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ADAMAS TRUST, INC.

ADAMI
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Business Summary

Adamas Trust, Inc. (formerly New York Mortgage Trust, Inc.) is an internally-managed REIT that strategically deploys 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. The company's current investment portfolio includes credit-sensitive single-family and multi-family assets, as well as other fixed-income investments such as Agency Residential Mortgage-Backed Securities (RMBS). Through its wholly-owned subsidiary, Constructive Loans, LLC ("Constructive"), Adamas also originates business purpose loans for residential real estate investors . The company operates in two segments: investment portfolio and Constructive, with the investment portfolio generating the substantial portion of revenues and income .

Adamas's core business model revolves around owning and managing a diversified portfolio of primarily mortgage-related single-family residential assets that include elements of credit risk and/or interest rate risk. This strategy involves a leveraged portfolio of Agency investments, primarily Agency fixed-rate RMBS and Agency Adjustable-Rate Mortgages (ARMs), which provide coupon income. The company also focuses on credit assets, many of which are originated or sourced through proprietary channels, including Constructive, targeting attractive total rates of return. Additionally, Adamas owns and manages investments in multi-family and single-family rentals .

The Investment Portfolio segment is substantially comprised of single-family and multi-family residential investments. Single-family investments include Agency RMBS, residential loans (business purpose bridge loans, business purpose rental loans, performing residential mortgage loans, seasoned performing/re-performing/non-performing/delinquent mortgage loans, and second mortgages), non-Agency RMBS, and single-family rental properties. As of December 31, 2025, the company owned 471 single-family rental properties, predominantly in Illinois and Maryland . Multi-family investments, as of December 31, 2025, consist of credit-oriented investments such as preferred equity investments and a cross-collateralized preferred equity and joint venture equity investment in multi-family properties. The company completed the disposition of the majority of its joint venture equity investments in multi-family properties during the year ended December 31, 2025 .

For the year ended December 31, 2025, Adamas reported net income attributable to common stockholders of $101.1 million , or $1.12 per basic common share and $1.10 per diluted common share . Total interest income was $601.948 million , with interest expense of $452.647 million , resulting in net interest income of $149.301 million . The company experienced a net loss from real estate of $(12.417) million and other income of $123.859 million . General and administrative expenses were $72.656 million , portfolio operating expenses were $28.011 million , loan origination costs were $8.101 million , and financing transaction costs were $14.173 million . As of December 31, 2025, total assets were $12.638 billion , with total liabilities of $11.208 billion . The company's stockholders' equity was $1.426 billion . Cash, cash equivalents, and restricted cash totaled $326.410 million . The Company Recourse Leverage Ratio was 5.0x , and the Portfolio Recourse Leverage Ratio was 4.7x .

Comparing 2025 to 2024, net income attributable to common stockholders increased from $(103.785) million to $101.106 million . Interest income increased by $200.668 million , while interest expense increased by $135.222 million . Net interest income grew by $65.446 million . Net loss from real estate decreased by $30.424 million , indicating improved performance in this area. Other income saw a significant increase of $166.095 million . General and administrative expenses increased by $23.984 million , primarily due to the consolidation of Constructive. Loan origination costs, at $8.101 million , were new in 2025 due to Constructive's consolidation. The company's investment portfolio expanded by approximately $3.1 billion, or 42%, to $10.5 billion .

During 2025, Adamas achieved its highest level of annual investment activity, with total acquisitions of $6.1 billion , primarily in Agency RMBS ($4.1 billion) and business purpose loans ($1.7 billion) . On July 15, 2025, the company completed the acquisition of the remaining 50% interest in Constructive, leading to full ownership and consolidation of its financial results from the third quarter of 2025 . Constructive originated approximately $1.8 billion of loans in 2025 , generating $26.6 million of mortgage banking income from origination and sale activity . Adamas also completed four securitizations of residential loans, totaling approximately $945.5 million in net proceeds , and issued $82.5 million of 9.125% 2030 Senior Notes and $115.0 million of 9.875% 2030 Senior Notes . The company also increased its common stock dividend to $0.23 per share in the third and fourth quarters of 2025 .

Business Outlook

Adamas Trust, Inc. expects to maintain a disciplined and measured approach to portfolio growth, supported by the integration of Constructive's origination platform and a continued focus on high-quality, income-producing assets. The company believes its current balance sheet, diversified capital sources, and expanded origination capacity position it to capitalize on market opportunities, further scale recurring earnings, and enhance long-term stockholder value .

