Lument Finance Trust (LFT) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-35845
Entity Registrant Name	LUMENT FINANCE TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-4966519
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	317-5700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		52,292,107
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001547546
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LFT
Security Exchange Name	NYSE
Redeemable Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	7.875% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share
Trading Symbol	LFTPrA
Security Exchange Name	NYSE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)		Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	[1]	$ 45,587,573	$ 51,247,063
Restricted cash		19,490,910	270,129	[1]
Commercial mortgage loans held-for-investment, at amortized cost	[1]	1,191,183,049	1,389,940,203
Less: Allowance for credit losses	[1]	(9,515,493)	(6,059,006)
Commercial mortgage loans held-for-investment, net of allowance for credit losses	[1]	1,181,667,556	1,383,881,197
Mortgage servicing rights, at fair value	[1]	640,309	691,973
Accrued interest receivable	[1]	6,823,190	8,588,805
Other assets	[1]	1,789,333	2,253,280
Total assets	[1]	1,255,998,871	1,446,932,447
LIABILITIES
Collateralized loan obligations and secured financings, net	[1]	955,094,679	1,146,210,752
Secured term loan, net	[1]	47,407,286	47,220,226
Accrued interest payable	[1]	3,153,060	4,092,701
Dividends payable	[1]	5,184,660	4,654,904
Fees and expenses payable to Manager	[1]	1,486,946	1,587,875
Other liabilities	[1],[2]	528,018	2,373,609
Total liabilities	[1]	1,012,854,649	1,206,140,067
COMMITMENTS AND CONTINGENCIES (NOTES 10 & 11)	[1]
EQUITY
Preferred Stock: par value $0.01 per share; 50,000,000 shares authorized; 7.875% Series A Cumulative Redeemable, $60,000,000 aggregate liquidation preference, 2,400,000 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	[1]	57,254,935	57,254,935
Common Stock: par value $0.01 per share; 450,000,000 shares authorized,52,292,107 and 52,248,631 shares issued and outstanding, at September 30, 2024 and December 31, 2023, respectively	[1]	522,922	522,487
Additional paid-in capital	[1]	314,657,793	314,587,299
Cumulative distributions to stockholders	[1]	(194,624,189)	(179,045,749)
Accumulated earnings	[1]	65,233,261	47,373,908
Total stockholders' equity	[1]	243,044,722	240,692,880
Noncontrolling interests	[1]	99,500	99,500
Total equity	[1]	243,144,222	240,792,380
Total liabilities and equity	[1]	$ 1,255,998,871	$ 1,446,932,447
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.[2]Includes $81,184 and $43,647 of Current Expected Credit Loss ("CECL") allowance related to unfunded commitments on commercial mortgage loans, net as of September 30, 2024 and December 31, 2023, respectively.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2024	Dec. 31, 2023
Variable Interest Entity [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)		50,000,000	50,000,000
Preferred stock, dividend rate, percentage		7.875%	7.875%
Preferred stock, aggregate liquidation preference		$ 60,000,000	$ 60,000,000
Preferred stock, shares issued (in shares)		2,400,000	2,400,000
Preferred stock, shares outstanding (in shares)		2,400,000	2,400,000
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Common stock, shares authorized (in shares)		450,000,000	450,000,000
Common stock, shares issued (in shares)		52,292,107	52,248,631
Common stock, shares outstanding (in shares)		52,292,107	52,248,631
Assets	[1]	$ 1,255,998,871	$ 1,446,932,447
Liabilities	[1]	1,012,854,649	1,206,140,067
Allowance for credit loss	[1]	9,515,493	6,059,006
Unfunded Loan Commitment
Variable Interest Entity [Line Items]
Allowance for credit loss		81,184	43,647
Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd.
Variable Interest Entity [Line Items]
Assets		1,187,880,140	1,384,136,334
Liabilities		$ 958,170,808	$ 1,150,207,290
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Commercial mortgage loans held-for-investment	$ 28,926,111	$ 31,067,350	$ 93,553,383	$ 74,830,619
Cash and cash equivalents	744,724	789,442	2,197,768	1,878,550
Interest expense:
Collateralized loan obligations and secured financings	(19,238,862)	(21,364,918)	(60,929,273)	(48,597,825)
Secured term loan	(947,510)	(947,509)	(2,821,931)	(2,811,631)
Net interest income	9,484,463	9,544,365	31,999,947	25,299,713
Expenses:
Management and incentive fees	1,126,820	1,072,569	5,507,768	3,253,205
General and administrative expenses	1,160,346	861,447	3,425,430	2,692,236
Operating expenses reimbursable to Manager	418,553	284,859	1,293,627	1,372,511
Other operating expenses	80,098	168,062	138,036	2,042,346
Compensation expense	111,250	58,750	333,750	182,444
Total expenses	2,897,067	2,445,687	10,698,611	9,542,742
Other income and expense:
Provision for credit losses, net	(317,448)	(791,563)	(3,494,024)	(1,166,962)
Change in unrealized (loss) gain on mortgage servicing rights	(46,017)	1,573	(51,664)	(47,350)
Servicing income, net	60,283	70,842	117,056	167,766
Total other income and expense	(303,182)	(719,148)	(3,428,632)	(1,046,546)
Net income before provision for income taxes	6,284,214	6,379,530	17,872,704	14,710,425
Benefit from (provision for) income taxes	(3,489)	(19,803)	(13,351)	(9,780)
Net income	6,280,725	6,359,727	17,859,353	14,700,645
Dividends accrued to preferred stockholders	(1,185,041)	(1,185,042)	(3,555,041)	(3,555,042)
Net income attributable to common stockholders	5,095,684	5,174,685	14,304,312	11,145,603
Earnings per share:
Net income attributable to common stockholders (basic)	5,095,684	5,174,685	14,304,312	11,145,603
Net income attributable to common stockholders (diluted)	$ 5,095,684	$ 5,174,685	$ 14,304,312	$ 11,145,603
Weighted average number of shares of common stock outstanding (in shares)	52,283,669	52,231,152	52,266,444	52,231,152
Basic income per share (in dollars per share)	$ 0.10	$ 0.10	$ 0.27	$ 0.21
Diluted income per share (in dollars per share)	0.10	0.10	0.27	0.21
Dividends declared per share of common stock (in dollars per share)	$ 0.080	$ 0.07	$ 0.23	$ 0.19

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($)	Total		Cumulative Effect, Period of Adoption, Adjustment	Total Stockholders' Equity	Total Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Additional Paid-in Capital	Cumulative Distributions to Stockholders	Accumulated Earnings	Accumulated Earnings Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling interests
Beginning balance (in shares) at Dec. 31, 2022						2,400,000
Balance at Dec. 31, 2022	$ 243,001,497		$ (3,591,440)	$ 242,901,997	$ (3,591,440)	$ 57,254,935	$ 522,252	$ 314,598,384	$ (160,724,426)	$ 31,250,852	$ (3,591,440)	$ 99,500
Beginning balance (in shares) at Dec. 31, 2022							52,231,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cost of issuing common stock	(14,040)			(14,040)				(14,040)
Restricted stock compensation expense	3,358			3,358				3,358
Net income	5,766,691			5,766,691						5,766,691
Common stock dividends	(3,133,869)			(3,133,869)					(3,133,869)
Preferred stock dividends	(1,184,958)			(1,184,958)					(1,184,958)
Ending balance (in shares) at Mar. 31, 2023						2,400,000
Balance at Mar. 31, 2023	240,847,239			240,747,739		$ 57,254,935	$ 522,252	314,587,702	(165,043,253)	33,426,103		99,500
Ending balance (in shares) at Mar. 31, 2023							52,231,152
Beginning balance (in shares) at Dec. 31, 2022						2,400,000
Balance at Dec. 31, 2022	243,001,497		$ (3,591,440)	242,901,997	$ (3,591,440)	$ 57,254,935	$ 522,252	314,598,384	(160,724,426)	31,250,852	$ (3,591,440)	99,500
Beginning balance (in shares) at Dec. 31, 2022							52,231,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,700,645
Common stock dividends	(9,923,919)
Preferred stock dividends	(3,555,042)
Ending balance (in shares) at Sep. 30, 2023						2,400,000
Balance at Sep. 30, 2023	240,595,347			240,495,847		$ 57,254,935	$ 522,312	314,561,930	(174,203,387)	42,360,057		99,500
Ending balance (in shares) at Sep. 30, 2023							52,231,152
Beginning balance (in shares) at Mar. 31, 2023						2,400,000
Balance at Mar. 31, 2023	240,847,239			240,747,739		$ 57,254,935	$ 522,252	314,587,702	(165,043,253)	33,426,103		99,500
Beginning balance (in shares) at Mar. 31, 2023							52,231,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	13,620			13,620			$ 60	13,560
Cost of issuing common stock	(14,196)			(14,196)				(14,196)
Restricted stock compensation expense	(10,784)			(10,784)				(10,784)
Net income	2,574,227			2,574,227						2,574,227
Common stock dividends	(3,133,869)			(3,133,869)					(3,133,869)
Preferred stock dividends	(1,185,042)			(1,185,042)					(1,185,042)
Ending balance (in shares) at Jun. 30, 2023						2,400,000
Balance at Jun. 30, 2023	239,091,195			238,991,695		$ 57,254,935	$ 522,312	314,576,282	(169,362,164)	36,000,330		99,500
Ending balance (in shares) at Jun. 30, 2023							52,231,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cost of issuing common stock	(14,352)			(14,352)				(14,352)
Net income	6,359,727			6,359,727						6,359,727
Common stock dividends	(3,656,181)			(3,656,181)					(3,656,181)
Preferred stock dividends	(1,185,042)			(1,185,042)					(1,185,042)
Ending balance (in shares) at Sep. 30, 2023						2,400,000
Balance at Sep. 30, 2023	$ 240,595,347			240,495,847		$ 57,254,935	$ 522,312	314,561,930	(174,203,387)	42,360,057		99,500
Ending balance (in shares) at Sep. 30, 2023							52,231,152
Beginning balance (in shares) at Dec. 31, 2023	2,400,000					2,400,000
Balance at Dec. 31, 2023	$ 240,792,380	[1]		240,692,880		$ 57,254,935	$ 522,487	314,587,299	(179,045,749)	47,373,908		99,500
Beginning balance (in shares) at Dec. 31, 2023	52,248,631						52,248,631
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)							8,684
Issuance of common stock	$ 19,947			19,947			$ 87	19,860
Cost of issuing common stock	(14,196)			(14,196)				(14,196)
Net income	6,980,182			6,980,182						6,980,182
Common stock dividends	(3,658,012)			(3,658,012)					(3,658,012)
Preferred stock dividends	(1,184,999)			(1,184,999)					(1,184,999)
Ending balance (in shares) at Mar. 31, 2024						2,400,000
Balance at Mar. 31, 2024	$ 242,935,302			242,835,802		$ 57,254,935	$ 522,574	314,592,963	(183,888,760)	54,354,090		99,500
Ending balance (in shares) at Mar. 31, 2024							52,257,315
Beginning balance (in shares) at Dec. 31, 2023	2,400,000					2,400,000
Balance at Dec. 31, 2023	$ 240,792,380	[1]		240,692,880		$ 57,254,935	$ 522,487	314,587,299	(179,045,749)	47,373,908		99,500
Beginning balance (in shares) at Dec. 31, 2023	52,248,631						52,248,631
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 17,859,353
Common stock dividends	(12,023,399)
Preferred stock dividends	$ (3,555,041)
Ending balance (in shares) at Sep. 30, 2024	2,400,000					2,400,000
Balance at Sep. 30, 2024	$ 243,144,222	[1]		243,044,722		$ 57,254,935	$ 522,922	314,657,793	(194,624,189)	65,233,261		99,500
Ending balance (in shares) at Sep. 30, 2024	52,292,107						52,292,107
Beginning balance (in shares) at Mar. 31, 2024						2,400,000
Balance at Mar. 31, 2024	$ 242,935,302			242,835,802		$ 57,254,935	$ 522,574	314,592,963	(183,888,760)	54,354,090		99,500
Beginning balance (in shares) at Mar. 31, 2024							52,257,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)							17,915
Issuance of common stock	42,494			42,494			$ 179	42,315
Cost of issuing common stock	(14,196)			(14,196)				(14,196)
Net income	4,598,446			4,598,446						4,598,446
Common stock dividends	(4,182,019)			(4,182,019)					(4,182,019)
Preferred stock dividends	(1,185,001)			(1,185,001)					(1,185,001)
Ending balance (in shares) at Jun. 30, 2024						2,400,000
Balance at Jun. 30, 2024	242,195,026			242,095,526		$ 57,254,935	$ 522,753	314,621,082	(189,255,780)	58,952,536		99,500
Ending balance (in shares) at Jun. 30, 2024							52,275,230
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)							16,877
Issuance of common stock	42,496			42,496			$ 169	42,327
Cost of issuing common stock	(5,616)			(5,616)				(5,616)
Net income	6,280,725			6,280,725						6,280,725
Common stock dividends	(4,183,368)			(4,183,368)					(4,183,368)
Preferred stock dividends	$ (1,185,041)			(1,185,041)					(1,185,041)
Ending balance (in shares) at Sep. 30, 2024	2,400,000					2,400,000
Balance at Sep. 30, 2024	$ 243,144,222	[1]		$ 243,044,722		$ 57,254,935	$ 522,922	$ 314,657,793	$ (194,624,189)	$ 65,233,261		$ 99,500
Ending balance (in shares) at Sep. 30, 2024	52,292,107						52,292,107
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2024		Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 17,859,353		$ 14,700,645
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of commercial mortgage loans held-for-investment discounts	(2,656,178)		(431,009)
Amortization of commercial mortgage loans held-for-investment premiums	0		16,201
Accretion of deferred loan fees	(172,598)		(195,022)
Amortization of deferred offering costs	(34,008)		(42,588)
Amortization of deferred financing costs	2,847,760		2,302,706
Provision for credit losses, net	3,456,487		1,166,962
Unrealized loss on mortgage servicing rights	51,664		47,350
Stock compensation expense	0		6,194
Non-cash compensation expense	104,938		0
Net change in:
Accrued interest receivable	1,765,615		(2,809,908)
Other assets	463,947		(272,085)
Accrued interest payable	(939,642)		1,472,032
Fees and expenses payable to Manager	(100,929)		(242,236)
Other liabilities	(1,845,591)		(205,860)
Net cash provided by operating activities	20,800,818		15,513,382
Cash flows from investing activities:
Purchase of commercial mortgage loans held-for-investment	(45,423,744)		(517,608,525)
Principal payments from commercial mortgage loans held-for-investment	247,009,674		203,425,029
Net cash provided by (used in) investing activities	201,585,930		(314,183,496)
Cash flows from financing activities:
Proceeds from collateralized loan obligations and secured financings	0		317,700,000
Payment of collateralized loan obligations	(193,776,773)		0
Payment of deferred financing costs	0		(3,809,453)
Dividends paid on common stock	(11,497,434)		(9,401,607)
Dividends paid on preferred stock	(3,551,250)		(3,551,250)
Net cash (used in) provided by financing activities	(208,825,457)		300,937,690
Net increase in cash, cash equivalents and restricted cash	13,561,291		2,267,576
Cash, cash equivalents and restricted cash, beginning of period	51,517,192		47,366,365
Cash, cash equivalents and restricted cash, end of period	65,078,483		49,633,941
Supplemental disclosure of cash flow information
Cash paid for interest	61,843,086		47,634,719
Non-cash investing and financing activities information
Dividends declared but not paid at end of period	5,184,660	[1]	4,657,473
Loan principal payments held by a servicer	$ 18,822,381		$ 0
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

