NEW YORK, July 29, 2026 (GLOBE NEWSWIRE) -- Adamas Trust, Inc. (Nasdaq: ADAM) ("Adamas," the "Company," "we," "our" or "us") today reported results for the three and six months ended June 30, 2026.
Financial Highlights for the Second Quarter 2026:
-- GAAP basic earnings per share of $0.48;
-- Earnings available for distribution (or "EAD") (1) per common share of
$0.30, up 36.4% year-over-year and 3.4% quarter-over-quarter, reflecting
continued portfolio expansion and earnings momentum;
-- Quarterly economic return (2) of 4.51%; Quarterly economic return on
adjusted book value (1)(2) of 4.81%;
-- Book value per share of $10.16, up 1.8% quarter-over-quarter;
-- Adjusted book value (1) per share of $11.05, up 2.3%
quarter-over-quarter;
-- Total net interest income of $50.2 million, up 3.7% quarter-over-quarter;
Total adjusted net interest income (1) of $50.3 million, up 4.4%
quarter-over-quarter;
-- Declared second quarter common stock dividend of $0.27 per share,
representing a 11.5% annualized yield (3);
-- Cumulative stockholder return (4) of 31.2% for the quarter; 58.5% over
the last twelve months; and
-- Company Recourse Leverage Ratio of 5.5x; Portfolio Recourse Leverage
Ratio of 5.2x.
Management Update To Our Stockholders
Jason Serrano, Chief Executive Officer, commented: "The second quarter marked another significant step forward in Adamas' evolution. Over the past eighteen months, we have built a larger and more diversified investment platform, strengthened our earnings power, sharpened our competitive edge with the addition of Constructive, and preserved the financial flexibility to keep growing across market environments. This quarter's results, with sustained growth in earnings, book value, and our investment portfolio, reflect the efficacy and durability of our business model. As we move into the second half of the year, we believe that continued execution of our strategy will build on this momentum, driving further shareholder value and reinforcing the intrinsic value of the Company."
_____________________________
(1) Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Non-GAAP Financial Measures."
(2) Economic return on book value and economic return on adjusted book value are based on the periodic change in GAAP book value and adjusted book value, respectively, per common share plus dividends declared per common share, if any, during the period.
(3) Annualized yield is calculated using the current quarter dividend declared on common stock (annualized) and the closing share price of the Company's common stock on June 30, 2026.
(4) Cumulative stockholder return includes common stock price appreciation and common stock dividend reinvestment. Dividends assumed to be reinvested at the closing price on the ex-dividend date.
Business Highlights:
Investing & Origination Activity
-- Acquired $1.5 billion of new single-family residential investments during
the quarter, including $798.3 million of Agency investments and $632.3
million of business purpose loans (5)
-- Expanded Agency investment portfolio to $7.2 billion, with 89% of
holdings in specified pools and an average coupon of 5.48%
-- BPL-Rental portfolio grew to $2.3 billion in UPB, supported by strong
credit fundamentals, including average FICO of 750, average LTV of 71%
and average DSCR of 1.35x
-- Constructive originated $427.6 million of business purpose loans in the
quarter, surpassing $6.9 billion in cumulative originations since
inception in 2017 (6)
-- Received approximately $11.4 million in proceeds from the redemption of a
Mezzanine Lending investment
Financing & Capital
-- Issued $521.2 million of BPL-Rental securitizations across two
transactions with a 5.48% effective cost (7)
-- Redeemed a residential loan securitization with an outstanding principal
balance at the time of redemption of approximately $243.6 million
-- Increased warehouse capacity to $3.7 billion, up $250.0 million in the
quarter
Stockholder Value
-- Raised common stock dividend to $0.27, an increase of 17.4%
-- $1.5 billion in cumulative common stock dividends declared since June
2004
Subsequent Events
-- Priced $341 million BPL-Rental securitization with a 5.73% effective cost
(7)
_____________________________(5) Acquired business purpose loans include $381.5 million of loans originated by Constructive and transferred at fair value to the Company's investment portfolio.
(6) Origination amounts represent total loan commitments.
(7) Effective cost represents the weighted average yield at issuance of all tranches sold in the securitizations, weighted by the issuance proceeds of each tranche, and reflecting the modeling assumptions set forth in the related offering documents.
