Adamas Trust, Inc.

For the second quarter, Adamas Trust reported GAAP net income attributable to common stockholders of $43.4 million, or $0.48 per share, and earnings available for distribution of $0.30 per share. Net interest income was $50.2 million, adjusted net interest income was $50.3 million, and net interest spread increased to 148 basis points. GAAP book value increased to $10.16 per share and adjusted book value increased to $11.05 per share. The company said EAD was up 36% year over year, GAAP book value rose 1.8%, and adjusted book value rose 2.3%. Looking ahead, management did not provide formal next-quarter or full-year earnings guidance. They said the quarterly dividend was increased to $0.27 per share and remains well covered by EAD, that the company expects its 56% capital allocation to agencies to remain largely unchanged, and that Constructive’s cost savings should begin flowing through in the latter half of 2026 and into 2027. They also said they are on track to complete 5 to 6 BPL rental securitizations this year.

Jason Serrano framed the quarter as another step in Adamas’s transformation into a more diversified mortgage REIT with three recurring-income businesses: agency RMBS, residential credit, and Constructive. His tone was upbeat and confident, emphasizing consecutive quarters of earnings growth, rising book value, and disciplined capital allocation rather than volume chasing. He said the company’s priorities are to keep expanding recurring earnings, grow book value, and close the valuation gap through consistent execution.

Kristine Nario highlighted the main financial drivers: $43.4 million of GAAP net income, $0.48 per share of GAAP EPS, $0.30 EAD per share, and a $0.27 dividend that she said remains well covered. She pointed to $50.2 million of net interest income, a 148 basis point net interest spread, and $48.8 million of derivative gains that offset $8.5 million of unrealized losses on parts of the investment portfolio. She also cited $182 million of available cash, about $400 million of total liquidity capacity, company recourse leverage of 5.5x, portfolio recourse leverage of 5.2x, and noted that the renewed ATM was expanded from $100 million to $250 million but no shares were issued under the prior program.

Analysts focused on Constructive, capital deployment, multifamily resolution timing, and securitization costs. Management said Constructive pipelines remain strong, with higher coupons in the current pipeline, and that near-term focus is on efficiency and cost savings rather than maximizing volume. On capital allocation, they said incremental capital is more likely to go toward residential credit than a shift out of agencies, and that agency allocation should stay near 56%. On multifamily, management said the assets are paying down as expected, there are no delinquency issues, and proceeds are redeployed opportunistically rather than earmarked ahead of time. They also said securitization costs were pressured mainly by higher rates and somewhat wider AAA spreads, though execution remained solid.