#United States #New York #Lument Finance Trust #CRE CLO #LMNT 2025-FL3

Lument Finance Trust Sets Pricing for New Commercial Real Estate CLO

Lument Finance Trust, Inc. (NYSE: LFT), commonly referred to as LFT, recently revealed the pricing details for its latest endeavor, the LMNT 2025-FL3, a highly anticipated collateralized loan obligation (CLO) in the commercial real estate sector. The announcement, made on November 21, 2025, indicates that this CLO is valued at $663.8 million, with expectations to secure significant investment from institutional investors.

Key Features of LMNT 2025-FL3

The LMNT 2025-FL3 features several attractive attributes for potential investors. Out of the total offering, approximately $585.0 million is expected to be allocated towards investment-grade securities, which LFT aims to place with institutional backers. This move will provide LFT with term financing on a non-mark-to-market, non-recourse basis, offering stability in an often volatile market.

Investment and Financing Details

Key aspects include:

• - Reinvestment Period: The CLO will feature a 30-month reinvestment period, allowing ample time for LFT to manage its investments effectively.
• - Advance Rate: The advance rate is set at an impressive 88.1%, which is essential for managing leverage and liquidity in financing operations.
• - Interest Rate: The weighted average interest rate at the issuance stands at Term SOFR plus 1.91%, prior to any transaction costs, which reflects competitive rates conducive for institutional investment.

Recent Redeem of Previous CLO

Additionally, LFT has taken proactive measures by redeeming its previous CLO, the LFT 2021-FL1, on November 18, 2025. At that time, LFT 2021-FL1 had approximately $436.4 million in outstanding investment-grade securities, showcasing LFT's dedication to maintaining a robust and flexible portfolio.

Closing Timeline

The LMNT 2025-FL3 CLO is anticipated to close on or around December 10, 2025, contingent upon customary closing conditions being fulfilled. This timeframe aligns with LFT's goals of quickly mobilizing capital while ensuring all regulatory and operational standards are upheld.

Collaboration with Financial Experts

In orchestrating the details of the LMNT 2025-FL3, J.P. Morgan Securities LLC serves as the sole structuring agent, lead manager, and bookrunner. They are joined by Citizens JMP Securities, LLC in the role of co-manager. This partnership is critical, as it combines extensive expertise in the structured finance sector with the operational insight that LFT possesses in managing commercial real estate investments.

About Lument Finance Trust

Lument Finance Trust is incorporated in Maryland and is highly focused on investing and managing portfolios composed of commercial real estate debt. The firm's investment strategy particularly emphasizes transitional floating-rate commercial mortgage loans, centering on middle-market multi-family properties. Importantly, LFT is externally managed and advised by Lument Investment Management, LLC, a Delaware limited liability company, which adds a further layer of expertise to their operations.

Looking Ahead

This strategic CLO pricing announcement signals LFT's continued commitment to enhancing its financial structure while simultaneously offering reliable investment opportunities in the commercial real estate domain. The forward-looking nature of these initiatives underscores LFT's adaptability in a dynamic market where institutional investors are seeking secure and fruitful ventures.

For more detailed information or inquiries, interested parties are encouraged to consult the Securities and Exchange Commission (SEC) website or the official Lument Finance Trust website. Investors can stay updated on additional corporate developments through the company's consistent communication and reporting protocols.