Capital Allocation
The following table sets forth our allocated capital at June 30, 2026 (dollar amounts in thousands):
Investment
Portfolio (1) Constructive Corporate/Other Total
--------------- -------------- ------------------- --------------
Investment securities
available for sale and
TBAs (2) $ 7,647,797 $ -- $ -- $ 7,647,797
Residential loans 4,722,364 59,071 -- 4,781,435
Consolidated SLST CDOs (956,329) -- -- (956,329)
Residential loans held
for sale -- 59,002 -- 59,002
Multi-family loans 45,079 -- -- 45,079
Equity investments 22,767 -- -- 22,767
Equity investments in
consolidated
multi-family properties
(3) 123,944 -- -- 123,944
Single-family rental
properties 110,438 -- -- 110,438
Mortgage servicing
rights 19,093 -- -- 19,093
---------- --------- --------- ---- ----------
Total investments 11,735,153 118,073 -- 11,853,226
Liabilities:
Repurchase
agreements,
warehouse facilities
and TBA cost basis
(4) (7,626,127) (104,080) -- (7,730,207)
Collateralized debt
obligations
Residential loan
securitization
CDOs (2,564,684) -- -- (2,564,684)
Non-Agency RMBS
re-securitization (60,843) -- -- (60,843)
Senior unsecured
notes -- -- (347,537) (347,537)
Subordinated
debentures -- -- (45,000) (45,000)
Cash, cash equivalents
and restricted cash
(5) 75,692 22,357 188,167 286,216
Goodwill -- 22,396 -- 22,396
Cumulative adjustment of
redeemable
non-controlling
interest to estimated
redemption value (28,225) -- -- (28,225)
Other 129,063 12,016 (53,958) 87,121
---------- --------- --------- --- ----------
Net Company capital
allocated $ 1,660,029 $ 70,762 $ (258,328) $ 1,472,463
========== ========= ========= === ==========
Company Recourse 5.5x
Leverage Ratio (6)
--------------
Portfolio Recourse 5.2x
Leverage Ratio
--------------
(1) The Company, through its ownership of certain securities,
has determined it is the primary beneficiary of Consolidated
SLST and has consolidated the assets and liabilities
of Consolidated SLST in the Company's condensed consolidated
financial statements. Consolidated SLST is primarily
presented on our condensed consolidated balance sheets
as residential loans, at fair value and collateralized
debt obligations, at fair value. Our investment in
Consolidated SLST as of June 30, 2026 was limited
to the RMBS comprised of first loss subordinated securities
and certain IOs issued by the respective securitizations
with an aggregate net carrying value of $139.4 million.
(2) Includes implied fair value of outstanding TBAs of
$664.4 million. TBAs are recorded as derivative instruments
in the Company's condensed consolidated financial
statements. As of June 30, 2026, our TBAs had a net
carrying value of $1.4 million reported in other assets
on the Company's condensed consolidated balance sheets.
The net carrying value represents the difference between
the implied fair value of the underlying security
in the TBA contract and the price to be paid or received
for the underlying security (or cost basis).
(3) Represents the Company's equity investments in consolidated
multi-family properties. See "Reconciliation of Financial
Information" section below for a reconciliation of
equity investments in consolidated multi-family properties
to the Company's condensed consolidated financial
statements.
(4) Includes repurchase agreements and warehouse facilities
with a carrying value of $7.1 billion and outstanding
TBAs with a cost basis of $663.0 million.
(5) Excludes cash in the amount of $3.9 million held in
the Company's equity investments in consolidated multi-family
properties. Restricted cash of $96.9 million is included
in the Company's accompanying condensed consolidated
balance sheets in other assets.
(6) Company Recourse Leverage Ratio does not include Consolidated
SLST CDOs amounting to $956.3 million, residential
loan securitization CDOs amounting to $2.6 billion,
non-Agency RMBS re-securitization CDOs amounting to
$60.8 million and mortgages payable on real estate
totaling $274.9 million as they are non-recourse debt.
Net Interest Spread
The following table sets forth certain information about our interest earning assets by category and their related adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost and net interest spread for the three months ended June 30, 2026 (dollar amounts in thousands):
Three Months Ended June 30, 2026
Single-Family Multi-Family
Agency Credit Credit Corporate/Other Total
-------------- --------------- ---------------- ------------------- ---------------
Adjusted
Interest
Income (1)
(2) $ 96,856 $ 64,770 $ 1,714 $ 4,034 $ 167,374
Adjusted
Interest
Expense
(1) (59,979) (44,277) -- (12,844) (117,100)
--------- --------- ------ ---- -------- ---- ----------
Adjusted Net
Interest
Income
(Loss) (1) $ 36,877 $ 20,493 $ 1,714 $ (8,810) $ 50,274
========= ========= === ====== ==== ======== ==== ==========
Average
Interest
Earning
Assets (3) $6,875,264 $3,826,140 $ 55,752 $ 351,156 $11,108,312
Average
Interest
Bearing
Liabilities
(4) $6,177,150 $3,416,367 $ -- $ 735,769 $10,329,286
Yield on
Average
Interest
Earning
Assets (1)
(5) 5.64% 6.77% 12.30% 4.60% 6.03%
Average
Financing
Cost (1)
(6) (3.89)% (5.20)% -- (7.00)% (4.55)%
-------------- --------------- ------ ---- ------------------- ---------------
Net Interest
Spread (1)
(7) 1.75% 1.57% 12.30% (2.40)% 1.48%
========= ========= ====== === =================== ==========
(1) Represents a non-GAAP financial measure. A reconciliation
of the Company's non-GAAP financial measures to their
most directly comparable GAAP measure is included
below in "Reconciliation of Financial Information."
(2) Includes interest income earned on cash accounts held
by the Company.