ORGANIZATION AND BUSINESS OPERA

ORGANIZATION AND BUSINESS OPERATIONS	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS OPERATIONS	ORGANIZATION AND BUSINESS OPERATIONS Lument Finance Trust, Inc. (together with its consolidated subsidiaries, the "Company"), is a Maryland corporation that focuses primarily on investing in, originating, financing and managing a portfolio of commercial real estate ("CRE") debt investments. The Company is externally managed by Lument Investment Management, LLC (the "Manager" or "Lument IM"). The Company's common stock is listed on the NYSE under the symbol "LFT." The Company was incorporated on March 28, 2012 and commenced operations on May 16, 2012. The Company began trading as a publicly traded company on March 22, 2013.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the financial statements prepared under GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with the Company's financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission ("SEC") on March 15, 2024. Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of the Company and all subsidiaries which it controls (i) through voting or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). All significant intercompany transactions have been eliminated on consolidation. Use of Estimates The financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g. valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company's estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material. VIEs An entity is considered a VIE when any of the following applies: (1) the equity investors (if any) lack one or more essential characteristics of a controlling financial interest; (2) the equity investment at risk is not sufficient to finance that entity's activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both the following characteristics: (1) the power to direct activities that, when taken together, most significantly impact the VIE performance; and (2) the obligation to absorb losses and right to receive returns from the VIE that would be significant to the VIE. The Company evaluates quarterly its junior retained notes and preferred shares of LFT CRE 2021-FL1, Ltd. and LFT CRE 2021-FL1, LLC (collectively, the "2021-FL1 CLO") and LMF 2023-1, LLC ("LMF 2023-1 Financing") for potential consolidation. At September 30, 2024, the Company determined it was the primary beneficiary of LFT CRE 2021-FL1 CLO and LMF 2023-1 Financing based on its power to direct the activities that most significantly impact the economic performance of LFT 2021-FL1 CLO and LMF 2023-1 Financing and its obligation to absorb losses derived from ownership of its junior retained notes and preferred shares. Accordingly, the Company consolidated the assets, liabilities, income and expenses of the underlying issuing entities. Collateralized Loan Obligations and Secured Financings Collateralized loan obligations ("CLO") and secured financings represent third-party liabilities of 2021-FL1 CLO and LMF 2023-1 Financing. The 2021-FL1 CLO and LMF 2023-1 Financing are VIEs and Management has determined that the Company is the primary beneficiary of the 2021-FL1 CLO and LMF 2023-1 Financing. Accordingly, the Company consolidates the assets, liabilities (other than the below investment grade-rated notes and preferred shares of the 2021-FL1 CLO and LMF 2023-1 Financing retained by the Company that are eliminated on consolidation), income and expense of the 2021-FL1 CLO and LMF 2023-1 Financing. The third-party obligations of the 2021-FL1 CLO and LMF 2023-1 Financing do not have any recourse to the Company as the consolidator of the CLO and secured financing issuing entities. The third-party obligations of the 2021-FL1 CLO and LMF 2023-1 Financing are carried at their outstanding unpaid principal balances, net of any deferred financing costs. Any premiums, discounts or deferred financing costs associated with these third-party obligations are amortized to interest expense using the effective interest method over the expected average life of the related obligations, or on a straight line basis when it approximates the effective interest method. The Company's maximum exposure to loss from CLO and secured financings was $234,850,000 at September 30, 2024 and December 31, 2023, respectively. In the second quarter of 2023, $1,684,618 in costs related to a previously contemplated public CRE CLO were expensed as "Other operating expenses" in the statement of operations as a result of abandoning the contemplated transaction due to the then current capital market environment. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents at time of purchase include cash held in bank accounts on an overnight basis and other short term deposit accounts with banks having maturities of 90 days or less at time of acquisition. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. Restricted cash includes cash held within 2021-FL1 CLO and LMF 2023-1 Financing as of September 30, 2024 and December 31, 2023, respectively. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the statement of cash flows: September 30, 2024 December 31, 2023 Cash and cash equivalents $ 45,587,573 $ 51,247,063 Restricted cash 2021-FL1 CLO (1) $ 19,288,134 $ 71,826 Restricted cash LMF 2023-1 Financing $ 202,776 $ 198,303 Total cash, cash equivalents and restricted cash $ 65,078,483 $ 51,517,192 (1) Primarily represents proceeds from principal repayments held by the servicer which were remitted to the Class A Note holders during the subsequent remittance cycle. Deferred Offering Costs Direct costs incurred to issue shares classified as equity, such as legal and accounting fees, are deducted from the related proceeds and the net amount recorded as stockholders' equity. Accordingly, payments made by the Company in respect of such costs related to the issuance of shares are recorded as an asset in the accompanying consolidated balance sheets in the line item "Other assets", for subsequent deduction from the related proceeds upon closing of the offering. To the extent that certain costs, in particular legal fees, are known to have been accrued but have not yet been invoiced and paid, they are included in "Other accounts payable and accrued expenses" on the accompanying consolidated balance sheets. Fair Value Measurements The "Fair Value Measurements and Disclosures" Topic 820 of the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurement under GAAP. Specifically, the guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at measurement date. ASC 820 specifies a hierarchy of valuation techniques based on the inputs used in measuring fair value. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable market data from independent sources, while unobservable inputs reflect the Company's market assumptions. The three levels are defined as follows: • Level 1 Inputs – Quoted prices for identical instruments in active markets. • Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 Inputs – Instruments with primarily unobservable value drivers. Pursuant to ASC 820 we disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate fair value for those certain instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instrument, for which it is practicable to estimate that value: • Cash and cash equivalents : The carrying amount of cash and cash equivalents approximates fair value. • Restricted cash : The carrying amount of restricted cash approximates fair value. • Commercial mortgage loans : The Company determines the fair value of commercial mortgage loans by utilizing a pricing model based on discounted cash flow methodologies using discount rates, which reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Additionally, the Company may record fair value adjustments on a non-recurring basis when it has determined it necessary to record a specific impairment reserve or charge-off against a loan and the Company measures such specific reserve or charge-off using the fair value of the loan's collateral. To determine the fair value of loan collateral, the Company employs the income capitalization approach, appraised values, broker opinion of value, sale offers, letters of intention to purchase, or other valuation benchmarks, as applicable, depending upon the nature of such collateral and other relevant market factors. • Mortgage servicing rights ("MSRs") : The Company determines the fair value of MSRs from a third-party pricing service on a recurring basis. The third-party pricing service uses common market pricing methods that include using discounted cash flow models to calculate present value, estimated net servicing income and observed market pricing for MSR purchase and sale transactions. The model considers contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. • Collateralized loan obligations and secured financings : The Company determines the fair value of collateralized loan obligations and secured financings by utilizing a third-party pricing service. In determining the value of a particular investment, pricing service providers may use market spreads, inventory levels, trade and bid history, as well as market insight from clients, trading desks and global research platform. • Secured term loan : The Company determines the fair value of its secured term loan based on a discounted cash flow methodology. • Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying amounts that approximate fair value due to their short-term nature. Commercial Mortgage Loans Held-for-Investment Commercial mortgage loans held-for-investment represent floating-rate transitional loans and other commercial mortgage loans purchased or originated by the Company. These loans include loans sold into securitizations that the Company consolidates. Commercial mortgage loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at their unpaid principal balances, adjusted for net unamortized loan fees and costs (in respect of originated loans), premiums and discounts (in respect of purchased loans) and impairment, if any. Commercial mortgage loans held-for-investment principal repayments received after remittance dates are held by the servicer and reported as "Investment related receivable" in the consolidated balance sheets. Interest income is recognized as revenue using the effective interest method and is recorded on the accrual basis according to the terms of the underlying loan agreement. Any fees, costs, premiums and discounts associated with these loan investments are deferred and amortized over the term of the loan on a straight-line basis approximating the effective interest method. Income accrual is generally suspended and loans are placed on non-accrual status on the earlier of the date at which payment has become 90 days past due or when full and timely collection of interest and principal is considered not probable. The Company may return a loan to accrual status when repayment of principal and interest is reasonably assured under the terms of the underlying loan agreement. As of September 30, 2024, the Company held three loans, collateralized by multifamily properties, with unpaid principal balance of $52.5 million on non-accrual status with interest collections accounted for on the cash basis method. See Note 3 for further discussion. On January 1, 2023, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") and amendments, which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current economic conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance credit exposures such as unfunded loan commitments. The allowance for credit losses required under ASC 2016-13 is included in "Allowance for credit losses" on our consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in "Other liabilities" in the consolidated balance sheets. The change to the allowance for credit loss recorded on January 1, 2023 is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity; however subsequent changes to the allowance for credit losses are recognized through net income on our consolidated statements of operations. In connection with the adoption of ASU 2016-13, we recorded a $3.6 million decrease to accumulated earnings as of January 1, 2023. The Company's implementation process included a selection of a credit loss analytical model, completion and documentation of policies and procedures, changes to internal reporting processes and related internal controls and additional disclosures. A control framework for governance, data, forecast and model controls was developed to support the allowance for credit losses process. Determining an allowance for credit loss estimate requires significant judgment and a variety of subjective assumptions, including (i) determination of relevant historical loan loss data sets, (ii) the current credit quality of loans and operating performance of loan collateral and the Company's expectations of performance and (iii) expectation of macroeconomic forecasts over the relevant time period. The Company estimates the allowance for credit losses for its portfolio on a collective basis, including unfunded loan commitments, for loans that share similar risk characteristics. The calculation is applied at the loan level. The allowance for credit losses estimation methodology used by LFT includes a probability of default and loss given default method utilizing a widely-used third-party analytical model with historical loan losses for over 125,000 commercial real estate loans dating back to 1998. Within this data set, we focused our historical loss information on the most relevant subset of available CRE data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, spread to interest rate, unpaid principal balance and origination loan-to-value, or LTV. The Company expects to use this proxy data set, or variants of it, unless the Company develops its own sufficient history of realized losses. The Company determined the key variables driving its allowance for credit losses estimate are debt service coverage ratio and LTV ratio. Other notable variables include property type, property location and loan vintage. The Company determines its allowance for credit loss estimate based on the weighting of multiple macroeconomic forecast scenarios driven by macroeconomic variables such as gross domestic product ("GDP"), unemployment rate, federal funds target rate and core personal consumption expenditure ("CPR") among others, during the reasonable and supportable forecast period. The reasonable and supportable forecast period is currently one year, however, the Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed based on our assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts, on a straight-line basis over four quarters, to the historical loss information derived from CRE data set. Any loans considered to be a Default Risk or otherwise deemed to be collateral dependent will be individually evaluated for a specific allowance for credit losses. A loan is considered collateral dependent when the Company determines that the facts and circumstances of the loan deem the debtor to be experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. If a loan is considered to be collateral dependent, a specific allowance for credit losses is recorded to reduce the carrying value of the loan through a charge to the provision for credit losses. The specific allowance for credit losses is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the amortized cost of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, actions of other lenders, and other factors deemed necessary by the Manager. Actual losses, if any, could ultimately differ from estimated losses. Prior to the adoption of ASU 2016-13, the Company established an allowance for credit loss under the incurred loss model which required analysis of Default Risk loans and those determined to be collateral dependent in a manner consistent with the specific allowance described above. In addition, the Company evaluated the entire loan portfolio to determine whether the portfolio had any impairment that required a valuation allowance on the remainder of the portfolio. Pre-adoption Transition adjustment Post-adoption Assets Commercial mortgage loans, held-for-investment $ 1,076,148,186 $ — $ 1,076,148,186 Less: Allowance for credit losses (4,258,668) (3,549,501) (7,808,169) Commercial mortgage loans, held-for-investment, net of allowance for credit losses $ 1,071,889,518 $ (3,549,501) $ 1,068,340,017 Liabilities Other liabilities (1) $ 583,989 $ 41,939 $ 625,928 Equity Accumulated earnings $ 31,250,852 $ (3,591,440) $ 27,659,412 (1) Includes reserve for unfunded loan commitments Quarterly, the Company assesses the risk factors of each loan classified as held-for-investment and assigns a risk rating based on a variety of factors, including, without limitation, debt-service coverage ratio ("DSCR"), loan-to-value ratio ("LTV"), property type, geographic and local market dynamics, physical condition, leasing and tenant profile, adherence to business plan and exit plan, maturity default risk and project sponsorship. The Company's loans are rated on a 5-point scale, from least risk to greatest risk, respectively, which ratings are described as follows: 1. Very Low Risk : exceeds expectations and is outperforming underwriting or it is very likely that the underlying loan can be refinanced easily in the period's prevailing capital market conditions 2. Low Risk : meeting or exceeding underwritten expectations 3. Moderate Risk : consistent with underwritten expectations or the sponsor may be in the early stages of executing the business plan and the loan structure appropriately mitigates additional risks 4. High Risk : potential risk of default, a loss may occur in the event of default 5. Default Risk : imminent risk of default, a loss is likely in the event of default Real Estate Owned To maximize recovery from a defaulted loan, the Company may assume legal title or physical possession of the underlying collateral through foreclosure or the execution of a deed in lieu of foreclosure. Real estate acquired through a foreclosure or by deed in lieu of foreclosure is classified as real estate owned, net ("REO") in the consolidated balance sheets. REO assets are initially recognized at estimated fair value in accordance with ASC Topic 805, " Business Combinations " and are shown net of accumulated depreciation and impairment charges. REO assets held for use, except for land, are depreciated using the straight-line method over their estimated useful lives ranging from seven Property, Plant and Equipment ." Once a REO asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of carrying value or fair value less cost to sell. REO assets are reviewed for impairment each quarter if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. The Company recognizes impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset's estimated fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results. Mortgage Servicing Rights, at Fair Value Mortgage servicing rights ("MSRs") are associated with residential mortgage loans that the Company historically purchased and subsequently sold or securitized. MSRs are held and managed at Five Oaks Acquisition Corp. ("FOAC"), the Company's taxable REIT subsidiary ("TRS"). As the owner of MSRs, the Company is entitled to receive a portion of the interest payments from the associated residential mortgage loan, and is obligated to service, directly or through a subservicer, the associated loan. MSRs are reported at fair value. Residential mortgage loans for which the Company owns the MSRs are directly serviced by two sub-servicers retained by the Company. The Company does not directly service any residential mortgage loans. MSR income is recognized at the contractually agreed upon rate, net of the costs of sub-servicers retained by the Company. If a sub-servicer with which the Company contracts were to default, an evaluation of MSR assets for impairment would be undertaken at that time. Secured Term Loan The Company and certain of its subsidiaries are party to a $47.75 million credit and guaranty agreement with the lenders referred to therein and Cortland Capital Service LLC, as administrative agent and collateral agent for the lenders (the "Secured Term Loan"). The Secured Term Loan is carried at its unpaid principal balance, net of deferred financing costs. Deferred financing costs associated with this liability are amortized to interest expense on a straight line basis when it approximates the effective interest method. See Note 6 for additional information related to the Secured Term Loan. Common Stock At September 30, 2024 and December 31, 2023, the Company was authorized to issue up to 450,000,000 shares of common stock, par value $0.01 per share. The Company had 52,292,107 and 52,248,631 shares of common stock issued and outstanding at September 30, 2024 and December 31, 2023, respectively. Stock Repurchase Program On December 15, 2015, the Company's Board of Directors (the "Board") authorized a stock repurchase program ("Repurchase Program") to repurchase up to $10 million of the Company's outstanding common stock. Subject to applicable securities laws, repurchase of common stock under the Repurchase Program may be made at times and in amounts as the Company deems appropriate, using available cash resources. Shares of common stock repurchased by the Company under the Repurchase Program, if any, will be canceled and, until reissued by the Company, will be deemed to be authorized but unissued shares of common stock. The Repurchase Program may be suspended or discontinued by the Company at any time and without prior notice. Preferred Stock At September 30, 2024 and December 31, 2023, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $0.01 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Board. On May 5, 2021, the Company issued 2,400,000 shares of 7.875% Series A Cumulative Redeemable Preferred Stock (Series A Preferred Stock"). The Company had 2,400,000 shares of preferred stock issued and outstanding at September 30, 2024 and December 31, 2023, respectively. Our preferred stock is classified as permanent equity and carried at its liquidation preference less offering costs. See Note 12 for additional information related to our Series A Preferred Stock. Income Taxes The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes, commencing with the Company's short taxable period ended December 31, 2012. A REIT is generally taxable as a U.S. C-Corporation; however, so long as the Company qualifies as a REIT it is entitled to a special deduction for dividends paid to stockholders not otherwise available to corporations. Accordingly, the Company generally will not be subject to U.S. federal income tax to the extent its distributions to stockholders equals, or exceeds, its REIT taxable income for the year. In addition, the Company must continue to meet certain REIT qualification requirements with respect to distributions, as well as certain asset, income and share ownership tests, in accordance with Sections 856 through 860 of the Code, as summarized below. In addition, the TRS is maintained to perform certain services and earn income for the Company that the Company is not permitted to engage in as a REIT. To maintain its qualification as a REIT, the Company must meet certain requirements, including but not limited to the following: (i) distribute at least 90% of its REIT taxable income to its stockholders; (ii) invest at least 75% of its assets in REIT qualifying assets, with additional restrictions with respect to asset concentration risk; and (iii) earn at least 95% of its gross income from qualifying sources of income, including at least 75% from qualifying real estate and real estate related sources. Regardless of the REIT election, the Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax as a U.S. C-Corporation, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. Certain activities of the Company are conducted through a TRS and therefore are taxed as a standalone U.S. C-Corporation. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The TRS is not subject to a distribution requirement with respect to its REIT owner. The TRS may retain earnings annually, resulting in an increase in the consolidated book equity of the Company and without a corresponding distribution requirement by the REIT. If the TRS generates net income, and declares dividends to the Company, such dividends will be included in its taxable income and necessitate a distribution to its stockholders in accordance with the REIT distribution requirements. The Company assesses its tax positions for all open tax years and determines whether the Company has any material unrecognized liabilities in accordance with ASC 740, Income Taxes. The Company records these liabilities to the extent the Company deems them more likely than not to be incurred. The Company's accounting policy with respect to interest and penalties is to classify these amounts as other interest expense. Earnings per Share The Company calculates basic and diluted earnings per share by dividing net income attributable to common stockholders for the period by the weighted-average shares of the Company's common stock outstanding for that period. Diluted earnings per share considers the effect of dilutive instruments, such as warrants, stock options, and unvested restricted stock, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. See Note 13 for details of the computation of basic and diluted earnings per share. Stock-Based Compensation The Company is required to recognize compensation costs relating to stock-based payment transactions in the consolidated financial statements. The Company accounts for share-based compensation using the fair-value based methodology prescribed by ASC 718, Share-Based Payment ("ASC 718"). Compensation cost related to restricted common stock issued to the Company's independent directors is measured at its estimated fair value at the grant date and amortized and expensed over the vesting period. See Note 9 for details of stock-based awards issuable under the Company's prior equity incentive plan, which expired on December 18, 2022 and is no longer being used to issue new equity awards. Comprehensive Income (Loss) Attributable to Common Stockholders For the three and nine months ended September 30, 2024 and 2023, comprehensive income equaled net income; therefore, a separate consolidated statement of comprehensive income is not included in the accompanying consolidated financial statements. Recently Issued and/or Adopted Accounting Standards Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provides for new segment disclosure requirements for entities with a single reportable segment. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently evaluating the impact of the upd

COMMERCIAL MORTGAGE LOANS HELD-

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT	COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of September 30, 2024 and December 31, 2023: Weighted Average Loan Type Unpaid Principal Balance Carrying Value (1) Loan Count Floating Rate Loan % Coupon (2) Term (Years) (3) September 30, 2024 Loans held-for-investment Senior secured loans (4) $ 1,195,799,230 $ 1,191,183,049 75 100.0 % 8.7 % 2.3 Allowance for credit losses N/A (9,515,493) 1,195,799,230 1,181,667,556 75 100.0 % 8.7 % 2.3 Weighted Average Loan Type Unpaid Principal Balance Carrying Value (1) Loan Count Floating Rate Loan % Coupon (2) Term (Years) (3) December 31, 2023 Loans held-for-investment Senior secured loans (4) $ 1,397,385,160 $ 1,389,940,203 88 100.0 % 8.9 % 2.9 Allowance for credit losses N/A (6,059,006) 1,397,385,160 1,383,881,197 88 100.0 % 8.9 % 2.9 (1) Carrying Value includes $4,344,687 and $7,000,863 in unamortized purchase discounts as of September 30, 2024 and December 31, 2023, respectively. (2) Weighted average coupon assumes applicable 30-day Term Secured Overnight Financing Rate ("SOFR") of 5.16% and 5.33% as of September 30, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floors of 0.55% and 0.38%, respectively. As of September 30, 2024 and December 31, 2023, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR. (3) Weighted average remaining term assumes all extension options are exercised by the borrower, provided, however, that our loans may be repaid prior to such date. (4) As of September 30, 2024, $1,161,565,228 of the outstanding senior secured loans were held in VIEs and $20,102,328 of the outstanding senior secured loans were held outside VIEs. As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside VIEs. Activity: For the nine months ended September 30, 2024, the loan portfolio activity was as follows: Commercial Mortgage Loans Held-for-Investment Balance at December 31, 2023 $ 1,383,881,197 Purchases, advances and originations 45,423,744 Principal payments (247,009,674) Accretion of purchase discount 2,656,178 Accretion of deferred loan fees 172,598 Provision for credit losses (3,456,487) Balance at September 30, 2024 $ 1,181,667,556 Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of September 30, 2024 and December 31, 2023: September 30, 2024 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2024 2023 2022 2021 1 — $ — $ — $ — $ — $ — 2 4 76,760,000 27,004,681 — 48,769,547 — 3 46 646,017,113 18,257,052 17,967,954 288,558,674 315,343,520 4 21 389,253,907 — — 173,835,789 209,432,915 5 4 83,768,210 — — 82,497,424 — 75 $ 1,195,799,230 $ 45,261,733 $ 17,967,954 $ 593,661,434 $ 524,776,435 December 31, 2023 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2023 2022 2021 2019 1 — $ — $ — $ — $ — $ — 2 3 37,720,000 — 37,276,159 — — 3 67 1,019,844,272 17,887,019 449,921,414 542,010,684 — 4 16 294,150,124 — 134,664,646 156,450,510 — 5 2 45,670,764 — — 8,889,177 36,781,588 88 $ 1,397,385,160 $ 17,887,019 $ 621,862,219 $ 707,350,371 $ 36,781,588 As of September 30, 2024, the average risk rating of the commercial mortgage loan portfolio was 3.6 (Moderate Risk), weighted by investment carrying value, with 60.6% of the net carrying value of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager. As of December 31, 2023, the average risk rating of the commercial mortgage loan portfolio was 3.5 (Moderate Risk), weighted by investment carrying value, with 75.7% of the net carrying value of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager. The average risk rating of the portfolio has increased during the nine months ended September 30, 2024. The change to underlying risk rating consisted of loans that paid off with a risk rating of "3" of $164.1 million, a risk rating of "4" of $37.3 million and a risk rating of "5" of $45.7 million during the nine months ended September 30, 2024. Additionally, $7.0 million of loans with a risk rating of "2" transitioned to a risk rating of "3," $18.9 million of loans with a risk rating of "3" transitioned to a risk rating of "2", $234.4 million of loans with a risk rating of "3" transitioned to a risk rating of "4", $17.3 million of loans with a risk rating of "3" transitioned to a risk rating of "5", $35.5 million of loans with a risk rating of "4" transitioned to a risk rating of "3" and $66.5 million of loans with a risk rating of "4" transitioned to a risk rating of "5". Concentration of Credit Risk: The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of September 30, 2024 and December 31, 2023: Loans Held-for-Investment September 30, 2024 December 31, 2023 Geography South 37.2 % 43.5 % Southwest 33.4 29.4 Mid-Atlantic 15.7 15.0 Midwest 8.8 7.9 West 4.9 4.2 Total 100.0 % 100.0 % September 30, 2024 December 31, 2023 Collateral Property Type Multifamily 93.2 % 94.0 % Seniors Housing and Healthcare 6.3 5.5 Self-Storage 0.5 0.5 Total 100.0 % 100.0 % Allowance for Credit Losses: The following table presents the changes for the three and nine months ended September 30, 2024 and September 30, 2023 in the provision for credit losses on loans held-for-investment: Three months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Allowance for credit losses at beginning of period $ 9,193,174 $ 3,897,895 $ 6,059,006 $ 4,258,668 Cumulative-effect adjustment upon adoption of ASU 2016-13 — — — 3,549,501 Provision for credit losses 322,319 818,335 3,456,487 1,179,734 Charge offs — — — (4,271,673) Allowance for credit losses at end of period $ 9,515,493 $ 4,716,230 $ 9,515,493 $ 4,716,230 The following table presents the changes for the three and nine months ended September 30, 2024 and September 30, 2023 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment: Three months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Allowance for credit losses at beginning of period $ 86,055 $ 55,941 $ 43,647 $ — Cumulative-effect adjustment upon adoption of ASU 2016-13 — — — 41,939 Release of (provision for) credit losses (4,871) (26,772) 37,537 (12,770) Allowance for credit losses at end of period $ 81,184 $ 29,169 $ 81,184 $ 29,169 The following tables present the allowance for credit losses held-for-investment as of September 30, 2024 and December 31, 2023: September 30, 2024 General Reserve Specific Reserve Total Reserve Allowance for credit losses: Loans held for investment $ 8,634,248 $ 881,245 $ 9,515,493 Unfunded loan commitments 81,184 — 81,184 Total allowance for credit losses $ 8,715,432 $ 881,245 $ 9,596,677 Total unpaid principal balance $ 1,112,031,020 $ 83,768,210 $ 1,195,799,230 December 31, 2023 General Reserve Specific Reserve Total Reserve Allowance for credit losses: Loans held for investment $ 6,059,006 $ — $ 6,059,006 Unfunded loan commitments 43,647 — 43,647 Total allowance for credit losses $ 6,102,653 $ — $ 6,102,653 Total unpaid principal balance $ 1,397,385,160 $ — $ 1,397,385,160 During the three months ended September 30, 2024, the Company recorded an increase of $0.3 million in the allowance for credit losses, bringing the total allowance for credit losses to $9.5 million as of September 30, 2024. For the three months ended September 30, 2024, the Company's estimate of expected credit losses increased primarily due to changes in macroeconomic assumptions employed in determining the Company's model-based general reserve which reflects continued softening in CRE prices compared to the prior quarter. We did not have any impaired loans, non-accrual loans, or loans in maturity default other than the loans discussed below as of September 30, 2024 or December 31, 2023. During the period ended September 30, 2024, management identified one loan, collateralized by a multifamily property in Brooklyn, NY, with an unpaid principal value of $17.3 million as requiring individual evaluation for a specific allowance for credit losses due to maturity default, and a resulting risk rating of "5"; however no specific allowance for credit losses were required after analysis of the underlying collateral value. This loan has been on non-accrual status since June 30, 2024 as a result of the maturity default, with interest recorded as income on a cash basis. During the three months ended September 30, 2024, the Company recognized $0.4 million of interest on this loan. During the period ended September 30, 2024, management identified one loan, collateralized by two multifamily properties near Augusta, GA, with an unpaid aggregate principal value of $20.3 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; however no specific allowance for credit losses were required after analysis of the underlying collateral value. This loan has been on non-accrual status since March 31, 2024 as a result of monetary default, with interest recognized as income on a cash basis. During the three months ended September 30, 2024, the Company recognized $0.7 million of interest on this loan and for the six months ended September 30, 2024, during which this loan has been on non-accrual status the Company recognized $1.2 million of interest on this loan. During the period ended September 30, 2024, management identified one loan, collateralized by two multifamily properties in Philadelphia, PA, with an unpaid aggregate principal value of $15.0 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; a specific allowance of $0.9 million for credit losses was required after analysis of the underlying collateral value. This loan has been on non-accrual status since June 30, 2024 as a result of monetary default, with interest collections accounted for under the cost recovery method. During the three months ended September 30, 2024, the Company applied $0.3 million in interest received from the borrower as a reduction in the carrying basis of this loan. During the period ended September 30, 2024, management identified one loan, collateralized by a multifamily property in Dallas, TX, with an unpaid aggregate principal value of $31.6 million as requiring individual evaluation for a specific allowance for credit losses due to technical default, and a resulting risk rating of "5"; however no specific allowance for credit losses were required after analysis of the underlying collateral value. In February 2023, in connection with the sale of the office building collateralizing an impaired loan by the borrower to an unaffiliated third-party, the Company accepted a discounted payoff of approximately $6.0 million on the impaired loan, which had an unpaid principal balance of $10.3 million. A specific allowance for credit loss of $4.3 million was recorded for this impaired loan in the year ended December 31, 2022. Upon the discounted payoff, a $4.3 million charge off against the allowance for credit losses was recorded, with de minimis impact to income in the three months ended September 30, 2023. Throughout 2023, management identified one loan, collateralized by a multifamily property in Columbus, Ohio, with an initial unpaid principal value of $12.8 million as impaired due to monetary default resulting in a risk rating of "5." In the first quarter of 2023, this loan was placed on non-accrual status with interest collections accounted for under the cost recovery method. As of December 31, 2023, the carrying value of this loan was $8.9 million, which reflected a $5.0 million payment received on November 25, 2023 under an insurance claim, of which $3.1 million was applied to carrying value reduction and a $1.9 million payable established primarily related to a tenant settlement. As of December 31, 2023, no specific reserves were required after analysis of the underlying collateral value. In the first quarter of 2024, we received additional insurance proceeds in the amount of $13.5 million which reduced the carrying value of this loan to $0, and after taking into consideration repayment of an interest rate cap and certain legal and other costs and amounts deemed recoverable, resulting in the recognition of approximately $2.5 million of income in the quarter ended March 31, 2024. During the period ended December 31, 2023, management identified one loan, collateralized by a multifamily property in Virginia Beach, VA, with an unpaid principal balance of $36.8 million as impaired due to monetary default resulting in a risk rating of "5"; however no specific asset reserves were required after analysis of underlying collateral value. This loan was on non-accrual status as a result of monetary default and impaired loan classification. In the first quarter of 2024, the Company and the borrower entered into a loan modification and the loan was loan returned to accrual status. In connection with the modification, the borrower, among other things, made a principal payment of approximately $3.6 million and brought current any past due interest, escrows and reserves, which resulted in interest of approximately $0.5 million that was unpaid as of December 31, 2023 recognized as income in the quarter ended March 31, 2024. The note rate on the loan was amended to SOFR + 400 basis points from SOFR + 327 basis points and the stated maturity date of the loan was amended to April 5, 2024, with the ability for borrower to extend, under certain conditions, to May 3, 2024. On May 3, 2024, the loan repaid in full according to the terms of loan modification.

