Lument Finance Trust Successfully Completes $664 Million CLO for Commercial Real Estate

Lument Finance Trust Completes a $664 Million CLO

Lument Finance Trust, Inc. (NYSE: LFT) has successfully closed its latest managed Commercial Real Estate Collateralized Loan Obligation (CLO), known as LMNT 2025-FL3, which amounts to an impressive $663.8 million. This strategic move aims to bolster the company’s financial capacity, particularly in the thriving sector of commercial real estate.

On December 10, 2025, LFT announced the successful transaction, emphasizing its goal to enhance its investment-grade offerings. A notable portion of $585.0 million in investment-grade securities was placed with institutional investors, which provides LFT with a stable term financing solution that is non-mark-to-market and non-recourse. This approach not only stabilizes LFT's finances but also mitigates potential market volatility impacts.

LMNT 2025-FL3 features an advantageous 30-month reinvestment period, with a staggering advance rate of 88.1%, and a competitive weighted average interest rate calculated at Term SOFR plus 1.91%, prior to transaction costs. This unique structure is designed to optimize the company’s funding efficiency and investment strategy.

The collateral backing this CLO is composed of 32 first lien floating-rate mortgage loans. These loans pertain to 49 multifamily and commercial properties spread across the United States, illustrating the diversified nature of LFT’s investment portfolio. Additionally, LFT owned a portion of the collateral prior to closing, while the remaining assets were procured from an affiliate of its external manager, Lument Investment Management, LLC, at par plus accrued interest. The weighted average collateral spread was approximately 321 basis points above one-month SOFR, ensuring a solid yield on the assets for investors.

J.P. Morgan Securities LLC played a pivotal role as the sole structuring agent, lead manager, and bookrunner for this CLO, showcasing its strength in managing large-scale financing operations. Citizens JMP Securities, LLC contributed as co-manager in this significant deal, further solidifying the strategic partnerships that support LFT's operational framework.

It is important to note that this press release does not constitute an offer to sell or solicit an offer to buy any securities. In accordance with U.S. securities laws, any such transactions will only take place after proper registration or qualification, ensuring compliance and investor protection.

About Lument Finance Trust

Lument Finance Trust is a Maryland corporation dedicated to investing in, financing, and managing a robust portfolio of commercial real estate debt investments. With a primary focus on transitional floating-rate mortgage loans, LFT places significant emphasis on middle-market multifamily assets, demonstrating its commitment to targeting growth sectors within the real estate market.

For those interested in learning more about LFT, a wealth of information is available through the U.S. Securities and Exchange Commission's website, as well as on LFT’s official website. Stakeholders and interested parties can direct inquiries to their Investor Relations department for further details.

This transaction marks a significant milestone for Lument Finance Trust as it continues to strengthen its position in the commercial real estate financing arena, paving the way for future investment opportunities and enhanced shareholder value.