(3) Average Interest Earning Assets for the period include
residential loans, residential loans held for sale,
multi-family loans, investment securities and cost
basis of outstanding TBAs, to the extent applicable,
and exclude all Consolidated SLST assets other than
those securities owned by the Company. Average Interest
Earning Assets is calculated based on the daily average
amortized cost for the period.
(4) Average Interest Bearing Liabilities for the period
include repurchase agreements and warehouse facilities,
residential loan securitization and non-Agency RMBS
re-securitization CDOs, senior unsecured notes, subordinated
debentures and cost basis of outstanding TBAs, to
the extent applicable, and exclude Consolidated SLST
CDOs and mortgages payable on real estate as the Company
does not directly incur interest expense on these
liabilities that are consolidated for GAAP purposes.
Average Interest Bearing Liabilities is calculated
based on the daily average outstanding balance for
the period.
(5) Yield on Average Interest Earning Assets is calculated
by dividing our annualized adjusted interest income
relating to our portfolio of interest earning assets
by our Average Interest Earning Assets for the period.
(6) Average Financing Cost is calculated by dividing our
annualized adjusted interest expense by our Average
Interest Bearing Liabilities.
(7) Net Interest Spread is the difference between our
Yield on Average Interest Earning Assets and our Average
Financing Cost.
Segment Information
The following tables present summarized financial information by our two reportable segments, investment portfolio and Constructive, for the three and six months ended June 30, 2026, respectively (dollar amounts in thousands). The activities within Corporate/Other are reconciling items to the condensed consolidated financial statements and primarily consist of general and administrative expenses not directly attributable to the investment portfolio or Constructive, interest expense on senior unsecured notes and subordinated debentures, financing transaction costs unrelated to securitizations and preferred stock dividends.
For the Three Months Ended June 30, 2026
------------------------------------------------------------------
Investment
Portfolio Constructive Corporate/Other Total
-------------- ---------------- ------------------- -----------
Total net
interest income
(loss) $ 58,779 $ 470 $ (9,040) $ 50,209
Total net loss
from real
estate (2,289) -- -- (2,289)
Total other
income (loss) 43,634 15,623 (14,099) 45,158
Total general,
administrative
and operating
expenses (1) 15,203 16,752 8,057 40,012
------ ------- --- --- --------- --- -------
Income (loss)
from
operations
before income
taxes 84,921 (659) (31,196) 53,066
Income tax
expense
(benefit) 12 8 (7) 13
------ ------- --- --- --------- -------
Net income
(loss) 84,909 (667) (31,189) 53,053
Net loss
attributable to
non-controlling
interests 2,129 -- -- 2,129
------ ------- --- --- --------- --- -------
Net income
(loss)
attributable
to Company 87,038 (667) (31,189) 55,182
Preferred stock
dividends -- -- (11,758) (11,758)
------ ------- --- --- --------- -------
Net income
(loss)
attributable
to Company's
common
stockholders $ 87,038 $ (667) $ (42,947) $ 43,424
====== ======= === ========= =======
(1) General, administrative and operating expenses of
the Constructive segment include $9.8 million of direct
general and administrative expenses and $4.8 million
of direct loan origination costs incurred by Constructive.
For the Six Months Ended June 30, 2026
----------------------------------------------------------------
Investment
Portfolio Constructive Corporate/Other Total
------------ ---------------- ------------------- -----------
Total net
interest income
(loss) $116,039 $ 979 $ (18,397) $ 98,621
Total net loss
from real
estate (4,891) -- -- (4,891)
Total other
income 50,112 31,392 44,602 126,106
Total general,
administrative
and operating
expenses (1) 29,240 32,373 18,434 80,047
------- ------- --- --- --------- --- -------
Income (loss)
from
operations
before income
taxes 132,020 (2) 7,771 139,789
Income tax
expense 27 8 137 172
------- ------- --- --- --------- --- -------
Net income
(loss) 131,993 (10) 7,634 139,617
Net income
attributable to
non-controlling
interests (35,836) -- -- (35,836)
------- ------- --- --- --------- --- -------
Net income
(loss)
attributable
to Company 96,157 (10) 7,634 103,781
Preferred stock
dividends -- -- (23,461) (23,461)
------- ------- --- --- --------- -------
Net income
(loss)
attributable
to Company's
common
stockholders $ 96,157 $ (10) $ (15,827) $ 80,320
======= ======= === ========= =======
(1) General, administrative and operating expenses of
the Constructive segment include $19.1 million of
direct general and administrative expenses and $8.9
million of direct loan origination costs incurred
by Constructive.
Conference Call
On Thursday, July 30, 2026 at 9:00 a.m., Eastern Time, Adamas Trust's executive management is scheduled to host a conference call and audio webcast to discuss the Company's financial results for the three and six months ended June 30, 2026. To access the conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details. A live audio webcast of the conference call can be accessed, on a listen-only basis, at the Investor Relations section of the Company's website at www.adamasreit.com or using this link. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast. A webcast replay link of the conference call will be available on the Investor Relations section of the Company's website approximately two hours after the call and will be available for 12 months.
