Investment reports

Lument Finance Trust Reports F

NEW YORK, May 9, 2022 /PRNewswire/ — Lument Finance Trust, Inc. (NYSE: LFT) (“we”, “LFT” or “the Company”) today announced its results for the first quarter of 2022. GAAP net income attributable to common shareholders for the quarter was $1.8 millionWhere $0.05 per ordinary share. Distributable profit for the quarter was $1.7 millionWhere $0.05 per ordinary share. The Company has also published a detailed presentation of its results, which can be viewed at www.lumentfinancetrust.com.

Conference Call and Webcast Information

The Company will also hold a conference call on Tuesday, May 10, 2022at 8:30 a.m. ET to provide a business update and discuss the first quarter 2022 financial results. The conference call can be accessed by dialing 1-888-336-7151 (U.S.) or 1-412-902-4251 (International). ). Note: there is no password; please ask the operator to join the Lument Finance Trust call. A live, listen-only webcast is also available and accessible via the URL:

https://app.webinar.net/Ay2Ln1vjv1O

For those unable to listen to the live stream, a recorded replay will be available for on-demand viewing approximately one hour after the end of the event via the Company’s website https://lumentfinancetrust.com/ and by telephone. The replay dial-in number is 1-877-344-7529 (U.S.) or 1-412-317-0088 (International) with passcode 2306861.

Non-GAAP Financial Measures

In this news release, the Company presents certain financial measures that are not calculated in accordance with generally accepted accounting principles in United States (“GAAP”). Specifically, the Company reports distributable earnings, which is a non-GAAP financial measure within the meaning of Section 10(e) of Regulation SK and constitutes net earnings under GAAP. Although we believe that the non-GAAP information included in this press release provides additional information to help investors analyze our results and to help investors compare our results with those of other peer issuers, these measures are not not in accordance with GAAP and should not be considered a substitute for or superior to our financial information calculated in accordance with GAAP. The methods of calculating non-GAAP financial measures may differ materially from similarly titled measures used by other companies. Our GAAP financial results and reconciliations to those results should be carefully evaluated.

distributable profit

Distributable income is a non-GAAP measure, which we define as GAAP net income (loss) attributable to common shareholders calculated in accordance with GAAP, including realized losses not otherwise included in net income (loss). ) GAAP and excluding (i) – cash stock compensation, (ii) depreciation and amortization, (iii) unrealized gains or losses or other similar non-cash items which are included in net income for the applicable reporting period, whether or not such items are included in other comprehensive income (loss) or net income (loss), and (iv) one-time events as a result of changes in GAAP and certain material non-cash income or expense items after discussions with the Company’s Board of Directors and approved by a majority of the Company’s independent directors. Distributable Earnings reflects how we calculate base earnings in accordance with the terms of our management agreement between our manager and us, or our management agreement, for purposes of calculating the incentive compensation payable to our manager.

Although distributable income excludes the impact of any unrealized provision for credit losses, any loan loss is charged and realized through distributable income when deemed uncollectible. Uncollectibility is determined (i) upon resolution of a loan (i.e. when the loan is repaid, in whole or in part, or in the case of foreclosures, when the underlying asset is sold), or (ii) against any amount due under a loan, when it is determined that such amount is not collectible.

We believe distributable income provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. We believe that distributable income is a useful financial measure for current and potential future holders of our common shares because historically, over time, distributable income has been a strong indicator of our dividends per common share. As a REIT, we are generally required to distribute at least 90% of our taxable income annually, subject to certain adjustments, and therefore we believe that our dividends are one of the main reasons why shareholders can invest in our shares. ordinary. In addition, distributable earnings help us assess our performance by excluding the effects of certain transactions and GAAP adjustments which we believe are not necessarily representative of our current loan portfolio and operations, and are a measure of performance that we take into account when declaring our dividends.

Distributable income does not represent net income (loss) or cash generated from operating activities and should not be considered an alternative to GAAP net income (loss), or an indication of cash flow from operations. GAAP, a measure of our liquidity or an indication of the funds available for our cash requirements.

Reconciliation between GAAP and distributable earnings

Three months Completed

March 31, 2022

Reconciliation of GAAP information with non-GAAP information

Net income attributable to common shareholders

$1,769,841

Adjustments for non-distributable earnings

Unrealized (gain) on mortgage servicing rights

(147,382)

Total

(147,382)

Other adjustments

Recognized compensation expense related to restricted common shares

4,638

Income Tax Adjustment

51,665

Total

56,303

distributable profit

$1,678,762

Weighted average number of shares outstanding – basic and diluted

36,464,952

Distributable earnings per outstanding weighted share – basic and diluted

$0.05

About LFT

LFT is a Maryland company focused on investing, financing and managing a portfolio of commercial real estate investments. The Company invests primarily in transitional variable rate commercial mortgages, with an emphasis on mid-market multi-family assets.

LFT is externally managed and advised by OREC Investment Management, LLC d/b/a Lument Investment Management, a Delaware limited liability company.

Additional information and where to find it

Investors, security holders and other interested persons may find additional information about the Company on the SEC’s website at http://www.sec.gov/ or the Company’s website www.lumentfinancetrust.com or by directing inquiries to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations.

Forward-looking statements

Certain statements included in this press release, any related webcast/conference call, and other oral statements made by our representatives from time to time may constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks and uncertainties. These forward-looking statements include information about possible or expected future results of our business, financial condition, liquidity, results of operations, plans and objectives. You can identify forward-looking statements by using words such as “believe”, “expect”, “anticipate”, “project”, “estimate”, “plan”, “continue”, “intend” , “should”, “may”, “will”, “seek”, “would”, “could”, or similar expressions or other comparable terms, or through discussions of strategy, plans or intentions. Statements regarding the following matters, among others, may be forward-looking: return on equity; return on investments; the ability to borrow to finance assets; and the risks associated with investing in real estate assets, including changes in trading conditions and the general economy. Forward-looking statements are based on our beliefs, assumptions and expectations about our future performance, taking into account all information currently available to us as of the date of this press release or the date such statements are first made. time. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release and/or any related webcast/conference call and should carefully consider the factors described in Part I, Item IA “Risk Factors” in our reports. annual reports on Form 10-K, our quarterly reports on Form 10-Q, and other pending or periodic filings with the Securities and Exchange Commission (“SEC”), when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. Additionally, many of these risks and uncertainties are currently magnified by and will continue to be magnified by the COVID-19 outbreak or may be magnified in the future. Additional information regarding these and other risk factors is contained in our Annual Report on Form 10-K for the year ended. December 31, 2021available on the Securities and Exchange Commission website at www.sec.gov. Except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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SOURCE Lument Finance Trust, Inc.