Management Update To Our Stockholders
Jason Serrano, Chief Executive Officer, commented: "2025 was a pivotal year for Adamas, defined by substantial investment portfolio expansion, greater profitability and our strategic acquisition of Constructive. Over the course of the year, we increased quarterly EAD by 44%, generated more than $100 million in net income, expanded the portfolio by $3.1 billion, and raised the dividend by 15%, all while increasing book value. Through the disciplined execution of our strategy, we increased Company recurring income, enhanced liquidity and established a more durable earnings foundation. We begin 2026 with meaningful momentum and strong conviction in our ability to further grow EAD and create long-term value for our stockholders."
Summary of Fourth Quarter and Full Year 2025: (dollar amounts in thousands, except per share data)
For the Three Months Ended December 31, 2025
For the Year Ended December 31, 2025
Net income attributable to Company's common stockholders
$
41,605
$
101,106
Net income attributable to Company's common stockholders per share (basic)
$
0.46
$
1.12
Earnings available for distribution attributable to Company's common stockholders (1)
$
20,414
$
80,624
Earnings available for distribution per common share (1)
$
0.23
$
0.89
Yield on average interest earning assets (1) (2)
6.23
%
6.36
%
Interest income
$
170,680
$
601,948
Interest expense
$
127,510
$
452,647
Net interest income
$
43,170
$
149,301
Net interest spread (1) (3)
1.52
%
1.46
%
Book value per common share at the end of the period
$
9.60
$
9.60
Adjusted book value per common share at the end of the period (1)
$
10.63
$
10.63
Economic return on book value (4)
6.85
%
12.72
%
Economic return on adjusted book value (5)
4.62
%
11.01
%
Dividends per common share
$
0.23
$
0.86
(1)
Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information."
(2)
Calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company.
(3)
Our calculation of net interest spread may not be comparable to similarly-titled measures of other companies who may use a different calculation.
(4)
Economic return on book value is based on the periodic change in GAAP book value per common share plus dividends declared per common share, if any, during the period.
(5)
Economic return on adjusted book value is based on the periodic change in adjusted book value per common share, a non-GAAP financial measure, plus dividends declared per common share, if any, during the period.
Key Developments:
Fourth Quarter 2025
Purchased approximately $412.1 million of investment securities, including $346.7 million of Agency RMBS.
Acquired approximately $462.4 million of residential loans.
Full Year 2025 Investing Activities
Purchased approximately $4.4 billion of investment securities, including $4.1 billion of Agency investments.
Acquired approximately $1.7 billion of residential loans.
Exited remaining multi-family joint venture equity investments in disposal group.
Received approximately $79.2 million in proceeds from redemptions of Mezzanine Lending investments.
Acquired the outstanding 50% ownership interests in Constructive that were not previously owned by the Company through the consummation of a membership interest purchase agreement on July 15, 2025.
Full Year 2025 Financing Activities
Completed the issuance of $82.5 million in aggregate principal amount of our 9.125% Senior Notes due 2030 in an underwritten public offering. The total net proceeds to us from the offering of the notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $79.3 million.
Completed the issuance of $115.0 million in aggregate principal amount of our 9.875% Senior Notes due 2030 in public offerings. The total net proceeds to us from the offerings of the notes, after deducting the underwriters' discount and commissions and offering expenses, as applicable, were approximately $111.4 million.
Completed four securitizations of residential loans, resulting in approximately $945.5 million in aggregate net proceeds to us after deducting expenses associated with the securitization transactions.
Exercised our right to optional redemptions of three residential loan securitizations with aggregate outstanding principal balances of $424.6 million at the time of redemption.
Increased common stock dividend declared to $0.23 per common share for the final two quarters of 2025.
Subsequent Developments
On January 13, 2026, we completed the issuance of $90.0 million in aggregate principal amount of our 9.25% Senior Notes due 2031 in an underwritten public offering. The total net proceeds to us from the offering of the notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $86.6 million.
In January 2026, we completed a new securitization of residential loans resulting in approximately $309.1 million of net proceeds to us after deducting expenses associated with the transaction. We utilized the net proceeds to repay approximately $287.3 million on outstanding repurchase agreements related to residential loans.
On February 2, 2026, we redeemed our 5.75% Senior Notes due 2026 at 100% of the $100.0 million principal amount, plus accrued but unpaid interest, to, but excluding, the redemption date, for a total payment of $101.5 million.
On February 16, 2026, our Board of Directors approved extensions of our common stock repurchase program, under which $188.2 million of the approved amount remained available for repurchase, and our preferred stock repurchase program, under which $97.6 million of the approved amount remained available for repurchase. The expiration dates of both stock repurchase programs were extended from March 31, 2026 to March 31, 2027.
