Lument Finance Trust, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Lument Finance Trust, Inc. has filed its 2023 annual report detailing its financial performance and corporate information.</b>

AI Summary

Lument Finance Trust, Inc. (LFT-PA) filed a Annual Report (10-K) with the SEC on March 15, 2024. Lument Finance Trust, Inc. (formerly Hunt Companies Finance Trust, Inc.) filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 230 Park Avenue, 23rd Floor, New York, NY 10169. The company was incorporated in Maryland. The SIC code for Lument Finance Trust, Inc. is 6798 (Real Estate Investment Trusts).

Why It Matters

For investors and stakeholders tracking Lument Finance Trust, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Lument Finance Trust's financial health, operational activities, and strategic direction for the fiscal year 2023, crucial for investors to assess its performance and future prospects. Understanding the company's financial statements, risk factors, and executive compensation detailed in this filing is essential for investors making informed decisions about Lument Finance Trust.

Risk Assessment

Risk Level: — Lument Finance Trust, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate high risk without further analysis of the specific financial data and risk factors presented within the report.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess the company's financial health and potential investment risks.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240315 — Filing Date (Filed as of date)
• 6798 — SIC Code (Standard Industrial Classification)
• 001-35845 — SEC File Number (SEC file number)

Key Players & Entities

• Lument Finance Trust, Inc. (company) — Filer name
• Hunt Companies Finance Trust, Inc. (company) — Former company name
• New York (location) — Business address city
• Maryland (location) — State of incorporation
• 230 Park Avenue (address) — Business address street

FAQ

Industry Context

Lument Finance Trust, Inc. operates as a real estate investment trust (REIT), focusing on financing and investing in real estate-related assets.

Regulatory Implications

As a publicly traded company, Lument Finance Trust is subject to SEC regulations, including the requirement to file annual reports like this 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, net income, and asset/liability details.
2. Review the risk factors section to understand potential challenges and threats to the company's business.
3. Examine any disclosed executive compensation to understand management incentives.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the core financial and operational data for Lument Finance Trust for the fiscal year 2023.)

SIC Code

Standard Industrial Classification code used to classify industries. (Indicates Lument Finance Trust operates within the Real Estate Investment Trusts sector.)

Year-Over-Year Comparison

This is the initial filing analyzed for Lument Finance Trust, Inc. for the fiscal year 2023. Previous filings would need to be compared for trend analysis.

Key Financial Figures

• $0.01 — ch Registered: Common Stock, par value $0.01 per share LFT New York Stock Exchange
• $111 billion — rvices company with assets in excess of $111 billion as of December 2023 and was ranked numb
• $5 million — y funded principal balance greater than $5 million and generally less than $75 million; L
• $75 million — than $5 million and generally less than $75 million; Loan to Value ratio up to 85% of as-i
• $1.4 b — n aggregate unpaid principal balance of $1.4 billion, collectively having a weighted a
• $594.2 million — 023, the Company originated or acquired $594.2 million in loans and realized $277.5 million of
• $277.5 million — ed $594.2 million in loans and realized $277.5 million of loan repayments. This activity resul
• $316.7 million — activity resulted in net investments of $316.7 million. The following table details the overal
• $7,000,863 — 8.9 % 2.9 (1) Carrying Value includes $7,000,863 in unaccreted purchase discounts as of
• $1,375,277,312 — uch date. (4) As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans
• $8,603,886 — ior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans
• $996,511,403 — tside of VIEs. As of December 31, 2022, $996,511,403 of the outstanding senior secured loans
• $75,378,115 — ior secured loans were held in VIEs and $75,378,115 of the outstanding senior secured loans
• $67.3 million — paid principal balance of approximately $67.3 million that we had previously transferred to t
• $0.7 million — at December 31, 2023 was approximately $0.7 million. The Company ceased the aggregation of