USE OF SPECIAL PURPOSE ENTITIES

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES	USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES We account for CLO transactions and secured financings on our consolidated balance sheet as financing facilities. The issuing entities for our CLOs and secured financings are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us. See Note 2 ("Summary of Significant Accounting Policies - Principles Consolidation - VIE") for further discussion. On June 14, 2021, the Company completed the 2021-FL1 CLO, issuing eight tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $903.8 million. Of the total CLO notes issued $833.8 million were investment grade notes issued to third party investors and $70 million were below investment-grade notes retained by us. In addition, a $96.25 million equity interest in the portfolio was retained by us. The financing has an initial two-and-a-half year reinvestment period, which expired in December 2023, that allowed principal proceeds of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $330.3 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the 2021-FL1 CLO closing date, resulting in the issuer owning loan obligations with a face value of $1.0 billion, representing leverage at closing of 83%. On July 12, 2023, the Company entered into and closed a matched-term non-recourse collateralized commercial real estate financing (the "LMF 2023-1 Financing"), secured by $386.4 million of first lien floating-rate multifamily mortgage assets and is not subject to margin calls or additional collateralization requirements. In connection with the LMF 2023-1 Financing, approximately $270.4 million of an investment-grade rated senior secured floating rate loan was provided by a private lender and approximately $47.3 million of investment-grade rated notes (collectively, the "Senior Debt") were issued and sold to an affiliate of LFT's external manager, Lument IM. A consolidated subsidiary of LFT retained the subordinate notes in the issuing vehicle of approximately $68.6 million. The Senior Debt has an initial weighted average spread of approximately 314 basis points over 30-day Term SOFR, excluding fees and transaction costs. The Senior Debt matures on the payment date in July 2032, unless it is sooner repaid or redeemed in accordance with its terms. The financing has an initial two-year reinvestment period that allows principal proceeds of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. The 2021-FL1 CLO and LMF 2023-1 Financing are subject to collateralization and coverage tests that are customary for these types of securitizations. As of September 30, 2024 and December 31, 2023, all such collateralization and coverage tests in the 2021-FL1 CLO and LMF 2023-1 Financing were met. The carrying values of the Company's total assets and liabilities related to the 2021-FL1 CLO and LMF 2023-1 Financing at September 30, 2024 and December 31, 2023, included the following VIE assets and liabilities: ASSETS September 30, 2024 December 31, 2023 Cash, cash equivalents and restricted cash $ 19,491,722 $ 270,217 Accrued interest receivable 6,823,190 8,588,805 Loans held for investment, net of allowance for credit losses 1,161,565,228 1,375,277,312 Total Assets $ 1,187,880,140 $ 1,384,136,334 LIABILITIES Accrued interest payable $ 3,076,129 $ 3,996,538 Collateralized loan obligations and secured financings (1) 955,094,679 1,146,210,752 Total Liabilities $ 958,170,808 $ 1,150,207,290 Equity 229,709,332 233,929,044 Total liabilities and equity $ 1,187,880,140 $ 1,384,136,334 (1) The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032. The following tables present certain loan and borrowing characteristics of the 2021-F1 CLO and LMF 2023-1 Financing as of September 30, 2024 and December 31, 2023: As of September 30, 2024 Collateralized Loan Obligations/Financings Count Principal Value Carrying Value (1) Wtd. Avg. Coupon (2) Collateral (loan investments) 74 $ 1,175,548,857 $ 1,161,565,228 8.74% Financing provided 2 $ 957,673,227 $ 955,094,679 7.23% As of December 31, 2023 Collateralized Loan Obligations/Financings Count Principal Value Carrying Value (1) Wtd. Avg. Coupon (2) Collateral (loan investments) 87 $ 1,388,495,984 $ 1,375,277,312 8.91% Financing provided 2 $ 1,151,450,000 $ 1,146,210,752 7.35% (1) The carrying value of the collateral is net of unaccreted purchase discounts of $4,468,136 and $7,159,664 as of September 30, 2024 and December 31, 2023, respectively. The carrying value for the 2021-FL1 CLO is net of debt issuance costs of $13,851 and $1,911,547 for September 30, 2024 and December 31, 2023, respectively and the carrying value for LMF 2023-1 Financing is net of debt issuance costs of $2,564,697 and 3,327,701 for September 30, 2024 and December 31, 2023, respectively. (2) Weighted average coupon for loan investments assumes applicable 30-day Term SOFR of 5.16% and 5.33% as of September 30, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floors of 0.56% and 0.38%, and spreads of 3.58% and 3.54%, respectively. Weighted average coupon for the financings assumes applicable 30-day Term SOFR of 5.10% and 5.36% as of September 30, 2024 and December 31, 2023, respectively and spreads of 2.13% and 1.99% for September 30, 2024 and December 31, 2023, respectively. The statement of operations related to the 2021-FL1 CLO and LMF 2023-1 Financing for the three and nine months ended September 30, 2024 and September 30, 2023 include the following income and expense items: Statements of Operations Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Interest income $ 28,149,522 $ 30,984,016 Interest expense (19,238,862) (21,364,918) Net interest income $ 8,910,660 $ 9,619,098 Less: Provision for credit losses (322,319) (895,228) General and administrative fees (206,347) (201,928) Net income $ 8,381,994 $ 8,521,942 Statements of Operations Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Interest income $ 88,462,443 $ 73,312,906 Interest expense (60,929,273) (48,597,825) Net interest income $ 27,533,170 $ 24,715,081 Less: Provision for credit losses (3,456,487) (1,403,015) General and administrative fees (719,195) (527,171) Net income $ 23,357,488 $ 22,784,895

RESTRICTED CASH

RESTRICTED CASH	9 Months Ended
	Sep. 30, 2024
Cash and Cash Equivalents [Abstract]
RESTRICTED CASH	RESTRICTED CASH 2021-FL1 CLO was actively managed with an initial reinvestment period of 30 months which expired in December 2023. Restricted held cash in 2021-FL1 CLO primarily represents proceeds from principal repayments held by the servicer which are to be submitted to the Class A Note holders during the subsequent remittance cycle.

SECURED TERM LOAN

SECURED TERM LOAN	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
SECURED TERM LOAN	SECURED TERM LOAN On January 15, 2019, the Company, together with its FOAC and Lument CMT Equity subsidiaries (together with the Company, the "Credit Parties"), entered into the Secured Term Loan, as amended on February 13, 2019, July 9, 2020, April 21, 2021 and February 22, 2022 with the lenders party thereto and Cortland Capital Market Services, LLC, as administrative agent (in such capacity, the "Agent"), providing for a term facility ("Credit Agreement") to be drawn in an aggregate principal amount of $40.25 million with a maturity of 6 years. The borrowings under the Secured Term Loan are joint and several obligations of the Credit Parties. In addition, the Credit Parties' obligations under the Secured Term Loan are secured by substantially all the assets of the Credit Parties through pledge and security documentation. Amounts advanced under the Secured Term Loan are subject to compliance with a borrowing base comprised of assets of the Credit Parties and certain of their subsidiaries, and include senior and subordinated CRE mortgage loans, preferred equity in CRE assets (directly or indirectly), CRE construction mortgage loans and certain types of equity interests (the "Eligible Assets"). Borrowings under the Secured Term Loan bear interest at a fixed rate of 7.25% for the six-year period following the initial draw-down, which is subject to step up by 0.25% for the first four months after the sixth anniversary of the borrowing of the Secured Term Loan, then by 0.375% for the following four months, then by 0.50% for the last four months until maturity. In response to the COVID-19 pandemic, on July 9, 2020, the Company entered into the Second Amendment to the Credit and Guaranty Agreement. This amendment provides the Company with additional flexibility to effectively manage any potential borrower distress related to COVID-19 that were not originally contemplated in loan documentation. On April 21, 2021, the Company, together with its Credit Parties, entered into an amendment (the "Third Amendment") to the Credit and Guaranty Agreement. The amendment, among other things, (i) provides the Company with an incremental secured term loan in the aggregate principal amount of $7.5 million; (ii) extends the maturity date of the Secured Term Loan from February 14, 2025 to February 14, 2026; (iii) amends certain asset concentration limits and (iv) amends certain financial covenants. On May 5, 2021 the Third Amendment became effective. On August 23, 2021, the Company drew down the $7.5 million incremental secured term loan. On February 14, 2019, the Company drew on the Secured Term Loan in the aggregate principal amount of $40.25 million generating net proceeds of $39.2 million. The outstanding balance of the Secured Term Loan in the table below is presented gross of deferred financing costs $342,714 and $529,774 at September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, the outstanding balance and total commitment under the Credit Agreement consisted of the following: September 30, 2024 December 31, 2023 Outstanding Balance Total Commitment Outstanding Balance Total Commitment Secured Term Loan $ 47,750,000 $ 47,750,000 $ 47,750,000 $ 47,750,000 Total $ 47,750,000 $ 47,750,000 $ 47,750,000 $ 47,750,000 On February 22, 2022, the Company, together with its Credit Parties, entered into an amendment (the "Fourth Amendment") to the Credit and Guaranty Agreement. This amendment waived the step-down provisions of the maximum total net leverage financial covenant in connection with the February 2022 rights offering, however the step-down provision remains in place for future capital raises. The Credit Agreement contains affirmative and negative covenants binding the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to: minimum asset coverage ratio; minimum unencumbered assets ratio; maximum total net leverage ratio; minimum tangible net worth; and an interest charge coverage ratio. As of September 30, 2024 and December 31, 2023 we were in compliance with these covenants. The Credit Agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, violation of covenants, cross default with material indebtedness, and change of control.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2024
Mortgage Servicing Rights MSR Disclosure [Abstract]
MORTGAGE SERVICING RIGHTS	MORTGAGE SERVICING RIGHTS As of September 30, 2024, the Company retained the servicing rights associated with an aggregate principal balance of $63,448,342 of residential mortgage loans that the Company had previously transferred to residential mortgage loan securitization trusts. The Company's MSRs are held and managed at the Company's TRS, and the Company employs two licensed sub-servicers to perform the related servicing activities. The following table presents the Company's MSR activity for the nine months ended September 30, 2024 and the nine months ended September 30, 2023: September 30, 2024 September 30, 2023 Balance at beginning of period $ 691,973 $ 795,656 Changes in fair value due to: Changes in valuation inputs or assumptions used in valuation model (13,202) 585 Other changes to fair value (1) (38,462) (49,507) Balance at end of period $ 640,309 $ 746,734 Loans associated with MSRs (2) $ 63,448,342 $ 70,212,243 MSR values as percent of loans (3) 1.01 % 1.06 % (1) Amounts represent changes due to realization of expected cash flows and prepayment of principal of the underlying loan portfolio. (2) Amounts represent the unpaid principal balance of loans associated with MSRs outstanding at September 30, 2024 and September 30, 2023, respectively. (3) Amounts represent the carrying value of MSRs at September 30, 2024 and September 30, 2023, respectively divided by the outstanding balance of the loans associated with these MSRs. The following table presents the servicing income recorded on the Company's consolidated statements of operations for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Three Months Ended Servicing income, net $ 60,283 $ 70,842 Total servicing income $ 60,283 $ 70,842 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Servicing income, net $ 117,056 $ 167,766 Total servicing income $ 117,056 $ 167,766

