Lument Finance Trust, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, the company recorded net income of $6.3 million, slightly down from $6.4 million in the same period of 2023. Net income attributable to common stockholders was $5.1 million, or $0.10 per share, consistent with the prior year. However, for the nine months ended September 30, 2024, net income increased to $17.9 million from $14.7 million in 2023, with net income per share rising from $0.21 to $0.27. The increase in net income for the nine-month period was attributed to higher net interest income, which rose from $25.3 million to $32.0 million year-over-year.

Interest income from commercial mortgage loans held-for-investment for the third quarter decreased to $28.9 million from $31.1 million in 2023, while for the nine months, it increased significantly from $74.8 million to $93.6 million. The company’s total expenses for the third quarter rose to $2.9 million from $2.4 million in the prior year, driven by higher management and operating fees.

As of September 30, 2024, Lument Finance Trust's total assets were valued at $1.3 billion, down from $1.4 billion at the end of 2023. The decline was primarily due to a reduction in commercial mortgage loans held-for-investment, which decreased from $1.4 billion to $1.2 billion. Total liabilities also fell to $1.0 billion from $1.2 billion, while total stockholders' equity increased slightly to $243.0 million from $240.7 million.

The company’s cash and cash equivalents decreased to $45.6 million from $51.2 million at the end of 2023, although total cash, cash equivalents, and restricted cash rose to $65.1 million from $51.5 million. The allowance for credit losses increased to $9.5 million, reflecting ongoing evaluations of loan performance amid changing market conditions.

Strategically, Lument Finance Trust continues to focus on its investment in transitional floating-rate commercial real estate mortgage loans, with multifamily assets representing 93.2% of its loan portfolio. The company has also maintained compliance with all REIT requirements and has declared a quarterly dividend of $0.08 per share for the third quarter of 2024, up from $0.07 in the same period last year.