On August 13, 2026, Lument Finance Trust, Inc. (the “Company” or “LFT”) announced that its Board of Directors (the “Board”) approved a reverse stock split of the Company’s common stock at a ratio of 1-for-10. As currently planned, the reverse stock split will become effective at 5:00 p.m. Eastern Time on September 9, 2026 (the “Effective Time”), and the Company’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange at the opening of trading on September 10, 2026.

Additional information relating to the reverse stock split can be found in the Company’s press release dated August 13, 2026, which can be found on its website lumentfinancetrust.com.

The Company reserves the right to abandon or delay the reverse stock split and will inform stockholders of any changes to its plans.

What is a reverse stock split? What will happen to my shares?

In a reverse stock split, a fixed number of existing shares are exchanged for a smaller number of new shares, resulting in the new shares having a higher price per share.

• At a ratio of 1-for-10, every 10 shares of LFT’s common stock will be automatically converted into one share of common stock and the price per share will be increased proportionately.
• No fractional shares will be issued in connection with the reverse stock split; instead, stockholders that would hold fractional shares as a result of the reverse stock split will be entitled to receive a cash payment in lieu of such fractional shares in an amount based on the closing price of the Company’s common stock on September 9, 2026.
• For example, if you hold 100 shares before the reverse stock split, you will hold ten shares after the reverse stock split. If you hold 103 shares before the reverse stock split, you will hold ten shares after the reverse stock split and will receive a cash payment in lieu of the three pre-reverse stock split shares that did not convert into a fractional share.

Why did LFT determine to implement a reverse stock split?

The Company determined that the reverse stock split was in the best interest of the Company and its stockholders. The reverse stock split is intended to provide flexibility to maintain compliance with the New York Stock Exchange listing requirements and support an efficient public market for the Company’s common stock.

When will the reverse stock split become effective?

As currently planned, the reverse stock split will take effect at the Effective Time, 5:00 p.m. Eastern Time on September 9, 2026, and LFT’s common stock will begin trading on a post-reverse stock split basis on September 10, 2026. The Company will provide updates to its stockholders if there are any changes to this schedule.

How will the reverse stock split impact common stock dividends?

All future dividend distributions will be made at the discretion of the Company’s Board and will depend on LFT’s earnings, financial condition, maintenance of REIT status and such other factors that the Board may deem relevant from time to time. In other words, the Board will continue to declare dividends following the reverse stock split in accordance with the same criteria that it currently uses.

How will the reverse stock split affect the calculation of future Distributable Earnings per share and other per share metrics?

• With the number of outstanding shares of LFT’s common stock reduced to one tenth of the pre-reverse stock split number, Distributable Earnings per share and other per share metrics will be proportionately increased by ten times what they otherwise would have been because they will be divided by one-tenth as many shares.
• Distributable Earnings per share and other per share metrics for periods ending before the Effective Time will be adjusted to give retroactive effect to the reverse stock split in the Company’s post-split financial statements.

Will the reverse stock split affect the value of my equity in LFT?

• The reverse stock split should not change the total value of your equity in LFT, except for de minimis changes resulting from the payment of cash in lieu of fractional shares. Absent other factors that affect the trading price of LFT common stock, the market price of each share will automatically increase by a multiple of ten while your number of owned shares will be automatically reduced to one tenth immediately following the reverse stock split, as illustrated in the example below.

The Company cannot guarantee the performance of its common stock before or after the reverse stock split and we expect that the stock price will fluctuate.

Will the reverse stock split change my percentage ownership or voting power?

The reverse stock split will affect all the Company’s common stockholders uniformly and will not affect any common stockholder’s percentage of ownership interest or proportionate voting power, except for de minimis changes resulting from the payment of cash in lieu of fractional shares of common stock.

Do I need to take any action?

• Stockholders of record will receive information from Equiniti Trust Company, LLC, the Company’s transfer agent, regarding their stock ownership following the reverse stock split and, if applicable, payments of cash in lieu of fractional shares.
• Stockholders holding shares in “street name” through a bank, broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split and will not be required to take any action in connection with the reverse stock split.
• You may contact your brokerage firm or Equiniti, as applicable, for additional information (contact information at the end of this document).

Will the post-reverse stock split shares continue to trade on the exchange where LFT’s common stock was listed prior to the reverse stock split? Will there be a new CUSIP?

The Company’s common stock will continue to trade on the New York Stock Exchange under the symbol “LFT.” However, following the reverse stock split, the common stock will trade under a new CUSIP number: 55025L306.

What are the tax consequences of the reverse stock split?

• The reverse stock split is intended to be tax-free for U.S. federal income tax purposes. U.S. stockholders generally should not recognize a gain or loss from the reverse stock split, except in those instances where cash payments are provided in lieu of fractional shares, which may be taxable.
• Form 1099-B will be issued in early 2027 by stockholders’ brokers for cash payments made to registered stockholders in lieu of fractional shares.
• Holders of LFT’s common stock are urged to consult their own tax advisors with respect to the U.S. federal, state, and local and non-U.S. tax consequences of the reverse stock split.

How do I adjust the cost basis to reflect the reverse stock split?

• Every 10 shares of LFT’s common stock will be automatically converted to one share of common stock. As a result, stockholders must allocate the aggregate tax basis in their shares held immediately prior to the reverse stock split among the shares held immediately after the reverse stock split, including consideration of any cash payments in lieu of fractional shares.
• Stockholders’ holding period for their stock after the reverse stock split will include the holding period of the corresponding stock before the reverse stock split.
• As individual taxpayers’ circumstances may vary, stockholders should consult their own tax advisors on the effect of allocating basis and holding period carryover for their post-reverse stock split shares.
• Additional information will be included in the U.S. Internal Revenue Service Form 8937, Report of Organizational Actions Affecting Basis of Securities, to be prepared by LFT. This form will be posted on the Company’s website within 45 days after the Effective Time.

Who should I contact if I have additional questions about my shares?

• If you have questions about the reverse stock split, stockholder records, stock transfers, stock certificates or other stock-related inquiries please contact:

Equiniti Shareowner Services
P.O. Box 64858
Saint Paul, MN 55164-0858
877-248-6417
HelpAST@equiniti.com

• If you have any other questions related to LFT, please contact the Investor Relations team at:

Lument Finance Trust, Inc.
230 Park Avenue, 20^th floor
New York, NY 10169
LFTInvestorRelations@lument.com