Adamas Trust, Inc.

Overview

Adamas Trust, Inc. (formerly New York Mortgage Trust, Inc.) completed its name change on September 3, 2025. The company is an internally managed real estate investment trust (REIT) with two reporting segments: an Investment Portfolio and Constructive, a business-purpose loan origination platform for residential real estate investors. Corporate headquarters are at 90 Park Avenue, New York, NY, with additional offices in Charlotte, NC; Woodland Hills, CA; and Oakbrook Terrace, IL. The company has elected to be taxed as a REIT and intends to maintain applicable regulatory exemptions under the Investment Company Act.

Business segments

• Investment Portfolio
  • Manages a diversified portfolio of mortgage-related and credit assets, including Agency RMBS, residential loans, non-Agency RMBS, subordinated RMBS/CMBS/ABS tranches, and single-family rental (SFR) investments.
• Constructive
  • Originates business-purpose loans for residential real estate investors. Loans may be retained or sold to other investors. Constructive serves as a proprietary sourcing channel for credit assets aligned with the company’s objectives. It operates in 48 states. In July 2025 the company acquired the remaining 50% ownership of Constructive.

Portfolio strategy and asset mix (as of 12/31/2025)

• Strategy
  • Maintain a diversified mix of credit- and rate-sensitive assets with emphasis on Agency investments for liquidity and government-backed credit support, alongside credit assets such as residential loans, non-Agency RMBS, structured multi-family investments, and MSRs. The strategy includes using certain assets with leverage to enhance returns while managing risk.
• Total investment portfolio composition
  • Agency RMBS: 63%
  • Residential loans and non-Agency RMBS: ~31%
  • Other assets (multi-family investments, MSRs, etc.): ~6%

Real estate and collateral exposure

• Single-Family Rental (SFR)
  • Participates in HUD Housing Choice Voucher programs through public housing agencies. Owns 471 SFR properties as of 12/31/2025, primarily in Illinois and Maryland.
• Multi-Family Investments
  • Credit-oriented positions including preferred equity and cross-collateralized mezzanine investments in mid-market multi-family properties. Includes a cross-collateralized mezzanine investment where the company holds roughly 27% common equity and about $144.1 million in preferred equity (as of 12/31/2025).
• Geographic concentration
  • Material collateral and real estate exposure in California, Florida, Texas, New York, New Jersey, Pennsylvania, and Ohio, among other states.
• Credit and subordinated exposures
  • Holds subordinated RMBS and ABS tranches with greater sensitivity to defaults and prepayments.

Financing and leverage

• Financing mix
  • Uses short-term repurchase agreements and warehouse facilities alongside longer-term structured debt, securitizations, and securities issuance. Some master repurchase financing arrangements include guarantees.
• Leverage policy
  • Target total debt leverage generally not to exceed 6:1.
• Leverage metrics (as of 12/31/2025)
  • Recourse leverage ratio: ~5.0 to 1 (total recourse debt / total stockholders’ equity)
  • Portfolio recourse leverage: ~4.7 to 1 (outstanding recourse repurchase agreements / total stockholders’ equity)
• Liquidity considerations
  • Uses collateralized financing with haircuts; margin calls can require additional collateral or asset sales. TBA securities and dollar roll transactions are used for yield enhancement and funding, which carry roll risk and potential liquidity implications.

Hedging and risk management

• Hedging instruments
  • Interest rate swaps, caps, TBAs, credit default swaps, Treasury futures, commodity futures, and other instruments to manage interest rate, market value, and credit risks. Not all hedges are hedge-accounted; changes in fair value generally flow through earnings.
• Risk governance
  • Employs model-based risk analysis, maintains an incident response plan and a business continuity plan, monitors third-party service providers and cybersecurity controls, and provides risk oversight through board committees.

Revenue and accounting

• Revenue sources
  • Investment Portfolio: interest income and gains/losses from real estate and other investment income.
  • Constructive: revenue from loan originations and sales, and related gains/losses.
• Accounting approach
  • The company has elected the fair value option for many investments; fair value accounting contributes to volatility in GAAP results.

Financial highlights and operations (selected items)

• Employees
  • 221 full-time employees as of 12/31/2025; 160 (about 72%) are engaged in Constructive operations.
• Impairments and disposals
  • Net impairment losses: approximately $9.8 million in 2025 and approximately $48.9 million in 2024.
  • Disposals-related losses: approximately $14.6 million in 2024 (loss on reclassification of disposal group).
• Sourcing and ownership
  • Constructive is a primary origination channel for the company’s credit assets; the company acquired the remaining 50% of Constructive in July 2025.

Governance and regulation

• Corporate governance
  • Board oversight of risk and information security, with governance documents and codes available on the company website; printed copies available on request.
• Regulatory status
  • Qualified as a REIT and maintains Section 3(c)(5)(C) and related exemptions under the Investment Company Act while monitoring applicable tax and regulatory requirements.

Market positioning

• Competitive landscape
  • Competes with banks, insurance companies, mutual funds, hedge funds, and other mortgage REITs for targeted assets.
• Differentiators
  • Emphasizes operational advantages through Constructive and a disciplined risk/return framework.