Lument Finance Trust priced a new $663.8 million Commercial Real Estate Collateralized Loan Obligation (LMNT 2025‑FL3) on November 21, 2025. The transaction provides term financing on a non‑mark‑to‑market, non‑recourse basis, with an advance rate of 88.1% and a weighted‑average interest rate of Term SOFR plus 1.91%. The CLO is expected to close around December 10, 2025, subject to customary closing conditions.
The new CLO replaces the company’s 2021‑FL1 CLO, which was redeemed on November 18, 2025. At redemption, $436.4 million of investment‑grade securities remained outstanding. By issuing LMNT 2025‑FL3, Lument replaces older debt with a fresh tranche that offers a longer 30‑month reinvestment period and more favorable terms, thereby improving liquidity and reducing refinancing risk.
Strategically, the CLO allows Lument to refinance its seasoned portfolio and pursue additional growth opportunities. The non‑recourse structure limits balance‑sheet exposure to the underlying collateral, while the non‑mark‑to‑market approach protects the company from market‑value fluctuations of the assets. The advance rate of 88.1% provides substantial working capital to support new acquisitions and portfolio expansion.
In the context of recent financial performance, Lument reported a Q3 2025 earnings miss, with an EPS of $0.02 versus an estimate of $0.08 and revenue of $4.89 million versus an estimate of $8.32 million. The CLO issuance strengthens the company’s capital base, offsets the earnings shortfall, and signals confidence to investors that Lument can continue to fund its growth strategy while maintaining a disciplined risk profile.
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