8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 18, 2022

LUMENT FINANCE TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-35845	45-4966519
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

230 Park Avenue, 20th Floor

New York, New York 10169

(Address of principal executive offices)

(212) 521-6323

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	LFT	New York Stock Exchange
7.875% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share	LFTPrA	New York Stock Exchange
Rights to purchase Common Stock, $0.01 par value per share	LFTRT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 7.01. Regulation FD Disclosure.

On January 18, 2022, Lument Finance Trust, Inc. (the “Company”) issued a letter to the holders of record of its common stock as of 5:00 p.m., New York City time, on January 18, 2022, the record date (the “Record Date”) for the Company’s transferable subscription rights offering described below in Item 8.01 of this Current Report on Form 8-K. Such holders of record are referred to in this Current Report on Form 8-K as “Record Date Stockholders.”

The information in this Item 7.01 and Exhibit 99.1 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 8.01. Other Events.

On January 18, 2022, the Company commenced its previously announced transferable subscription rights offering and distributed transferable subscription rights to purchase up to 37,421,825 shares of its common stock to the Record Date Stockholders.

The Company has applied to list the transferable subscription rights on the New York Stock Exchange under the symbol “LFTRT,” with trading anticipated to begin on January 19, 2022. The rights began trading on a “when-issued” basis on January 13, 2022.

Copies of the Form of Subscription Rights Certificate, Form of Notice to Stockholders Who Are Record Holders, Form of Notice to Stockholders Who Are Acting as Nominees, Form of Notice to Clients of Stockholders Who Are Acting as Nominees, Form of Beneficial Owner Election Form, Form of Notice of Guaranteed Delivery, and Form of Notice to Foreign Stockholders Who Are Record Holders are attached to this Current Report on Form 8-K as Exhibits 4.1, 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7.

Miles & Stockbridge P.C, Maryland counsel to the Company, has issued a legal opinion relating to the validity of the rights and the shares of Common Stock issuable pursuant to the exercise of the rights, a copy of which is attached to this Current Report on Form 8-K as Exhibit 5.1.

The foregoing descriptions of Exhibits 4.1, 5.1, 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7 do not purport to be complete and each is qualified in its entirety by reference to the full text of such exhibit.

This Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company or any of its subsidiaries, nor shall there be any offer, solicitation or sale of any securities of the Company or any of its subsidiaries in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of such state or jurisdiction.

The rights offering is being made pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-258134) that was previously filed with the Securities and Exchange Commission (the “SEC”) and was declared effective on August 6, 2021. The rights offering will only be made by means of the prospectus supplement dated January 7, 2022 (the “Prospectus Supplement”) and the accompanying base prospectus dated August 6, 2021, copies of which will be mailed to all Record Date Stockholders, and can be assessed through the SEC’s website at www.sec.gov. Additional information regarding the rights offering and the exercise of the rights may be obtained from the information agent, Alliance Advisors, toll-free at (833) 786-6491 or by email at LFT@allianceadvisors.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Exhibit Description
4.1	Form of Subscription Rights Certificate. (incorporated by reference to Exhibit 4.1 to Lument Finance Trust, Inc.’s Registration Statement on Form 8-A which was filed with the Securities and Exchange Commission on January 18, 2022)
5.1	Opinion of Miles & Stockbridge P.C.
23.1	Consent of Miles & Stockbridge P.C. (included in Exhibit 5.1).
99.1	Letter to Record Date Stockholders, dated January 18, 2022.
99.2	Form of Notice to Stockholders Who Are Record Holders.
99.3	Form of Notice to Stockholders Who Are Acting as Nominees.
99.4	Form of Notice to Clients of Stockholders Who Are Acting as Nominees.
99.5	Form of Beneficial Owner Election Form.
99.6	Form of Notice of Guaranteed Delivery.
99.7	Form of Notice to Foreign Stockholders Who Are Record Holders.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LUMENT FINANCE TRUST, INC.
Dated: January 19, 2022	By:	/s/ James A. Briggs
		James A. Briggs
		Chief Financial Officer

EX-5.1

Exhibit 5.1

January 19, 2022

Lument Finance Trust, Inc.

230 Park Avenue, 23^rd Floor

New York, New York 10169

Re: Registration Statement on Form S-3 (Reg. No. 333-258134)

Ladies and Gentlemen:

We have acted as special Maryland counsel to Lument Finance Trust, Inc., a Maryland corporation (the “Company”), in connection with the distribution to existing stockholders of the Company of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Shares”), issuable upon exercise of such Rights, covered by the Company’s Registration Statement on Form S-3 (Registration Number 333-258134), as amended through the date hereof (the “Registration Statement”).

We have examined the Registration Statement (except that we have not examined documents incorporated by reference therein) pursuant to which the Rights will be distributed, the charter and the bylaws of the Company, certain records of proceedings of the board of directors of the Company and committees thereof with respect to the distribution of the Rights and the issuance of the Shares upon exercise of the Rights, and such other corporate records, certificates and documents as we deemed necessary for the purpose of this opinion. We have relied as to certain factual matters on information obtained from public officials and from officers of the Company.

Based on that examination and subject to the assumptions and qualifications set forth herein, it is our opinion that:

1. The Rights have been duly authorized and, when the Rights are issued in accordance with the terms of the Registration Statement, and the certificates evidencing the Rights are distributed, the Rights will be binding obligations of the Company.

2. The Shares have been duly authorized and, when duly issued and sold upon exercise of the Rights and against receipt of consideration therefor as contemplated by the Registration Statement and the certificates evidencing the Rights, will be validly issued, fully paid and nonassessable.

