Lument Finance Trust Reports Q2 Loss, Announces 1-for-10 Reverse Stock Split
By John Damon
Lument Finance Trust, Inc. (NYSE: LFT) reported a net loss for the second quarter of 2026 and announced a 1-for-10 reverse stock split aimed at regaining compliance with New York Stock Exchange listing requirements. The company, which focuses on commercial real estate debt investments, posted a GAAP net loss of $9.2 million, or $0.18 per share, for the quarter.
The reverse stock split, unanimously approved by the company's Board of Directors, is expected to take effect at 5:00 pm Eastern Time on September 9, 2026. Beginning September 10, shares will trade on a split-adjusted basis under the existing ticker symbol LFT with a new CUSIP number.
What does the reverse stock split mean for shareholders?
Every ten issued and outstanding shares of common stock will be converted into one share. The move reduces the total number of outstanding shares from approximately 52.5 million to about 5.3 million. All stockholders will be affected uniformly, and no fractional shares will be issued. Those who would otherwise receive a fractional share will get cash instead.
The company says the reverse split will not alter any stockholder's percentage ownership interest, except with respect to fractional shares. Shareholders holding positions through banks, brokers, or in book-entry form will have their positions automatically adjusted and need not take any action.
Second quarter financial results
In addition to the GAAP net loss of $9.2 million, the company reported a Distributable Loss of $5.3 million, or $0.10 per share. Distributable Earnings is a non-GAAP measure that the company uses to evaluate performance and as an indicator of dividends per share.
As a real estate investment trust (REIT), Lument Finance Trust is generally required to distribute at least 90% of its taxable income annually, subject to certain adjustments. The company believes Distributable Earnings is a useful metric for existing and potential shareholders because it has historically been a strong indicator of dividends.
Why is the company implementing the reverse stock split?
The reverse stock split is designed to help the company regain compliance with NYSE listing requirements and support an efficient public trading market for its common stock. The company reserves the right to abandon or delay the split and will inform stockholders of any changes.
The company has posted a Reverse Stock Split FAQ document on the Investor Relations page of its website for investor reference.
Conference call and investor information
Lument Finance Trust will host a conference call on Friday, August 14, 2026, at 8:30 a.m. ET to discuss the second quarter results and provide a business update. Investors can access the call by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international). A live webcast and a recorded replay will also be available through the company's website.
Additional information about the company is available on the SEC's website at sec.gov, the company website at lumentfinancetrust.com, or by contacting Investor Relations at Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169.
About Lument Finance Trust
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.
The company's forward-looking statements are subject to risks and uncertainties, and actual results may differ from expectations. Investors are cautioned not to place undue reliance on forward-looking statements and should consider the risk factors described in the company's Annual Report on Form 10-K and other SEC filings.
