NEW YORK, Sept. 18, 2026 /PRNewswire/ -- Lument Finance Trust, Inc. (NYSE: LFT) ("we", "LFT" or "the Company") today announced that its Board of Directors suspended the Company's quarterly dividend on its common stock commencing with the third quarter dividend that would have otherwise been paid in October 2026.

The Board's decision reflects both the Company's expectation that it will satisfy its REIT taxable income distribution requirements for the 2026 calendar year and the Board's and management's belief that preserving capital and maintaining financial flexibility is in the best interests of the Company and its stockholders.

LFT paid two regular quarterly dividends during the first half of 2026, totaling $0.08 per share of common stock on a pre-reverse split basis, or $0.80 per share on a post-reverse split basis, which exceeded the Company's REIT taxable income for the first half of 2026 and is expected to exceed the Company's REIT taxable income distribution requirements for the full 2026 calendar year.

"The Board and management believe that retaining capital at this time is the prudent course of action and best positions the Company to actively manage its portfolio, maintain financial flexibility and support long-term stockholder value," said James Flynn, Chairman of the Board and Chief Executive Officer of LFT. "Given our current expectations for 2026 taxable income, we do not anticipate the need for additional common stock distributions to satisfy our REIT distribution requirements this year. We believe this decision provides the Company with additional flexibility as we continue to focus on prudent portfolio management and actions intended to support long-term value creation."

The Board will continue to evaluate the Company's dividend policy based on portfolio performance, taxable income, liquidity and overall capital requirements, among other factors.

The Company also announced the declaration of a cash dividend of $0.4921875 per share of its 7.875% Cumulative Redeemable Series A Preferred Stock. The dividend is payable on October 15, 2026, to preferred stockholders of record as of the close of business on October 1, 2026.

About LFT

LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments.  The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets.

LFT is externally managed and advised by Lument Investment Management LLC, a Delaware limited liability company.

Additional Information and Where to Find It

Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's website at sec.gov, the Company website at lumentfinancetrust.com, or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations. 

Forward-Looking Statements

Certain statements included in this press release, including statements regarding capital allocation, cash flow and other objectives and expectations and with respect to the potential future reinstatement of the quarterly cash dividend payable to holders of the Company's common stock, constitute 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. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "project," "estimate," "plan," "continue," "intend," "should," "may," "will," "seek," "would," "could," or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Forward-looking statements are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company on the date of this press release or the date on which such statements are first made. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on forward-looking statements in this press release and should consider carefully the factors described in Part I, Item IA "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which is available on the SEC's website at sec.gov, and in the Company's other current or periodic filings with the SEC, when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.  These risks include our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes and risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our Board's decision whether to pay further dividends, either at previously-paid levels or at all.  Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lument Finance Trust, Inc.