 

Lument Finance Trust, Inc. January 19, 2022 Page 2

Our opinion as to the Rights being binding obligations is subject to applicable bankruptcy, insolvency and other laws affecting the rights of creditors and to general principles of equity. In giving our opinion as to the valid issuance of the Shares, we are assuming that, upon any exercise of the Rights pursuant to which any of the Shares may be issued, there will at such time be an adequate number of authorized but unissued shares of common stock of the Company available for issuance and that the issuance of the Rights and of any of the Shares to be issued upon exercise of the Rights will not cause the Company to cease to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended. We are also assuming that none of the Shares will be issued or transferred in violation of the restrictions on transfer and ownership set forth in Article VII of the charter of the Company.

We express no opinion with respect to the laws of, or the effect or applicability of the laws of, any jurisdiction other than, and our opinions expressed herein are limited to, the laws of the State of Maryland. The opinions expressed herein are limited to the matters expressly set forth in this letter and no other opinion should be inferred beyond the matters expressly stated.

We hereby consent to the use of our name under the heading “Legal Matters” in the prospectus supplement dated January 7, 2022, forming a part of the Registration Statement and to the filing of this opinion as an exhibit to the form 8-K to be filed by the Company on the date hereof with the understanding that the form 8-K will incorporated by reference in the Registration Statement. In giving our consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.

Very truly yours,

Miles & Stockbridge P.C.

 

EX-99.1

Exhibit 99.1

 

January 18, 2022

Dear Stockholders:

We are excited about the future of Lument Finance Trust, Inc. (“we,” “us,” “LFT” or the “Company”), and we are reaching out to you today with regards to our recently announced transferable rights offering.

We expect this offering to be a transformative equity raise event that will provide LFT with the growth capital necessary to further our objectives of achieving appropriate operating scale and expanding our capacity to make investments in target assets. We structured this equity raise as a rights offering to give existing stockholders the opportunity to participate meaningfully in our growth by subscribing to purchase additional shares of our common stock at a discount to the market price and avoid ownership dilution. An affiliate of our manager has indicated that it intends to provide meaningful support for the offering by exercising its over-subscription privilege and making a total investment of up to $40.0 million. In addition, Hunt Companies Equity Holdings, LLC expects to exercise its over-subscription privilege and all of our directors and executive officers intend to exercise in full their rights.

We believe the Company has taken significant positive steps towards delivering long-term value to its stockholders under the stewardship of the current management team, which began its tenure in January 2018. Notable milestones include:

· Material growth in GAAP earnings per share and positive dividend growth momentum. Net income attributable to common stockholders increased by over 400% from $0.06 per share in 2017 (while under the prior management team) to $0.34 cents per share in 2020. The Company has also raised the common dividend twice since the end of 2019.

· Industry-leading asset performance. The Company experienced zero loan impairments, forbearances, or defaults in the investment portfolio during the COVID era.

· Improved market coverage. The Company currently earns a “Buy” rating from all six investment banking research analysts covering its common stock.

· Proven ability to execute in the capital markets. The Company successfully completed a $60 million preferred stock offering and closed a $1 billion CRE-CLO securitization transaction during 2021.

 

 

Building on the tailwinds of these recent accomplishments, we believe that this rights offering is the best capital raising opportunity for the Company:

· Allows existing stockholders to participate meaningfully in the Company’s growth by subscribing to purchase additional shares of common stock at a discount to the market price and avoid ownership dilution.

· Permits the Company to deploy capital into target assets consistent with the multifamily-centric investment strategy and take advantage of the robust investment pipeline identified by the Company’s manager and its affiliates.

· Enables the Company to improve operating expense efficiencies. We anticipate that the Company’s general and administrative expenses, as a percentage of stockholders’ equity, will decrease as a result of this offering.

· Increase the liquidity and trading volume of the Company’s stock.

· Promotes strong alignment with Company’s external manager and sponsor. An affiliate of the manager has indicated that it intends to provide meaningful support for the rights offering by exercising its over-subscription privilege and making a total investment of up to $40.0 million.

As we look to the future, we believe the Company’s investment strategy is well-positioned and we expect to continue to differentiate ourselves from our peers by leveraging the breadth and expertise of our manager’s platform to create long-term value for our stockholders. We thank you for your support and look forward to a strong future together.

Sincerely,

James P. Flynn

Chairman of the Board & Chief Executive Officer

Lument Finance Trust

LUMENT.COM Page 2 of 3

 

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of the securities referred to in this communication in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. The prospectus supplement relating to the rights offering and accompanying prospectus contain this and other information about Lument Finance Trust, Inc. The prospectus supplement and accompanying prospectus as well as the documents incorporated by reference therein should be read carefully before investing. A copy of the prospectus supplement related to the rights offering and accompanying prospectus may be obtained from Alliance Advisors, the Information Agent, by calling (toll-free) at (888) 786-6491, by e-mail at LFT@allianceadvisors.com or by mail at Alliance Advisors, 200 Broadacres Drive, 3^rd Floor, Bloomfield, New Jersey 07003.

Forward-Looking Statements

This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.

LUMENT.COM Page 3 of 3

EX-99.2

Exhibit 99.2

LUMENT FINANCE TRUST, INC.

NOTICE TO STOCKHOLDERS WHO ARE RECORD HOLDERS

Up to 37,421,825 Shares of Common Stock Issuable Upon Exercise of Transferable Rights

January 18, 2022

Dear Stockholder:

Enclosed for your consideration is a prospectus supplement, dated January 7, 2022 (as amended and supplemented from time to time, the “Prospectus Supplement”), and the accompanying prospectus, dated August 6, 2021 (together with the Prospectus Supplement, the “Prospectus”), relating to the offering by Lument Finance Trust, Inc. (the “Company”) of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Rights will be issued to stockholders of record (the “Record Date Stockholders”) as of 5:00 p.m., New York City time, on January 18, 2022 (the “Record Date”). The Rights are offered on the terms and subject to the conditions described in the Prospectus.

