Material Agreement (Form 8-K)

On November 3, 2025, LCMT Warehouse, LLC ("Seller"), an indirect wholly owned subsidiary of Lument Finance Trust, Inc. (the "Company"), entered into an Uncommitted Master Repurchase Agreement (the "Repurchase Agreement") with JPMorgan Chase Bank, National Association ("JPM" or "Buyer"). The Repurchase Agreement provides up to $450 million to finance first mortgage loans, controlling loan participations and other commercial mortgage loan debt instruments secured by commercial real estate, as described in more detail in the Repurchase Agreement.

Advances under the Repurchase Agreement accrue interest at per annum rates equal to term SOFR plus a spread to be determined on a case-by-case basis between Seller and Buyer. The initial maturity date of the Repurchase Agreement is November 3, 2028, with two (2) one-year extensions at Seller's option, which may be exercised upon the satisfaction of certain conditions as described in more detail in the Repurchase Agreement.

In connection with the Repurchase Agreement, the Company entered into a Guarantee Agreement (the "Guarantee") with JPM, under which the Company guarantees the Seller's payment and performance obligations under the Repurchase Agreement. Subject to certain exceptions, the maximum liability of the Company under the Guarantee will not exceed 25% of the then currently unpaid aggregate repurchase price of all purchased loans with respect to transactions then outstanding and related obligations under the Repurchase Agreement.

The Repurchase Agreement and Guarantee contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types. In addition, the Company, as guarantor, is subject to certain financial covenants in respect of the Guarantee, including minimum unencumbered liquidity, minimum tangible net worth, maximum leverage ratio, and an interest charge coverage ratio.

The foregoing summary does not purport to be a complete description and is qualified in its entirety by the Repurchase Agreement and Guarantee, which are filed as exhibits to this Current Report on Form 8-K.

The information included in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.