Lument Finance Trust, Inc.LFT

Lument Finance Trust, Inc. Commitments Disclosure

10-KFiled Mar 23, 20262 min read
COMMITMENTS AND CONTINGENCIES
Litigation

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

As of December 31, 2025, the Company was not involved in any material legal proceedings regarding claims or legal actions against the Company.

Unfunded Commitments

As of December 31, 2025, LSF, an affiliate of the Manager, had $1.8 million of unfunded commitments related to loans held in LMF 2023-1 Financing. These commitments are not reflected on the Company's consolidated balance sheets.

As of December 31, 2025, LSF, an affiliate of the Manager, had $10.1 million of unfunded commitments related to loans held in LMNT 2025-FL3 CLO. These commitments are not reflected in the Company's consolidated balance sheets.

As of December 31, 2025, LSF, an affiliate of the Manager, had $3.3 million of unfunded commitments related to loans pledged to JPM Repurchase Agreement. These commitments are not reflected in the Company's consolidated balance sheets.

As of December 31, 2025, LSF, an affiliate of the Manager, had $3.9 million of unfunded commitments related to loans pledged to NEB Loan Agreement. These commitments are not reflected in the Company's consolidated balance sheets.

As of December 31, 2024, LCMT had $6.7 million of unfunded commitments related to loans held in the 2021-FL1 CLO. These commitments are not reflected on the Company's consolidated balance sheets.

As of December 31, 2024, LSF, an affiliate of the Manager, had $28.2 million in unfunded commitments related to loans held in the 2021-FL1 CLO. These commitments are not reflected in the Company's consolidated balance sheets.

As of December 31, 2024, LSF, an affiliate of the Manager, had $16.4 million of unfunded commitments related to loans held in LMF 2023-1 Financing. These commitments are not reflected in the Company's consolidated balance sheets.
Future loan fundings comprise funding for capital improvements, leasing costs, interest and carry costs, and fundings will vary depending on the progress of the business plan and cash flows at the mortgage assets. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying mortgage assets.

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 19, 2025
2023Mar 15, 2024
2022Mar 23, 2023
2021Mar 15, 2022
2020Mar 15, 2021
2019Mar 16, 2020
2018Mar 18, 2019

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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