ADAMAS TRUST, INC.

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 ¹. The company operates in two segments: investment portfolio and Constructive, with the investment portfolio generating the substantial portion of revenues and income ².

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, mainly 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. Credit assets are defined as residential loans (including business purpose loans), non-Agency RMBS, structured multi-family property investments, and other mortgage-, residential housing-, and credit-related assets that contain credit risk. Adamas also owns and manages investments in multi-family and single-family rentals ³.

The Investment Portfolio segment includes credit sensitive single-family and multi-family assets, as well as other fixed-income investments such as Agency RMBS ⁴. This segment's assets include Agency RMBS (primarily fixed-rate RMBS and ARMs guaranteed by Fannie Mae or Freddie Mac, and Agency IOs), Residential Loans (short-term 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 (collateralized by residential credit assets, consisting of senior, mezzanine, or subordinated tranches), and Single-Family Rental properties (471 properties as of December 31, 2025, majority in Illinois and Maryland, participating in the HUD Housing Choice Vouchers program) ⁵. Multi-family investments within this segment 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. As of December 31, 2025, 100% of the company's Mezzanine Lending assets were structured as preferred equity investments ⁶.

The Constructive segment represents the mortgage origination business conducted by Constructive Loans, LLC, a wholly-owned subsidiary specializing in rental and transitional loans for real estate investors. This segment generates revenues from the origination and sale of loans ⁷. Constructive operates in 48 states and originated approximately $1.8 billion of loans over the year ended December 31, 2025, including $864.9 million since July 15, 2025 ⁸. From July 15, 2025, to December 31, 2025, Constructive generated $26.6 million of mortgage banking income from origination and sale activity and incurred $8.1 million of direct loan origination costs ⁹.

For the fiscal year ended December 31, 2025, Adamas Trust, Inc. reported total interest income of $601,948 thousand ¹⁰ and interest expense of $452,647 thousand ¹¹, resulting in net interest income of $149,301 thousand ¹². The company experienced a net loss from real estate of $12,417 thousand ¹³ and other income of $123,859 thousand ¹⁴. General and administrative expenses were $72,656 thousand ¹⁵, portfolio operating expenses were $28,011 thousand ¹⁶, loan origination costs were $8,101 thousand ¹⁷, and financing transaction costs were $14,173 thousand ¹⁸. Net income attributable to common stockholders was $101,106 thousand ¹⁹, with basic earnings per common share of $1.12 ²⁰ and diluted earnings per common share of $1.10 ²¹. As of December 31, 2025, total assets were $12,638,847 thousand ²², with cash, cash equivalents, and restricted cash totaling $326,410 thousand ²³. Total liabilities were $11,208,410 thousand ²⁴, including repurchase agreements and warehouse facilities of $6,753,417 thousand ²⁵, collateralized debt obligations of $3,511,802 thousand ²⁶, and senior unsecured notes of $360,437 thousand ²⁷. The Company Recourse Leverage Ratio was 5.0x ²⁸, and the Portfolio Recourse Leverage Ratio was 4.7x ²⁹.

Comparing the year ended December 31, 2025, to the year ended December 31, 2024, interest income increased by $200,668 thousand ³⁰, and interest expense increased by $135,222 thousand ³¹. Net interest income rose by $65,446 thousand ³². Net loss from real estate decreased by $30,424 thousand ³³, while other income increased by $166,095 thousand ³⁴. General and administrative expenses increased by $23,984 thousand ³⁵, and loan origination costs increased by $8,101 thousand ³⁶ due to the consolidation of Constructive. Net income attributable to common stockholders saw a significant increase of $204,891 thousand ³⁷, moving from a loss of $103,785 thousand ³⁸ in 2024 to a gain of $101,106 thousand ³⁹ in 2025. The Company Recourse Leverage Ratio increased from 3.0x ⁴⁰ in 2024 to 5.0x ⁴¹ in 2025, and the Portfolio Recourse Leverage Ratio increased from 2.9x ⁴² in 2024 to 4.7x ⁴³ in 2025.

During the year ended December 31, 2025, Adamas achieved its highest level of annual investment activity, expanding its investment portfolio by approximately $3.1 billion, or 42%, to $10.5 billion ⁴⁴. Total acquisitions amounted to $6.1 billion ⁴⁵, primarily concentrated in Agency RMBS ($4.1 billion) ⁴⁶ and business purpose loans ($1.7 billion) ⁴⁷. The company completed the acquisition of the remaining 50% interest in Constructive on July 15, 2025, leading to full ownership and consolidation of its financial results ⁴⁸. Adamas also completed four securitizations of performing, re-performing, and business purpose loans, totaling approximately $945.5 million in net proceeds ⁴⁹. Additionally, it issued $82.5 million of 9.125% 2030 Senior Notes ⁵⁰ and $115.0 million of 9.875% 2030 Senior Notes ⁵¹. The company completed the wind-down of its multi-family joint venture equity investments during the year ⁵².

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 ⁵³.

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 ⁵⁴. The company also completed a new securitization of residential loans in January 2026, resulting in approximately $309.1 million of net proceeds, which were utilized to repay approximately $287.3 million on outstanding repurchase agreements related to residential loans ⁵⁵. 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, recognizing a loss on extinguishment of debt of approximately $0.3 million ⁵⁶.

The Federal Reserve's 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 ⁵⁷. The Federal Reserve halted the reduction of its holding of U.S. Treasuries in December 2025 and announced an intention to purchase short-term U.S. Treasuries, but continued to allow up to $35 billion of Agency RMBS to roll off its balance sheet each month ⁵⁸. In January 2026, the FHFA raised the cap on Agency RMBS holdings for Fannie Mae and Freddie Mac from $40 billion each to $225 billion each, and the current administration instructed them to purchase $200 billion in Agency RMBS ⁵⁹.

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 ⁶⁰.

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 ⁶¹. Zillow Research forecasts relatively slower rent growth for both single-family and multi-family rental housing to continue through 2026 ⁶².

