Lument Finance Trust — Second Quarter 2026 Earnings Summary

Financial Performance

• GAAP net loss attributable to common shareholders for the second quarter was $9.2 million, or $0.18 per share.
• Distributable Loss for the second quarter was $5.3 million, or $0.10 per share.
• Reconciliation of GAAP to Distributable Earnings shows a Net Income loss of $9,197,948 adjusted by realized losses on commercial mortgage loans ($1,841,615) and realized losses on sale of real estate owned ($3,267,833).
• Adjustments included unrealized loss on mortgage servicing rights ($17,268), provision for credit losses ($8,625,695), and depreciation of real estate owned ($390,272).
• Weighted average shares outstanding were 52,459,976.

Other Key Points

• The Board of Directors unanimously approved a 1-for-10 reverse stock split to regain compliance with NYSE listing requirements.
• The reverse stock split is expected to become effective at 5:00 pm ET on September 9, 2026.
• The split will reduce issued and outstanding shares from approximately 52.5 million to approximately 5.3 million.
• Fractional shares will not be issued; stockholders entitled to fractional shares will receive cash in lieu.
• The common stock is expected to begin trading on a split-adjusted basis on September 10, 2026, under ticker "LFT" with a new CUSIP number: 55025L306.
• A conference call and webcast were scheduled for August 14, 2026, at 8:30 a.m. ET to discuss results.
• The Company is a REIT focused on commercial real estate debt investments, primarily transitional floating rate loans in middle-market multi-family assets.
• The Company is externally managed by Lument Investment Management LLC.