Lument Finance Trust Inc. Common Stock (LFT)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power, a margin of safety, and a balance sheet that can survive mistakes. Lument is a mortgage REIT that invests in transitional floating-rate commercial real estate debt, mostly middle-market multifamily. The filed record is inconsistent: FY2023 net income was $19.7M and FY2024 net income was $22.6M, but FY2025 swung to a net loss of $2.7M. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was -$8.0M and diluted EPS -$0.18; fiscal Q1 2026 had net income of $206,583 but diluted EPS of -$0.02. As of the 2026-10-13 close, FairStock calculates P/B at 0.17 and P/E at -1.33, with ROE -6.29%. A 0.17 price-to-book looks like a bargain only if book value is real and credit marks are conservative. With D/E 4.40, the equity cushion is thinner than it appears. The 24.35% dividend yield is a warning, not a margin of safety, because recent losses do not cover it. Piotroski 2/9 and FairStock 34/100 reinforce weak fundamentals. The Lynch category is TURNAROUND—loss in the latest year after earlier profits—but turnarounds need liquidity and credit discipline. Bank-specific measures such as CET1, NIM, and combined ratio are not in the data. The stock could be cheap if multifamily credit normalizes; otherwise book value may shrink and the dividend is at risk.

In plain English: Lument Finance Trust is a real estate lender that mainly makes loans tied to apartment buildings and other commercial property. The business looks weak now, since it lost money in its latest year and latest quarter and uses a lot of borrowed money. The stock looks very cheap compared with the company's reported net worth, but that may be because its loans could run into trouble.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer