Lument Finance Trust, Inc.

LFT: Is Lument Finance Trust, Inc. Halal?

Lument Finance Trust, Inc.

NYSEReal EstateUS

$0.70

+3.28%

Market Cap: 36.5M

Compliance Status

Not Halal

Screened on Aug 26, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Lument Finance Trust, Inc. (LFT) halal? Not Halal. Based on AAOIFI screening, Lument Finance Trust, Inc. has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Business activity

Involved in prohibited business activities.

Failed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

2709.6% of 30.0% limit

What this means for you

Most scholars advise not holding LFT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Lument Finance Trust, Inc.

Lument Finance Trust, Inc. functions as a real estate investment trust (REIT) with a core business centered on acquiring, financing, and managing a diverse portfolio of commercial real estate (CRE) debt investments throughout the United States. The company's primary focus lies in transitional floating-rate commercial mortgage loans, particularly those secured by middle-market multi-family assets. Beyond these, it also strategically invests in a variety of other CRE-related debt products, including mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), fixed-rate loans, and construction financing. As a formally qualified REIT under the Internal Revenue Code of 1986, Lument Finance Trust, Inc. benefits from a significant tax advantage: it is exempt from federal income taxes provided it distributes at least 90% of its taxable earnings to its shareholders. The firm underwent a name change in December 2020, having previously been known as Hunt Companies Finance Trust, Inc. Incorporated in 2012, its corporate headquarters are situated in New York, New York.

Sector: Real Estate · Industry: REIT - Mortgage

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 26, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

  • Prohibited industry: REIT - Mortgage

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP
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Frequently Asked Questions

Is Lument Finance Trust, Inc. (LFT) halal to invest in?
Lument Finance Trust, Inc. (LFT) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Lument Finance Trust, Inc. get a F compliance rating?
Lument Finance Trust, Inc. (LFT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 2709.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Lument Finance Trust, Inc.'s Shariah verdict?
Lument Finance Trust, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Lument Finance Trust, Inc. re-screened for Shariah compliance?
Lument Finance Trust, Inc. (LFT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 26, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.