In connection with the release of these financial results, the Company will also post a supplemental financial presentation that will accompany the conference call on its website at www.adamasreit.com under the "Investors -- Events and Presentations" section. Second Quarter 2026 financial and operating data can be viewed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. A copy of the Form 10-Q will be posted at the Company's website as soon as reasonably practicable following its filing with the Securities and Exchange Commission.
About Adamas Trust
Adamas Trust, Inc. is an internally managed real estate investment trust ("REIT") focused on strategically deploying capital across complementary businesses to generate durable earnings and long-term value for stockholders through disciplined portfolio management and an operating platform designed to capture opportunities across real estate and capital markets. For a list of defined terms used from time to time in this press release, see "Defined Terms" below.
Defined Terms
The following defines certain of the commonly used terms that may appear in this press release: "UPB" refers to unpaid principal balance; "LTV" refers to loan-to-value ratio; "DSCR" refers to debt service coverage ratio; "Constructive" refers to Constructive Loans, LLC, the Company's wholly-owned origination platform; "RMBS" refers to residential mortgage-backed securities backed by adjustable-rate, hybrid adjustable-rate, or fixed-rate residential loans; "Agency RMBS" refers to RMBS representing interests in or obligations backed by pools of residential loans guaranteed by a government sponsored enterprise ("GSE"), such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac"), or an agency of the U.S. government, such as the Government National Mortgage Association ("Ginnie Mae"); "TBAs" refers to to-be-announced securities that are forward contracts for the purchase or sale of Agency fixed-rate RMBS at a predetermined price, face amount, issuer, coupon, and stated maturity on an agreed-upon future date; "Agency investments" refer to Agency RMBS and TBAs; "TBA dollar roll transaction" refers to a transaction where two TBA contracts with the same terms but different settlement dates are simultaneously bought and sold; "TBA dollar roll income" refers to the difference in price between TBA contracts in TBA dollar roll transactions; "non-Agency RMBS" refers to RMBS that are not guaranteed by any agency of the U.S. Government or any GSE; "IOs" refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; "POs" refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; "CDO" refers to collateralized debt obligation and includes debt that permanently finances the residential loans held in Consolidated SLST, the Company's residential loans held in securitization trusts and a non-Agency RMBS re-securitization that we consolidate or consolidated in our financial statements in accordance with GAAP; "Consolidated SLST" refers to Freddie Mac-sponsored residential loan securitizations, comprised of seasoned re-performing and non-performing residential loans, of which we own the first loss subordinated securities and certain IOs, that we consolidate in our financial statements in accordance with GAAP; "Consolidated VIEs" refers to variable interest entities ("VIE") where the Company is the primary beneficiary, as it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE and that we consolidate in our financial statements in accordance with GAAP; "Consolidated Real Estate VIEs" refers to Consolidated VIEs that own multi-family properties; "business purpose loans" refers to (i) short-term loans that are collateralized by residential properties and are made to investors who intend to rehabilitate and sell the residential property for a profit (or "BPL-Bridge") or (ii) loans that finance (or refinance) non-owner occupied residential properties that are rented to one or more tenants (or "BPL-Rental"); "Mezzanine Lending" refers to preferred equity investments in multi-family properties; "Cross-collateralized mezzanine lending investment" refers to a cross-collateralized preferred equity and joint venture equity investment in multi-family properties; "Multi-Family Credit" includes Mezzanine Lending; "Single-Family Credit" includes residential loans, residential loans held for sale, non-Agency RMBS and single-family rental properties; "Corporate/Other" includes, or included, other investment securities and our equity investment in Constructive (prior to July 15, 2025); "Company Recourse Leverage" represents the Company's total outstanding recourse repurchase agreement and warehouse facility financing, subordinated debentures, senior unsecured notes and cost basis of outstanding TBAs, to the extent applicable, divided by the Company's total stockholders' equity; and "Portfolio Recourse Leverage" represents the Company's outstanding recourse repurchase agreement and warehouse facility financing and cost basis of outstanding TBAs, to the extent applicable, divided by the Company's total stockholders' equity.
Cautionary Statement Regarding Forward-Looking Statements
When used in this press release, in future filings with the Securities and Exchange Commission (the "SEC") or in other written or oral communications, statements which are not historical in nature, including those containing words such as "will," "believe," "expect," "anticipate, " "estimate," "plan," "continue," "intend," "could," "would," "should," "may" or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and, as such, may involve known and unknown risks, uncertainties and assumptions.
Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation: changes in the Company's business and investment strategy; inflation and changes in interest rates and the fair market value of the Company's assets, including negative changes resulting in margin calls relating to the financing of the Company's assets; changes in credit spreads; changes in the long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae; general volatility of the markets in which the Company invests; changes in prepayment rates on the loans the Company owns or that underlie the Company's investment securities; increased rates of default, delinquency or vacancy and/or decreased recovery rates on or at the Company's assets; the Company's ability to identify and acquire targeted assets, including assets in its investment pipeline; the Company's ability to dispose of assets from time to time on terms favorable to it; changes in relationships with the Company's financing counterparties and the Company's ability to borrow to finance its assets and the terms thereof; changes in the Company's relationships with and/or the performance of its operating partners; the Company's ability to predict and control costs; changes in laws, regulations or policies affecting the Company's business; the Company's ability to make distributions to its stockholders in the future; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company's ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended; impairments and declines in the value of the collateral underlying the Company's investments; changes in the benefits the Company anticipates from the acquisition of Constructive; the Company's ability to effectively integrate Constructive into the Company and the risks associated with the ongoing operation thereof; the Company's ability to
manage or hedge credit risk, interest rate risk, and other financial and operational risks; the Company's exposure to liquidity risk, risks associated with the use of leverage, and market risks; and risks associated with investing in real estate assets and/or operating companies, including changes in business conditions and the general economy, the availability of investment opportunities and conditions in markets for residential loans, mortgage-backed securities, structured multi-family investments and other assets that the Company owns or in which the Company invests.
These and other risks, uncertainties and factors, including the risk factors and other information described in the Company's reports filed with the SEC pursuant to the Exchange Act, could cause the Company's actual results to differ materially from those projected in any forward-looking statements the Company makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Further Information
CONTACT: AT THE COMPANY
Phone: 212-792-0107
Email: InvestorRelations@adamasreit.com
FINANCIAL TABLES FOLLOW
ADAMAS TRUST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
June 30, 2026 December 31, 2025
--------------- ---------------------
(unaudited)
ASSETS
Investment securities available
for sale, at fair value $ 6,983,403 $ 6,904,781
Residential loans, at fair value 4,781,435 4,358,175
Residential loans held for sale,
at fair value 59,002 80,707
Multi-family loans, at fair value 45,079 55,476
Equity investments, at fair value 22,767 24,711
Cash and cash equivalents 212,307 210,333
Real estate, net 451,790 553,496
Goodwill 22,396 22,396
Other assets 385,719 428,772
---------- --------------
Total Assets (1) $ 12,963,898 $ 12,638,847
========== ==============
LIABILITIES AND EQUITY
Liabilities:
Repurchase agreements and
warehouse facilities $ 7,067,223 $ 6,753,417
Collateralized debt obligations
($3,240,220 at fair value and
$341,636 at amortized cost, net
as of June 30, 2026 and
$3,148,157 at fair value and
$363,645 at amortized cost, net
as of December 31, 2025) 3,581,856 3,511,802
Senior unsecured notes ($347,537
at fair value as of June 30, 2026
and $260,852 at fair value and
$99,585 at amortized cost, net as
of December 31, 2025) 347,537 360,437
Subordinated debentures 45,000 45,000
Mortgages payable on real estate,
net 274,940 332,131
Other liabilities 175,343 205,623
---------- --------------
Total liabilities (1) 11,491,899 11,208,410
---------- --------------
Commitments and Contingencies
Redeemable Non-Controlling
Interest in Consolidated Variable
Interest Entities 2,529 3,016
Stockholders' Equity:
Preferred stock, par value $0.01
per share, 200,000,000 shares
authorized, 22,385,674 shares
issued and outstanding ($559,642
aggregate liquidation
preference) 540,472 540,472
Common stock, par value $0.01 per
share, 200,000,000 shares
authorized, 89,879,786 and
90,303,863 shares issued and
outstanding as of June 30, 2026
and December 31, 2025,
respectively 899 903
Additional paid-in capital 2,306,071 2,294,194
Accumulated deficit (1,374,979) (1,408,647)
---------- --------------
Company's stockholders' equity 1,472,463 1,426,922
---------- --------------
Non-controlling interests (2,993) 499
---------- --------------
Total equity 1,469,470 1,427,421
---------- --------------
Total Liabilities and Equity $ 12,963,898 $ 12,638,847
========== ==============
(1) Our condensed consolidated balance sheets include
assets and liabilities of consolidated variable interest
entities ("VIEs") as the Company is the primary beneficiary
of these VIEs. As of June 30, 2026 and December 31,
2025, assets of consolidated VIEs totaled $4,343,904
and $4,367,560, respectively, and the liabilities
of consolidated VIEs totaled $3,887,010 and $3,881,273,
respectively.