The Rights may be exercised at any time during the subscription period, which commences on January 19, 2022 and ends at 5:00 p.m., New York City time, on February 11, 2022, unless extended by the Company in its sole discretion (the “Expiration Date”). The Rights are transferable and are expected to be listed for trading on the New York Stock Exchange under the symbol “LFTRT.” The Common Stock is listed on the New York Stock Exchange under the symbol “LFT.” While the dealer managers will use their commercially reasonable efforts to ensure that an adequate trading market for the Rights will exist, no assurance can be given that a market for the Rights will develop. If you are a beneficial owner of shares of Common Stock that are held of record in the name of a broker, bank or other nominee, you should ask that entity to effect the sale of your Rights or the purchase of other Rights that may be available. If you are a stockholder of record, whether you hold certificates evidencing shares of Common Stock directly or you hold shares of Common Stock in book-entry form with the Company's transfer agent, you will need to engage a broker to effect the transactions for you.

As described in the Prospectus, each Record Date Stockholder is entitled to receive 1.5 Rights for each outstanding share of Common Stock owned on the Record Date. The Rights entitle the holder thereof to purchase one new share of Common Stock for every one Right held (the “Primary Subscription”) at the subscription price (the “Subscription Price”), to be calculated as described in the Prospectus as of the Expiration Date. Record Date Stockholders who fully exercise their Rights pursuant to the Primary Subscription will be entitled to subscribe, on the terms and subject to the conditions set forth in the Prospectus, including pro-ration, for additional shares that remain unsubscribed as a result of any unexercised Rights. In addition, any non-Record Date Stockholders who exercise Rights are entitled to subscribe for remaining shares that are not otherwise subscribed for by Record Date Stockholders pursuant to the over-subscription privilege, on the terms and subject to the conditions set forth in the Prospectus. The Company refers to the over-subscription privilege as the “Over-Subscription Privilege.”

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The Subscription Price per share will be 92.5% of the volume-weighted average of the sales prices of our shares of Common Stock on the New York Stock Exchange for the five consecutive trading days ending on the Expiration Date; provided the Subscription Price per share will be no less than $3.06, which equals 70% of the book value per share of the Common Stock as of September 30, 2021. Because the subscription price will be determined on the expiration date, Rights holders will generally not know the subscription price at the time of exercise. As a result, the Company is requiring that Rights holders who wish to exercise their Rights deliver to the subscription agent (the “Subscription Agent”) the estimated subscription price of $3.58 per share (the “Estimated Subscription Price”) on or before the Expiration Date, except as otherwise indicated in the Section entitled “The Offering—Payment for Shares” in the Prospectus Supplement. In the event that the Subscription Price exceeds the Estimated Subscription Price, an invoice will be sent for any additional amounts due. Payment for such additional amounts, if any, must be made within ten business days after the confirmation date. In the event the Subscription Price is less than the Estimated Subscription Price, the Subscription Agent will mail a refund to exercising Rights holders. No interest will be paid on amounts refunded.

A Rights holder may not exercise the Primary Subscription or the Over-Subscription Privilege if such exercise of the Rights would result in such Rights holder beneficially or constructively owning, applying certain attribution rules under the Internal Revenue Code of 1986, as amended, more than 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding shares of Common Stock or 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding capital stock, unless such ownership limitation is waived by the Company and does not result in the loss of its status as a real estate investment trust for U.S. Federal income tax purposes.

The Rights will be evidenced by subscription rights certificates (the “Subscription Rights Certificates”). No fractional shares of Common Stock will be issued pursuant to the Rights.

Rights holders who exercise their Rights will have no right to rescind their subscription after receipt of their completed Subscription Rights Certificates together with payment for shares or a notice of guaranteed delivery by the Subscription Agent.

Enclosed are copies of the following documents:

1.       the Prospectus;

2.       a letter to the Company’s stockholders, dated January 18, 2022;

3.       a subscription rights certificate;

4.       a notice of guaranteed delivery; and

5.       a return envelope, addressed to Broadridge Corporate Issuer Solutions, Inc.

Your prompt attention is requested. To exercise Rights, you should complete and sign the Subscription Rights Certificate and forward it, with payment of the Estimated Subscription Price in full for each share of Common Stock subscribed for pursuant to the Primary Subscription and the Over-Subscription Privilege to the Subscription Agent, as indicated on the Subscription Rights Certificate and as indicated in the Prospectus. The Subscription Agent must receive the properly completed and duly executed Subscription Rights Certificate and full payment of the Estimated Subscription Price on or prior to the Expiration Date.

ANY QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO ALLIANCE ADVISORS, THE INFORMATION AGENT, TOLL-FREE AT THE FOLLOWING TELEPHONE NUMBER: (833) 786-6491 OR VIA EMAIL AT LFT@allianceadvisors.com.

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EX-99.3

Exhibit 99.3

LUMENT FINANCE TRUST, INC.

NOTICE TO STOCKHOLDERS WHO ARE ACTING AS NOMINEES

Up to 37,421,825 Shares of Common Stock Issuable Upon Exercise of Transferable Rights

January 18, 2022

Dear Stockholder:

Enclosed for your consideration is a prospectus supplement, dated January 7, 2022 (as amended and supplemented from time to time, the “Prospectus Supplement”), and the accompanying prospectus, dated August 6, 2021 (together with the Prospectus Supplement, the “Prospectus”), relating to the offering by Lument Finance Trust, Inc. (the “Company”) of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The rights will be issued to stockholders of record (the “Record Date Stockholders”) as of 5:00 p.m., New York City time, on January 18, 2022 (the “Record Date”). The Rights are offered on the terms and subject to the conditions described in the Prospectus.