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The following tables summarize the valuation of the Company's assets and liabilities carried at fair value on a recurring basis within the fair value hierarchy levels as of September 30, 2024 and December 31, 2023: September 30, 2024 Quoted prices in Significant Unobservable Balance as of September 30, 2024 Assets: Mortgage servicing rights $ — $ — $ 640,309 $ 640,309 Total $ — $ — $ 640,309 $ 640,309 December 31, 2023 Quoted prices in Significant Unobservable Balance as of December 31, 2023 Assets: Mortgage servicing rights $ — $ — $ 691,973 $ 691,973 Total $ — $ — $ 691,973 $ 691,973 As of September 30, 2024 and December 31, 2023, the Company had $640,309 and $691,973, respectively, in Level 3 assets. The Company's Level 3 assets are comprised of MSRs. For more detail about Level 3 assets, also see Notes 2 and 7. The following table provides quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's MSRs classified as Level 3 fair value assets at September 30, 2024 and December 31, 2023: As of September 30, 2024 Valuation Technique Unobservable Input Range Weighted Average Discounted cash flow Constant prepayment rate 8.0 - 10.4% 8.2 % Discount rate 12.0 % 12.0 % As of December 31, 2023 Valuation Technique Unobservable Input Range Weighted Average Discounted cash flow Constant prepayment rate 8.0 - 10.3% 8.2 % Discount rate 12.0 % 12.0 % As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. The following table details the carrying amount, face amount and fair value of the financial instruments described in Note 2: September 30, 2024 Level in Fair Value Hierarchy Carrying Value Face Amount Fair Value Assets: Cash and cash equivalents 1 $ 45,587,573 $ 45,587,573 $ 45,587,573 Restricted cash 1 19,490,910 19,490,910 19,490,910 Commercial mortgage loans held-for-investment, net 3 1,181,667,556 1,195,799,230 1,193,736,821 Total $ 1,246,746,039 $ 1,260,877,713 $ 1,258,815,304 Liabilities: Collateralized loan obligations and secured financings 2 $ 955,094,679 $ 957,673,227 $ 950,947,227 Secured Term Loan 3 47,407,286 47,750,000 47,101,604 Total $ 1,002,501,965 $ 1,005,423,227 $ 998,048,831 December 31, 2023 Level in Fair Value Hierarchy Carrying Value Face Amount Fair Value Assets: Cash and cash equivalents 1 $ 51,247,063 $ 51,247,063 $ 51,247,063 Restricted cash 1 270,129 270,129 270,129 Commercial mortgage loans held-for-investment, net 3 1,383,881,197 1,397,385,160 1,388,355,730 Total $ 1,435,398,389 $ 1,448,902,352 $ 1,439,872,922 Liabilities: Collateralized loan obligations and secured financings 2 $ 1,146,210,752 $ 1,151,450,000 $ 1,128,250,991 Secured term loan 3 47,220,226 47,750,000 46,191,524 Total $ 1,193,430,978 $ 1,199,200,000 $ 1,174,442,515 Estimates of cash and cash equivalents and restricted cash are measured using quoted prices, or Level 1 inputs. Estimates of the fair value of collateralized loan obligations and secured financings are measured using observable, quoted market prices, in active markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Management and Incentive Fee The Company is externally managed and advised by the Manager. Pursuant to the terms of the management agreement, the Company pays the manager a management fee equal to 1.5% of Stockholders' Equity per annum, calculated and payable quarterly (0.375% per quarter) in arrears. For purposes of calculating the management fee, the Company's stockholders' equity includes the sum of the net proceeds from all issuances of the Company's equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus the Company's retained earnings at the end of the most recently completed calendar quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less any amount that the Company paid for repurchases of the Company's common stock since inception, and excluding any unrealized gains, losses or other items that did not affect realized net income (regardless of whether such items were included in other comprehensive income or loss, or in net income). This amount will be adjusted to exclude one-time events pursuant to changes in GAAP and certain non-cash items after discussions between the Manager and the Company's independent directors and approval by a majority of the Company's independent directors. To the extent asset impairment reduces the Company's retained earnings at the end of any completed calendar quarter, it will reduce the management fee for such quarter. The Company's stockholders' equity for the purposes of calculating the management fee could be greater than the amount of stockholders' equity shown on the consolidated financial statements. Additionally, starting in the first full calendar quarter following January 3, 2020, the Company is also required to pay the Manager a quarterly incentive fee equal to 20% of the excess of Core Earnings (as defined in the management agreement) over the product of (i) Stockholders' Equity as of the end of such fiscal quarter, and (ii) 8% per annum. The initial term of our management agreement expired on January 3, 2023, with automatic, one-year renewals thereafter. For the three months ended September 30, 2024, the Company incurred management fees of $1,114,137 (September 30, 2023: $1,072,569), recorded as "Management and incentive fees" in the consolidated statement of operations, of which $1,100,000 (September 30, 2023: $1,080,000) was accrued but had not been paid, included in "Fees and expenses payable to Manager" in the consolidated balance sheets. For the three months ended September 30, 2024, the Company incurred incentive fees of $12,683 (September 30, 2023: $0), recorded as "Management and incentive fees" in the consolidated statement of operations, of which $0 (September 30, 2023: $0) was accrued but had not been paid, included in "Fees and expenses payable to Manager" in the consolidated balance sheets. For the nine months ended September 30, 2024, the Company incurred management fees of $3,323,333 (September 30, 2023: $3,253,205), recorded as "Management and incentive fees" in the consolidated statement of operations, of which $1,100,000 (September 30, 2023: $1,080,000) was accrued but had not been paid, included in "Fees and expenses payable to Manager" in the consolidated balance sheets. For the nine months ended September 30, 2024, the Company incurred incentive fees of $2,184,435 (September 30, 2023: $0), recorded as "Management and incentive fees" in the consolidated statement of operations, of which $0 (September 30, 2023: $0) was accrued but had not been paid, included in "Fees and expenses payable to Manager" in the consolidated balance sheets. Expense Reimbursement Pursuant to the management agreement, the Company is required to reimburse the Manager for operating expenses related to the Company incurred by the Manager, including accounting, auditing and tax services, technology and office facilities, operations, compliance, legal and filing fees, and miscellaneous general and administrative costs, including the cost of non-investment management personnel of the Manager who spend all or a portion of their time managing the Company's affairs. The Manager has agreed to certain limitations on manager expense reimbursement from the Company. For the three months ended September 30, 2024, the Company incurred reimbursable expenses of $418,553 (September 30, 2023: $284,859), recorded as "operating expenses reimbursable to Manager" in the consolidated statement of operations, of which $386,946 (September 30, 2023: $284,097) was accrued but had not yet been paid, included in "fees and expenses payable to Manager" in the consolidated balance sheets. Per the management agreement, any exit fees waived by the Company as a result of permanent financing by the Manager or any of its affiliates shall result in a reduction to reimbursed expenses by an amount equal to 50% of the amount of any such waived exit fee capped at a waived exit fee of 1% For the three months ended September 30, 2024, the Company waived $228,108 any gross exit fees, reducing reimbursed expenses by $114,054 and for the three months ended September 30, 2023, the Company waived $608,180 in gross exit fees, reducing reimbursed expenses by $304,090. For the nine months ended September 30, 2024, the Company incurred reimbursable expenses of $1,293,627 (September 30, 2023: $1,372,511), recorded as "operating expenses reimbursable to Manager" in the consolidated statement of operations, of which $386,946 (September 30, 2023: $284,097) was accrued but had not yet been paid, included in "fees and expenses payable to Manager" in the consolidated balance sheets. Per the management agreement, any exit fees waived by the Company as a result of permanent financing by the Manager or any of its affiliates shall result in a reduction to reimbursed expenses by an amount equal to 50% of the amount of any such waived exit fee capped at a waived exit fee of 1%. For the nine months ended September 30, 2024, the Company waived $631,215 in gross exit fees, reducing reimbursed expenses by $315,608 and for the nine months ended September 30, 2023, the Company waived $775,680 in gross exit fees, reducing reimbursed expenses by $387,840. Manager Equity Plan The Company had in place a Manager Equity Plan, which expired December 18, 2022, under which the Company had the ability to provide equity compensation to the Manager and the Company's independent directors, consultants, or officers. The Manager, in its sole discretion, could allocate any awards it received under the Manager Equity Plan to its directors, officers, employees or consultants. The Company was able to issue under the Manager Equity Plan up to 3.0% of the total number of issued and outstanding shares of common stock (on a fully diluted basis) at the time of each award. The following table summarizes the activity related to restricted common stock granted under the Manager Equity Plan for the nine months ended September 30, 2023: Nine Months Ended September 30, 2023 Shares Weighted Average Grant Date Fair Market Value Outstanding Unvested Shares at Beginning of Period 6,000 $ 2.27 Granted — Vested (6,000) 2.27 Outstanding Unvested Shares at End of Period — For the period ended September 30, 2024, the Company did not recognize compensation expense related to restricted common stock and for the period ended September 30, 2023 the Company recognized compensation expense of $6,194. The Company has no unrecognized compensation expense as of September 30, 2024 and September 30, 2023 for unvested shares of restricted common stock. Lument Structured Finance During the third quarter of 2024, the LMF 2023-1 Financing purchased two loans with an aggregate unpaid principal balance of $45.4 million at par from Lument Structured Finance ("LSF"), an affiliate of our Manager. During the second quarter of 2023, the 2021-FL1 CLO purchased two loans with an aggregate unpaid principal balance of $48.6 million at par from LSF and purchased two funded loan advances with an aggregate unpaid principal balance of $1.7 million at par from LSF. Additionally, the 2021-FL1 CLO purchased one loan with an aggregate unpaid principal balance of $6.1 million at a discount of $0.1 million and purchased seventeen funded loan advances with an aggregate unpaid principal balance of the $16.5 million at a discount of $0.2 million from LSF. During the third quarter of 2023, the 2021-FL1 CLO purchased one loan with an aggregate unpaid principal balance of $6.1 million at par and the LMF 2023-1 Financing purchased three loans with an aggregate unpaid principal balance of $48.8 million at par from LSF and the 2021-FL1 CLO purchased one funded loan advance with an unpaid principal balance of $4.0 million at par and from LSF. Additionally, the 2021-FL1 CLO purchased four loans with an unpaid principal balance of $66.0 million at a discount of $1.2 million and LMF 2023-1 Financing purchased twenty loans with an unpaid principal balance of $326.9 million at a discount of $5.9 million and one funded loan advance with an unpaid principal balance of $0.4 million at a discount of $0.0 million from LSF. In connection with originating loans that are subsequently purchased by the Company and its subsidiaries, LSF or its affiliates may retain certain fees paid by borrowers in connection with the origination, processing and closing of such loans, including origination and processing fees. In addition, when certain loans are originated, they are often accompanied by different types of fees, including, but not limited to, exit fees that will be paid in certain circumstances. In certain instances when the Manager engages in a principal transaction with the Company, the Manager may decide to transfer all the fees associated with a particular loan when such loan is transferred to the Company subject to consent of the Company. Instead, the fees or a portion of the fees may be retained by LSF or its affiliates and LSF or its affiliates will earn the fees in the event they become due. To the extent a participation interest is involved, a pro rata portion of any fees associated with the underlying loan will be included with such participation. If the Company receives less than a pro rata portion of the fees, the Manager will disclose such arrangement and seek consent from the Company prior to transfer. Lument Real Estate Capital Lument Real Estate Capital, LLC ("LREC"), an affiliate of the Manager, was appointed as the servicer and special servicer with respect to mortgage assets for the 2021-FL1 CLO in June 2021 and LMF 2023-1 Financing in July 2023 and continues to serve in this role. In connection with its role as servicer and special servicer with respect to mortgage assets held by the Company and its subsidiaries, LREC is paid certain fees by the Company depending upon the specific services rendered, including servicing fees, special servicing fees, workout fees and liquidation fees. In addition, LREC, as servicer and/or special servicer may be entitled to retain certain fees or portions thereof paid by borrowers, including modification, waiver, assumption, transfer, processing, consent, review and similar fees, defeasance fees, late fees and application fees. Lument IM Lument IM was appointed as the collateral manager with respect to the 2021-FL1 CLO in June 2021 and LMF 2023-1 Financing in July 2023, and continues to serve in this role. Lument IM has agreed to waive all its entitlements to collateral management fees for so long as Lument IM or an affiliate is the collateral manager and also the manager of the Company. In connection with the LMF 2023-1 Financing, Lument IM absorbed approximately $1.1 million in debt issuance costs for which it did not seek reimbursement from the Company. Hunt Companies, Inc. One of the Company's directors is also Chief Executive Officer and President of Hunt Companies, Inc. ("Hunt") and is a member of the Hunt board of directors, with which affiliates of the Manager have a commercial business relationship. The Manager's affiliates provide servicing with respect to mortgage assets of Hunt and may from time to time sell commercial mortgage loans to Hunt or various of its subsidiaries and affiliates.

GUARANTEES

GUARANTEES	9 Months Ended
	Sep. 30, 2024
Guarantees [Abstract]
GUARANTEES	GUARANTEES The Company, through FOAC, is party to customary and standard loan repurchase obligations in respect of residential mortgage loans that it has sold into securitizations or to third parties, to the extent it is determined that there has been a breach of standard seller representations and warranties in respect of such loans. To date, the Company has not been required to repurchase any loan due to a claim of breached seller reps and warranties. In July 2016, the Company announced that it would no longer aggregate and securitize residential mortgage loans; however, the Company sought to capitalize on its infrastructure and knowledge to become the provider of seller eligibility review and backstop services to MAXEX. MAXEX's wholly owned clearinghouse subsidiary, MAXEX Clearing LLC, formerly known as Central Clearing and Settlement LLC ("MAXEX Clearing LLC"), functions as the central counterparty with which buyers and sellers transact, and acts as the buyer's counterparty for each transaction. Pursuant to a Master Agreement dated June 15, 2016, as amended on August 29, 2016, January 30, 2017 and June 27, 2018, among MAXEX, MAXEX Clearing LLC and FOAC (the "Master Agreement"), FOAC provided seller eligibility review services under which it reviewed, approved and monitored sellers that sold loans via MAXEX Clearing LLC. Once approved, and having signed the standardized loan sale contract, the seller sold loan(s) to MAXEX Clearing LLC, and MAXEX Clearing LLC simultaneously sold loan(s) to the buyer on substantially the same terms including representations and warranties. The Master Agreement was terminated on November 28, 2018 (the "MAXEX Termination Date"). To the extent that a seller approved by FOAC prior to the MAXEX Termination Date failed to honor its obligations to repurchase a loan based on an arbitration finding that it breached its representations and warranties, FOAC was obligated to backstop the seller's repurchase obligation. The term of the backstop guarantee is the earlier of the contractual maturity of the underlying mortgage, or its earlier repayment in full; however, the incidence of claims for breaches of representations and warranties over time is considered unlikely to occur more than five years from the sale of a mortgage. FOAC's obligation to provide further seller eligibility review and backstop guarantee services terminated on the MAXEX Termination Date. Pursuant to an Assumption Agreement dated December 31, 2018, among MAXEX Clearing LLC and FOAC, MAXEX Clearing LLC assumed all of FOAC's obligations under its backstop guarantees and agreed to indemnify and hold FOAC harmless against any losses, liabilities, costs, expenses and obligations under the backstop guarantee. FOAC paid MAXEX Clearing LLC, as the replacement backstop provider, a fee of $426,770 (the "Alternate Backstop Fee"). MAXEX Clearing LLC represented to FOAC in the Assumption Agreement that it (i) is rated at least "A" (or equivalent) by at least one nationally recognized statistical rating agency or (ii) has (a) adjusted tangible net worth of at least $20 million and (b) minimum available liquidity equal to the greater of (x) $5 million and (y) 0.1% multiplied by the scheduled unpaid principal balance of each outstanding loan covered by the backstop guarantees. MAXEX's chief financial officer is required to certify ongoing compliance by MAXEX Clearing LLC with the aforementioned criteria on a quarterly basis and if MAXEX Clearing LLC fails to satisfy such criteria, MAXEX Clearing LLC is required to deposit into an escrow account for FOAC's benefit an amount equal to the greater of (A) the unamortized Alternate Backstop Fee for each outstanding loan covered by the backstop guarantee and (B) the product of 0.01% multiplied by the scheduled unpaid principal balance of each outstanding loan covered by the backstop guarantees. The maximum potential amount of future payments that the Company could be required to make under the outstanding backstop guarantees, which represents the outstanding balance of all underlying mortgage loans sold by approved sellers to MAXEX Clearing LLC, was estimated to be $12 million and $121 million as of September 30, 2024 and December 31, 2023, respectively, although the Company believes this amount is not indicative of the Company's actual potential losses. Amounts payable in excess of the outstanding principal balance of the related mortgage, for example any premium paid by the loan buyer or costs associated with collecting mortgage payments, are not currently estimable. Amounts that may become payable under the backstop guarantee are normally recoverable from the related seller, as well as from any payments received on (or from the sale of property securing) the mortgage loan repurchased and, as noted above, MAXEX Clearing LLC has assumed all of FOAC's obligations in respect of its backstop guarantees. Pursuant to the Master Agreement, FOAC is required to maintain minimum available liquidity equal to the greater of (i) $5.0 million or (ii) 0.10% of the aggregate unpaid principal balance of loans backstopped by FOAC, either directly or through a credit support agreement acceptable by MAXEX. As of September 30, 2024, the Company was not aware of any circumstances expected to lead to the triggering of a backstop guarantee obligation. In addition, the Company enters into certain contracts that contain a variety of indemnification obligations, principally with the Manager, brokers and counterparties to repurchase agreements. The maximum potential future payment amount the Company could be required to pay under these indemnification obligations is unlimited. The Company has not incurred any costs to defend lawsuits or settle claims related to the indemnification obligations. As a result, the estimated fair value of these agreements is minimal. Accordingly, the Company recorded no liabilities for these agreements as of September 30, 2024.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation From time to time, LFT may be involved in various claims and legal actions arising in the ordinary course of business. LFT establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. As of September 30, 2024, LFT was not involved in any material legal proceedings regarding claims or legal actions against LFT. Unfunded Commitments As of September 30, 2024, LCMT had $6.7 million of unfunded commitments related to loans held in 2021-FL1 CLO. These commitments are not reflected in the Company's consolidated balance sheets. As of September 30, 2024, LSF, an affiliate of the Manager, had $33.7 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 September 30, 2024, LSF had $16.5 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, 2023, LCMT had $6.7 million of unfunded commitments related to loans held in 2021-FL1 CLO. These commitments are not reflected in the Company's consolidated balance sheets. As of December 31, 2023, LSF had $54.3 million of unfunded commitments related to loans held in 2021-FL1 CLO. These commitments are not reflected on the Company's consolidated balance sheets. As of December 31, 2023, LSF had $22.9 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.

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
EQUITY	EQUITY Common Stock The Company has 450,000,000 authorized shares of common stock, par value $0.01 per share, with 52,292,107 and 52,248,631 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. Stock Repurchase Program On December 15, 2015, the Board authorized a stock repurchase program (or the "Repurchase Program"), to repurchase up to $10 million of the Company's outstanding common stock. Shares of the Company's common stock may be purchased in the open market, including through block purchases, or through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b-18(b)(1) of the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any repurchases will be determined at the Company's discretion and the program may be suspended, terminated or modified at any time for any reason. Among other factors, the Company intends to only consider repurchasing shares of the Company's common stock when the purchase price is less than the Company's estimate of the Company's current net asset value per common share. Shares of common stock repurchased by the Company under the Repurchase Program, if any, will be canceled and, until reissued by the Company, will be deemed to be authorized but unissued shares of the Company's common stock. No share repurchases have been made since January 19, 2016. Through September 30, 2024, the Company had repurchased 126,856 shares of common stock at a weighted average share price of $5.09. As of September 30, 2024, $9.4 million of common stock remained authorized for future share repurchase under the Repurchase Program. Preferred Stock At September 30, 2024 and December 31, 2023, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $0.01 per share, with 2,400,000 shares of Series A Preferred Stock issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. Voting and other rights and preferences will be determined by the Board upon issuance. Distributions to Stockholders For the taxable year to date, the Company has declared dividends to common stockholders totaling $12,023,399, or $0.23 per share. The following table presents cash dividends declared by the Company on its common stock during the nine months ended September 30, 2024: Declaration Date Record Date Payment Date Dividend Amount Cash Dividend Per Weighted Average Share March 15, 2024 March 28, 2024 April 15, 2024 $ 3,658,012 $ 0.070 June 13, 2024 June 28, 2024 July 15, 2024 $ 4,182,019 $ 0.080 September 16, 2024 September 30, 2024 October 15, 2024 $ 4,183,368 $ 0.080 The following table presents cash dividends declared by the Company on its Series A Preferred stock for the nine months ended September 30, 2024: Declaration Date Record Date Payment Date Dividend Amount Cash Dividend Per Weighted Average Share March 15, 2024 April 1, 2024 April 15, 2024 $ 1,181,250 $ 0.49219 June 13, 2024 July 1, 2024 July 15, 2024 $ 1,181,250 $ 0.49219 September 15, 2024 October 1, 2024 October 15, 2024 $ 1,181,250 $ 0.49219 Non-controlling Interests On November 29, 2018, LCMT, which is an indirect wholly-owned subsidiary of the Company that has elected to be taxed as a REIT for U.S. Federal income tax purposes, issued 125 shares of Series A Preferred Shares ("LCMT Preferred Shares"). Net proceeds to LCMT were $99,500 representing $125,000 in equity raised, less $25,500 in expenses and is reflected as "Non-controlling interests" in the Company's consolidated balance sheets. Dividends on the LCMT Preferred Shares are cumulative annually, in an amount equal to 12% of the initial purchase price plus any accrued unpaid dividends. The LCMT Preferred Shares are redeemable at any time by LCMT. The redemption price through December 31, 2020 was 1.1x the initial purchase price plus all accrued and unpaid dividends, and the initial purchase price plus all accrued and unpaid dividends thereafter. The holders of the LCMT Preferred Shares have limited voting rights, which do not entitle the holders to participate or otherwise direct the management of LCMT or the Company. The LCMT Preferred Shares are not convertible into or exchangeable for any other property or securities of LCMT or the Company. Dividends on the LCMT Preferred Shares, which amounted to $15,000 for the year ended December 31, 2023, are reflected in "Dividends to preferred stockholders" in the Company's consolidated statements of operations. As of September 30, 2024, LCMT had $3,792 in accrued dividends on the LCMT Preferred Shares which are reflected in "dividends to preferred stockholders" in the Company's consolidated statements of operations of which $3,792 were accrued and unpaid dividends on the LCMT Preferred Shares which are reflected in "Dividends payable" in the Company's consolidated balance sheet. Independent Directors Stock-for-Fees Program Upon the recommendation of the Compensation Committee of the Board, on April 20, 2023, the Board adopted the Independent Directors Stock-for-Fees Program (the “Stock-for-Fees Program”). The purpose of the Stock-for-Fees Program is to promote the long-term success of the Company and further align the interests of the Company’s independent directors with the interests of its stockholders by providing the independent directors with an opportunity to elect to receive their Director Fees (as defined below) in the form of shares of common stock. Pursuant to the Stock-for-Fees Program, an independent director may elect to exchange all or a portion of such director’s unpaid Director Fees for the right to receive payment of such unpaid fees in the form of shares of common stock. Such election will apply to all Director Fees that would otherwise have been paid (but for such election) in the fiscal quarter that commences after the date the independent director’s election form is filed with and received by the Company and will continue for each fiscal quarter through and until the fiscal quarter that commences after such time as the director files a new election form that is received by the Company modifying or terminating such prior election or, if earlier, the date such Director terminates service on the Board. Unless otherwise approved by the Board, an election by an independent director will be made only in an open trading window pursuant to the Company’s insider trading policy. Unless otherwise approved by the Board, an independent director may not make more than one election in any six-month period of time. Any Director Fees that an independent director elects to receive in the form of shares of common stock are referred to as “Exchanged Fees.” Upon any Exchange Date (as defined below) that occurs after an independent director files an election form that is received by the Company, the independent director will be entitled to receive a number of shares of common stock determined by dividing (i) the amount of the Exchanged Fees that would otherwise have been paid to the independent director in cash on such Exchange Date but for such election, by (ii) the Fair Market Value (as defined below) of a share of common stock as of such Exchange Date, and rounding down to the nearest whole share. Any fractional amount less than the Fair Market Value of a share of common stock as of such Exchange Date will be paid in cash. Any shares of common stock acquired by an independent director pursuant to the Stock-for-Fees Program will be fully vested at all times. The maximum aggregate number of shares of common stock issuable pursuant to the Stock-for-Fees Program is 2,611,555. The maximum aggregate number of shares issuable to an independent director pursuant to the Stock-for-Fees Program shall not exceed 522,311 shares of common stock. The Company issued 17,479 shares with a weighted-average share price of $2.2825 in 2023 and has issued 43,476 shares with a weighted-average price of 2.4137 pursuant to the Stock-for-Fees Program during the nine months ended September 30, 2024. For purposes of the Stock-for-Fees Program, the following definitions apply: “Director Fees” means the annual retainer and meeting fees, to the extent otherwise payable in cash, payable to an independent director for services as a member of the Board. “Exchange Date” means any date on which the Company pays Director Fees to independent directors. “Fair Market Value” means, with respect to an Exchange Date, the average of the closing prices of a share of the Company’s common stock as reported on the composite tape for securities listed on the NYSE for the period of ten trading days ending on the trading day immediately preceding the Exchange Date.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE In accordance with ASC 260, outstanding instruments that contain rights to non-forfeitable dividends are considered participating securities. The Company is required to apply the two-class method or the treasury stock method of computing basic and diluted earnings per share when there are participating securities outstanding. The Company has determined that outstanding unvested restricted shares issued under the Manager Equity Plan are participating securities, and they are therefore included in the computation of basic and diluted earnings per share. The following tables provide additional disclosure regarding the computation for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Net income $ 6,280,725 $ 6,359,727 Less dividends: Common stock $ 4,183,368 $ 3,656,181 Preferred stock 1,185,041 1,185,042 5,368,409 4,841,223 Undistributed earnings $ 912,316 $ 1,518,504 Unvested Share-Based Common Stock Unvested Share-Based Common Stock Distributed earnings $ 0.00 $ 0.08 $ 0.00 $ 0.07 Undistributed earnings 0.00 0.02 0.00 0.03 Total $ 0.00 $ 0.10 $ 0.00 $ 0.10 For the three months ended September 30, 2024 2023 Basic weighted average shares of common stock 52,283,669 52,231,152 Diluted weighted average shares of common stock outstanding 52,283,669 52,231,152 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Net income 17,859,353 $ 14,700,645 Less dividends: Common stock $ 12,023,399 $ 9,923,919 Preferred stock 3,555,041 3,555,042 Undistributed earnings 15,578,440 13,478,961 $ 2,280,913 $ 1,221,684 Unvested Share-Based Common Stock Unvested Share-Based Common Stock Distributed earnings $ 0.00 $ 0.23 $ 0.19 $ 0.19 Undistributed earnings 0.00 0.04 0.02 0.02 Total $ 0.00 $ 0.27 $ 0.21 $ 0.21 For the nine months ended September 30, 2024 2023 Basic weighted average shares of common stock 52,266,444 52,227,504 Weighted average of non-vested restricted stock — 3,648 Diluted weighted average shares of common stock outstanding 52,266,444 52,231,152