ADAMAS TRUST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ----------------------
2026 2025 2026 2025
------- -------
NET INTEREST INCOME:
Interest income $174,393 $140,901 $346,459 $270,636
Interest expense 124,184 104,454 247,838 201,091
------- ------- ------- -------
Total net
interest
income 50,209 36,447 98,621 69,545
------- ------- ------- -------
NET LOSS FROM REAL
ESTATE:
Rental income 11,983 17,806 24,607 35,340
Other real estate
income 2,033 2,832 3,977 5,953
------- ------- ------- -------
Total income
from real
estate 14,016 20,638 28,584 41,293
------- ------- ------- -------
Interest expense,
mortgages payable
on real estate 3,350 5,882 7,171 11,890
Depreciation
expense 4,486 5,928 9,109 11,823
Other real estate
expenses 8,469 11,842 17,195 22,829
------- ------- ------- -------
Total expenses
related to
real estate 16,305 23,652 33,475 46,542
------- ------- ------- -------
Total net loss
from real
estate (2,289) (3,014) (4,891) (5,249)
------- ------- ------- -------
OTHER INCOME (LOSS):
Realized losses,
net (12,960) (3,771) (23,640) (44,871)
Unrealized
(losses) gains,
net (8,499) 24,614 (71,067) 142,818
Gains (losses) on
derivative
instruments, net 48,789 (26,966) 136,604 (73,768)
Mortgage banking
activities, net 16,208 -- 31,537 --
(Loss) income from
equity
investments (231) (1,428) 491 2,161
Impairment of real
estate (161) (3,913) (2,391) (7,818)
Other income 2,012 2,200 54,572 4,167
------- ------- ------- -------
Total other
income (loss) 45,158 (9,264) 126,106 22,689
------- ------- ------- -------
GENERAL,
ADMINISTRATIVE AND
OPERATING EXPENSES:
General and
administrative
expenses 25,613 11,786 50,103 24,201
Portfolio
operating
expenses 6,427 7,354 12,565 14,560
Loan origination
costs 4,847 -- 8,872 --
Financing
transaction
costs 3,125 750 8,507 6,232
------- ------- ------- -------
Total general,
administrative
and operating
expenses 40,012 19,890 80,047 44,993
------- ------- ------- -------
INCOME FROM
OPERATIONS BEFORE
INCOME TAXES 53,066 4,279 139,789 41,992
Income tax expense
(benefit) 13 (161) 172 487
------- ------- ------- -------
NET INCOME 53,053 4,440 139,617 41,505
Net loss (income)
attributable to
non-controlling
interests 2,129 4,106 (35,836) 9,196
------- ------- ------- -------
NET INCOME
ATTRIBUTABLE TO
COMPANY 55,182 8,546 103,781 50,701
Preferred stock
dividends (11,758) (12,032) (23,461) (23,902)
------- ------- ------- -------
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMPANY'S COMMON
STOCKHOLDERS $ 43,424 $ (3,486) $ 80,320 $ 26,799
======= ======= ======= =======
Basic earnings (loss)
per common share $ 0.48 $ (0.04) $ 0.89 $ 0.30
Diluted earnings
(loss) per common
share $ 0.47 $ (0.04) $ 0.87 $ 0.29
Weighted average
shares
outstanding-basic 89,979 90,324 90,165 90,453
Weighted average
shares
outstanding-diluted 92,348 90,324 92,202 91,222
ADAMAS TRUST, INC. AND SUBSIDIARIES
SUMMARY OF QUARTERLY EARNINGS (LOSS)
(Dollar amounts in thousands, except per share data)
(unaudited)
For the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
------------ ------------ ------------- ------------- ------------
Interest income $174,393 $172,065 $170,680 $160,633 $140,901
Interest expense 124,184 123,654 127,510 124,047 104,454
Total net
interest
income 50,209 48,411 43,170 36,586 36,447
Total net loss
from real
estate (2,289) (2,602) (3,292) (3,878) (3,014)
Total other
income (loss) 45,158 80,947 52,568 48,604 (9,264)
Total general,
administrative
and operating
expenses 40,012 40,031 36,123 41,825 19,890
Income from
operations
before income
taxes 53,066 86,725 56,323 39,487 4,279
Income tax
expense
(benefit) 13 159 (44) (298) (161)
Net income 53,053 86,566 56,367 39,785 4,440
Net loss
(income)
attributable to
non-controlling
interests 2,129 (37,965) (2,840) 5,035 4,106
Net income
attributable to
Company 55,182 48,601 53,527 44,820 8,546
Preferred stock
dividends (11,758) (11,704) (11,922) (12,118) (12,032)
Net income
(loss)
attributable to
Company's
common
stockholders 43,424 36,897 41,605 32,702 (3,486)
Basic earnings
(loss) per
common share $ 0.48 $ 0.41 $ 0.46 $ 0.36 $ (0.04)
Diluted earnings
(loss) per
common share $ 0.47 $ 0.40 $ 0.45 $ 0.36 $ (0.04)
Weighted average
shares
outstanding -
basic 89,979 90,353 90,399 90,406 90,324
Weighted average
shares
outstanding -
diluted 92,348 92,060 91,986 91,614 90,324
Yield on average
interest
earning assets
(1) 6.03% 6.07% 6.23% 6.34% 6.48%
Net interest
spread (1) 1.48% 1.44% 1.53% 1.51% 1.50%
Earnings
available for
distribution
attributable to
Company's
common
stockholders
(1) $ 27,127 $ 26,423 $ 20,414 $ 21,991 $ 20,024
Earnings
available for
distribution
per common
share - basic
(1) $ 0.30 $ 0.29 $ 0.23 $ 0.24 $ 0.22
Book value per
common share $ 10.16 $ 9.98 $ 9.60 $ 9.20 $ 9.11
Adjusted book
value per
common share
(1) $ 11.05 $ 10.80 $ 10.63 $ 10.38 $ 10.26
Dividends
declared per
common share $ 0.27 $ 0.23 $ 0.23 $ 0.23 $ 0.20
Dividends
declared per
preferred share
on Series D
Preferred
Stock $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
Dividends
declared per
preferred share
on Series E
Preferred
Stock $ 0.65 $ 0.65 $ 0.68 $ 0.70 $ 0.69
Dividends
declared per
preferred share
on Series F
Preferred
Stock $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43
Dividends
declared per
preferred share
on Series G
Preferred
Stock $ 0.44 $ 0.44 $ 0.44 $ 0.44 $ 0.44
(1) Represents a non-GAAP financial measure. A reconciliation
of the Company's non-GAAP financial measures to their
most directly comparable GAAP measure is included
below in "Reconciliation of Financial Information."