The Rights may be exercised at any time during the subscription period, which commences on January 19, 2022 and ends at 5:00 p.m., New York City time, on February 11, 2022, unless extended by the Company in its sole discretion (the “Expiration Date”). The Rights are transferable and are expected to be listed for trading on the New York Stock Exchange under the symbol “LFTRT.” The Common Stock is listed on the New York Stock Exchange under the symbol “LFT.” While the dealer managers will use their commercially reasonable efforts to ensure that an adequate trading market for the Rights will exist, no assurance can be given that a market for the Rights will develop. If you are a beneficial owner of shares of the Common Stock that are held of record in the name of a broker, bank or other nominee, you should ask that entity to effect the sale of your Rights or the purchase of other Rights that may be available. If you are a stockholder of record, whether you hold certificates evidencing shares of the Common Stock directly or in book-entry form with the Company's transfer agent, you will need to engage a broker to effect the transactions for you.

As described in the Prospectus, each Record Date Stockholder is entitled to receive 1.5 Rights for each outstanding share of Common Stock owned on the Record Date. The Rights entitle the holder thereof to purchase one new share of Common Stock for every one Right held (the “Primary Subscription”) at the subscription price (the “Subscription Price”), to be calculated as described in the Prospectus as of the Expiration Date. Record Date Stockholders who fully exercise their Rights pursuant to the Primary Subscription will be entitled to subscribe, on the terms and subject to the conditions set forth in the Prospectus, including pro-ration, for additional shares that remain unsubscribed as a result of any unexercised Rights. In addition, any non-Record Date Stockholders who exercise Rights are entitled to subscribe for remaining shares that are not otherwise subscribed for by Record Date Stockholders pursuant to their over-subscription privileges, on the terms and subject to the conditions set forth in the Prospectus. The Company refers to the over-subscription privilege as the “Over-Subscription Privilege.”

The Subscription Price per share will be 92.5% of the volume-weighted average of the sales prices of the Common Stock on the New York Stock Exchange for the five consecutive trading days ending on the Expiration Date; provided the Subscription Price per share will be no less than $3.06, which equals 70% of the book value per share of the Common Stock as of September 30, 2021. Because the subscription price will be determined on the expiration date, Rights holders will generally not know the subscription price at the time of exercise. As a result, the Company is requiring that Rights holders who wish to exercise their Rights deliver to the subscription agent (the “Subscription Agent”) the estimated subscription price of $3.58 per share (the “Estimated Subscription Price”) on or before the Expiration Date, except as otherwise indicated in the Section entitled “The Offering—Payment for Shares” in the Prospectus Supplement. In the event that the Subscription Price exceeds the Estimated Subscription Price, an invoice will be sent for any additional amounts due. Payment for such additional amounts, if any, must be made within ten business days after the confirmation date. In the event the Subscription Price is less than the Estimated Subscription Price, the Subscription Agent will mail a refund to exercising Rights holders. No interest will be paid on amounts refunded.

A Rights holder may not exercise the Primary Subscription or the Over-Subscription Privilege if such exercise of the Rights would result in such Rights holder beneficially or constructively owning, applying certain attribution rules under the Internal Revenue Code of 1986, as amended, more than 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding shares of Common Stock or 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding capital stock, unless such ownership limitation is waived by the Company and does not result in the loss of its status as a real estate investment trust for U.S. Federal income tax purposes.

The Rights will be evidenced by subscription rights certificates (the “Subscription Rights Certificates”) registered in your name or the name of your nominee. Each beneficial owner of shares of Common Stock registered in your name or the name of your nominee is entitled to 1.5 Rights for every one share of Common Stock owned by such beneficial owner as of the Record Date. No fractional shares of Common Stock will be issued pursuant to the Rights.

Rights holders who exercise their Rights will have no right to rescind their subscription after receipt of their completed Subscription Rights Certificates together with payment for shares or a notice of guaranteed delivery by the Subscription Agent.

The Company is asking persons who hold shares of Common Stock beneficially, and who have received the Rights distributable with respect to those shares through a broker-dealer, trust company, bank or other nominee, to contact the appropriate institution or nominee and request it to effect the transactions for them.

If you exercise the Over-Subscription Privilege on behalf of beneficial owners of Rights, you will be required to certify to the Subscription Agent and the Company, in connection with the exercise of the Over-Subscription Privilege, as to the aggregate number of Rights that have been exercised pursuant to the Primary Subscription, whether the Rights exercised pursuant to the Primary Subscription on behalf of each beneficial owner for which you are acting have been exercised in full and the number of shares of Common Stock being subscribed for pursuant to the Over-Subscription Privilege by each beneficial owner of Rights on whose behalf you are acting.

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Enclosed are copies of the following documents:

1.       the Prospectus;

2.       a letter to the Company’s stockholders, dated January 18, 2022;

3.       a form of letter which may be sent to beneficial holders of Common Stock; and

4.       a Notice of Guaranteed Delivery.

Rights not exercised on or prior to the Expiration Date will expire.

Additional copies of the enclosed materials may be obtained from the Information Agent, Alliance Advisors, toll-free at the following telephone number: (833) 786-6491.

ANY QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO ALLIANCE ADVISORS, THE INFORMATION AGENT, TOLL-FREE AT THE FOLLOWING TELEPHONE NUMBER: (833) 786-6491 OR VIA EMAIL AT LFT@allianceadvisors.com.

NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL MAKE YOU OR ANY OTHER PERSON AN AGENT OF THE COMPANY, THE DEALER-MANAGERS, THE SUBSCRIPTION AGENT, THE INFORMATION AGENT OR ANY OTHER PERSON MAKING OR DEEMED TO BE MAKING OFFERS OF THE SECURITIES ISSUABLE UPON VALID EXERCISE OF THE RIGHTS, OR AUTHORIZE YOU OR ANY OTHER PERSON TO MAKE ANY STATEMENTS ON BEHALF OF ANY OF THEM WITH RESPECT TO THE OFFERING, EXCEPT FOR STATEMENTS MADE IN THE PROSPECTUS.

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EX-99.4

Exhibit 99.4

LUMENT FINANCE TRUST, INC.

NOTICE TO CLIENTS OF STOCKHOLDERS WHO ARE ACTING AS NOMINEES

Up to 37,421,825 Shares of Common Stock Issuable Upon Exercise of Transferable Rights

January 18, 2022

Dear Stockholder:

Enclosed for your consideration is a prospectus supplement, dated January 7, 2022 (as amended and supplemented from time to time, the “Prospectus Supplement”), and the accompanying prospectus, dated August 6, 2021 (together with the Prospectus Supplement, the “Prospectus”), relating to the offering by Lument Finance Trust, Inc. (the “Company”) of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Rights will be issued to stockholders of record (the “Record Date Stockholders”) as of 5:00 p.m., New York City time, on January 18, 2022 (the “Record Date”). The Rights are offered on the terms and subject to the conditions described in the Prospectus.

The Rights may be exercised at any time during the subscription period, which commences on January 19, 2022 and ends at 5:00 p.m., New York City time, on February 11, 2022, unless extended by the Company in its sole discretion (the “Expiration Date”). The Rights are transferable and are expected to be listed for trading on the New York Stock Exchange under the symbol “LFTRT.” The Common Stock is listed on the New York Stock Exchange under the symbol “LFT.” While the dealer managers will use their commercially reasonable efforts to ensure that an adequate trading market for the Rights will exist, no assurance can be given that a market for the Rights will develop. If you are a beneficial owner of shares of the Company's Common Stock that are held of record in the name of a broker, bank or other nominee, you should ask that entity to effect the sale of your Rights or the purchase of other Rights that may be available. If you are a stockholder of record, whether you hold certificates evidencing shares of Common Stock directly or you hold shares of Common Stock in book-entry form with the Company's transfer agent, you will need to engage a broker to effect the transactions for you.

As described in the Prospectus, each Record Date Stockholder is entitled to receive 1.5 Rights for each outstanding share of Common Stock owned on the Record Date. The Rights entitle the holder thereof to purchase one new share of Common Stock for every one Right held (the “Primary Subscription”) at the subscription price (the “Subscription Price”), to be calculated as described in the Prospectus as of the Expiration Date. Record Date Stockholders who fully exercise their Rights pursuant to the Primary Subscription will be entitled to subscribe, on the terms and subject to the conditions set forth in the Prospectus, including pro-ration, for additional shares that remain unsubscribed as a result of any unexercised Rights. In addition, any non-Record Date Stockholders who exercise Rights are entitled to subscribe for remaining shares that are not otherwise subscribed for by Record Date Stockholders pursuant to the over-subscription privilege, on the terms and subject to the conditions set forth in the Prospectus. The Company refers to these over-subscription privileges as the “Over-Subscription Privilege.”

The Subscription Price per share will be 92.5% of the volume-weighted average of the sales prices of the Company's shares of Common Stock on the New York Stock Exchange for the five consecutive trading days ending on the Expiration Date; provided the Subscription Price per share will be no less than $3.06, which equals 70% of the book value per share of the Common Stock as of September 30, 2021. Because the subscription price will be determined on the Expiration Date, Rights holders will generally not know the subscription price at the time of exercise. As a result, the Company is requiring that Rights holders who wish to exercise their Rights deliver to the subscription agent (the “Subscription Agent”) the estimated subscription price of $3.58 per share (the “Estimated Subscription Price”) on or before the Expiration Date, except as otherwise indicated in the Section entitled “The Offering—Payment for Shares” in the Prospectus Supplement. In the event that the Subscription Price exceeds the Estimated Subscription Price, an invoice will be sent for any additional amounts due. Payment for such additional amounts, if any, must be made within ten business days after the confirmation date. In the event the Subscription Price is less than the Estimated Subscription Price, the Subscription Agent will mail a refund to exercising Rights holders. No interest will be paid on amounts refunded.

A Rights holder may not exercise the Primary Subscription or the Over-Subscription Privilege if such exercise of the Rights would result in such Rights holder beneficially or constructively owning, applying certain attribution rules under the Internal Revenue Code of 1986, as amended, more than 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding shares of Common Stock or 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding capital stock, unless such ownership limitation is waived by the Company and does not result in the loss of its status as a real estate investment trust for U.S. Federal income tax purposes.

The Rights will be evidenced by subscription rights certificates (the “Subscription Rights Certificates”). No fractional shares of Common Stock will be issued pursuant to the Rights.

Enclosed are copies of the following documents:

1.       the Prospectus;

2.       a letter to the Company’s stockholders, dated January 18, 2022; and

3.       a Beneficial Owner Election Form.

THE MATERIALS ENCLOSED ARE BEING FORWARDED TO YOU AS THE BENEFICIAL OWNER OF COMMON STOCK CARRIED BY US IN YOUR ACCOUNT BUT NOT REGISTERED IN YOUR NAME. EXERCISES OF RIGHTS MAY ONLY BE MADE BY US AS THE RECORD OWNER AND PURSUANT TO YOUR INSTRUCTIONS.