Adamas Trust, Inc. faces material risks including declines in the market values of its investments, which can adversely affect reported results and credit availability, potentially reducing earnings, book value, and liquidity. Interest rate mismatches between interest-earning assets and borrowings may reduce net income or result in losses during periods of changing interest rates. The company may experience losses if it inaccurately estimates loss-adjusted yields of credit-sensitive assets. Interest rate increases may decrease the availability of targeted assets and increase interest expense. The investment portfolio may be concentrated in certain asset types or geographic areas, increasing exposure to economic downturns, with approximately 31% of the total investment portfolio comprised of residential loans and non-Agency RMBS, and 63% comprised of Agency RMBS as of December 31, 2025 ⁶³. Significant portions of properties securing residential loans are concentrated in California, Florida, Texas, New York, New Jersey, Pennsylvania, and Ohio ⁶⁴. Prepayment rates can change unpredictably, adversely affecting asset performance. The portfolio of business purpose loans exposes the company to different risks than traditional residential mortgage loans. Investments may include subordinated tranches of RMBS, CMBS, and ABS, which carry greater risk of loss, with approximately $145.9 million of subordinated, first loss non-Agency RMBS in the portfolio as of December 31, 2025 ⁶⁵. The election of fair value option for most investments may cause increased volatility in GAAP results. Failure of third-party service providers to perform can adversely impact business. Due diligence may be limited and not reveal all risks. Lack of liquidity in certain assets may adversely affect the business. The use of models for asset valuation subjects the company to risks if models are incorrect or incomplete. Investments in residential loans are difficult to value and depend on borrower ability to service or refinance debt. Preferred equity investments involve greater risks of loss than senior loans. Real estate and real estate-related assets are subject to risks particular to real property. Competition may prevent asset acquisition on favorable terms. Cybersecurity and data security breaches could harm reputation and financial results. System failures and operational disruptions could significantly disrupt business. Access to financing sources may be limited or unfavorable. Repurchase agreements may require additional collateral, reducing liquidity. Leverage can exacerbate losses and reduce cash for distributions. Inability to leverage equity as anticipated may diminish returns. Non-recourse securitizations and recourse structured financings expose the company to risks. Counterparty default on repurchase transactions or company default on repurchase agreements may incur losses. Use of repurchase agreements may give lenders greater rights in bankruptcy. Negative business impacts may cause default on financial covenants. Hedging against risks may adversely affect business and distributions. Volatility in derivative market values may cause net income volatility. Difficult conditions in mortgage, real estate, and financial markets and the economy generally may cause future losses. Changes in government policies, laws, or regulations or the U.S. political environment may affect the business. Downgrade of U.S. credit ratings or failure to resolve U.S. fiscal and debt policies may adversely affect business. Federal conservatorship of Fannie Mae and Freddie Mac and related efforts may adversely affect business. The company may change investment, financing, or hedging strategies and policies without stockholder consent. Maintenance of Investment Company Act exemption imposes significant operational limits. Accrual of floating-rate dividends on certain preferred stock series could adversely affect cash distributions. Mortgage loan modification programs and future legislative action may adversely affect asset value and returns. The company could be liable for predatory lending law violations. The business is subject to extensive regulation. Certain provisions of Maryland law and the company's charter and bylaws could hinder a change in control. The stock ownership limit may inhibit market activity and restrict business combination opportunities. Failure to qualify as a REIT would adversely affect operations and distributions. REIT distribution requirements could adversely affect liquidity. Dividends payable by REITs do not qualify for reduced tax rates. Complying with REIT requirements may cause the company to forego or liquidate attractive investments. Failure of certain investments subject to repurchase agreements to qualify as real estate assets would adversely affect REIT qualification. The company may incur significant tax liability from selling assets subject to prohibited transactions tax. REIT qualification could be jeopardized by interests in joint ventures or preferred equity. The "taxable mortgage pool" rules may increase taxes and limit future securitizations. Failure of a subsidiary REIT to qualify as a REIT could lead to higher taxes and loss of REIT qualification. Failure of excess MSRs to qualify as real estate assets or income could adversely affect REIT qualification. Unforeseen or catastrophic events, including pandemics, terrorist attacks, or natural disasters, may cause losses. Climate change and severe weather may pose risks. The company is dependent on certain key personnel. Investing in company securities involves a high degree of risk. The market price and trading volume of securities may be volatile. There is no minimum dividend payment level for common stockholders and no assurances of future dividends. Future offerings of debt or equity securities may dilute existing stockholders and adversely affect market price. An increase in interest rates may adversely affect the market price of securities and ability to make distributions.

Management emphasizes a strategic repositioning of the investment portfolio since 2023, aiming to enhance recurring income for stockholders by focusing on assets with less price sensitivity to credit deterioration, such as Agency RMBS, and short-duration, higher-coupon investments like business purpose loans. The year ended December 31, 2025, was highlighted as strategically significant, marked by a corporate rebranding, the acquisition of Constructive, earnings growth, record investment activity, and further execution of the capital rotation strategy to improve portfolio liquidity and strengthen the operating platform. Management reported net income attributable to common stockholders of $101.1 million, or $1.12 per share, for the year ended December 31, 2025 ⁶⁶. Earnings available for distribution (EAD) per common share increased 141% year-over-year to $0.89 per share ⁶⁷. GAAP book value per share increased 3.4% to $9.60 ⁶⁸, and adjusted book value per share rose 2.7% to $10.63 ⁶⁹, yielding an economic return of 12.72% on GAAP book value and 11.01% on adjusted book value for 2025 ⁷⁰. Supported by this earnings momentum, the Board of Directors declared quarterly dividends of $0.23 per share in the third and fourth quarters of 2025 ⁷¹, a 15% increase from the first and second quarters. Looking ahead, management expects to maintain a disciplined and measured approach to portfolio growth, leveraging Constructive's origination platform and continuing to focus on high-quality, income-producing assets. They believe the current balance sheet, diversified capital sources, and expanded origination capacity will enable them to capitalize on market opportunities, scale recurring earnings, and enhance long-term stockholder value ⁷².