companies, holding various accounting and finance positions, including Head of Valuation Control and CFO for Emerging Markets.

Greg Calvert, President

Mr. Calvert was appointed President of Lument Finance Trust in 2025. He also serves as Senior Managing Director and Chief Credit Officer of Lument, a division of ORIX USA. In this capacity, he is responsible for overseeing the company's Agency, FHA, and seniors housing and healthcare underwriting teams. He directly manages Lument's credit functions, including credit review, approvals, and policy, and is a member of the company's investment committee.

Zachary Halpern, Managing Director, Portfolio Manager

Mr. Halpern is a Managing Director for Lument Finance Trust, serving as Portfolio Manager. He is also a Senior Director and Head of Portfolio Management and Capital Markets for Lument's real estate investment strategies group. Before joining Lument, Mr. Halpern was the Chief Investment Officer and Head of Capital Markets at Dwight Securities Management, where he was responsible for creating and managing several funds focused on CRE bridge loans and CMBS investments. His prior experience also includes portfolio management roles at Lord Abbett, RBC, and Cello Capital, where he managed portfolios across various MBS and CMBS derivatives.

Stephanie G. Culpepper, Secretary

Ms. Culpepper serves as the Secretary for Lument Finance Trust. She also holds the title of Senior Managing Director and General Counsel at Lument.

The key risks to Lument Finance Trust (LFT) primarily stem from its business model as a mortgage real estate investment trust (mREIT) focused on commercial real estate (CRE) debt investments, particularly floating-rate transitional loans in the middle-market multifamily sector.

1. Interest Rate Sensitivity and Net Interest Income Compression: Lument Finance Trust's business is highly sensitive to interest rate movements due to its reliance on a leveraged, floating-rate model. The company generates revenue from the spread between the interest it earns on its floating-rate CRE loan portfolio and the cost of its own borrowings. There is a significant risk of margin deterioration and a decrease in net interest income if the cost of its financing rises faster than the interest earned on its loan assets, especially as existing, lower-cost financing (like the 2021 CLO with a SOFR spread of 1.5%) matures and is replaced by new, higher-cost financing (such as the 2023 CLO with a SOFR spread of 3.15%). This dynamic can directly impact the company's profitability.
2. Credit Risk and Loan Portfolio Performance: The performance of LFT's commercial real estate loan portfolio is a critical risk factor. The company faces challenges related to deteriorating credit quality, non-performing loans, and potential credit losses and foreclosures. As of September 30, 2025, approximately $86.6 million in principal from seven loans were rated at the highest risk category ('5'), indicating a risk of default. The company's ability to navigate market headwinds and maintain profitability is contingent on actively managing and efficiently resolving these high-risk loans.
3. Liquidity and Financing Risk: LFT's operating model relies heavily on secured financing, primarily through Collateralized Loan Obligations (CLOs). The inability to secure new or maintain favorable terms for its financing facilities can significantly constrain loan book growth, impact earnings potential, and potentially lead to liquidity issues. While the company aims to secure long-term, non-recourse funding, a situation where numerous loans mature and default concurrently could still pose a liquidity challenge, despite holding a cash reserve.

Lument Finance Trust (LFT) operates as a real estate investment trust (REIT) primarily focused on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company emphasizes transitional floating-rate commercial mortgage loans, with a particular focus on middle-market multifamily assets. LFT may also invest in other CRE-related debt instruments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed-rate loans, and construction loans.

The addressable market for Lument Finance Trust's main products and services, within the United States, can be primarily understood through the following:

• U.S. Commercial Real Estate Debt Market: The total outstanding commercial real estate debt in the U.S. was approximately $5.9 trillion as of the fourth quarter of 2023. This figure increased to $5.9 trillion in the second quarter of 2024, including multifamily loans. More recently, total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in Q4 2024.
• U.S. Commercial Real Estate Mortgage Borrowing and Lending: The total commercial real estate mortgage borrowing and lending in the U.S. is estimated to have been $498 billion in 2024.
• U.S. Bridge Loan Originations (a form of transitional commercial mortgage loans): In January 2025, private lenders originated over $2 billion in bridge loans in the United States. Over the last six years, a platform used by private lenders, Lightning Docs, recorded over $49 billion in bridge loan originations.