Accordingly, as your nominee, we request instructions as to whether you wish us to elect to subscribe for any shares of Common Stock to which you are entitled pursuant to the terms and subject to the conditions set forth in the enclosed Prospectus. However, we urge you to read the Prospectus carefully before instructing us to exercise any Rights.

2

Your instructions to us should be forwarded as promptly as possible in order to permit us to exercise the Rights on your behalf pursuant to the terms and subject to the conditions set forth in the Prospectus. The Rights offering will expire on the Expiration Date. Rights holders who exercise their Rights will have no right to rescind their subscription after receipt of their completed Subscription Rights Certificates together with payment for shares or a notice of guaranteed delivery by the Subscription Agent.

If you wish to have us, on your behalf, exercise your Rights for any shares of Common Stock to which you are entitled, please so instruct us by completing, executing and returning to us the Beneficial Owner Election Form included with this letter.

ANY QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO ALLIANCE ADVISORS, THE INFORMATION AGENT, TOLL-FREE AT THE FOLLOWING TELEPHONE NUMBER: (833) 786-6491 OR VIA EMAIL AT LFT@allianceadvisors.com.

3

EX-99.5

Exhibit 99.5

BENEFICIAL OWNER ELECTION FORM

The undersigned acknowledge(s) receipt of your letter and the enclosed materials referred to therein relating to the offering of shares of common stock, par value $0.01 per share (the “Common Stock”), of Lument Finance Trust, Inc. (the “Company”).

This Beneficial Owner Election Form will instruct you whether to exercise rights to purchase shares of Common Stock distributed with respect to the Common Stock held by you for the account of the undersigned, pursuant to the terms and subject to the conditions set forth in the Company’s prospectus supplement, dated January 7, 2022, and the accompanying prospectus, dated August 6, 2021 (collectively, the “Prospectus”).

Box 1. [            ] Please EXERCISE RIGHTS for shares of Common Stock as set forth below.

	Number of Shares to Purchase		Estimated Subscription Price			Payment
Primary Subscription
You are entitled to subscribe for one share for every one right you hold.		X	$	3.58	=		Line 1
Over-Subscription Privilege
Stockholders of record on January 18, 2022 may only exercise the Over-Subscription Privilege if their Primary Subscription is exercised in full. The Over-Subscription Privilege is not limited by the number of rights you hold, but issuance is subject to certain other limitations, including proration, as described in the Prospectus.		X	$	3.58	=		Line 2
			Total Payment Required			$
	(Sum of Lines 1 & 2; must equal total amounts in Box 3)

Box 2. [            ] Please DO NOT EXERCISE RIGHTS for shares of Common Stock.

Box 3. [            ] Payment in the following amount is enclosed $            .

Box 4. [            ] Please deduct payment from the following account maintained by you as follows:

Type of Account	Account Number
Amount to be deducted: $
Signature	Date
Please type or print name

EX-99.6

Exhibit 99.6

NOTICE OF GUARANTEED DELIVERY
FOR
SUBSCRIPTION RIGHTS CERTIFICATES ISSUED
BY LUMENT FINANCE TRUST, INC.

This Notice of Guaranteed Delivery relates to an offering (the “Offering”) by Lument Finance Trust, Inc. (the “Company”) of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Rights will be issued to stockholders of record (the “Record Date Stockholders”) as of 5:00 p.m., New York City time, on January 18, 2022 (the “Record Date”). The Rights are offered on the terms and subject to the conditions described in the prospectus supplement, dated January 7, 2022 (as amended and supplemented from time to time, the “Prospectus Supplement”), and the accompanying prospectus, dated August 6, 2021 (together with the Prospectus Supplement, the “Prospectus”).

This form, or one substantially equivalent hereto, must be used to exercise Rights if the Rights holder exercising such Rights cannot deliver the certificate(s) evidencing the Rights (the “Subscription Rights Certificate(s)”) to the Subscription Agent listed below (the “Subscription Agent”) at or prior to 5:00 p.m., New York City time, on February 11, 2022, unless such time is extended by the Company (the “Expiration Date”). Such form must be delivered by hand, first class mail or overnight courier to the Subscription Agent, and must be received by the Subscription Agent by the Expiration Date. See “The Offering—Methods for Exercising Rights” in the Prospectus Supplement.

Payment of the estimated subscription price of $3.58 per share (the “Estimated Subscription Price”) for each share of Common Stock subscribed for upon exercise of such Rights must be received by the Subscription Agent in the manner and on the date specified in “The Offering—Methods for Exercising Rights” and “The Offering—Payment for Shares” in the Prospectus Supplement. The subscription price per share will be 92.5% of the volume-weighted average of the sales prices of the Company’s Common Stock on the New York Stock Exchange for the five consecutive trading days ending on the Expiration Date (the “Subscription Price”); provided, the subscription price per share will be no less than $3.06, which equals 70% of the book value per share of the Common Stock as of September 30, 2021. In the event that the Subscription Price exceeds the Estimated Subscription Price, an invoice will be sent for any additional amounts due. Payment for such additional amounts, if any, must be made within ten business days after the confirmation date in order to receive all the shares of Common Stock subscribed for. In the event the Subscription Price is less than the Estimated Subscription Price, the Subscription Agent will mail a refund to exercising shareholders as promptly as practicable. No interest will be paid on any amounts refunded.

A Rights holder may not exercise Rights if the exercise of the Rights would result in such Rights holder beneficially or constructively owning, applying certain attribution rules under the Internal Revenue Code of 1986, as amended, more than 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding shares of Common Stock or 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding capital stock, unless such ownership limitation is waived by the Company and does not result in the loss of its status as a real estate investment trust for U.S. Federal income tax purposes.

