New York Mortgage Trust, Inc.

For the second quarter, Adamas 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 was 148 basis points. GAAP book value increased to $10.16 per share and adjusted book value increased to $11.05 per share. The quarter also included $48.8 million of derivative gains, consisting of $33.7 million of realized gains and $15.1 million of net unrealized gains, partially offset by $8.5 million of net unrealized losses on the investment portfolio. The Board raised the quarterly dividend to $0.27 per share. The company ended with approximately $182 million of available cash and approximately $400 million of total liquidity capacity, while company recourse leverage was 5.5x and portfolio recourse leverage was 5.2x. For Constructive, mortgage banking income increased to $16.2 million and the segment generated approximately $2 million of profit on a stand-alone basis. Management did not give formal next-quarter or full-year earnings guidance, but said it expects residential credit to take a larger share of incremental capital, expects the 56% capital allocation to agencies to remain largely unchanged, and said Adamas is on track to complete 5 to 6 BPL rental securitizations this year. They also said Constructive has identified approximately $3 million of annual cost savings, with benefits expected in the latter half of 2026 and into 2027.

Jason Serrano framed the quarter as proof that Adamas is becoming a more diversified mortgage REIT with three complementary earnings engines: agency RMBS, residential credit, and Constructive. His tone was confident and upbeat, emphasizing stronger recurring earnings, rising book value, and disciplined capital allocation rather than volume chasing. He said the company’s priorities are to grow recurring earnings, keep building book value, and close the valuation gap through consistent execution.

Kristine Nario focused on the mechanics behind the quarter’s results: GAAP net income of $43.4 million, EPS of $0.48, EAD of $0.30, and a dividend of $0.27 that she said remains well covered. She highlighted 148 basis points of net interest spread, 4.5% economic return on GAAP book value, 4.8% on adjusted book value, and a stronger funding profile after two BPL rental securitizations totaling about $521 million at a weighted average effective cost of 5.48%, a redeemed residential loan securitization, and $250 million of additional warehouse capacity. She also noted approximately $182 million of cash, about $400 million of total liquidity capacity, and that the renewed ATM was increased from $100 million to $250 million for flexibility, with no shares issued under the prior program.

Analysts focused on three themes: the pace and economics of Constructive, how Adamas intends to deploy incremental capital, and whether leverage will rise as noncore assets roll off. Management said Constructive’s pipeline remains strong, coupons in the pipeline are higher than quarter-end coupons, and institutional demand has stayed surprisingly robust; they also said about $3 million of annual cost savings are being implemented and should benefit earnings in late 2026 and 2027. On capital allocation, management said they see 15% plus equity returns as the target and currently find residential credit more attractive on a risk-adjusted basis, while expecting the 56% agency allocation to remain broadly stable. On leverage, they said 5.5x is a comfortable level and any increase would mainly reflect the rotation of unlevered multifamily assets into leveraged strategies rather than a push for leverage for its own sake.