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company invests in a portfolio comprised of commercial mortgage loans and other mortgage-related investments, and operates as a single reporting segment.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company has elected to be treated as a REIT under federal income tax laws. As a REIT, the Company must generally distribute annually at least 90% of our taxable income, subject to certain adjustments and excluding any capital net gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Certain activities of the Company that produce prohibited income are conducted through a TRS, FOAC, to protect REIT election and FOAC is therefore subject to tax as a U.S. C-Corporation. To maintain our REIT election, the Company must continue to meet certain ownership, asset and income requirements set forth in the Code. As further discussed below, the Company may be subject to non-income taxes on excess amounts of assets or income that cause a failure of any of the REIT testing requirements. As of September 30, 2024 and December 31, 2023, we were in compliance with all REIT requirements. As of September 30, 2024, tax years 2020 through 2023 remain subject to examination by taxing authorities.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On November 8, 2024, the loan collateralized by two multifamily properties in Augusta, GA with an unpaid aggregate principal value of $20.3 million which was risk rated a "5" and on non-accrual status as of September 30, 2024, due to monetary default, repaid. In connection with the repayment, the Company will record aggregate interest income of $0.5 million in the quarter ending December 31, 2024, representing regular interest, default interest, late interest and exit fees collected from the borrower on the loan. As this loan was held by the Company on an unlevered basis, this repayment will increase cash and cash equivalents by approximately $20.8 million.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the financial statements prepared under GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with the Company's financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission ("SEC") on March 15, 2024.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of the Company and all subsidiaries which it controls (i) through voting or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). All significant intercompany transactions have been eliminated on consolidation.
Use of Estimates	Use of Estimates The financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g. valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company's estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material.
VIEs	VIEs An entity is considered a VIE when any of the following applies: (1) the equity investors (if any) lack one or more essential characteristics of a controlling financial interest; (2) the equity investment at risk is not sufficient to finance that entity's activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both the following characteristics: (1) the power to direct activities that, when taken together, most significantly impact the VIE performance; and (2) the obligation to absorb losses and right to receive returns from the VIE that would be significant to the VIE.
Collateralized Loan Obligations and Secured Financings and Secured Term Loan	Collateralized Loan Obligations and Secured Financings Secured Term Loan
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents at time of purchase include cash held in bank accounts on an overnight basis and other short term deposit accounts with banks having maturities of 90 days or less at time of acquisition. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. Restricted cash includes cash held within 2021-FL1 CLO and LMF 2023-1 Financing as of September 30, 2024 and December 31, 2023, respectively.
Deferred Offering Costs	Deferred Offering Costs Direct costs incurred to issue shares classified as equity, such as legal and accounting fees, are deducted from the related proceeds and the net amount recorded as stockholders' equity. Accordingly, payments made by the Company in respect of such costs related to the issuance of shares are recorded as an asset in the accompanying consolidated balance sheets in the line item "Other assets", for subsequent deduction from the related proceeds upon closing of the offering. To the extent that certain costs, in particular legal fees, are known to have been accrued but have not yet been invoiced and paid, they are included in "Other accounts payable and accrued expenses" on the accompanying consolidated balance sheets.
Fair Value Measurements	Fair Value Measurements The "Fair Value Measurements and Disclosures" Topic 820 of the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurement under GAAP. Specifically, the guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at measurement date. ASC 820 specifies a hierarchy of valuation techniques based on the inputs used in measuring fair value. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable market data from independent sources, while unobservable inputs reflect the Company's market assumptions. The three levels are defined as follows: • Level 1 Inputs – Quoted prices for identical instruments in active markets. • Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 Inputs – Instruments with primarily unobservable value drivers. Pursuant to ASC 820 we disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate fair value for those certain instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instrument, for which it is practicable to estimate that value: • Cash and cash equivalents : The carrying amount of cash and cash equivalents approximates fair value. • Restricted cash : The carrying amount of restricted cash approximates fair value. • Commercial mortgage loans : The Company determines the fair value of commercial mortgage loans by utilizing a pricing model based on discounted cash flow methodologies using discount rates, which reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Additionally, the Company may record fair value adjustments on a non-recurring basis when it has determined it necessary to record a specific impairment reserve or charge-off against a loan and the Company measures such specific reserve or charge-off using the fair value of the loan's collateral. To determine the fair value of loan collateral, the Company employs the income capitalization approach, appraised values, broker opinion of value, sale offers, letters of intention to purchase, or other valuation benchmarks, as applicable, depending upon the nature of such collateral and other relevant market factors. • Mortgage servicing rights ("MSRs") : The Company determines the fair value of MSRs from a third-party pricing service on a recurring basis. The third-party pricing service uses common market pricing methods that include using discounted cash flow models to calculate present value, estimated net servicing income and observed market pricing for MSR purchase and sale transactions. The model considers contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. • Collateralized loan obligations and secured financings : The Company determines the fair value of collateralized loan obligations and secured financings by utilizing a third-party pricing service. In determining the value of a particular investment, pricing service providers may use market spreads, inventory levels, trade and bid history, as well as market insight from clients, trading desks and global research platform. • Secured term loan : The Company determines the fair value of its secured term loan based on a discounted cash flow methodology. • Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying amounts that approximate fair value due to their short-term nature.
Commercial Mortgage Loans Held-For-Investment	Commercial Mortgage Loans Held-for-Investment Commercial mortgage loans held-for-investment represent floating-rate transitional loans and other commercial mortgage loans purchased or originated by the Company. These loans include loans sold into securitizations that the Company consolidates. Commercial mortgage loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at their unpaid principal balances, adjusted for net unamortized loan fees and costs (in respect of originated loans), premiums and discounts (in respect of purchased loans) and impairment, if any. Commercial mortgage loans held-for-investment principal repayments received after remittance dates are held by the servicer and reported as "Investment related receivable" in the consolidated balance sheets. Interest income is recognized as revenue using the effective interest method and is recorded on the accrual basis according to the terms of the underlying loan agreement. Any fees, costs, premiums and discounts associated with these loan investments are deferred and amortized over the term of the loan on a straight-line basis approximating the effective interest method. Income accrual is generally suspended and loans are placed on non-accrual status on the earlier of the date at which payment has become 90 days past due or when full and timely collection of interest and principal is considered not probable. The Company may return a loan to accrual status when repayment of principal and interest is reasonably assured under the terms of the underlying loan agreement. As of September 30, 2024, the Company held three loans, collateralized by multifamily properties, with unpaid principal balance of $52.5 million on non-accrual status with interest collections accounted for on the cash basis method. See Note 3 for further discussion. On January 1, 2023, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") and amendments, which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current economic conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance credit exposures such as unfunded loan commitments. The allowance for credit losses required under ASC 2016-13 is included in "Allowance for credit losses" on our consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in "Other liabilities" in the consolidated balance sheets. The change to the allowance for credit loss recorded on January 1, 2023 is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity; however subsequent changes to the allowance for credit losses are recognized through net income on our consolidated statements of operations. In connection with the adoption of ASU 2016-13, we recorded a $3.6 million decrease to accumulated earnings as of January 1, 2023. The Company's implementation process included a selection of a credit loss analytical model, completion and documentation of policies and procedures, changes to internal reporting processes and related internal controls and additional disclosures. A control framework for governance, data, forecast and model controls was developed to support the allowance for credit losses process. Determining an allowance for credit loss estimate requires significant judgment and a variety of subjective assumptions, including (i) determination of relevant historical loan loss data sets, (ii) the current credit quality of loans and operating performance of loan collateral and the Company's expectations of performance and (iii) expectation of macroeconomic forecasts over the relevant time period. The Company estimates the allowance for credit losses for its portfolio on a collective basis, including unfunded loan commitments, for loans that share similar risk characteristics. The calculation is applied at the loan level. The allowance for credit losses estimation methodology used by LFT includes a probability of default and loss given default method utilizing a widely-used third-party analytical model with historical loan losses for over 125,000 commercial real estate loans dating back to 1998. Within this data set, we focused our historical loss information on the most relevant subset of available CRE data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, spread to interest rate, unpaid principal balance and origination loan-to-value, or LTV. The Company expects to use this proxy data set, or variants of it, unless the Company develops its own sufficient history of realized losses. The Company determined the key variables driving its allowance for credit losses estimate are debt service coverage ratio and LTV ratio. Other notable variables include property type, property location and loan vintage. The Company determines its allowance for credit loss estimate based on the weighting of multiple macroeconomic forecast scenarios driven by macroeconomic variables such as gross domestic product ("GDP"), unemployment rate, federal funds target rate and core personal consumption expenditure ("CPR") among others, during the reasonable and supportable forecast period. The reasonable and supportable forecast period is currently one year, however, the Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed based on our assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts, on a straight-line basis over four quarters, to the historical loss information derived from CRE data set. Any loans considered to be a Default Risk or otherwise deemed to be collateral dependent will be individually evaluated for a specific allowance for credit losses. A loan is considered collateral dependent when the Company determines that the facts and circumstances of the loan deem the debtor to be experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. If a loan is considered to be collateral dependent, a specific allowance for credit losses is recorded to reduce the carrying value of the loan through a charge to the provision for credit losses. The specific allowance for credit losses is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the amortized cost of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, actions of other lenders, and other factors deemed necessary by the Manager. Actual losses, if any, could ultimately differ from estimated losses. Prior to the adoption of ASU 2016-13, the Company established an allowance for credit loss under the incurred loss model which required analysis of Default Risk loans and those determined to be collateral dependent in a manner consistent with the specific allowance described above. In addition, the Company evaluated the entire loan portfolio to determine whether the portfolio had any impairment that required a valuation allowance on the remainder of the portfolio. Pre-adoption Transition adjustment Post-adoption Assets Commercial mortgage loans, held-for-investment $ 1,076,148,186 $ — $ 1,076,148,186 Less: Allowance for credit losses (4,258,668) (3,549,501) (7,808,169) Commercial mortgage loans, held-for-investment, net of allowance for credit losses $ 1,071,889,518 $ (3,549,501) $ 1,068,340,017 Liabilities Other liabilities (1) $ 583,989 $ 41,939 $ 625,928 Equity Accumulated earnings $ 31,250,852 $ (3,591,440) $ 27,659,412 (1) Includes reserve for unfunded loan commitments Quarterly, the Company assesses the risk factors of each loan classified as held-for-investment and assigns a risk rating based on a variety of factors, including, without limitation, debt-service coverage ratio ("DSCR"), loan-to-value ratio ("LTV"), property type, geographic and local market dynamics, physical condition, leasing and tenant profile, adherence to business plan and exit plan, maturity default risk and project sponsorship. The Company's loans are rated on a 5-point scale, from least risk to greatest risk, respectively, which ratings are described as follows: 1. Very Low Risk : exceeds expectations and is outperforming underwriting or it is very likely that the underlying loan can be refinanced easily in the period's prevailing capital market conditions 2. Low Risk : meeting or exceeding underwritten expectations 3. Moderate Risk : consistent with underwritten expectations or the sponsor may be in the early stages of executing the business plan and the loan structure appropriately mitigates additional risks 4. High Risk : potential risk of default, a loss may occur in the event of default 5. Default Risk : imminent risk of default, a loss is likely in the event of default
Real Estate Owned	Real Estate Owned To maximize recovery from a defaulted loan, the Company may assume legal title or physical possession of the underlying collateral through foreclosure or the execution of a deed in lieu of foreclosure. Real estate acquired through a foreclosure or by deed in lieu of foreclosure is classified as real estate owned, net ("REO") in the consolidated balance sheets. REO assets are initially recognized at estimated fair value in accordance with ASC Topic 805, " Business Combinations " and are shown net of accumulated depreciation and impairment charges. REO assets held for use, except for land, are depreciated using the straight-line method over their estimated useful lives ranging from seven Property, Plant and Equipment ." Once a REO asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of carrying value or fair value less cost to sell. REO assets are reviewed for impairment each quarter if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. The Company recognizes impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset's estimated fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results.
Mortgage Servicing Rights, at Fair Value	Mortgage Servicing Rights, at Fair Value Mortgage servicing rights ("MSRs") are associated with residential mortgage loans that the Company historically purchased and subsequently sold or securitized. MSRs are held and managed at Five Oaks Acquisition Corp. ("FOAC"), the Company's taxable REIT subsidiary ("TRS"). As the owner of MSRs, the Company is entitled to receive a portion of the interest payments from the associated residential mortgage loan, and is obligated to service, directly or through a subservicer, the associated loan. MSRs are reported at fair value. Residential mortgage loans for which the Company owns the MSRs are directly serviced by two sub-servicers retained by the Company. The Company does not directly service any residential mortgage loans. MSR income is recognized at the contractually agreed upon rate, net of the costs of sub-servicers retained by the Company. If a sub-servicer with which the Company contracts were to default, an evaluation of MSR assets for impairment would be undertaken at that time.
Common Stock, Stock Repurchase Program and Preferred Stock	Common Stock At September 30, 2024 and December 31, 2023, the Company was authorized to issue up to 450,000,000 shares of common stock, par value $0.01 per share. The Company had 52,292,107 and 52,248,631 shares of common stock issued and outstanding at September 30, 2024 and December 31, 2023, respectively. Stock Repurchase Program On December 15, 2015, the Company's Board of Directors (the "Board") authorized a stock repurchase program ("Repurchase Program") to repurchase up to $10 million of the Company's outstanding common stock. Subject to applicable securities laws, repurchase of common stock under the Repurchase Program may be made at times and in amounts as the Company deems appropriate, using available cash resources. Shares of common stock repurchased by the Company under the Repurchase Program, if any, will be canceled and, until reissued by the Company, will be deemed to be authorized but unissued shares of common stock. The Repurchase Program may be suspended or discontinued by the Company at any time and without prior notice. Preferred Stock
Income Taxes	Income Taxes The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes, commencing with the Company's short taxable period ended December 31, 2012. A REIT is generally taxable as a U.S. C-Corporation; however, so long as the Company qualifies as a REIT it is entitled to a special deduction for dividends paid to stockholders not otherwise available to corporations. Accordingly, the Company generally will not be subject to U.S. federal income tax to the extent its distributions to stockholders equals, or exceeds, its REIT taxable income for the year. In addition, the Company must continue to meet certain REIT qualification requirements with respect to distributions, as well as certain asset, income and share ownership tests, in accordance with Sections 856 through 860 of the Code, as summarized below. In addition, the TRS is maintained to perform certain services and earn income for the Company that the Company is not permitted to engage in as a REIT. To maintain its qualification as a REIT, the Company must meet certain requirements, including but not limited to the following: (i) distribute at least 90% of its REIT taxable income to its stockholders; (ii) invest at least 75% of its assets in REIT qualifying assets, with additional restrictions with respect to asset concentration risk; and (iii) earn at least 95% of its gross income from qualifying sources of income, including at least 75% from qualifying real estate and real estate related sources. Regardless of the REIT election, the Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax as a U.S. C-Corporation, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. Certain activities of the Company are conducted through a TRS and therefore are taxed as a standalone U.S. C-Corporation. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The TRS is not subject to a distribution requirement with respect to its REIT owner. The TRS may retain earnings annually, resulting in an increase in the consolidated book equity of the Company and without a corresponding distribution requirement by the REIT. If the TRS generates net income, and declares dividends to the Company, such dividends will be included in its taxable income and necessitate a distribution to its stockholders in accordance with the REIT distribution requirements.
Earnings per Share	Earnings per Share
Stock-Based Compensation	Stock-Based Compensation The Company is required to recognize compensation costs relating to stock-based payment transactions in the consolidated financial statements. The Company accounts for share-based compensation using the fair-value based methodology prescribed by ASC 718, Share-Based Payment
Comprehensive Income (Loss) Attributable to Common Stockholders	Comprehensive Income (Loss) Attributable to Common Stockholders For the three and nine months ended September 30, 2024 and 2023, comprehensive income equaled net income; therefore, a separate consolidated statement of comprehensive income is not included in the accompanying consolidated financial statements.
Recently Issued and/or Adopted Accounting Standards	Recently Issued and/or Adopted Accounting Standards Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provides for new segment disclosure requirements for entities with a single reportable segment. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently evaluating the impact of the update on the Company's consolidated financial statements and does not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of the update on the Company's consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the statement of cash flows: September 30, 2024 December 31, 2023 Cash and cash equivalents $ 45,587,573 $ 51,247,063 Restricted cash 2021-FL1 CLO (1) $ 19,288,134 $ 71,826 Restricted cash LMF 2023-1 Financing $ 202,776 $ 198,303 Total cash, cash equivalents and restricted cash $ 65,078,483 $ 51,517,192 (1) Primarily represents proceeds from principal repayments held by the servicer which were remitted to the Class A Note holders during the subsequent remittance cycle.
Schedule of Financial Impact of the Adoption of Accounting Standard Update	Pre-adoption Transition adjustment Post-adoption Assets Commercial mortgage loans, held-for-investment $ 1,076,148,186 $ — $ 1,076,148,186 Less: Allowance for credit losses (4,258,668) (3,549,501) (7,808,169) Commercial mortgage loans, held-for-investment, net of allowance for credit losses $ 1,071,889,518 $ (3,549,501) $ 1,068,340,017 Liabilities Other liabilities (1) $ 583,989 $ 41,939 $ 625,928 Equity Accumulated earnings $ 31,250,852 $ (3,591,440) $ 27,659,412 (1) Includes reserve for unfunded loan commitments