The company anticipates that due to ongoing uncertainty related to trade policy, the labor market, inflation, and geopolitical instability, markets and the pricing for many of its assets will continue to experience volatility in 2026 . Federal Reserve officials' views on additional cuts to the target range for the federal funds rate by the end of 2026 are divided, though a majority indicated that one or more additional cuts would be appropriate . Zillow Research forecasts relatively slower rent growth for both single-family and multi-family rental housing to continue through 2026 .

In January 2026, Adamas completed the issuance of $90.0 million of its 9.250% Senior Notes due 2031 in an underwritten public offering, receiving $86.6 million in net proceeds . Also in January 2026, the company completed a new securitization of residential loans, resulting in approximately $309.1 million of net proceeds , which were used to repay approximately $287.3 million on outstanding repurchase agreements related to residential loans . In February 2026, the company redeemed its 2026 Senior Notes at 100% of the $100.0 million principal amount plus accrued but unpaid interest, for a total payment of $101.5 million .

The Board of Directors approved extensions of the common stock repurchase program, under which $188.2 million remained available for repurchase , and the preferred stock repurchase program, under which $97.6 million remained available for repurchase . The expiration dates for both programs were extended from March 31, 2026, to March 31, 2027 .

The Federal Housing Finance Agency (FHFA) raised the cap on the amount of Agency RMBS that Fannie Mae and Freddie Mac can hold from $40 billion each to $225 billion each in January 2026 . The current administration also instructed Fannie Mae and Freddie Mac to purchase $200 billion in Agency RMBS . These actions may drive Agency RMBS values higher and tighten mortgage spreads, which could increase the company's adjusted book value but reduce the return potential on new investments . The president issued an executive order in January 2026 directing executive agencies to identify ways to prevent GSEs from facilitating the acquisition of single-family homes by large institutional investors or from selling government-owned homes to them, and to track single-family rental owners receiving federal housing assistance for large institutional investor involvement . Such policies could materially adversely affect the company's investments in single-family rental homes .

Risk Factors

Adamas Trust, Inc. faces several material risks. Declines in the market values of investments, particularly credit-sensitive assets, may adversely affect periodic reported results and credit availability, potentially reducing earnings, book value, and liquidity . Interest rate mismatches between fixed-coupon assets and short-term variable-rate borrowings, especially with periodic and lifetime interest rate caps on ARMs, could reduce net income or result in losses during periods of rapidly increasing interest rates . The investment portfolio's concentration in certain asset types or geographic areas, such as residential loans and non-Agency RMBS comprising approximately 31% of the total investment portfolio and Agency RMBS comprising 63% as of December 31, 2025, increases exposure to economic downturns and localized risks . Residential loans, including business purpose loans, carry increased risks of loss due to direct exposure to default, potential for lengthy and expensive foreclosure processes, and dependence on borrower creditworthiness and property rental income . The company's use of repurchase agreements for financing exposes it to margin calls, which could require additional collateral or repayment of borrowings, potentially forcing asset sales at depressed prices and causing significant losses . Hedging strategies, while intended to mitigate risks, may not be perfectly correlated with the risks being hedged, can be expensive, and may fail to protect or even adversely affect the company's financial condition . Cybersecurity breaches or system failures could result in serious harm to reputation and material adverse impacts on business and financial results . Furthermore, changes in government policies, laws, or regulations, including those affecting Fannie Mae, Freddie Mac, and Ginnie Mae, or a downgrade of the U.S. credit rating, could materially adversely affect the business, liquidity, and financial condition . The company's ability to maintain its REIT qualification and Investment Company Act exemption imposes significant limits on its operations, potentially requiring it to forego otherwise attractive investments or alter its business conduct .

