We account for CLO transactions and secured financings on our consolidated balance sheet as financing facilities. The issuing entities for our CLOs and secured financings are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings and are non-recourse to us. See Note 2 ("Summary of Significant Accounting Policies - Principles of Consolidation - VIE") for further discussion.

On June 14, 2021, the Company completed the 2021-FL1 CLO, issuing eight tranches of CLO notes through two newly formed wholly-owned subsidiaries totaling $903.8 million. Of the total CLO notes issued $833.8 million were investment grade notes issued to third party investors and $70 million were below investment-grade notes retained by us. In addition, a $96.25 million equity interest in the portfolio was retained by us. The financing had an initial two-and-a-half year reinvestment period, which expired in December 2023, that allowed principal proceeds of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $330.3 million for the purpose of acquiring additional loan

On July 12, 2023, the Company entered into and closed a matched-term non-recourse collateralized commercial real estate financing (the "LMF 2023-1 Financing"), secured by $386.4 million of first lien floating-rate multifamily mortgage assets and is not subject to margin calls or additional collateralization requirements. In connection with the LMF 2023-1 Financing, approximately $270.4 million of an investment-grade rated senior secured floating rate loan was provided by a private lender and approximately $47.3 million of investment-grade rated notes (collectively, the "Senior Debt") were issued and sold to an affiliate of LFT's external manager, Lument IM. A consolidated subsidiary of LFT retained the subordinate interests in the issuing vehicle of approximately $68.6 million. The Senior Debt has an initial weighted average spread of approximately 314 basis points over 30-day term SOFR, excluding fees and transaction costs. The Senior Debt matures on the payment date in July 2032, unless it is sooner repaid or redeemed in accordance with its terms. The financing has an initial two-year reinvestment period that allows principal proceeds of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid.

On December 10, 2025, the Company completed the LMNT 2025-FL3 CLO, issuing eight tranches of CLO notes through a newly formed wholly-owned subsidiary totaling $620.7 million. Of the total CLO notes issued, $585.0 million were investment grade notes issued to third party investors and $35.7 million were below investment-grade and retained by us. In addition, a $43.1 million income note was retained by us. The financing has an initial two-and-a-half year reinvestment period that allows principal proceeds of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities included $5.8 million for the purpose of acquiring additional loan obligations for a period up to 180 days from the CLO closing date, resulting in the issuer owning collateral interests with a face value of $663.8 million, representing effective leverage of 88%. The investment grade notes have an initial weighted average spread of approximately 190.5 basis points over 30-day term SOFR, excluding fees and transaction costs. The investment grade notes mature on the payment date in July 2043, unless sooner repaid or redeemed in accordance with their terms.

The LMF 2023-1 Financing and LMNT 2025-FL3 CLO are subject to collateralization and coverage tests that are customary for these types of securitizations. As of December 31, 2025, and December 31, 2024, all such collateralization and coverage tests in the LMF 2023-1 Financing and LMNT 2025-FL3 CLO, as applicable, were met.


ASSETS	December 31, 2025		December 31, 2024
Cash, cash equivalents and restricted cash	$	2,253,630	$	2,391,042
Other assets	524,278		—
Accrued interest receivable	4,309,202		5,861,355
Investment related receivable	15,449,323		—
Loans held for investment	856,064,489		1,049,886,009
Real estate owned, held-for-sale	10,906,169		—
Total Assets	$	889,507,091	$	1,058,138,406

LIABILITIES
Accrued interest payable	$	1,445,867	$	2,611,416
Collateralized loan obligations(1)	748,433,484		828,390,189
Other liabilities	395,205		—
Total Liabilities	$	750,274,556	$	831,001,605
Equity	139,232,535		227,136,801
Total liabilities and equity	$	889,507,091	$	1,058,138,406

(1) The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and July 20, 2043 for the LMNT 2025-FL3 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.


As of December 31, 2025
Collateralized Loan Obligations	Count	Principal Value(1)	Carrying Value(2)	Wtd. Avg. Coupon(3)
Collateral (loan investments)	44	873,054,065	856,064,489	7.11	%
Collateral (REO assets)	1	11,467,505	10,906,169	N/A
Financings provided	2	754,638,462	748,433,484	5.98	%

(2) The carrying value of the collateral is net of unaccreted purchase discounts of $1,595,224 and $3,577,206 and allowance for credit losses of $15,394,353 and $6,059,006 as of December 31, 2025 and December 31, 2024, respectively. The carrying value for LMF 2023-1 Financing is net of debt issuance costs of $1,292,096 and $2,308,507 for December 31, 2025 and December 31, 2024, respectively and the carrying value for LMNT 2025-FL3 is net of debt issuance costs of $4,912,883 as of December 31, 2025.

(3) Weighted average coupon for loan investments assumes applicable 30-day term SOFR of 3.86% and 4.51% as of December 31, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floor of 2.55% and 0.63%, and spreads of 3.27% and 3.53%, respectively. As of December 31, 2025 and December 31, 2024, 100.0% of the investments by total exposure earned a floating rate indexed to 30-day term SOFR. Weighted average coupon for the financings assumes applicable 30-day term SOFR of 3.74% and 4.40% as of December 31, 2025 and December 31, 2024, respectively and spreads of 2.24% and 2.26% for December 31, 2025 and December 31, 2024, respectively.


Statements of Operations	December 31, 2025		December 31, 2024
Interest income	$	67,452,892	$	112,323,619
Interest expense	(47,577,230)		(77,002,847)
Net interest income	$	19,875,662	$	35,320,772
Less:
(Provision for) credit losses	$	(11,337,395)	$	(5,261,214)
Net income from real estate owned operations	175,657		—

Depreciation and amortization from real estate owned operations	(626,522)		—
General and administrative fees	(622,974)		(912,755)
Net income	$	7,464,428	$	29,146,803