New York Mortgage Trust, Inc.

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 and adjusted net interest income was $50.3 million; 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, up 1.8% and 2.3%, respectively. The company said EAD increased 36% year over year and that GAAP earnings exceeded the dividend of $0.27 per share. For funding, the company completed two BPL rental securitizations totaling approximately $521 million at a weighted average effective cost of 5.48%, redeemed an existing residential loan securitization, and increased warehouse capacity by $250 million to $3.7 billion. It ended the quarter with approximately $182 million of available cash and approximately $400 million of total liquidity capacity. Company recourse leverage was 5.5x and portfolio recourse leverage was 5.2x. Looking ahead, management said the 56% capital allocation to agencies is expected to remain largely unchanged, while incremental capital is likely to tilt more toward residential credit if relative returns stay better there. Constructive is expected to benefit from about $3 million of annual cost savings as initiatives roll through in the latter half of 2026 and into 2027.

Jason Serrano framed the quarter as part of a multi-quarter transformation into a more diversified mortgage REIT with recurring earnings supported by agency RMBS, residential credit and Constructive. He emphasized that Adamas is focused on improving earnings quality, book value stability and operating efficiency each quarter, and said the company is on track to keep scaling recurring earnings. His tone was confident and constructive, repeatedly pointing to strong momentum, discipline in capital allocation and optimism about the second half of 2026.

Kristine Nario highlighted the quarter’s financial strength: $43.4 million of GAAP net income, $0.48 per share of GAAP EPS, $0.30 of EAD per share, and $50.2 million of net interest income. She noted that derivative activity added $48.8 million of gains, including $33.7 million of realized gains and $15.1 million of unrealized gains, while higher rates caused $8.5 million of unrealized losses on parts of the investment portfolio. She also pointed to a 4.5% economic return on GAAP book value and 4.8% on adjusted book value, $25.6 million of consolidated G&A, the renewed ATM program increased to $250 million, and liquidity of about $182 million cash plus about $400 million of total liquidity capacity.

Analysts pressed on Constructive’s current trends, competition, and whether higher rates were improving economics; management said pipelines remain strong, coupon levels in the pipeline are higher, institutional demand has stayed surprisingly strong, and securitization pricing has remained workable. On capital deployment, management said the ATM would be used opportunistically where returns are best, with Jason Serrano citing a target of 15% plus equity returns and saying residential credit currently looks more attractive than agencies on a risk-adjusted basis. Questions on multifamily payoffs focused on timing and redeployment; management said the book is shrinking through payoffs rather than restructurings or extensions, with capital recycled into higher-return strategies as it comes back. On securitization costs, management said higher rates and somewhat wider AAA spreads were the main pressure, though they still priced tighter than peers on the latest deal.