LFT Profile
Lument Finance Trust, Inc. is a real estate investment trust (REIT) that specializes in investing in, financing, and managing a diverse portfolio of commercial real estate (CRE) debt investments across the United States. The company’s investment strategy focuses primarily on transitional floating rate commercial mortgage loans, particularly those involving middle-market multifamily assets. This approach enables Lument Finance Trust to target high-return opportunities in the dynamic real estate market.
In addition to its core focus on transitional loans, Lument Finance Trust invests in a broad array of CRE-related debt instruments. This includes mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed-rate loans, and construction loans. By diversifying its investment portfolio across various types of CRE debt, the company seeks to mitigate risk and enhance returns for its stakeholders. This strategic diversification supports its mission to deliver attractive risk-adjusted returns through a well-balanced mix of debt investments.
As a REIT, Lument Finance Trust is structured to provide tax efficiencies under the Internal Revenue Code of 1986. To maintain its tax-exempt status, the company is required to distribute at least 90% of its taxable income to its stockholders, ensuring that its earnings are passed through to investors rather than taxed at the corporate level. This structure aligns with the REIT framework designed to benefit investors through income distribution and favorable tax treatment.
Formerly known as Hunt Companies Finance Trust, Inc., Lument Finance Trust, Inc. rebranded in December 2020 to better reflect its evolving business focus. Established in 2012 and headquartered in New York, New York, the company has positioned itself as a key player in the CRE finance sector. Its comprehensive approach to CRE debt investments and strategic focus on transitional assets underscore its commitment to leveraging market opportunities and generating value for its shareholders.
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