Management Priorities

Management's overall tone to shareholders emphasizes a strategic repositioning of the investment portfolio to enhance recurring income and long-term value through disciplined portfolio management and an operating platform designed to capture opportunities across real estate and capital markets. The company highlights its corporate rebranding, the acquisition of Constructive, earnings growth, and record investment activity as key achievements for the year ended December 31, 2025. Management reported net income attributable to common stockholders of $101.1 million and earnings available for distribution (EAD) per common share of $0.89 for 2025, with GAAP book value per share increasing 3.4% to $9.60 . The Board of Directors declared quarterly dividends of $0.23 per share in the third and fourth quarters of 2025. Looking ahead, management expects to maintain a disciplined and measured approach to portfolio growth, supported by the integration of Constructive's origination platform and a continued focus on high-quality, income-producing assets, believing this strategy will capitalize on market opportunities, scale recurring earnings, and enhance long-term stockholder value .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — General
  2. [2] Item 1, Business — General
  3. [3] Item 1, Business — Our Investment Strategy
  4. [4] Item 1, Business — Investment Portfolio
  5. [5] Item 1, Business — Multi-Family Investments
  6. [6] Item 7, MD&A — Selected Statement of Operations Data
  7. [7] Item 7, MD&A — Selected Statement of Operations Data
  8. [8] Item 7, MD&A — Selected Statement of Operations Data
  9. [9] Item 7, MD&A — Selected Statement of Operations Data
  10. [10] Item 7, MD&A — Selected Statement of Operations Data
  11. [11] Item 7, MD&A — Selected Statement of Operations Data
  12. [12] Item 7, MD&A — Selected Statement of Operations Data
  13. [13] Item 7, MD&A — Selected Statement of Operations Data
  14. [14] Item 7, MD&A — Selected Statement of Operations Data
  15. [15] Item 7, MD&A — Selected Statement of Operations Data
  16. [16] Item 7, MD&A — Selected Statement of Operations Data
  17. [17] Item 7, MD&A — Selected Statement of Operations Data
  18. [18] Item 7, MD&A — Selected Balance Sheet Data
  19. [19] Item 7, MD&A — Selected Balance Sheet Data
  20. [20] Item 7, MD&A — Selected Balance Sheet Data
  21. [21] Item 7, MD&A — Capital Allocation
  22. [22] Item 7, MD&A — Capital Allocation
  23. [23] Item 7, MD&A — Capital Allocation
  24. [24] Item 7, MD&A — Selected Statement of Operations Data
  25. [25] Item 7, MD&A — Results of Operations
  26. [26] Item 7, MD&A — Results of Operations
  27. [27] Item 7, MD&A — Results of Operations
  28. [28] Item 7, MD&A — Results of Operations
  29. [29] Item 7, MD&A — Results of Operations
  30. [30] Item 7, MD&A — Expenses
  31. [31] Item 7, MD&A — Executive Summary
  32. [32] Item 7, MD&A — Executive Summary
  33. [33] Item 7, MD&A — Executive Summary
  34. [34] Item 7, MD&A — Executive Summary
  35. [35] Item 7, MD&A — Executive Summary
  36. [36] Item 7, MD&A — Executive Summary
  37. [37] Item 7, MD&A — Executive Summary
  38. [38] Item 7, MD&A — Executive Summary
  39. [39] Item 7, MD&A — Executive Summary
  40. [40] Item 7, MD&A — Executive Summary
  41. [41] Item 7, MD&A — Executive Summary
  42. [42] Item 7, MD&A — Executive Summary
  43. [43] Item 7, MD&A — Current Market Conditions and Commentary
  44. [44] Item 7, MD&A — Current Market Conditions and Commentary
  45. [45] Item 7, MD&A — Current Market Conditions and Commentary
  46. [46] Item 7, MD&A — Subsequent Developments
  47. [47] Item 7, MD&A — Subsequent Developments
  48. [48] Item 7, MD&A — Subsequent Developments
  49. [49] Item 7, MD&A — Subsequent Developments
  50. [50] Item 7, MD&A — Subsequent Developments
  51. [51] Item 7, MD&A — Subsequent Developments
  52. [52] Item 7, MD&A — Subsequent Developments
  53. [53] Item 7, MD&A — Current Market Conditions and Commentary
  54. [54] Item 7, MD&A — Current Market Conditions and Commentary
  55. [55] Item 7, MD&A — Current Market Conditions and Commentary
  56. [56] Item 7, MD&A — Current Market Conditions and Commentary
  57. [57] Item 7, MD&A — Current Market Conditions and Commentary
  58. [58] Item 1A, Risk Factors — Risks Related to Our Business
  59. [59] Item 1A, Risk Factors — Risks Related to Our Business
  60. [60] Item 1A, Risk Factors — Risks Related to Our Business
  61. [61] Item 1A, Risk Factors — Risks Related to Our Business
  62. [62] Item 1A, Risk Factors — Risks Related to Debt Financing and Our Use of Hedging Strategies
  63. [63] Item 1A, Risk Factors — Risks Related to Debt Financing and Our Use of Hedging Strategies
  64. [64] Item 1A, Risk Factors — Risks Related to Our Business
  65. [65] Item 1A, Risk Factors — Risks Associated With Adverse Developments in the Mortgage, Real Estate, Credit and Financial Markets Generally
  66. [66] Item 1A, Risk Factors — Risks Related To Our Organization, Our Structure and Other Risks
  67. [67] Item 7, MD&A — Earnings Available for Distribution
  68. [68] Item 7, MD&A — Executive Summary

Analysis on 5/19/2026