New York, November 12 ( PRNewswire ) – Lument Finance Trust , Inc . (New York Stock Exchange ticker: LFT , hereinafter referred to as "we", " LFT " or "the Company") announced its third-quarter results today. The Company stated that the net loss attributable to common stockholders in the third quarter was $13.5 million, resulting in a loss of $2.57 per share of common stock. The third-quarter Distributable Loss (distributable loss, not a GAAP financial indicator) was $700,000, with a loss of $0.13 per share of common stock. The Company also released detailed performance materials, which can be viewed at lumentfinancetrust.com.

Teleconference and live webcast information

The company will also hold a teleconference on Friday, November 13, 2026, at 8:30 a.m. Eastern Time to provide business updates and discuss the financial results for the third quarter of 2026. The teleconference can be accessed by calling 1-800-836-8184 (in the United States) or 1-646-357-8785 (internationally). Note: No password is required; please ask the operator to connect you to the Lument Finance Trust teleconference. A live webcast of the event is also available, but it is in listener-only mode and can be accessed through the following link:

https :// app.webinar.net / OM2lgaX83oV

Those who are unable to watch the live broadcast can listen to the recording about one hour after the event ends through the company's website lumentfinancetrust.com and by calling a replay number. The replay phone numbers are 1-888-660-6345 (for the United States) or 1-646-517-4150 (international), and the password is 61002.

Non-GAAP financial indicators

In this press release, the company presents certain financial indicators that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). Specifically, the company disclosed Distributable Earnings, or, and Loss, which are non-GAAP financial indicators as defined under Item 10(e) of the S-K Regulations. These indicators represent net income calculated in accordance with GAAP. The company believes that the non-GAAP information contained in this press release can provide additional insights for investors to analyze the company’s performance and assist them in comparing the company’s performance with that of other peer issuers. However, these indicators do not comply with GAAP and should not be considered as a substitute for or superior to the financial information calculated in accordance with GAAP. There may be significant differences in the methods used by different companies to calculate their non-GAAP financial indicators. Investors should carefully evaluate the company’s financial results under GAAP and the reconciliations between those results and the non-GAAP indicators.

Distributable Earnings or Loss

Distributable Earnings or Loss is a non-GAAP financial indicator. The company defines it as the GAAP net income (loss) attributable to common stockholders, calculated in accordance with GAAP. It includes realized losses that are not otherwise recognized in GAAP net income (loss), and deducts: (i) non-cash equity compensation; (ii) depreciation and amortization; (iii) any unrealized gains or losses recognized in net income during the applicable reporting period or other similar non-cash items, whether such items are recognized in other comprehensive income (loss) or net income (loss); as well as (iv) one-time events arising from changes under GAAP, and certain significant non-cash income or expense items that are discussed with the company's board of directors and approved by the majority of independent directors. Distributable Earnings or Loss reflects the company's calculation of "___" in accordance with the terms of the management agreement with its manager, Lument Investment Management, LLC ("Manager"). This indicator is used to calculate the incentive fees payable to the Manager.

Although Distributable Earnings or Loss do not include any impact of unmet credit loss provisions, when loan losses are deemed irrecoverable, these losses will be written off and realized in Distributable Earnings or Loss. The criteria for determining irrecoverability are: (i) at the time of loan settlement, that is, when the loan is fully or partially repaid, or in the case of foreclosure, when the related assets are sold; or (ii) in the case of any payments due under a loan, when such amounts are deemed unrecoverable.

The company believes that, apart from the net income (loss) of GAAP and the cash flow from operating activities determined according to GAAP, Distributable Earnings, or, and Loss also provide meaningful information. The company considers that Distributable Earnings, or, and Loss are useful financial indicators for current and potential common stockholders, as historically, in the long term, Distributable Earnings, or, and Loss have always been strong indicators of the company's dividend per common share. Dividends are one of the main reasons investors invest in REITs. As a REIT, the company is generally required to distribute at least 90% of its taxable income annually, although this is subject to certain adjustment restrictions. In addition, when evaluating performance and considering and announcing common stock dividends, the company also uses Distributable Earnings, or, and Loss to exclude the impact of certain transactions and GAAP adjustments that the company believes may not necessarily reflect the current loan portfolio and operational conditions.

Distributable Earnings or Loss do not represent net income (loss) or cash generated from operating activities, nor should they be considered as an alternative indicator of GAAP net income (loss), or as an indication of GAAP operating cash flow, a measure of liquidity, or as funds available to meet cash needs.

GAAP Distributable Earnings or Loss Adjustment Table

About LFT

LFT is a company based in Maryland that focuses on investing in, financing, and managing commercial real estate debt portfolios. The company primarily invests in transitional floating-rate commercial mortgages, with a particular focus on multi-unit assets in the mid-market segment.

LFT is externally managed and provided with advisory services by Lument Investment Management LLC (a Delaware limited liability company).

More information and ways to obtain it

Investors, security holders, and other interested parties may obtain more information about the company by visiting the U.S. Securities and Exchange Commission website sec.gov, the company's website lumentfinancetrust.com, or by writing to the following address: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, to the attention of: Investor Relations.

Forward-looking Statements

Certain statements contained in this press release constitute forward-looking statements intended to qualify under the safe harbor provisions of 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. You can identify forward-looking statements by words such as “believe,” “expect,” “anticipate,” “project,” “estimate,” “plan,” “intend,” “may,” “will,” “seek,” “shall,” “could,” or similar expressions, or by discussions of strategies, plans, or intentions. Forward-looking statements are based on the company’s beliefs, assumptions, and expectations regarding its future performance as of the date of this press release or the earliest date such statements were made. Actual results may differ from those expected, estimated, or projected. Do not rely too heavily on the forward-looking statements in this press release. When evaluating these statements, please consider the factors described in Item 1A of “Risk Factors” in Part I of the company’s annual report on Form 10-K for the year ended December 31, 2025, and Item 1A of “Risk Factors” in Part II of the company’s quarterly report on Form 10-Q for the quarter ended June 30, 2026, which are available on the U.S. Securities and Exchange Commission’s website sec.gov and in other current or periodic reports filed by the company with the U.S. Securities and Exchange Commission. Forward-looking statements involve significant risks and uncertainties, many of which are difficult to predict and generally beyond the company’s control. Except as required by law, the company has no intention or obligation to update or revise any forward-looking statements due to new information, future events, or other reasons.