Capital Allocation
The following table sets forth our allocated capital at December 31, 2025 (dollar amounts in thousands):
Investment Portfolio (1)
Constructive
Corporate/Other
Total
Investment securities available for sale
$
6,904,781
$
—
$
—
$
6,904,781
Residential loans
4,224,864
133,311
—
4,358,175
Consolidated SLST CDOs
(1,006,919
)
—
—
(1,006,919
)
Residential loans held for sale
—
80,707
—
80,707
Multi-family loans
55,476
—
—
55,476
Equity investments
24,711
—
—
24,711
Equity investments in consolidated multi-family properties (2)
152,953
—
—
152,953
Equity investments in disposal group held for sale (3)
524
—
—
524
Single-family rental properties
128,841
—
—
128,841
Mortgage servicing rights
20,868
25
—
20,893
Total investments
10,506,099
214,043
—
10,720,142
Liabilities:
Repurchase agreements and warehouse facilities
(6,557,825
)
(195,592
)
—
(6,753,417
)
Collateralized debt obligations
Residential loan securitization CDOs
(2,439,607
)
—
—
(2,439,607
)
Non-Agency RMBS re-securitization
(65,276
)
—
—
(65,276
)
Senior unsecured notes
—
—
(360,437
)
(360,437
)
Subordinated debentures
—
—
(45,000
)
(45,000
)
Cash, cash equivalents and restricted cash (4)
113,478
16,282
196,650
326,410
Goodwill
—
22,396
22,396
Cumulative adjustment of redeemable non-controlling interest to estimated redemption value
(42,222
)
—
—
(42,222
)
Other
119,554
10,682
(66,303
)
63,933
Net Company capital allocated
$
1,634,201
$
67,811
$
(275,090
)
$
1,426,922
Company Recourse Leverage Ratio (5)
5.0x
Portfolio Recourse Leverage Ratio (6)
4.7x
(1)
The Company, through its ownership of certain securities, has determined it is the primary beneficiary of Consolidated SLST and has consolidated the assets and liabilities of Consolidated SLST in the Company's consolidated financial statements. Consolidated SLST is primarily presented on our consolidated balance sheets as residential loans, at fair value and collateralized debt obligations, at fair value. Our investment in Consolidated SLST as of December 31, 2025 was limited to the RMBS comprised of first loss subordinated securities and certain IOs issued by the respective securitizations with an aggregate net carrying value of $151.5 million.
(2)
Represents the Company's equity investments in consolidated multi-family properties that are not in disposal group held for sale. See "Reconciliation of Financial Information" section below for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.
(3)
Represents the Company's equity investments in multi-family properties that are held for sale in disposal group. See "Reconciliation of Financial Information" section below for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.
(4)
Excludes cash in the amount of $4.4 million held in the Company's equity investments in consolidated multi-family properties and equity investments in consolidated multi-family properties in disposal group held for sale. Restricted cash of $132.0 million is included in the Company's accompanying consolidated balance sheets in other assets.
(5)
Represents the Company's total outstanding recourse repurchase agreement and warehouse facility financing, senior unsecured notes and subordinated debentures, divided by the Company's total stockholders' equity. Does not include Consolidated SLST CDOs amounting to $1.0 billion, residential loan securitization CDOs amounting to $2.4 billion, non-Agency RMBS re-securitization CDOs amounting to $65.3 million and mortgages payable on real estate totaling $332.1 million as they are non-recourse debt.
(6)
Represents the Company's outstanding recourse repurchase agreement and warehouse facility financing divided by the Company's total stockholders' equity.
Net Interest Spread
The following table sets forth certain information about our interest earning assets by category and their related adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost and net interest spread for the three months ended December 31, 2025 (dollar amounts in thousands):
Three Months Ended December 31, 2025
Agency
Single-Family Credit
Multi-Family Credit
Corporate/Other
Total
Adjusted Interest Income (1) (2)
$
94,755
$
60,745
$
1,711
$
2,526
$
159,737
Adjusted Interest Expense (1)
(60,862
)
(41,650
)
—
(10,878
)
(113,390
)
Adjusted Net Interest Income (Loss) (1)
$
33,893
$
19,095
$
1,711
$
(8,352
)
$
46,347
Average Interest Earning Assets (3)
$
6,555,816
$
3,428,641
$
59,372
$
215,170
$
10,258,999
Average Interest Bearing Liabilities (4)
$
5,906,266
$
3,037,293
$
—
$
617,580
$
9,561,139
Yield on Average Interest Earning Assets (1) (5)
5.78
%
7.09
%
11.53
%
4.70
%
6.23
%
Average Financing Cost (1) (6)
(4.09)%
(5.44)%
—
(6.99)%
(4.71)%
Net Interest Spread (1) (7)
1.69
%
1.65
%
11.53
%
(2.29)%
1.52
%
(1)
Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information."
(2)
Includes interest income earned on cash accounts held by the Company.
(3)
Average Interest Earning Assets for the period include residential loans, residential loans held for sale, multi-family loans and investment securities and cost basis of outstanding TBAs and exclude all Consolidated SLST assets other than those securities owned by the Company. Average Interest Earning Assets is calculated based on the daily average amortized cost for the period.