COMMERCIAL MORTGAGE LOANS HEL_2

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Commercial Mortgage Loans	The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of September 30, 2024 and December 31, 2023: Weighted Average Loan Type Unpaid Principal Balance Carrying Value (1) Loan Count Floating Rate Loan % Coupon (2) Term (Years) (3) September 30, 2024 Loans held-for-investment Senior secured loans (4) $ 1,195,799,230 $ 1,191,183,049 75 100.0 % 8.7 % 2.3 Allowance for credit losses N/A (9,515,493) 1,195,799,230 1,181,667,556 75 100.0 % 8.7 % 2.3 Weighted Average Loan Type Unpaid Principal Balance Carrying Value (1) Loan Count Floating Rate Loan % Coupon (2) Term (Years) (3) December 31, 2023 Loans held-for-investment Senior secured loans (4) $ 1,397,385,160 $ 1,389,940,203 88 100.0 % 8.9 % 2.9 Allowance for credit losses N/A (6,059,006) 1,397,385,160 1,383,881,197 88 100.0 % 8.9 % 2.9 (1) Carrying Value includes $4,344,687 and $7,000,863 in unamortized purchase discounts as of September 30, 2024 and December 31, 2023, respectively. (2) Weighted average coupon assumes applicable 30-day Term Secured Overnight Financing Rate ("SOFR") of 5.16% and 5.33% as of September 30, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floors of 0.55% and 0.38%, respectively. As of September 30, 2024 and December 31, 2023, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR. (3) Weighted average remaining term assumes all extension options are exercised by the borrower, provided, however, that our loans may be repaid prior to such date. (4) As of September 30, 2024, $1,161,565,228 of the outstanding senior secured loans were held in VIEs and $20,102,328 of the outstanding senior secured loans were held outside VIEs. As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside VIEs. Activity: For the nine months ended September 30, 2024, the loan portfolio activity was as follows: Commercial Mortgage Loans Held-for-Investment Balance at December 31, 2023 $ 1,383,881,197 Purchases, advances and originations 45,423,744 Principal payments (247,009,674) Accretion of purchase discount 2,656,178 Accretion of deferred loan fees 172,598 Provision for credit losses (3,456,487) Balance at September 30, 2024 $ 1,181,667,556
Schedule of Loan Risk Ratings	The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of September 30, 2024 and December 31, 2023: September 30, 2024 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2024 2023 2022 2021 1 — $ — $ — $ — $ — $ — 2 4 76,760,000 27,004,681 — 48,769,547 — 3 46 646,017,113 18,257,052 17,967,954 288,558,674 315,343,520 4 21 389,253,907 — — 173,835,789 209,432,915 5 4 83,768,210 — — 82,497,424 — 75 $ 1,195,799,230 $ 45,261,733 $ 17,967,954 $ 593,661,434 $ 524,776,435 December 31, 2023 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2023 2022 2021 2019 1 — $ — $ — $ — $ — $ — 2 3 37,720,000 — 37,276,159 — — 3 67 1,019,844,272 17,887,019 449,921,414 542,010,684 — 4 16 294,150,124 — 134,664,646 156,450,510 — 5 2 45,670,764 — — 8,889,177 36,781,588 88 $ 1,397,385,160 $ 17,887,019 $ 621,862,219 $ 707,350,371 $ 36,781,588
Schedule of Geographic Concentrations	The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of September 30, 2024 and December 31, 2023: Loans Held-for-Investment September 30, 2024 December 31, 2023 Geography South 37.2 % 43.5 % Southwest 33.4 29.4 Mid-Atlantic 15.7 15.0 Midwest 8.8 7.9 West 4.9 4.2 Total 100.0 % 100.0 % September 30, 2024 December 31, 2023 Collateral Property Type Multifamily 93.2 % 94.0 % Seniors Housing and Healthcare 6.3 5.5 Self-Storage 0.5 0.5 Total 100.0 % 100.0 %
Schedule of Provision for Credit Losses	The following table presents the changes for the three and nine months ended September 30, 2024 and September 30, 2023 in the provision for credit losses on loans held-for-investment: Three months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Allowance for credit losses at beginning of period $ 9,193,174 $ 3,897,895 $ 6,059,006 $ 4,258,668 Cumulative-effect adjustment upon adoption of ASU 2016-13 — — — 3,549,501 Provision for credit losses 322,319 818,335 3,456,487 1,179,734 Charge offs — — — (4,271,673) Allowance for credit losses at end of period $ 9,515,493 $ 4,716,230 $ 9,515,493 $ 4,716,230 The following table presents the changes for the three and nine months ended September 30, 2024 and September 30, 2023 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment: Three months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Allowance for credit losses at beginning of period $ 86,055 $ 55,941 $ 43,647 $ — Cumulative-effect adjustment upon adoption of ASU 2016-13 — — — 41,939 Release of (provision for) credit losses (4,871) (26,772) 37,537 (12,770) Allowance for credit losses at end of period $ 81,184 $ 29,169 $ 81,184 $ 29,169 The following tables present the allowance for credit losses held-for-investment as of September 30, 2024 and December 31, 2023: September 30, 2024 General Reserve Specific Reserve Total Reserve Allowance for credit losses: Loans held for investment $ 8,634,248 $ 881,245 $ 9,515,493 Unfunded loan commitments 81,184 — 81,184 Total allowance for credit losses $ 8,715,432 $ 881,245 $ 9,596,677 Total unpaid principal balance $ 1,112,031,020 $ 83,768,210 $ 1,195,799,230 December 31, 2023 General Reserve Specific Reserve Total Reserve Allowance for credit losses: Loans held for investment $ 6,059,006 $ — $ 6,059,006 Unfunded loan commitments 43,647 — 43,647 Total allowance for credit losses $ 6,102,653 $ — $ 6,102,653 Total unpaid principal balance $ 1,397,385,160 $ — $ 1,397,385,160

USE OF SPECIAL PURPOSE ENTITI_2

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Condensed Consolidated Balance Sheets	The carrying values of the Company's total assets and liabilities related to the 2021-FL1 CLO and LMF 2023-1 Financing at September 30, 2024 and December 31, 2023, included the following VIE assets and liabilities: ASSETS September 30, 2024 December 31, 2023 Cash, cash equivalents and restricted cash $ 19,491,722 $ 270,217 Accrued interest receivable 6,823,190 8,588,805 Loans held for investment, net of allowance for credit losses 1,161,565,228 1,375,277,312 Total Assets $ 1,187,880,140 $ 1,384,136,334 LIABILITIES Accrued interest payable $ 3,076,129 $ 3,996,538 Collateralized loan obligations and secured financings (1) 955,094,679 1,146,210,752 Total Liabilities $ 958,170,808 $ 1,150,207,290 Equity 229,709,332 233,929,044 Total liabilities and equity $ 1,187,880,140 $ 1,384,136,334 (1) The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.
Schedule of Loan and Borrowing Characteristics	The following tables present certain loan and borrowing characteristics of the 2021-F1 CLO and LMF 2023-1 Financing as of September 30, 2024 and December 31, 2023: As of September 30, 2024 Collateralized Loan Obligations/Financings Count Principal Value Carrying Value (1) Wtd. Avg. Coupon (2) Collateral (loan investments) 74 $ 1,175,548,857 $ 1,161,565,228 8.74% Financing provided 2 $ 957,673,227 $ 955,094,679 7.23% As of December 31, 2023 Collateralized Loan Obligations/Financings Count Principal Value Carrying Value (1) Wtd. Avg. Coupon (2) Collateral (loan investments) 87 $ 1,388,495,984 $ 1,375,277,312 8.91% Financing provided 2 $ 1,151,450,000 $ 1,146,210,752 7.35% (1) The carrying value of the collateral is net of unaccreted purchase discounts of $4,468,136 and $7,159,664 as of September 30, 2024 and December 31, 2023, respectively. The carrying value for the 2021-FL1 CLO is net of debt issuance costs of $13,851 and $1,911,547 for September 30, 2024 and December 31, 2023, respectively and the carrying value for LMF 2023-1 Financing is net of debt issuance costs of $2,564,697 and 3,327,701 for September 30, 2024 and December 31, 2023, respectively. (2) Weighted average coupon for loan investments assumes applicable 30-day Term SOFR of 5.16% and 5.33% as of September 30, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floors of 0.56% and 0.38%, and spreads of 3.58% and 3.54%, respectively. Weighted average coupon for the financings assumes applicable 30-day Term SOFR of 5.10% and 5.36% as of September 30, 2024 and December 31, 2023, respectively and spreads of 2.13% and 1.99% for September 30, 2024 and December 31, 2023, respectively.
Schedule of Condensed Consolidated Statements of Operations	The statement of operations related to the 2021-FL1 CLO and LMF 2023-1 Financing for the three and nine months ended September 30, 2024 and September 30, 2023 include the following income and expense items: Statements of Operations Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Interest income $ 28,149,522 $ 30,984,016 Interest expense (19,238,862) (21,364,918) Net interest income $ 8,910,660 $ 9,619,098 Less: Provision for credit losses (322,319) (895,228) General and administrative fees (206,347) (201,928) Net income $ 8,381,994 $ 8,521,942 Statements of Operations Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Interest income $ 88,462,443 $ 73,312,906 Interest expense (60,929,273) (48,597,825) Net interest income $ 27,533,170 $ 24,715,081 Less: Provision for credit losses (3,456,487) (1,403,015) General and administrative fees (719,195) (527,171) Net income $ 23,357,488 $ 22,784,895

SECURED TERM LOAN (Tables)

SECURED TERM LOAN (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Credit Agreement	As of September 30, 2024 and December 31, 2023, the outstanding balance and total commitment under the Credit Agreement consisted of the following: September 30, 2024 December 31, 2023 Outstanding Balance Total Commitment Outstanding Balance Total Commitment Secured Term Loan $ 47,750,000 $ 47,750,000 $ 47,750,000 $ 47,750,000 Total $ 47,750,000 $ 47,750,000 $ 47,750,000 $ 47,750,000

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
	Sep. 30, 2024
Mortgage Servicing Rights MSR Disclosure [Abstract]
Schedule of MSR Activity	The following table presents the Company's MSR activity for the nine months ended September 30, 2024 and the nine months ended September 30, 2023: September 30, 2024 September 30, 2023 Balance at beginning of period $ 691,973 $ 795,656 Changes in fair value due to: Changes in valuation inputs or assumptions used in valuation model (13,202) 585 Other changes to fair value (1) (38,462) (49,507) Balance at end of period $ 640,309 $ 746,734 Loans associated with MSRs (2) $ 63,448,342 $ 70,212,243 MSR values as percent of loans (3) 1.01 % 1.06 % (1) Amounts represent changes due to realization of expected cash flows and prepayment of principal of the underlying loan portfolio. (2) Amounts represent the unpaid principal balance of loans associated with MSRs outstanding at September 30, 2024 and September 30, 2023, respectively. (3) Amounts represent the carrying value of MSRs at September 30, 2024 and September 30, 2023, respectively divided by the outstanding balance of the loans associated with these MSRs.
Schedule of Components of Servicing Income	The following table presents the servicing income recorded on the Company's consolidated statements of operations for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Three Months Ended Servicing income, net $ 60,283 $ 70,842 Total servicing income $ 60,283 $ 70,842 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Servicing income, net $ 117,056 $ 167,766 Total servicing income $ 117,056 $ 167,766

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Carried at Fair Value on a Recurring Basis	The following tables summarize the valuation of the Company's assets and liabilities carried at fair value on a recurring basis within the fair value hierarchy levels as of September 30, 2024 and December 31, 2023: September 30, 2024 Quoted prices in Significant Unobservable Balance as of September 30, 2024 Assets: Mortgage servicing rights $ — $ — $ 640,309 $ 640,309 Total $ — $ — $ 640,309 $ 640,309 December 31, 2023 Quoted prices in Significant Unobservable Balance as of December 31, 2023 Assets: Mortgage servicing rights $ — $ — $ 691,973 $ 691,973 Total $ — $ — $ 691,973 $ 691,973
Schedule of Quantitative Information About the Significant Unobservable Inputs Used in the Fair Value Measurement of MSRs Classified as Level 3	The following table provides quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's MSRs classified as Level 3 fair value assets at September 30, 2024 and December 31, 2023: As of September 30, 2024 Valuation Technique Unobservable Input Range Weighted Average Discounted cash flow Constant prepayment rate 8.0 - 10.4% 8.2 % Discount rate 12.0 % 12.0 % As of December 31, 2023 Valuation Technique Unobservable Input Range Weighted Average Discounted cash flow Constant prepayment rate 8.0 - 10.3% 8.2 % Discount rate 12.0 % 12.0 %
Schedule of Fair Value Schedule of Financial Instruments	The following table details the carrying amount, face amount and fair value of the financial instruments described in Note 2: September 30, 2024 Level in Fair Value Hierarchy Carrying Value Face Amount Fair Value Assets: Cash and cash equivalents 1 $ 45,587,573 $ 45,587,573 $ 45,587,573 Restricted cash 1 19,490,910 19,490,910 19,490,910 Commercial mortgage loans held-for-investment, net 3 1,181,667,556 1,195,799,230 1,193,736,821 Total $ 1,246,746,039 $ 1,260,877,713 $ 1,258,815,304 Liabilities: Collateralized loan obligations and secured financings 2 $ 955,094,679 $ 957,673,227 $ 950,947,227 Secured Term Loan 3 47,407,286 47,750,000 47,101,604 Total $ 1,002,501,965 $ 1,005,423,227 $ 998,048,831 December 31, 2023 Level in Fair Value Hierarchy Carrying Value Face Amount Fair Value Assets: Cash and cash equivalents 1 $ 51,247,063 $ 51,247,063 $ 51,247,063 Restricted cash 1 270,129 270,129 270,129 Commercial mortgage loans held-for-investment, net 3 1,383,881,197 1,397,385,160 1,388,355,730 Total $ 1,435,398,389 $ 1,448,902,352 $ 1,439,872,922 Liabilities: Collateralized loan obligations and secured financings 2 $ 1,146,210,752 $ 1,151,450,000 $ 1,128,250,991 Secured term loan 3 47,220,226 47,750,000 46,191,524 Total $ 1,193,430,978 $ 1,199,200,000 $ 1,174,442,515

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Schedule of Restricted Common Stock Activity	The following table summarizes the activity related to restricted common stock granted under the Manager Equity Plan for the nine months ended September 30, 2023: Nine Months Ended September 30, 2023 Shares Weighted Average Grant Date Fair Market Value Outstanding Unvested Shares at Beginning of Period 6,000 $ 2.27 Granted — Vested (6,000) 2.27 Outstanding Unvested Shares at End of Period —

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of Cash Dividends Declared	The following table presents cash dividends declared by the Company on its common stock during the nine months ended September 30, 2024: Declaration Date Record Date Payment Date Dividend Amount Cash Dividend Per Weighted Average Share March 15, 2024 March 28, 2024 April 15, 2024 $ 3,658,012 $ 0.070 June 13, 2024 June 28, 2024 July 15, 2024 $ 4,182,019 $ 0.080 September 16, 2024 September 30, 2024 October 15, 2024 $ 4,183,368 $ 0.080 The following table presents cash dividends declared by the Company on its Series A Preferred stock for the nine months ended September 30, 2024: Declaration Date Record Date Payment Date Dividend Amount Cash Dividend Per Weighted Average Share March 15, 2024 April 1, 2024 April 15, 2024 $ 1,181,250 $ 0.49219 June 13, 2024 July 1, 2024 July 15, 2024 $ 1,181,250 $ 0.49219 September 15, 2024 October 1, 2024 October 15, 2024 $ 1,181,250 $ 0.49219

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following tables provide additional disclosure regarding the computation for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Net income $ 6,280,725 $ 6,359,727 Less dividends: Common stock $ 4,183,368 $ 3,656,181 Preferred stock 1,185,041 1,185,042 5,368,409 4,841,223 Undistributed earnings $ 912,316 $ 1,518,504 Unvested Share-Based Common Stock Unvested Share-Based Common Stock Distributed earnings $ 0.00 $ 0.08 $ 0.00 $ 0.07 Undistributed earnings 0.00 0.02 0.00 0.03 Total $ 0.00 $ 0.10 $ 0.00 $ 0.10
Schedule of Weighted Average Number of Shares	For the three months ended September 30, 2024 2023 Basic weighted average shares of common stock 52,283,669 52,231,152 Diluted weighted average shares of common stock outstanding 52,283,669 52,231,152 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Net income 17,859,353 $ 14,700,645 Less dividends: Common stock $ 12,023,399 $ 9,923,919 Preferred stock 3,555,041 3,555,042 Undistributed earnings 15,578,440 13,478,961 $ 2,280,913 $ 1,221,684 Unvested Share-Based Common Stock Unvested Share-Based Common Stock Distributed earnings $ 0.00 $ 0.23 $ 0.19 $ 0.19 Undistributed earnings 0.00 0.04 0.02 0.02 Total $ 0.00 $ 0.27 $ 0.21 $ 0.21 For the nine months ended September 30, 2024 2023 Basic weighted average shares of common stock 52,266,444 52,227,504 Weighted average of non-vested restricted stock — 3,648 Diluted weighted average shares of common stock outstanding 52,266,444 52,231,152

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)		3 Months Ended	9 Months Ended		12 Months Ended
	May 05, 2021 shares	Jun. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) sub-servicer loan $ / shares shares		Dec. 31, 2023 USD ($) $ / shares shares		Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)	Feb. 14, 2019 USD ($)	Jan. 15, 2019 USD ($)	Dec. 15, 2015 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Accumulated earnings | $			$ 65,233,261	[1]	$ 47,373,908	[1]		$ 31,250,852
Number of commercial real estate loans included in loan performance analytical model | loan			125,000
Number of sub-servicers | sub-servicer			2
Principal amount | $			$ 47,750,000		$ 47,750,000
Common stock, shares authorized (in shares) | shares			450,000,000		450,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.01		$ 0.01
Common stock, shares issued (in shares) | shares			52,292,107		52,248,631
Common stock, shares outstanding (in shares) | shares			52,292,107		52,248,631
Stock repurchase program, authorized amount | $											$ 10,000,000
Preferred stock, shares authorized (in shares) | shares			50,000,000		50,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.01		$ 0.01
Preferred stock, shares issued (in shares) | shares			2,400,000		2,400,000
Preferred stock, dividend rate, percentage			7.875%		7.875%
Preferred stock, shares outstanding (in shares) | shares			2,400,000		2,400,000
REO Assets Held-for-Use | Minimum
Debt and Equity Securities, FV-NI [Line Items]
Estimated useful life			7 years
REO Assets Held-for-Use | Maximum
Debt and Equity Securities, FV-NI [Line Items]
Estimated useful life			39 years
Accounting Standards Update 2016-13
Debt and Equity Securities, FV-NI [Line Items]
Accumulated earnings | $							$ (3,600,000)
Cash Basis Method
Debt and Equity Securities, FV-NI [Line Items]
Number of non accrual loans | loan			3
Impaired unpaid principal value | $			$ 52,500,000
Series A Cumulative Redeemable Preferred Stock
Debt and Equity Securities, FV-NI [Line Items]
Preferred stock, shares issued (in shares) | shares	2,400,000		2,400,000		2,400,000
Preferred stock, dividend rate, percentage	7.875%
Preferred stock, shares outstanding (in shares) | shares			2,400,000		2,400,000
Delayed Draw Facility | Credit Agreement
Debt and Equity Securities, FV-NI [Line Items]
Principal amount | $			$ 47,750,000						$ 40,250,000	$ 40,250,000
Other Operating Expenses
Debt and Equity Securities, FV-NI [Line Items]
Payments of debt issuance costs | $		$ 1,684,618
Collateralized Loan Obligations
Debt and Equity Securities, FV-NI [Line Items]
Maximum exposure to loss from consolidated trusts | $			$ 234,850,000		$ 234,850,000
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)		Sep. 30, 2024	Dec. 31, 2023		Sep. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	[1]	$ 45,587,573	$ 51,247,063
Restricted cash		19,490,910	270,129	[1]
Total cash, cash equivalents and restricted cash		65,078,483	51,517,192		$ 49,633,941	$ 47,366,365
2021-FL1 CLO
Cash and Cash Equivalents [Line Items]
Restricted cash		19,288,134	71,826
LMF 2023-1 Financing
Cash and Cash Equivalents [Line Items]
Restricted cash		$ 202,776	$ 198,303
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Financial Impact of the Adoption of Accounting Standard Update (Details) - USD ($)	Sep. 30, 2024	[1]	Dec. 31, 2023	[1]	Jan. 01, 2023	Dec. 31, 2022
Debt and Equity Securities, FV-NI [Line Items]
Commercial mortgage loans, held-for-investment	$ 1,191,183,049		$ 1,389,940,203			$ 1,076,148,186
Less: Allowance for credit losses						(4,258,668)
Commercial mortgage loans held-for-investment, net of allowance for credit losses	1,181,667,556		1,383,881,197			1,071,889,518
Other liabilities	528,018	[2]	2,373,609	[2]		583,989
Accumulated earnings	$ 65,233,261		$ 47,373,908			$ 31,250,852
Accounting Standards Update 2016-13
Debt and Equity Securities, FV-NI [Line Items]
Accumulated earnings					$ (3,600,000)
Accounting Standards Update 2016-13 | Transition adjustment
Debt and Equity Securities, FV-NI [Line Items]
Commercial mortgage loans, held-for-investment					0
Less: Allowance for credit losses					(3,549,501)
Commercial mortgage loans held-for-investment, net of allowance for credit losses					(3,549,501)
Other liabilities					41,939
Accumulated earnings					(3,591,440)
Accounting Standards Update 2016-13 | Post-adoption
Debt and Equity Securities, FV-NI [Line Items]
Commercial mortgage loans, held-for-investment					1,076,148,186
Less: Allowance for credit losses					(7,808,169)
Commercial mortgage loans held-for-investment, net of allowance for credit losses					1,068,340,017
Other liabilities					625,928
Accumulated earnings					$ 27,659,412
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.[2]Includes $81,184 and $43,647 of Current Expected Credit Loss ("CECL") allowance related to unfunded commitments on commercial mortgage loans, net as of September 30, 2024 and December 31, 2023, respectively.