While Lument Finance Trust specifically targets the middle-market segment within these larger categories, a precise market size for "middle-market multifamily commercial mortgage loans" as a standalone figure is not readily available in the provided information. However, the U.S. middle market generally refers to companies with annual revenues between $10 million and $1 billion.

Here are 3-5 expected drivers of future revenue growth for Lument Finance Trust (LFT) over the next 2-3 years:

1. Expansion of Commercial Real Estate (CRE) Debt Investments, particularly in Multifamily and Healthcare Sectors: Lument Finance Trust primarily invests in floating-rate commercial real estate (CRE) debt, with a significant concentration in multifamily assets (approximately 90-93% of its portfolio). Continued growth in originating and acquiring new loans within these core segments, including the healthcare sector where new loans were recently funded, is expected to drive increased interest income and, consequently, revenue growth. Analysts forecast LFT's revenue to grow by 15.3% to 18% per annum over the next two years.
2. Favorable Net Interest Margin Expansion through Interest Rate Dynamics: As LFT's investment portfolio consists entirely of floating-rate CRE loans indexed to benchmarks like 1-month SOFR, its revenue is sensitive to interest rate movements. Anticipated Federal Reserve easing policies are projected to positively influence Lument Finance Trust's cost of funds, potentially leading to an expansion of its net interest margin and thereby boosting revenue.
3. Leveraging its Loan Origination Platform and Management Expertise: Lument Finance Trust benefits from its affiliation with Lument, a recognized national mortgage originator and asset manager, providing access to an extensive loan origination platform. This, coupled with an experienced management team, is expected to enable the company to effectively source and underwrite new investment opportunities, contributing to portfolio growth and enhanced revenue generation.
4. Successful Resolution of Credit-Impaired Assets and Proactive Asset Management: The company's proactive asset management and credit resolution strategies are crucial for enhancing profitability. Successfully resolving non-performing or risk-rated assets, as demonstrated by the positive resolution of one such asset in Q2 2025, can improve the overall performance of its loan portfolio by converting non-income generating assets into performing ones or leading to profitable dispositions, thereby supporting revenue growth.

Share Repurchases

• No significant share repurchases by Lument Finance Trust have been explicitly reported or authorized during the last 3-5 years.

Share Issuance

• In May 2021, Lument Finance Trust closed an underwritten public offering of 2,400,000 shares of its 7.875% Series A Cumulative Redeemable Preferred Stock at $25.00 per share.
• The company received approximately $58.1 million in net proceeds from this preferred stock offering, which it intended to use for additional investments in target assets and general corporate purposes.
• As of March 13, 2024, there were 52,248,631 outstanding shares of common stock. As of March 17, 2025, there were 52,309,209 outstanding shares of common stock.

Inbound Investments

• On January 2, 2020, an affiliate of ORIX USA purchased common shares, resulting in ORIX owning approximately 5.0% of LFT's outstanding common shares.

Outbound Investments

• Lument Finance Trust's primary investment focus is on commercial real estate (CRE) debt investments, particularly transitional floating-rate commercial mortgage loans, with an emphasis on middle-market multi-family assets.
• During the year ended December 31, 2023, LFT purchased eight loans with an aggregate unpaid principal balance of $121.5 million at par, and thirty-one loans totaling $459.2 million at a discount of $7.9 million, from Lument Structured Finance (LSF), an affiliate of its Manager. Additionally, three funded advances for $5.7 million at par and eighteen funded advances for $26.0 million at a discount of $0.3 million were purchased from LSF.
• For the year ended December 31, 2022, the company acquired twenty-three loans with an aggregate unpaid principal balance of $269.5 million at par from LSF.
• In July 2023, LFT closed a $386 million commercial real estate financing, its fourth such transaction, in which approximately $270 million of investment grade-rated loans were placed with a private lender and approximately $47 million of investment grade-rated notes were issued and sold to an affiliate of LFT's external manager. A consolidated subsidiary of LFT retained subordinate interests in the issuing vehicle of approximately $69 million.

Capital Expenditures

• Given Lument Finance Trust's business model as a real estate investment trust primarily focused on commercial real estate debt investments, it does not typically report significant capital expenditures in the traditional sense (e.g., property, plant, and equipment). Its core "investments" are financial assets in the form of loans.