Reconciliation of Financial Information
Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures, including adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost, net interest spread, earnings available for distribution and adjusted book value per common share. Our management team believes that these non-GAAP financial measures, when considered with our GAAP financial statements, provide supplemental information useful for investors as it enables them to evaluate our current performance and trends using the metrics that management uses to operate our business. Our presentation of non-GAAP financial measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. Because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP should be carefully evaluated.
Adjusted Net Interest Income (Loss) and Net Interest Spread
Financial results for the Company during a given period include the net interest income earned on our investments, such as residential loans, residential loans held for sale, investment securities and Mezzanine Lending investments, where the risks and payment characteristics are equivalent to and accounted for as loans (collectively, our "interest earning assets"). Adjusted net interest income (loss) and net interest spread (both supplemental non-GAAP financial measures) are impacted by factors such as our cost of financing, including our hedging costs, and the interest rate that our investments bear. Furthermore, the amount of premium or discount paid on purchased investments and the prepayment rates on investments will impact adjusted net interest income (loss) as such factors will be amortized over the expected term of such investments.
We provide the following non-GAAP financial measures, in total and by investment category, for the respective periods:
-- adjusted interest income -- calculated as our GAAP interest income
reduced by the interest expense recognized on Consolidated SLST CDOs and
adjusted to include implied interest income from TBA dollar roll
transactions (calculated using the yield to maturity at trade date for
each TBA dollar roll position),
-- adjusted interest expense -- calculated as our GAAP interest expense
reduced by the interest expense recognized on Consolidated SLST CDOs and
adjusted to include the net interest component of interest rate swaps and
implied financing cost of TBA dollar roll transactions (representing the
difference between implied interest income from TBA dollar roll
transactions and TBA dollar roll income),
-- adjusted net interest income (loss) -- calculated by subtracting adjusted
interest expense from adjusted interest income,
-- yield on average interest earning assets -- calculated as the quotient of
our adjusted interest income and our average interest earning assets,
including the cost basis of outstanding TBAs and excluding all
Consolidated SLST assets other than those securities owned by the Company,
-- average financing cost -- calculated as the quotient of our adjusted
interest expense and the average outstanding balance of our interest
bearing liabilities, including the cost basis of outstanding TBAs and
excluding Consolidated SLST CDOs and mortgages payable on real estate,
and
-- net interest spread -- calculated as the difference between our yield on
average interest earning assets and our average financing cost.
These measures remove the impact of Consolidated SLST that we consolidate in accordance with GAAP and include both the net interest component of interest rate swaps utilized to hedge the variable cash flows associated with our variable-rate borrowings and dollar roll income associated with TBAs, which are included in gains (losses) on derivative instruments, net in the Company's condensed consolidated statements of operations. With respect to Consolidated SLST, we only include the interest income earned by the Consolidated SLST securities that are actually owned by the Company as the Company only receives income or absorbs losses related to the Consolidated SLST securities actually owned by the Company. We include the net interest component of interest rate swaps in these measures to more fully represent the cost of our financing strategy. We include TBA dollar roll income as it represents the economic equivalent of net interest income on the underlying Agency RMBS over the TBA dollar roll period (implied interest income less implied financing cost).
We provide the non-GAAP financial measures listed above because we believe these non-GAAP financial measures provide investors and management with additional detail and enhance their understanding of our interest earning asset yields, in total and by investment category, relative to the cost of our financing and the underlying trends within our portfolio of interest earning assets. In addition to the foregoing, our management team uses these measures to assess, among other things, the performance of our interest earning assets in total and by asset, possible cash flows from our interest earning assets in total and by asset, our ability to finance or borrow against the asset and the terms of such financing and the composition of our portfolio of interest earning assets, including acquisition and disposition determinations.