The Subscription Agent is: Broadridge Corporate Issuer Solutions, Inc. and can be contacted at the below address.

By Hand or Overnight Courier:

Broadridge Corporate Issuer Solutions, Inc.
Attn: BCIS IWS
51 Mercedes Way
Edgewood, New York 11717

By Mail:

Broadridge Corporate Issuer Solutions, Inc.
Attn: BCIS Re-Organization Dept.
P.O. Box 1317
Brentwood, New York 11717-0693

DELIVERY OR TRANSMISSION OF THIS INSTRUMENT OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.

If you have any questions or require additional copies of relevant documents please contact the information agent:

Alliance Advisors
200 Broadacres Drive
3rd Floor
Bloomfield, New Jersey 07003
(833) 786-6491 (toll free)
email at LFT@allianceadvisors.com

Date:

Ladies and Gentlemen:

The undersigned hereby represents that the undersigned is the holder of Subscription Rights Certificate(s) representing ________________________ Rights and that such Subscription Rights Certificate(s) cannot be delivered to the Subscription Agent on or before the Expiration Date. Upon terms and subject to the conditions set forth in the Prospectus, receipt of which is hereby acknowledged, the undersigned hereby elects to exercise the primary subscription and/or over-subscription privilege, as those terms are defined in the Prospectus, to subscribe for shares of Common Stock with respect to the Rights represented by such Subscription Rights Certificates(s).

The undersigned understands that payment of the Estimated Subscription Price of $3.58 per share for each share of common stock subscribed for pursuant to the primary subscription and/or over-subscription privilege must be received by the Subscription Agent by the close of business on the second business day after the Expiration Date and represents that such payment, in the aggregate amount of $ ___________________ either (check appropriate box):

¨          is being delivered to the Subscription Agent herewith or,

¨          has been delivered separately to the Subscription Agent in the manner set forth below (check appropriate box and complete information relating thereto):

¨          Uncertified check (Payment by uncertified check will not be deemed to have been received by the Subscription Agent until such check has cleared. Holders paying by such means are urged to make payment sufficiently in advance of the Expiration Date to ensure that such payment clears by such date.)

¨ Certified check

¨ Bank draft (cashier's check)

¨ Wire Transfer

Name of Maker: __________________________________________
Date of check or draft: _____________________________________
Check or draft number: _____________________________________
Bank or other institution on which
Check is drawn or issuer of money order: _______________________

Exercise of Primary Subscription:

Pursuant to the primary subscription, the undersigned hereby agrees to subscribe for __________________ shares of Common Stock.

Exercise of Over-Subscription Privilege:

Pursuant to the over-subscription privilege, the undersigned hereby agrees to subscribe for an additional ___________________ shares of Common Stock.

Signature(s) ____________________________	Address ____________________________
Name(s)_______________________________	____________________________
(please type or print)	Tel. No.(s) ___________________________

Subscription Rights Certificates (No(s). (if available)) __________________________________

GUARANTEE OF DELIVERY

(Not to Be Used For Subscription Rights Certificate Signature Guarantee)

The undersigned, a Eligible Guarantor Institution as that term is defined in Rule 17Ad-15 under the Securities Exchange Act of 1934, guarantees that the undersigned will deliver to the Subscription Agent (i) payment of the full Estimated Subscription Price for the shares subscribed for in the primary subscription and any additional shares subscribed for pursuant to the over-subscription privilege (as those terms are defined in the Prospectus), and (ii) a properly completed and duly executed Subscription Rights Certificate, on or prior to the close of business on the second business day after the Expiration Date.

	Dated:
(Address)	(Name of Firm)
(Area Code and Telephone Number)	(Authorized Signature)

The Eligible Guarantor Institution that completes this form must communicate the guarantee to the Subscription Agent and must deliver the Subscription Rights Certificate(s) to the Subscription Agent within the time period shown in the Prospectus. Failure to do so could result in a financial loss to such institution.

EX-99.7

Exhibit 99.7

LUMENT FINANCE TRUST, INC.

NOTICE TO FOREIGN STOCKHOLDERS WHO ARE RECORD HOLDERS

Up to 37,421,825 Shares of Common Stock Issuable Upon Exercise of Transferable Rights

January 18, 2022

Dear Stockholder:

Enclosed for your consideration is a prospectus supplement, dated January 7, 2022 (as amended and supplemented from time to time, the “Prospectus Supplement”), and the accompanying prospectus, dated August 6, 2021 (together with the Prospectus Supplement, the “Prospectus”), relating to the offering by Lument Finance Trust, Inc. (the “Company”) of transferable subscription rights (the “Rights”) to subscribe for up to an aggregate of 37,421,825 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Rights will be issued to stockholders of record (the “Record Date Stockholders”) as of 5:00 p.m., New York City time, on January 18, 2022 (the “Record Date”). The Rights are offered on the terms and subject to the conditions described in the Prospectus.

The Rights may be exercised at any time during the subscription period, which commences on January 19, 2022 and ends at 5:00 p.m., New York City time, on February 11, 2022, unless extended by the Company in its sole discretion (the “Expiration Date”). The Rights are transferable and are expected to be listed for trading on the New York Stock Exchange under the symbol “LFTRT.” The Common Stock is listed on the New York Stock Exchange under the symbol “LFT.” While the dealer managers will use their commercially reasonable efforts to ensure that an adequate trading market for the Rights will exist, no assurance can be given that a market for the Rights will develop. If you are a beneficial owner of shares of Common Stock that are held of record in the name of a broker, bank or other nominee, you should ask that entity to effect the sale of your Rights or the purchase of other Rights that may be available. If you are a stockholder of record, whether you hold certificates evidencing shares of Common Stock directly or you hold shares of Common Stock in book-entry form with the Company's transfer agent, you will need to engage a broker to effect the transactions for you.

