Lument Finance Trust, Inc. reported a net income attributable to common stockholders of $2.5 million, or $0.05 per share, for the second quarter of 2025, a decrease from $4.6 million, or $0.07 per share, in the same period last year. For the six months ended June 30, 2025, the company recorded a net loss of $798,205, compared to a net income of $9.2 million for the same period in 2024. The decline in profitability was primarily driven by a significant drop in net interest income, which fell to $14.7 million from $22.5 million year-over-year, alongside increased provisions for credit losses.
Total revenues for the second quarter of 2025 were $19.98 million, down from $29.84 million in the prior year, reflecting a decrease in interest income from commercial mortgage loans held-for-investment. The company’s interest expense also decreased, but not enough to offset the decline in interest income. Total expenses for the quarter were $3.16 million, a reduction from $3.53 million in the previous year, largely due to lower management and incentive fees.
In terms of operational developments, Lument Finance Trust's commercial mortgage loans held-for-investment decreased to $905.4 million as of June 30, 2025, down from $1.05 billion at the end of 2024. The company experienced $63.4 million in loan payoffs during the quarter and funded $3.6 million in loan participations. The portfolio remains heavily weighted towards multifamily assets, which constituted 90.6% of the loan portfolio. The average risk rating of the commercial mortgage loan portfolio remained stable at 3.5, indicating a moderate risk level.
Looking ahead, Lument Finance Trust anticipates challenges due to ongoing market volatility, including high interest rates and inflationary pressures. The company has indicated that while it expects to continue generating income from its floating-rate loans, prolonged elevated interest rates could strain borrowers' cash flows and impact loan performance. The company plans to maintain a level of liquidity to meet its operational needs and intends to continue making regular quarterly distributions to its stockholders, having declared a dividend of $0.06 per share for the second quarter of 2025.
About Lument Finance Trust, Inc.
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