A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the three months ended as of the dates indicated is presented below (dollar amounts in thousands):
June 30, 2026
------------------------------------------------------------------------------
Single-Family Multi-Family
Agency Credit Credit Corporate/Other Total
--------- ----------------- ------------- ------------------- ------------
GAAP interest
income $ 92,911 $ 75,734 $ 1,714 $ 4,034 $ 174,393
GAAP interest
expense (56,683) (55,199) -- (12,302) (124,184)
------- -------- ------------ --- --------- --------
GAAP total net
interest
income (loss) $ 36,228 $ 20,535 $ 1,714 $ (8,268) $ 50,209
======= ======== === ============ === ========= ========
GAAP interest
income $ 92,911 $ 75,734 $ 1,714 $ 4,034 $ 174,393
Adjusted for:
Consolidated
SLST CDO
interest
expense -- (10,964) -- -- (10,964)
Implied
interest
income from
TBAs 3,945 -- -- -- 3,945
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
income $ 96,856 $ 64,770 $ 1,714 $ 4,034 $ 167,374
======= ======== === ============ === ========= === ========
GAAP interest
expense $(56,683) $ (55,199) $ -- $ (12,302) $(124,184)
Adjusted for:
Consolidated
SLST CDO
interest
expense -- 10,964 -- -- 10,964
Net interest
component of
interest
rate swaps (1,099) (42) -- (542) (1,683)
Implied
financing
cost of
TBAs (2,197) -- -- -- (2,197)
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
expense $(59,979) $ (44,277) $ -- $ (12,844) $(117,100)
======= ======== ============ === ========= ========
Adjusted net
interest
income (loss)
(1) $ 36,877 $ 20,493 $ 1,714 $ (8,810) $ 50,274
======= ======== === ============ === ========= ========
March 31, 2026
------------------------------------------------------------------------------
Single-Family Multi-Family
Agency Credit Credit Corporate/Other Total
--------- ----------------- ------------- ------------------- ------------
GAAP interest
income $ 93,955 $ 73,457 $ 1,654 $ 2,999 $ 172,065
GAAP interest
expense (58,596) (53,206) -- (11,852) (123,654)
------- -------- ------------ --- --------- --------
GAAP total net
interest
income (loss) $ 35,359 $ 20,251 $ 1,654 $ (8,853) $ 48,411
======= ======== === ============ === ========= ========
GAAP interest
income $ 93,955 $ 73,457 $ 1,654 $ 2,999 $ 172,065
Adjusted for:
Consolidated
SLST CDO
interest
expense -- (11,120) -- -- (11,120)
Implied
interest
income from
TBAs 1,000 -- -- -- 1,000
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
income $ 94,955 $ 62,337 $ 1,654 $ 2,999 $ 161,945
======= ======== === ============ === ========= === ========
GAAP interest
expense $(58,596) $ (53,206) $ -- $ (11,852) $(123,654)
Adjusted for:
Consolidated
SLST CDO
interest
expense -- 11,120 -- -- 11,120
Net interest
component of
interest
rate swaps (381) 11 -- (162) (532)
Implied
financing
cost of
TBAs (713) -- -- -- (713)
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
expense $(59,690) $ (42,075) $ -- $ (12,014) $(113,779)
======= ======== ============ === ========= ========
Adjusted net
interest
income (loss)
(1) $ 35,265 $ 20,262 $ 1,654 $ (9,015) $ 48,166
======= ======== === ============ === ========= ========
December 31, 2025
------------------------------------------------------------------------------
Single-Family Multi-Family
Agency Credit Credit Corporate/Other Total
--------- ----------------- ------------- ------------------- ------------
GAAP interest
income $ 94,743 $ 71,700 $ 1,711 $ 2,526 $ 170,680
GAAP interest
expense (63,766) (52,710) -- (11,034) (127,510)
------- -------- ------------ --- --------- --------
GAAP total net
interest
income (loss) $ 30,977 $ 18,990 $ 1,711 $ (8,508) $ 43,170
======= ======== === ============ === ========= ========
GAAP interest
income $ 94,743 $ 71,700 $ 1,711 $ 2,526 $ 170,680
Adjusted for:
Consolidated
SLST CDO
interest
expense -- (10,955) -- -- (10,955)
Implied
interest
income from
TBAs 154 -- -- -- 154
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
income $ 94,897 $ 60,745 $ 1,711 $ 2,526 $ 159,879
======= ======== === ============ === ========= === ========
GAAP interest
expense $(63,766) $ (52,710) $ -- $ (11,034) $(127,510)
Adjusted for:
Consolidated
SLST CDO
interest
expense -- 10,955 -- -- 10,955
Net interest
component of
interest
rate swaps 2,904 105 -- 156 3,165
Implied
financing
cost of
TBAs (142) -- -- -- (142)
------- -------- --- ------------ --- --------- --- --------
Adjusted
interest
expense $(61,004) $ (41,650) $ -- $ (10,878) $(113,532)
======= ======== ============ === ========= ========
Adjusted net
interest
income (loss)
(1) $ 33,893 $ 19,095 $ 1,711 $ (8,352) $ 46,347
======= ======== === ============ === ========= ========
September 30, 2025
------------------------------------------------------------------------------
Single-Family Multi-Family
Agency Credit Credit Corporate/Other Total
--------- ----------------- ------------- ------------------- ------------
GAAP interest
income $ 85,975 $ 70,504 $ 2,124 $ 2,030 $ 160,633
GAAP interest
expense (60,472) (53,080) -- (10,495) (124,047)
------- -------- ------------ --- --------- --------
GAAP total net
interest
income (loss) $ 25,503 $ 17,424 $ 2,124 $ (8,465) $ 36,586