Greg D. Calvert
About Greg D. Calvert
Greg D. Calvert (age 59) was appointed President of Lument Finance Trust, Inc. (LFT) effective May 1, 2025. He brings 35+ years of commercial real estate finance experience, serving as Senior Managing Director and Chief Credit Officer at Lument Real Estate Capital Holdings (parent of LFT’s external Manager) and co-chair of LFT’s Manager’s Investment Committee. He holds an MS in Real Estate Investment from NYU, a BA in Economics from Cornell, and is a Certified Property Manager (CPM), with memberships in the Institute of Real Estate Management and the National Association of Realtors . Company performance context entering his tenure: FY 2024 GAAP net income attributable to common shareholders was $17.9 million ($0.34/share), distributable earnings were $23.2 million ($0.44/share), book value per share was $3.40, and 90.8% of the portfolio was performing with a weighted average risk rating of 3.5 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lument Real Estate Capital Holdings, LLC | Senior Managing Director & Chief Credit Officer; Investment Committee member | 2020–present | Responsible for credit functions, approvals, credit policy; oversight of multifamily/affordable credit; co-chair of LFT Manager’s Investment Committee . |
| Lument (post-acquisition of Hunt Real Estate Capital) | Chief Credit Officer, Agency Lending | 2020–2025 | Led agency credit; integration post-acquisition of Hunt Real Estate Capital in Jan 2020 . |
| Hunt Real Estate Capital (formerly Centerline Capital Group) | Joined firm; Chief underwriter for Fannie Mae MAH and Freddie Mac TAH; Head of affordable multifamily & credit; led underwriting for debt/equity; built FHA lending & credit platforms | 1995–2020 | Built underwriting platforms across agencies and FHA; expanded affordable housing credit capabilities . |
| Kamson Corporation | Vice President, Property Management | Pre-1995 | Operational property management experience; foundation for credit/underwriting perspective . |
External Roles
| Organization | Role | Years |
|---|---|---|
| Institute of Real Estate Management | Member (CPM) | Not disclosed |
| National Association of Realtors | Member | Not disclosed |
Fixed Compensation
- LFT is externally managed and does not pay cash or equity compensation to its executive officers (including the President). Executives are employees of Lument (the Manager or its affiliates), which determines their pay; LFT reimburses only certain non-investment personnel costs (e.g., allocable CFO compensation) under the Management Agreement .
Performance Compensation
- LFT does not grant stock or option awards to executive officers; no plan-based awards or stock options were outstanding for named executive officers at FY-end .
- Manager incentive structure (key alignment lever): Base management fee equals 1.5% of stockholders’ equity per annum (0.375% per quarter), plus quarterly incentive compensation equal to 20% of Core Earnings (Distributable Earnings) in excess of an 8% annualized hurdle on stockholders’ equity . Management notes potential risk of undue emphasis on core earnings tied to incentive fees .
Manager Compensation – 2024 (for context)
| Item | 2024 Amount |
|---|---|
| Base management fees | ~$4.4 million |
| Incentive fees | ~$2.2 million |
| Reimbursable expenses (net of exit-fee reductions) | ~$1.8 million; exit fees waived ~$0.5 million, reducing reimbursed expenses by ~$0.3 million |
Equity Ownership & Alignment
- Beneficial ownership: As of the April 15, 2025 record date, LFT disclosed beneficial ownership for directors and executive officers; Greg D. Calvert was not listed with share holdings in the Beneficial Ownership Table .
- Pledging: The company states none of the shares beneficially owned by any directors or executive officers have been pledged as security .
- Insider trading policy: Prohibits short selling, dealing in publicly traded options, and hedging/monetization transactions in LFT securities by directors and officers .
- Clawback policy: Adopted November 2023—recoups erroneously awarded incentive compensation paid to executive officers following financial restatements per NYSE Rule 10D-1 .
Employment Terms
- Appointment: Board appointed Greg D. Calvert as President effective May 1, 2025; no family relationships; no related-party transactions; no selection arrangements .