COMMERCIAL MORTGAGE LOANS HEL_3

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Summary of Commercial Mortgage Loans (Details)		3 Months Ended	9 Months Ended		12 Months Ended
		Mar. 31, 2024 mortgageLoan	Sep. 30, 2024 USD ($) mortgageLoan		Dec. 31, 2023 USD ($) mortgageLoan		Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	[1]		$ (9,515,493)		$ (6,059,006)
One month SOFR rate ( as a percent)			5.16%		5.33%
Weighted average LIBOR floor rate (as a percent)			0.55%		0.38%
Weighted average floating rate			100%		100%
Commercial mortgage loans held-for-investment, net of allowance for credit losses			$ 1,181,667,556	[1]	$ 1,383,881,197	[1]	$ 1,071,889,518
Commercial Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance			1,195,799,230		1,397,385,160
Carrying Value			1,191,183,049		1,389,940,203
Carrying value, net			$ 1,181,667,556		$ 1,383,881,197
Loan Count | mortgageLoan		88	75		88
Financing receivable, floating rate (as a percent)		100%	100%
Coupon		8.90%	8.70%
Term (Years)		2 years 10 months 24 days	2 years 3 months 18 days
Unaccreted purchase discounts			$ (4,344,687)		$ (7,000,863)
Commercial mortgage loans held-for-investment, net of allowance for credit losses			1,181,667,556		1,383,881,197
Outstanding senior secured loans from loan participations			20,102,328		8,603,886
Commercial Real Estate Portfolio Segment | Hunt CMT
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial mortgage loans held-for-investment, net of allowance for credit losses			$ 1,161,565,228		$ 1,375,277,312
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

COMMERCIAL MORTGAGE LOANS HEL_4

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Loan Portfolio Activity (Details) - USD ($)		9 Months Ended
		Sep. 30, 2024		Sep. 30, 2023
Commercial Mortgage Loans Held-for-Investment
Beginning Balance		$ 1,383,881,197	[1]	$ 1,071,889,518
Purchases, advances and originations		45,423,744		517,608,525
Principal payments		247,009,674		203,425,029
Accretion of purchase discount		2,656,178		431,009
Accretion of deferred loan fees		172,598		195,022
Provision for credit losses		(3,456,487)		$ (1,166,962)
Ending Balance	[1]	1,181,667,556
Commercial Real Estate Portfolio Segment
Commercial Mortgage Loans Held-for-Investment
Beginning Balance		1,383,881,197
Purchases, advances and originations		45,423,744
Principal payments		247,009,674
Accretion of purchase discount		2,656,178
Accretion of deferred loan fees		172,598
Provision for credit losses		(3,456,487)
Ending Balance		$ 1,181,667,556
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

COMMERCIAL MORTGAGE LOANS HEL_5

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Summary of Commercial Loan Risk Ratings (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2024 mortgageLoan	Sep. 30, 2024 USD ($) mortgageLoan		Dec. 31, 2023 USD ($) mortgageLoan		Dec. 31, 2022 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Commercial mortgage loans held-for-investment, at amortized cost		$ 1,191,183,049	[1]	$ 1,389,940,203	[1]	$ 1,076,148,186
Average risk rating, moderate		3.6		3.5
Commercial Real Estate Portfolio Segment
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan	88	75		88
Commercial mortgage loans held-for-investment, at amortized cost		$ 1,195,799,230		$ 1,397,385,160
Year 1		45,261,733		17,887,019
Year 2		17,967,954		621,862,219
Year 3		593,661,434		707,350,371
Year 4		$ 524,776,435
Year 5				$ 36,781,588
Commercial Real Estate Portfolio Segment | Risk rating, 1
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan		0		0
Commercial mortgage loans held-for-investment, at amortized cost		$ 0		$ 0
Year 1		0		0
Year 2		0		0
Year 3		0		0
Year 4		$ 0
Year 5				$ 0
Commercial Real Estate Portfolio Segment | Risk rating, 2
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan		4		3
Commercial mortgage loans held-for-investment, at amortized cost		$ 76,760,000		$ 37,720,000
Year 1		27,004,681		0
Year 2		0		37,276,159
Year 3		48,769,547		0
Year 4		0
Year 5				$ 0
Transition of commercial loans held for sale to a lower risk rating		$ 18,900,000
Commercial Real Estate Portfolio Segment | Risk rating, 3
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan		46		67
Commercial mortgage loans held-for-investment, at amortized cost		$ 646,017,113		$ 1,019,844,272
Year 1		18,257,052		17,887,019
Year 2		17,967,954		449,921,414
Year 3		288,558,674		542,010,684
Year 4		$ 315,343,520
Year 5				$ 0
Average risk rating, percentage		60.60%		75.70%
Commercial loans that paid off		$ 164,100,000
Transition of commercial loans held for sale to a higher risk rating		7,000,000
Transition of commercial loans held for sale to a lower risk rating		$ 35,500,000
Commercial Real Estate Portfolio Segment | Risk rating, 4
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan		21		16
Commercial mortgage loans held-for-investment, at amortized cost		$ 389,253,907		$ 294,150,124
Year 1		0		0
Year 2		0		134,664,646
Year 3		173,835,789		156,450,510
Year 4		209,432,915
Year 5				$ 0
Commercial loans that paid off		37,300,000
Transition of commercial loans held for sale to a higher risk rating		$ 234,400,000
Commercial Real Estate Portfolio Segment | Risk rating, 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | mortgageLoan		4		2
Commercial mortgage loans held-for-investment, at amortized cost		$ 83,768,210		$ 45,670,764
Year 1		0		0
Year 2		0		0
Year 3		82,497,424		8,889,177
Year 4		0
Year 5				$ 36,781,588
Commercial loans that paid off		45,700,000
Transition of commercial loans held for sale to a higher risk rating		66,500,000
Transition of commercial loans held for sale to a risk rating two steps higher		$ 17,300,000
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

COMMERCIAL MORTGAGE LOANS HEL_6

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Summary of Concentration of Credit Risk (Details) - Commercial Loans Held-For-Investment - Commercial Real Estate Portfolio Segment	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	100%	100%
Collateral Property Type
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	100%	100%
Multifamily | Collateral Property Type
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	93.20%	94%
Seniors Housing and Healthcare | Collateral Property Type
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	6.30%	5.50%
Self-Storage | Collateral Property Type
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	0.50%	0.50%
South | Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	37.20%	43.50%
Southwest | Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	33.40%	29.40%
Mid-Atlantic | Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	15.70%	15%
Midwest | Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	8.80%	7.90%
West | Geography
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	4.90%	4.20%

COMMERCIAL MORTGAGE LOANS HEL_7

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Provision for Credit Losses (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	[1]			$ 6,059,006
Release of (Provision for) credit losses				3,456,487	$ 1,166,962
Allowance for credit losses at end of period	[1]	$ 9,515,493		9,515,493
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				43,647
Allowance for credit losses at end of period		81,184		81,184
Commercial Loans Held-For-Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period		9,193,174	$ 3,897,895	6,059,006	4,258,668
Release of (Provision for) credit losses		322,319	818,335	3,456,487	1,179,734
Charge offs		0	0	0	(4,271,673)
Allowance for credit losses at end of period		9,515,493	4,716,230	9,515,493	4,716,230
Commercial Loans Held-For-Investment | Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period		86,055	55,941	43,647	0
Release of (Provision for) credit losses		(4,871)	(26,772)	37,537	(12,770)
Allowance for credit losses at end of period		81,184	29,169	81,184	29,169
Transition adjustment | Accounting Standards Update 2016-13 | Commercial Loans Held-For-Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period		0	0	0	3,549,501
Transition adjustment | Accounting Standards Update 2016-13 | Commercial Loans Held-For-Investment | Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period		$ 0	$ 0	$ 0	$ 41,939
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

COMMERCIAL MORTGAGE LOANS HEL_8

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Allowance for Loan Losses (Details) - USD ($)		Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans held for investment	[1]	$ 9,515,493	$ 6,059,006
Unfunded loan commitments		81,184	43,647
Total allowance for credit losses		9,596,677	6,102,653
Total unpaid principal balance		1,195,799,230	1,397,385,160
General Reserve
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans held for investment		8,634,248	6,059,006
Unfunded loan commitments		81,184	43,647
Total allowance for credit losses		8,715,432	6,102,653
Total unpaid principal balance		1,112,031,020	1,397,385,160
Specific Reserve
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans held for investment		881,245	0
Unfunded loan commitments		0	0
Total allowance for credit losses		881,245	0
Total unpaid principal balance		$ 83,768,210	$ 0
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

COMMERCIAL MORTGAGE LOANS HEL_9

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT - Additional Information (Details)			1 Months Ended	3 Months Ended				6 Months Ended		9 Months Ended			12 Months Ended
		Nov. 25, 2023 USD ($)	Feb. 28, 2023 USD ($)	Sep. 30, 2024 USD ($) loan		Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) loan		Sep. 30, 2024 USD ($) loan		Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) loan		Dec. 31, 2022 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, allowance for credit loss, period increase (decrease)										$ 300,000
Loans held for investment	[1]			$ 9,515,493				$ 9,515,493		9,515,493			$ 6,059,006
Principal repayments										247,009,674		$ 203,425,029
Sale of loans			$ 6,000,000
Reserve for impaired loan							$ 4,300,000								$ 4,300,000
Commercial mortgage loans held-for-investment, at amortized cost				1,191,183,049	[1]			1,191,183,049	[1]	1,191,183,049	[1]		1,389,940,203	[1]	$ 1,076,148,186
Commercial Real Estate Portfolio Segment
Financing Receivable, Credit Quality Indicator [Line Items]
Principal repayments										247,009,674
Commercial mortgage loans held-for-investment, at amortized cost				1,195,799,230				1,195,799,230		1,195,799,230			1,397,385,160
Commercial Real Estate Portfolio Segment | Risk rating, 5
Financing Receivable, Credit Quality Indicator [Line Items]
Transition of commercial loans held for sale to a risk rating two steps higher										17,300,000
Commercial mortgage loans held-for-investment, at amortized cost				$ 83,768,210				$ 83,768,210		$ 83,768,210			45,670,764
Office Building
Financing Receivable, Credit Quality Indicator [Line Items]
Impaired unpaid principal value			$ 10,300,000
Multifamily | LFT CRE 2021-FL1, Ltd.
Financing Receivable, Credit Quality Indicator [Line Items]
Proceeds from collection of finance receivables													3,600,000
Multifamily | Risk rating, 5 | LFT CRE 2021-FL1, Ltd.
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, nonaccrual, interest income													$ 500,000
Basis spread on variable rate (basis points)										3.27%			4%
Multifamily | Commercial Real Estate Portfolio Segment | Risk rating, 5
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, allowance for credit loss, recovery						$ 2,500,000
Multifamily | Brooklyn, NY | Commercial Real Estate Portfolio Segment | Risk Level, Imminent Maturity Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				1				1		1
Transition of commercial loans held for sale to a risk rating two steps higher										$ 17,300,000
Recognized interest on loan				$ 400,000
Multifamily | Augusta, GA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Transition of commercial loans held for sale to a risk rating two steps higher										20,300,000
Recognized interest on loan				$ 700,000				$ 1,200,000
Multifamily | Philadelphia, PA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Transition of commercial loans held for sale to a risk rating two steps higher										15,000,000
Transition of commercial loans held for sale to a risk rating allowance after analysis two steps higher										900,000
Principal repayments										300,000
Multifamily | Dallas, TX | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Transition of commercial loans held for sale to a risk rating two steps higher										$ 31,600,000
Multifamily | Columbus Ohio | Commercial Real Estate Portfolio Segment | Risk rating, 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan													1
Transition of commercial loans held for sale to a risk rating two steps higher													$ 12,800,000
Financing receivable, loan in process													$ 8,900,000
Insurance recoveries		$ 5,000,000				13,500,000
Insurance recoveries applied to carrying value		3,100,000
Insurance recoveries applied to tenant settlement payable		$ 1,900,000
Commercial mortgage loans held-for-investment, at amortized cost						$ 0
Multifamily | Virginia | Commercial Real Estate Portfolio Segment | Risk rating, 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan													1
Transition of commercial loans held for sale to a risk rating two steps higher													$ 36,800,000
Multi-Family Property One | Augusta, GA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				1				1		1
Multi-Family Property One | Philadelphia, PA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				1				1		1
Multi-Family Property One | Dallas, TX | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				1				1		1
Multi-Family Property Two | Augusta, GA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				2				2		2
Multi-Family Property Two | Philadelphia, PA | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Number of impaired office loans | loan				2				2		2
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

USE OF SPECIAL PURPOSE ENTITI_3

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES - Narrative (Details)	Jul. 12, 2023 USD ($)	Jun. 14, 2021 USD ($) subsidiary tranche	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Variable Interest Entity [Line Items]
Number of wholly-owned subsidiaries | subsidiary		2
Equity interest retained		$ 96,250,000
Proceeds from issuance of long-term debt allocated to acquire additional loan obligations		$ 330,300,000
Period to acquire additional loan obligations from closing date		180 days
Collateralized loan obligation leverage ratio (as a percent)		0.83
Debt, weighted average interest rate	3.14%
Debt weighted average, excluding fees and transaction costs, term	30 days
Commercial Real Estate Portfolio Segment
Variable Interest Entity [Line Items]
Unpaid Principal Balance			$ 1,195,799,230	$ 1,397,385,160
LMF 2023-1 Financing | Internal Investment Grade
Variable Interest Entity [Line Items]
Unpaid Principal Balance	$ 47,300,000
LMF 2023-1 Financing | Internal Investment Grade | Private Placement
Variable Interest Entity [Line Items]
Unpaid Principal Balance	270,400,000
LMF 2023-1 Financing | Multifamily | Commercial Real Estate Portfolio Segment | Internal Investment Grade
Variable Interest Entity [Line Items]
Unpaid Principal Balance	386,400,000
Lument Finance Trust
Variable Interest Entity [Line Items]
Retained subordinated interests	$ 68,600,000
Financing initial reinvestment period	2 years
Collateralized Loan Obligations - LFT CRE 2021-FL1, Ltd.
Variable Interest Entity [Line Items]
Number of tranches of CLO notes issued | tranche		8
Aggregate principal of CLO notes		$ 903,800,000
Initial investment period		2 years 6 months
Proceeds from issuance of collateralized loan obligations		$ 1,000,000,000
Collateralized Loan Obligations - LFT CRE 2021-FL1, Ltd. - Investment Grade
Variable Interest Entity [Line Items]
Aggregate principal of CLO notes		833,800,000
Collateralized Loan Obligations - LFT CRE 2021-FL1, Ltd. - Below Investment Grade
Variable Interest Entity [Line Items]
Aggregate principal of CLO notes		$ 70,000,000

USE OF SPECIAL PURPOSE ENTITI_4

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES - Condensed Consolidated Balance Sheets (Details) - USD ($)		Sep. 30, 2024		Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023		Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash, cash equivalents and restricted cash		$ 65,078,483				$ 51,517,192		$ 49,633,941			$ 47,366,365
Accrued interest receivable	[1]	6,823,190				8,588,805
Loans held for investment, net of allowance for credit losses		1,181,667,556	[1]			1,383,881,197	[1]				1,071,889,518
Total assets	[1]	1,255,998,871				1,446,932,447
LIABILITIES
Accrued interest payable	[1]	3,153,060				4,092,701
Collateralized loan obligations and secured financings	[1]	955,094,679				1,146,210,752
Total liabilities	[1]	1,012,854,649				1,206,140,067
Equity		243,144,222	[1]	$ 242,195,026	$ 242,935,302	240,792,380	[1]	$ 240,595,347	$ 239,091,195	$ 240,847,239	$ 243,001,497
Total liabilities and equity	[1]	1,255,998,871				1,446,932,447
2021-FL1 CLO and LMF 2023-1
ASSETS
Cash, cash equivalents and restricted cash		19,491,722				270,217
Accrued interest receivable		6,823,190				8,588,805
Loans held for investment, net of allowance for credit losses		1,161,565,228				1,375,277,312
Total assets		1,187,880,140				1,384,136,334
LIABILITIES
Accrued interest payable		3,076,129				3,996,538
Collateralized loan obligations and secured financings		955,094,679				1,146,210,752
Total liabilities		958,170,808				1,150,207,290
Equity		229,709,332				233,929,044
Total liabilities and equity		$ 1,187,880,140				$ 1,384,136,334
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

USE OF SPECIAL PURPOSE ENTITI_5

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES - Summary of Loan and Borrowing Characteristics (Details)		3 Months Ended	9 Months Ended	12 Months Ended
		Mar. 31, 2024 mortgageLoan	Sep. 30, 2024 USD ($) instrument mortgageLoan contract	Dec. 31, 2023 USD ($) contract mortgageLoan instrument
Variable Interest Entity [Line Items]
Collateralized loan obligations and secured financings	[1]		$ 955,094,679	$ 1,146,210,752
One month SOFR rate ( as a percent)			5.16%	5.33%
Weighted average LIBOR floor rate (as a percent)			0.56%	0.38%
SOFR spread rate (as a percent)			3.58%	3.54%
Basis spread on one-month LIBOR (percent)			2.13%	1.99%
30-Day SOFR
Variable Interest Entity [Line Items]
30-day SOFR rate			0.0510	0.0536
Commercial Real Estate Portfolio Segment
Variable Interest Entity [Line Items]
Collateral (loan investments) (Count) | mortgageLoan		88	75	88
Carrying Value			$ 1,191,183,049	$ 1,389,940,203
Net of purchase discounts			$ 4,344,687	$ 7,000,863
2021-FL1 CLO and LMF 2023-1
Variable Interest Entity [Line Items]
Financings provided, (Count) | instrument			2	2
Collateralized loan obligations and secured financings			$ 955,094,679	$ 1,146,210,752
2021-FL1 CLO and LMF 2023-1 | Secured Overnight Financing Rate (SOFR)
Variable Interest Entity [Line Items]
Weighted average yield (percent)			8.74%	8.91%
Weighted average yield (percent)			7.23%	7.35%
2021-FL1 CLO and LMF 2023-1 | Commercial Real Estate Portfolio Segment
Variable Interest Entity [Line Items]
Collateral (loan investments) (Count) | contract			74	87
Principal Value | 2021-FL1 CLO and LMF 2023-1
Variable Interest Entity [Line Items]
Carrying Value			$ 1,175,548,857	$ 1,388,495,984
Collateralized loan obligations and secured financings			957,673,227	1,151,450,000
Principal Value | LFT CRE 2021-FL1, Ltd.
Variable Interest Entity [Line Items]
Net of purchase discounts			4,468,136	7,159,664
Carrying Value | 2021-FL1 CLO and LMF 2023-1
Variable Interest Entity [Line Items]
Carrying Value			1,161,565,228	1,375,277,312
Collateralized loan obligations and secured financings			955,094,679	1,146,210,752
Carrying Value | 2021-FL1 CLO
Variable Interest Entity [Line Items]
Debt issuance costs			13,851	1,911,547
Carrying Value | LMF 2023-1 Financing
Variable Interest Entity [Line Items]
Debt issuance costs			$ 2,564,697	$ 3,327,701
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