As described in the Prospectus, each Record Date Stockholder is entitled to receive 1.5 Rights for each outstanding share of Common Stock owned on the Record Date. The Rights entitle the holder thereof to purchase one new share of Common Stock for every one Right held (the “Primary Subscription”) at the subscription price (the “Subscription Price”), to be calculated as described in the Prospectus as of the Expiration Date. Record Date Stockholders who fully exercise their Rights pursuant to the Primary Subscription will be entitled to subscribe, on the terms and subject to the conditions set forth in the Prospectus, including pro-ration, for additional shares that remain unsubscribed as a result of any unexercised Rights. In addition, any non-Record Date Stockholders who exercise Rights are entitled to subscribe for remaining shares that are not otherwise subscribed for by Record Date Stockholders pursuant to the over-subscription privilege, on the terms and subject to the conditions set forth in the Prospectus. The Company refers to the over-subscription privilege as the “Over-Subscription Privilege.”

The Subscription Price per share will be 92.5% of the volume-weighted average of the sales prices of our shares of Common Stock on the New York Stock Exchange for the five consecutive trading days ending on the Expiration Date; provided the Subscription Price per share will be no less than $3.06, which equals 70% of the book value per share of the Common Stock as of September 30, 2021. Because the subscription price will be determined on the expiration date, rights holders will generally not know the subscription price at the time of exercise. As a result, the Company is requiring that Rights holders who wish to exercise their Rights deliver to the subscription agent (the “Subscription Agent”) the estimated subscription price of $3.58 per share (the “Estimated Subscription Price”) on or before the Expiration Date, except as otherwise indicated in the Section entitled “The Offering—Payment for Shares” in the Prospectus Supplement. In the event that the Subscription Price exceeds the Estimated Subscription Price, an invoice will be sent for any additional amounts due. Payment for such additional amounts, if any, must be made within ten business days after the confirmation date. In the event the Subscription Price is less than the Estimated Subscription Price, the Subscription Agent will mail a refund to exercising Rights holders. No interest will be paid on amounts refunded.

A Rights Holder may not exercise the Primary Subscription or the Over-Subscription Privilege if such exercise of the Rights would result in such Rights Holder beneficially or constructively owning, applying certain attribution rules under the Internal Revenue Code of 1986, as amended, more than 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding shares of Common Stock or 9.8% by value or number of shares, whichever is more restrictive, of the Company’s outstanding capital stock, unless such ownership limitation is waived by the Company and does not result in the loss of its status as a real estate investment trust for U.S. Federal income tax purposes.

The Rights will be evidenced by subscription rights certificates (the “Subscription Rights Certificates”). Subscription Rights Certificates will not be mailed to foreign stockholders. The Subscription Agent will hold the Rights to which those Subscription Rights Certificates relate for foreign stockholders’ accounts until instructions are received to exercise the Rights and such stockholders establish to the satisfaction of the Subscription Agent that they are permitted to exercise their Rights under applicable law. In addition, such stockholders must take all other steps that are necessary to exercise their Rights on or prior to the date required for participation in the Rights offering. If no instructions have been received by the Expiration Date, the Subscription Agent will transfer the Rights of foreign stockholders to the dealer managers, who will either purchase the Rights or use their commercially reasonable efforts to sell them. The net proceeds, if any, from the sale of those Rights will be remitted to foreign stockholders. If those Rights are not purchased or sold prior to the expiration of the Rights offering, they will expire. No fractional shares of Common Stock will be issued pursuant to the Rights.

Rights holders who exercise their Rights will have no right to rescind their subscription after receipt of their completed Subscription Rights Certificates together with payment for shares or a notice of guaranteed delivery by the Subscription Agent.

2

Enclosed are copies of the following documents:

1.       the Prospectus;

2.       a letter to the Company’s stockholders, dated January 18, 2022;

3.       a notice of guaranteed delivery; and

4.       a return envelope, addressed to Broadridge Corporate Issuer Solutions, Inc.

Your prompt attention is requested. To exercise Rights, you should notify the Subscription Agent that you wish to exercise your Rights and coordinate payment of the Estimated Subscription Price in full for each share of Common Stock subscribed for pursuant to the Primary Subscription and the Over-Subscription Privilege as indicated in the Prospectus. The Subscription Agent must receive instructions from you on or prior to the Expiration Date.

ANY QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO ALLIANCE ADVISORS, THE INFORMATION AGENT, TOLL-FREE AT THE FOLLOWING TELEPHONE NUMBER: (833) 786-6491 OR VIA EMAIL AT LFT@allianceadvisors.com.

3

XML

Cover	Jan. 18, 2022
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 18, 2022
Entity File Number	001-35845
Entity Registrant Name	LUMENT FINANCE TRUST, INC.
Entity Central Index Key	0001547546
Entity Tax Identification Number	45-4966519
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	230 Park Avenue
Entity Address, Address Line Two	20th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10169
City Area Code	212
Local Phone Number	521-6323
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	LFT
Security Exchange Name	NYSE
Redeemable Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	7.875% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share
Trading Symbol	LFTPrA
Security Exchange Name	NYSE
Rights to purchase Common Stock, $0.1 par value per share [Member]
Document Information [Line Items]
Title of 12(b) Security	Rights to purchase Common Stock, $0.01 par value per share
Trading Symbol	LFTRT
Security Exchange Name	NYSE