- Employment agreements: LFT has no employment agreements with any person and no arrangements to make cash payments to executive officers upon termination or change-of-control .
- Management Agreement economics (change-in-control/termination context): Auto-renews annually; can be terminated by two-thirds independent directors or shareholders under specified conditions; termination fee equals 3× the sum of average annual base management fee and average annual incentive compensation for the prior 24 months, unless terminated “for cause” (no fee) .
Performance & Track Record
- Credit leadership: Built and led underwriting platforms (Fannie Mae MAH, Freddie Mac TAH), FHA lending/credit, and affordable multifamily credit at Hunt/Lument; currently oversees credit policy and approvals and serves on investment committee .
- Company performance snapshot entering tenure:
- GAAP net income attributable to common shareholders: $17.9 million (FY 2024) and $3.6 million (Q4 2024); $0.34 and $0.07 per share, respectively .
- Distributable Earnings: $23.2 million (FY 2024) and $5.38 million (Q4 2024); $0.44 and $0.10 per share, respectively .
- Book value per common share: $3.40 (12/31/2024) .
- Portfolio: $1.0 billion floating-rate CRE loans; 92.3% multifamily; weighted average note rate SOFR+3.58%; 90.8% performing; weighted average risk rating 3.5 .
Company Performance (FY 2024)
| Metric | FY 2024 |
|---|---|
| GAAP Net Income attributable to common shareholders ($USD) | $17.9 million |
| GAAP EPS | $0.34 |
| Distributable Earnings ($USD) | $23.2 million |
| Distributable EPS | $0.44 |
| Book Value per Common Share | $3.40 (as of 12/31/2024) |
| % Portfolio Performing | 90.8% (as of 12/31/2024) |
| Weighted Avg Risk Rating | 3.5 (as of 12/31/2024) |
Compensation Structure Analysis
- Pay-for-performance linkage exists at the Manager level via incentive fees tied to Core/Distributable Earnings over an 8% equity hurdle, rather than direct executive grants from LFT .
- Lower executive alignment pressure at the LFT entity (no direct equity grants or cash bonuses from LFT); alignment relies on Manager’s governance and compensation philosophy .
- Risk indicators: Manager incentive structure could encourage emphasis on core earnings; however, base fee is equity-based and not primarily dependent on performance (mitigating excessive risk-taking) .
Related Party Transactions
- Extensive affiliate relationships under Management Agreement (fees and reimbursements, collateral management, servicing, trademark licensing, and director designation rights for Lument Investment Holdings) are disclosed and quantified (see Manager fees above) . No related-party transactions involving Mr. Calvert were reported in his appointment .
Equity Ownership & Alignment (Detailed Policies)
- Insider Trading Policy: No hedging/monetization, no short selling or public options by insiders .
- Clawback: Mandatory recovery of erroneously awarded incentive compensation upon restatements, regardless of fault .
- Pledging: None of insider-held shares pledged .
Employment Terms (Detailed)
- No executive employment contracts, no severance or CIC payments to executives from LFT; compensation determined by Manager .
- Management Agreement renewal/termination mechanics and termination fee structure as noted above .
Investment Implications
- Alignment: Calvert’s deep credit expertise and investment-committee role are positives for portfolio underwriting and risk management, but investor alignment signals come through Manager-level incentives rather than LFT-issued equity or cash compensation to executives .
- Retention risk: As an employee of Lument (Manager affiliate) with no LFT employment agreement, retention hinges on Manager dynamics rather than LFT contract protections; monitor future disclosures and any Form 4 activity post-appointment .
- Trading signals: Watch Distributable Earnings vs. dividend coverage, portfolio performance (% performing, risk ratings), and any changes to Management Agreement fees or termination provisions that could shift incentive alignment; FY 2024 coverage and book value trends provide baseline metrics entering his tenure .
- Governance risk mitigants: No pledging, robust insider trading restrictions, and a clawback policy reduce misalignment/abuse risks; however, the incentive-fee structure could bias toward earnings maximization—track credit quality and allowance trends alongside earnings .