USE OF SPECIAL PURPOSE ENTITI_6

USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES - Condensed Consolidated Statement of Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Variable Interest Entity [Line Items]
Interest expense	$ (19,238,862)	$ (21,364,918)	$ (60,929,273)	$ (48,597,825)
Net interest income	9,484,463	9,544,365	31,999,947	25,299,713
Provision for credit losses, net			(3,456,487)	(1,166,962)
General and administrative fees	(1,160,346)	(861,447)	(3,425,430)	(2,692,236)
2021-FL1 CLO and LMF 2023-1
Variable Interest Entity [Line Items]
Interest income	28,149,522	30,984,016	88,462,443	73,312,906
Interest expense	(19,238,862)	(21,364,918)	(60,929,273)	(48,597,825)
Net interest income	8,910,660	9,619,098	27,533,170	24,715,081
Provision for credit losses, net	(322,319)	(895,228)	(3,456,487)	(1,403,015)
General and administrative fees	(206,347)	(201,928)	(719,195)	(527,171)
Net income	$ 8,381,994	$ 8,521,942	$ 23,357,488	$ 22,784,895

RESTRICTED CASH (Details)

RESTRICTED CASH (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
LFT CRE 2021-FL1
Restricted Cash and Cash Equivalents Items [Line Items]
Reinvestment period		30 months
LMF 2023-1 Financing
Restricted Cash and Cash Equivalents Items [Line Items]
Reinvestment period	24 months

SECURED TERM LOAN - Additional

SECURED TERM LOAN - Additional Information (Details) - USD ($)	Aug. 23, 2021	Jan. 15, 2019	Sep. 30, 2024	Dec. 31, 2023	Apr. 21, 2021	Feb. 14, 2019
Debt Instrument [Line Items]
Principal amount			$ 47,750,000	$ 47,750,000
Collateralized loan obligation, discount						$ 39,200,000
Collateralized loan obligation, deferred financing costs			342,714	$ 529,774
Delayed Draw Facility | Credit Agreement
Debt Instrument [Line Items]
Principal amount		$ 40,250,000	$ 47,750,000			$ 40,250,000
Maturity term		6 years
Incremental increase in term loan					$ 7,500,000
Proceeds from credit facility	$ 7,500,000
Delayed Draw Facility | Credit Agreement | Six year period following initial draw
Debt Instrument [Line Items]
Maturity term		6 years
Stated interest rate, percent		7.25%
Delayed Draw Facility | Credit Agreement | First four months after sixth anniversary
Debt Instrument [Line Items]
Maturity term		4 months
Weighted average yield (percent)		0.25%
Delayed Draw Facility | Credit Agreement | Second four months after sixth anniversary
Debt Instrument [Line Items]
Maturity term		4 months
Weighted average yield (percent)		0.375%
Delayed Draw Facility | Credit Agreement | Last four months until maturity
Debt Instrument [Line Items]
Maturity term		4 months
Weighted average yield (percent)		0.50%

SECURED TERM LOAN - Summary of

SECURED TERM LOAN - Summary of Credit Agreement (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Outstanding Balance	$ 47,750,000	$ 47,750,000
Total Commitment	$ 47,750,000	$ 47,750,000

MORTGAGE SERVICING RIGHTS - Add

MORTGAGE SERVICING RIGHTS - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) sub-servicer	Sep. 30, 2023 USD ($)
Mortgage Servicing Rights MSR [Line Items]
Number of sub-servicers | sub-servicer	2
Mortgage servicing rights
Mortgage Servicing Rights MSR [Line Items]
Loans associated with MSRs | $	$ 63,448,342	$ 70,212,243

MORTGAGE SERVICING RIGHTS - MSR

MORTGAGE SERVICING RIGHTS - MSR Activity (Details) - Mortgage Servicing Rights - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Movement in Mortgage Service Rights
Balance at beginning of period	$ 691,973	$ 795,656
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model	(13,202)	585
Other changes to fair value	(38,462)	(49,507)
Balance at end of period	640,309	746,734
Loans associated with MSRs	$ 63,448,342	$ 70,212,243
MSR values as percent of loans	1.01%	1.06%

MORTGAGE SERVICING RIGHTS - Com

MORTGAGE SERVICING RIGHTS - Components of Servicing Income (Details) - Mortgages - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Schedule Of Components Of Servicing Income [Line Items]
Servicing income, net	$ 60,283	$ 70,842	$ 117,056	$ 167,766
Total servicing income	$ 60,283	$ 70,842	$ 117,056	$ 167,766

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities at Fair Value (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Assets:
Total assets	$ 640,309	$ 691,973
Quoted prices in active markets for identical assets Level 1
Assets:
Total assets	0	0
Significant other observable inputs Level 2
Assets:
Total assets	0	0
Unobservable inputs Level 3
Assets:
Total assets	640,309	691,973
Mortgage servicing rights
Assets:
Total assets	640,309	691,973
Mortgage servicing rights | Quoted prices in active markets for identical assets Level 1
Assets:
Total assets	0	0
Mortgage servicing rights | Significant other observable inputs Level 2
Assets:
Total assets	0	0
Mortgage servicing rights | Unobservable inputs Level 3
Assets:
Total assets	$ 640,309	$ 691,973

FAIR VALUE - Additional Informa

FAIR VALUE - Additional Information (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 640,309	$ 691,973
Unobservable inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	640,309	691,973
Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	640,309	691,973
Mortgage Servicing Rights | Unobservable inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 640,309	$ 691,973

FAIR VALUE - Unobservable Input

FAIR VALUE - Unobservable Inputs Information (Details) - Mortgage servicing rights - Discounted cash flow - Unobservable inputs Level 3	Sep. 30, 2024	Dec. 31, 2023
Constant prepayment rate | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.080	0.080
Constant prepayment rate | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.104	0.103
Constant prepayment rate | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.082	0.082
Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.120	0.120
Discount rate | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.120	0.120

FAIR VALUE - Fair Value Informa

FAIR VALUE - Fair Value Information on Financial Instruments (Details) - USD ($)		Sep. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	[1]	$ 45,587,573	$ 51,247,063
Restricted cash		19,490,910	270,129	[1]
Total	[1]	1,255,998,871	1,446,932,447
Collateralized loan obligations and secured financings	[1]	955,094,679	1,146,210,752
Secured Term Loan	[1]	47,407,286	47,220,226
Total	[1]	1,012,854,649	1,206,140,067
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total		1,246,746,039	1,435,398,389
Total		1,002,501,965	1,193,430,978
Carrying Value | Quoted prices in active markets for identical assets Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		45,587,573	51,247,063
Restricted cash		19,490,910	270,129
Commercial mortgage loans held-for-investment, net			1,383,881,197
Carrying Value | Significant other observable inputs Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligations and secured financings		955,094,679	1,146,210,752
Carrying Value | Unobservable inputs Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans held-for-investment, net		1,181,667,556
Secured Term Loan		47,407,286	47,220,226
Face Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total		1,260,877,713	1,448,902,352
Total		1,005,423,227	1,199,200,000
Face Amount | Quoted prices in active markets for identical assets Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		45,587,573	51,247,063
Restricted cash		19,490,910	270,129
Commercial mortgage loans held-for-investment, net			1,397,385,160
Face Amount | Significant other observable inputs Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligations and secured financings		957,673,227	1,151,450,000
Face Amount | Unobservable inputs Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans held-for-investment, net		1,195,799,230
Secured Term Loan		47,750,000	47,750,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total		1,258,815,304	1,439,872,922
Total		998,048,831	1,174,442,515
Fair Value | Quoted prices in active markets for identical assets Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		45,587,573	51,247,063
Restricted cash		19,490,910	270,129
Commercial mortgage loans held-for-investment, net			1,388,355,730
Fair Value | Significant other observable inputs Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligations and secured financings		950,947,227	1,128,250,991
Fair Value | Unobservable inputs Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans held-for-investment, net		1,193,736,821
Secured Term Loan		$ 47,101,604	$ 46,191,524
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($) contract	Jun. 30, 2023 USD ($) contract	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Related Party Transaction [Line Items]
Annual management fee (percentage)				1.50%
Quarterly management fee percentage (as a percent)				0.375%
Reimbursable expenses	$ 418,553	$ 284,859		$ 1,293,627	$ 1,372,511
Waived exit fees (Percent)	1%			1%
Compensation expense				$ 0	6,194
Restricted Stock Units (RSUs)
Related Party Transaction [Line Items]
Compensation expense				$ 0	6,194
Manager Equity Plan
Related Party Transaction [Line Items]
Percentage of shares issued				3%
Manager Equity Plan | Restricted Stock Units (RSUs)
Related Party Transaction [Line Items]
Unrecognized compensation expense	$ 0			$ 0
Affiliated Entity
Related Party Transaction [Line Items]
Management fee expense	1,114,137	1,072,569		3,323,333	3,253,205
Fees and expenses payable to Manager	1,100,000	1,080,000		1,100,000	1,080,000
Incentive fee expense	12,683	0		2,184,435	0
Incentive fee payable	0	0		0	0
Reimbursable expenses	418,553	284,859		1,293,627	1,372,511
Reimbursable expenses payable	$ 386,946	$ 284,097		$ 386,946	$ 284,097
Reduction to reimbursable expenses as a percentage of exit fees waived (percent)	50%	50%		50%	50%
Reimbursable expenses waived	$ 228,108	$ 608,180		$ 631,215	$ 775,680
Reimbursable expense reduction	114,054	$ 304,090		$ 315,608	$ 387,840
Hunt Investment Management, LLC | Affiliated Entity
Related Party Transaction [Line Items]
Quarterly incentive fee percentage (as a percent)				20%
Hurdle rate percentage (as a percent)				8%
Length of renewal terms				1 year
Lument IM | LMF 2023-1 Financing
Related Party Transaction [Line Items]
Debt issuance costs	$ 1,100,000			$ 1,100,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase One
Related Party Transaction [Line Items]
Number of loans purchased | contract		1	2
Unpaid principal balance of purchased loans		$ 6,100,000	$ 48,600,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase Two
Related Party Transaction [Line Items]
Number of loans purchased | contract		3	2
Unpaid principal balance of purchased loans		$ 48,800,000	$ 1,700,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase Three
Related Party Transaction [Line Items]
Number of loans purchased | contract		1	1
Unpaid principal balance of purchased loans		$ 4,000,000	$ 6,100,000
Payments to acquire finance receivables, discount			$ 100,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase Four
Related Party Transaction [Line Items]
Number of loans purchased | contract		4	17
Unpaid principal balance of purchased loans		$ 66,000,000	$ 16,500,000
Payments to acquire finance receivables, discount		$ 1,200,000	$ 200,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase Five
Related Party Transaction [Line Items]
Number of loans purchased | contract		20
Unpaid principal balance of purchased loans		$ 326,900,000
Payments to acquire finance receivables, discount		$ 5,900,000
Lument Structured Finance | Affiliated Entity | 2021-FL1 CLO | Loan Purchase Six
Related Party Transaction [Line Items]
Number of loans purchased | contract		1
Unpaid principal balance of purchased loans		$ 400,000
Payments to acquire finance receivables, discount		$ 0
Lument Structured Finance | Affiliated Entity | LMF 2023-1 Financing | Loan Purchase One
Related Party Transaction [Line Items]
Number of loans purchased | contract		2
Unpaid principal balance of purchased loans		$ 45,400,000

RELATED PARTY TRANSACTIONS - Un

RELATED PARTY TRANSACTIONS - Unvested Share Activity (Details) - Employee Stock Option - Affiliated Entity	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Shares
Outstanding Unvested Shares at Beginning of Period (in shares) | shares	6,000
Granted (in shares) | shares	0
Vested (in shares) | shares	(6,000)
Outstanding Unvested Shares at End of Period (in shares) | shares	0
Weighted Average Grant Date Fair Market Value
Outstanding Unvested Shares at Beginning of Period (in dollars per share) | $ / shares	$ 2.27
Granted (in dollars per share) | $ / shares
Vested (in dollars per share) | $ / shares	2.27
Outstanding Unvested Shares at End of Period (in dollars per share) | $ / shares

GUARANTEES (Details)

GUARANTEES (Details) - USD ($)		9 Months Ended
	Jun. 15, 2016	Sep. 30, 2024	Dec. 31, 2023
Backstop Guarantee
Guarantor Obligations [Line Items]
Representation and warranty breach, threshold period for likely occurrence	5 years
Minimum adjusted tangible new worth		$ 20,000,000
Minimum available liquidity		$ 5,000,000
Minimum available liquidity, percentage of aggregate unpaid principal balance (as a percent)		0.10%
Maximum amount of estimated future payments under the backstop guarantees		$ 12,000,000	$ 121,000,000
Backstop Guarantee | Loan Review Services
Guarantor Obligations [Line Items]
Minimum available liquidity, percentage of aggregate unpaid principal balance (as a percent)		0.01%
Backstop Guarantee | Oak Circle Capital Partners, LLC | Loan Review Services
Guarantor Obligations [Line Items]
Alternative backstop fee		$ 426,770
Indemnification Agreement
Guarantor Obligations [Line Items]
Maximum amount of estimated future payments under the backstop guarantees		$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
LFT 2021-FL1, Ltd.
Loss Contingencies [Line Items]
Unfunded commitments	$ 6.7	$ 6.7
2021-FL1 CLO
Loss Contingencies [Line Items]
Funded participation interests	33.7	54.3
LMF 2023-1 Financing
Loss Contingencies [Line Items]
Unfunded commitments	$ 16.5	$ 22.9

EQUITY - Additional Information

EQUITY - Additional Information (Details)				3 Months Ended						9 Months Ended		12 Months Ended	101 Months Ended
		Apr. 20, 2023 tradingDay election shares	Nov. 29, 2018 USD ($) shares	Sep. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Mar. 31, 2023 USD ($) shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Jun. 30, 2024 shares	Dec. 31, 2022 shares	Dec. 31, 2020	Dec. 15, 2015 USD ($)
Stockholders' Equity Note [Line Items]
Common stock, shares authorized (in shares) | shares				450,000,000						450,000,000		450,000,000
Common stock, par value (in dollars per share) | $ / shares				$ 0.01						$ 0.01		$ 0.01
Common stock, shares issued (in shares) | shares				52,292,107						52,292,107		52,248,631
Common stock, shares outstanding (in shares) | shares				52,292,107						52,292,107		52,248,631
Stock repurchase program, authorized amount | $																$ 10,000,000
Preferred stock, shares authorized (in shares) | shares				50,000,000						50,000,000		50,000,000
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.01						$ 0.01		$ 0.01
Preferred stock, shares issued (in shares) | shares				2,400,000						2,400,000		2,400,000
Preferred stock, shares outstanding (in shares) | shares				2,400,000						2,400,000		2,400,000
Dividends, common stock | $				$ 4,183,368	$ 4,182,019	$ 3,658,012	$ 3,656,181	$ 3,133,869	$ 3,133,869	$ 12,023,399	$ 9,923,919
Dividends declared per share of common stock (in dollars per share) | $ / shares				$ 0.080	$ 0.080	$ 0.070	$ 0.07			$ 0.23	$ 0.19
Noncontrolling interests | $	[1]			$ 99,500						$ 99,500		$ 99,500
Dividends on the HCMT Preferred Shares | $				$ 1,185,041			$ 1,185,042			$ 3,555,041	$ 3,555,042
Number of trading days | tradingDay		10
Director
Stockholders' Equity Note [Line Items]
Number of election | election		1
Stock repurchase program, period in force		6 months
Stock Repurchase Program
Stockholders' Equity Note [Line Items]
Stock repurchase program, authorized amount | $																$ 10,000,000
Common stock repurchase activity (in shares) | shares													0
Number of shares repurchased (in shares) | shares				126,856						126,856
Weighted average share price of common stock repurchased (in dollars per share) | $ / shares										$ 5.09
Stock repurchase program, remaining authorized amount | $				$ 9,400,000						$ 9,400,000
Noncontrolling interests
Stockholders' Equity Note [Line Items]
Dividends on the HCMT Preferred Shares | $										3,792
Preferred dividends paid | $										$ 3,792
Noncontrolling interests | Series A Preferred Stock
Stockholders' Equity Note [Line Items]
Number of shares issued (in shares) | shares			125
Noncontrolling interests | $			$ 99,500
Equity raised | $			125,000
Non-controlling interests expenses | $			$ 25,500
Dividend rate percentage (as a percent)			12%
Redemption price ratio															1.1
Dividends on the HCMT Preferred Shares | $												$ 15,000
Common Stock
Stockholders' Equity Note [Line Items]
Common stock, shares outstanding (in shares) | shares				52,292,107	52,275,230	52,257,315	52,231,152	52,231,152	52,231,152	52,292,107	52,231,152	52,248,631	52,275,230	52,231,152
Common Stock | Stock-for-Fees Program
Stockholders' Equity Note [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares		2,611,555								43,476	17,479
Weighted average price (in dollars per share) | $ / shares										$ 2.4137	$ 2.2825
Common Stock | Stock-for-Fees Program | Director
Stockholders' Equity Note [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares										522,311
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company was the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $1,187,880,140 and $1,384,136,334, respectively and the liabilities of consolidated VIEs totaled $958,170,808 and $1,150,207,290 respectively. See Note 4 for further discussion.

EQUITY - Dividends Declared (De

EQUITY - Dividends Declared (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Class of Stock [Line Items]
Dividends, common stock	$ 4,183,368	$ 4,182,019	$ 3,658,012	$ 3,656,181	$ 3,133,869	$ 3,133,869	$ 12,023,399	$ 9,923,919
Dividends declared per share of common stock (in dollars per share)	$ 0.080	$ 0.080	$ 0.070	$ 0.07			$ 0.23	$ 0.19
Dividends, preferred stock	$ 1,185,041	$ 1,185,001	$ 1,184,999	$ 1,185,042	$ 1,185,042	$ 1,184,958	$ 3,555,041	$ 3,555,042
Series A Preferred
Class of Stock [Line Items]
Dividends, preferred stock	$ 1,181,250	$ 1,181,250	$ 1,181,250
Dividends declared per share of preferred stock (in dollars per share)	$ 0.49219	$ 0.49219	$ 0.49219

EARNINGS PER SHARE - Earnings p

EARNINGS PER SHARE - Earnings per Share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 6,280,725	$ 4,598,446	$ 6,980,182	$ 6,359,727	$ 2,574,227	$ 5,766,691	$ 17,859,353	$ 14,700,645
Less dividends:
Common stock	4,183,368	4,182,019	3,658,012	3,656,181	3,133,869	3,133,869	12,023,399	9,923,919
Preferred stock	1,185,041	$ 1,185,001	$ 1,184,999	1,185,042	$ 1,185,042	$ 1,184,958	3,555,041	3,555,042
Dividends	5,368,409			4,841,223			15,578,440	13,478,961
Undistributed earnings	$ 912,316			$ 1,518,504			$ 2,280,913	$ 1,221,684
Basic income per share (in dollars per share)	$ 0.10			$ 0.10			$ 0.27	$ 0.21
Common Stock
Less dividends:
Distributed earnings (in dollars per share)	0.08			0.07			0.23	0.19
Undistributed earnings (in dollars per share)	0.02			0.03			0.04	0.02
Basic income per share (in dollars per share)	0.10			0.10			0.27	0.21
Unvested Share-Based Payment Awards
Less dividends:
Distributed earnings (in dollars per share)	0			0			0	0.19
Undistributed earnings (in dollars per share)	0			0			0	0.02
Basic income per share (in dollars per share)	$ 0			$ 0			$ 0	$ 0.21

EARNINGS PER SHARE - Weighted A

EARNINGS PER SHARE - Weighted Average Number of Shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Basic weighted average shares of common stock (in shares)	52,283,669	52,231,152	52,266,444	52,227,504
Weighted average of non-vested restricted stock (in shares)			0	3,648
Diluted weighted average number of shares of common stock outstanding (in shares)	52,283,669	52,231,152	52,266,444	52,231,152

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)		3 Months Ended			9 Months Ended
	Nov. 08, 2024 USD ($) loan	Dec. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Subsequent Event [Line Items]
Proceeds from collateralized loan obligations and secured financings					$ 0	$ 317,700,000
Aggregate interest income			$ 28,926,111	$ 31,067,350	93,553,383	74,830,619
Cash provided by loan repayment					$ (208,825,457)	$ 300,937,690
Augusta, GA | Multifamily | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk | Forecast
Subsequent Event [Line Items]
Aggregate interest income		$ 500,000
Augusta, GA | Multifamily | Commercial Real Estate Portfolio Segment | Risk Level, Monetary Default Default Risk | Subsequent Event
Subsequent Event [Line Items]
Number of impaired office loans | loan	2
Proceeds from collateralized loan obligations and secured financings	$ 20,300,000
Cash provided by loan repayment		$ 20,800,000