Lument Finance Trust, Inc. reported a net loss attributable to common stockholders of $1.7 million, or $0.03 per share, for the first quarter of 2025, a significant decline from a net income of $5.8 million, or $0.11 per share, in the same period last year. The company's total revenue for the quarter was $21.7 million, primarily driven by interest income from commercial mortgage loans, which decreased from $34.8 million year-over-year. The decline in revenue was attributed to a reduction in the weighted-average principal balance of the loan portfolio and a decrease in the weighted-average floating rate of loans.
In terms of operational metrics, Lument's commercial mortgage loans held-for-investment totaled approximately $988.8 million as of March 31, 2025, down from $1.05 billion at the end of 2024. The company also reported an increase in the allowance for credit losses, which rose to $17.1 million from $11.3 million, reflecting specific reserves taken on risk-rated "5" multifamily loans. The average risk rating of the loan portfolio remained stable at 3.5, indicating a moderate risk level.
Strategically, Lument continues to focus on its core business of investing in transitional floating-rate commercial real estate loans, with a significant emphasis on multifamily assets, which represented 91.9% of its loan portfolio. The company has also engaged in non-recourse secured borrowings, including collateralized loan obligations (CLOs), to finance its investments. As of March 31, 2025, Lument had $772.3 million in collateralized loan obligations and secured financings, which are not subject to margin calls.
Looking ahead, Lument Finance Trust anticipates that the current economic environment, characterized by elevated interest rates and inflation, may pose challenges to its borrowers and overall market liquidity. The company remains committed to maintaining a level of liquidity that supports its investment activities and dividend payments. Lument declared a quarterly dividend of $0.08 per share of common stock, reflecting its ongoing commitment to return value to shareholders while navigating the complexities of the current market landscape.
About Lument Finance Trust, Inc.
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