Filing Documents

• hcft-20231231.htm (10-K) — 2549KB
• lft10-k20231231_ex4x3.htm (EX-4.3) — 27KB
• lft10-k20231231_ex21x1.htm (EX-21.1) — 13KB
• lft10-k20231231_ex23x1.htm (EX-23.1) — 3KB
• lft10-k20231231_ex31x1.htm (EX-31.1) — 11KB
• lft10-k20231231_ex31x2.htm (EX-31.2) — 11KB
• lft10-k20231231_ex32x1.htm (EX-32.1) — 5KB
• lft10-k20231231_ex32x2.htm (EX-32.2) — 5KB
• exhibit971.htm (EX-97.1) — 52KB
• lft10-k20231231_ex99x1.htm (EX-99.1) — 89KB
• hcft-20231231_g1.jpg (GRAPHIC) — 23KB
• hcft-20231231_g2.jpg (GRAPHIC) — 94KB
• hcft-20231231_g3.jpg (GRAPHIC) — 78KB
• 0001628280-24-011505.txt (&nbsp;) — 11806KB
• hcft-20231231.xsd (EX-101.SCH) — 83KB
• hcft-20231231_cal.xml (EX-101.CAL) — 68KB
• hcft-20231231_def.xml (EX-101.DEF) — 506KB
• hcft-20231231_lab.xml (EX-101.LAB) — 760KB
• hcft-20231231_pre.xml (EX-101.PRE) — 643KB
• hcft-20231231_htm.xml (XML) — 1597KB

Risk Factors

Item 1A. Risk Factors 6

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 47

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 47

Controls and Procedures

Item 9A. Controls and Procedures 47

Other Information

Item 9B. Other Information 48 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 49

Executive Compensation

Item 11. Executive Compensation 49

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 49

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 49

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 49 PART IV

Exhibits, Financial Statements and Schedules

Item 15. Exhibits, Financial Statements and Schedules 50

Form 10-K Summary

Item 16. Form 10-K Summary 50 i Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains certain 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, as amended. Forward-looking statements are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial conditions, liquidity, results of operations, plans and objectives. In addition, our management may from time to time make oral forward-looking statements. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "may," "will," "seek," "would," "could" or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. These forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operation may vary materially from those expressed in our forward-looking statements. Factors that may cause actual results to vary from our forward-looking statements include, but are not limited to: the risks, uncertainties and factors set forth in Part I, Item 1A. "Risk Factors" in this Annual Report on Form 10-K; the general political, economic and competitive conditions in the markets in which we invest; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; difficulty in obt

BUSINESS

ITEM 1. BUSINESS References herein to "Lument Finance Trust," "Company," "LFT," "we," "us," or "our" refer to Lument Finance Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise. Our Company We are a real estate investment trust ("REIT") focused on investing in, originating, financing and managing a portfolio of commercial real estate ("CRE") debt investments. We primarily invest or originate in transitional floating rate CRE mortgage loans with an emphasis on middle-market multifamily assets. We may also invest in other CRE-related investments including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans and other CRE debt instruments. We are externally managed by our manager, Lument Investment Management, LLC (the "Manager" or "Lument IM") pursuant to the terms of our management agreement. Our Manager is a subsidiary of Lument Real Estate Capital Holdings, LLC ("Lument"). Lument is a subsidiary of ORIX Corporation USA ("ORIX USA"), a diversified financial company and a subsidiary of ORIX Corporation ("ORIX"). ORIX is a publicly traded, Tokyo-based international financial services company with assets in excess of $111 billion as of December 2023 and was ranked number 371 on Forbes 2023 Global 2000: World's Biggest Public Companies. We are a Maryland corporation that was formed in March 2012 and commenced operations in May 2012. We have elected to be taxed as a REIT for U.S. federal income tax purposes. Our common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "LFT" and our 7.875% Series A Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") is traded on the NYSE under the symbol "LFTPrA." Our Manager and Lument We are externally managed and advised by our Manager, a subsidiary of Lument. As of December 31, 2023, Lument had approximately 600 employees located in over 30 offices throughout the United

View Full Filing

View this 10-K filing on SEC EDGAR