(4)
Average Interest Bearing Liabilities for the period include repurchase agreements and warehouse facilities, residential loan securitization and non-Agency RMBS re-securitization CDOs, senior unsecured notes and subordinated debentures and exclude Consolidated SLST CDOs and mortgages payable on real estate as the Company does not directly incur interest expense on these liabilities that are consolidated for GAAP purposes. Average Interest Bearing Liabilities is calculated based on the daily average outstanding balance for the period.
(5)
Yield on Average Interest Earning Assets is calculated by dividing our annualized adjusted interest income relating to our portfolio of interest earning assets by our Average Interest Earning Assets for the period.
(6)
Average Financing Cost is calculated by dividing our annualized adjusted interest expense by our Average Interest Bearing Liabilities.
(7)
Net Interest Spread is the difference between our Yield on Average Interest Earning Assets and our Average Financing Cost.
Segment Information
The following tables present summarized financial information by reportable segment for the three months and year ended December 31, 2025, respectively, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):
For the Three Months Ended December 31, 2025
Investment Portfolio
Constructive
Corporate/Other
Total
Total net interest income (loss)
$
51,712
$
209
$
(8,751
)
$
43,170
Total net loss from real estate
(3,292
)
—
—
(3,292
)
Total other income
34,833
12,516
5,219
52,568
Total general, administrative and operating expenses (1)
6,888
17,591
11,644
36,123
Income (loss) from operations before income taxes
76,365
(4,866
)
(15,176
)
56,323
Income tax (benefit) expense
(108
)
—
64
(44
)
Net income (loss)
76,473
(4,866
)
(15,240
)
56,367
Net income attributable to non-controlling interests
(2,840
)
—
—
(2,840
)
Net income (loss) attributable to Company
73,633
(4,866
)
(15,240
)
53,527
Preferred stock dividends
—
—
(11,922
)
(11,922
)
Net income (loss) attributable to Company's common stockholders
$
73,633
$
(4,866
)
$
(27,162
)
$
41,605
(1)
General, administrative and operating expenses of the Constructive segment include $10.2 million of direct general and administrative expenses and $4.3 million of direct loan origination costs incurred by Constructive.
For the Year Ended December 31, 2025
Investment Portfolio
Constructive (1)
Corporate/Other
Total
Total net interest income (loss)
$
177,699
$
334
$
(28,732
)
$
149,301
Total net loss from real estate
(12,417
)
—
—
(12,417
)
Total other income
93,578
24,678
5,603
123,859
Total general, administrative and operating expenses (2)
34,367
33,538
55,036
122,941
Income (loss) from operations before income taxes
224,493
(8,526
)
(78,165
)
137,802
Income tax (benefit) expense
(82
)
—
227
145
Net income (loss)
224,575
(8,526
)
(78,392
)
137,657
Net loss attributable to non-controlling interests
11,391
—
—
11,391
Net income (loss) attributable to Company
235,966
(8,526
)
(78,392
)
149,048
Preferred stock dividends
—
—
(47,942
)
(47,942
)
Net income (loss) attributable to Company's common stockholders
$
235,966
$
(8,526
)
$
(126,334
)
$
101,106
(1)
Represents information for Constructive from July 15, 2025 to December 31, 2025.
(2)
General, administrative and operating expenses of the Constructive segment include $18.3 million of direct general and administrative expenses and $8.1 million of direct loan origination costs incurred by Constructive.
Conference Call
On Thursday, February 19, 2026 at 9:00 a.m., Eastern Time, Adamas Trust's executive management is scheduled to host a conference call and audio webcast to discuss the Company's financial results for the three months and year ended December 31, 2025. To access the conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details. A live audio webcast of the conference call can be accessed, on a listen-only basis, at the Investor Relations section of the Company's website at www.adamasreit.com or using this link. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast. A webcast replay link of the conference call will be available on the Investor Relations section of the Company's website approximately two hours after the call and will be available for 12 months.
In connection with the release of these financial results, the Company will also post a supplemental financial presentation that will accompany the conference call on its website at www.adamasreit.com under the "Investors, Events and Presentations" section. Full year 2025 financial and operating data can be viewed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. A copy of the Form 10-K will be posted at the Company's website as soon as reasonably practicable following its filing with the Securities and Exchange Commission.
About Adamas Trust
Adamas Trust, Inc. is an internally managed real estate investment trust ("REIT") focused on strategically deploying 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. For a list of defined terms used from time to time in this press release, see "Defined Terms" below.
Defined Terms
The following defines certain of the commonly used terms that may appear in this press release: "Constructive" refers to Constructive Loans, LLC, the Company's wholly-owned origination platform; "RMBS" refers to residential mortgage-backed securities backed by adjustable-rate, hybrid adjustable-rate, or fixed-rate residential loans; "Agency RMBS" refers to RMBS representing interests in or obligations backed by pools of residential loans guaranteed by a government sponsored enterprise ("GSE"), such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac"), or an agency of the U.S. government, such as the Government National Mortgage Association ("Ginnie Mae"); "TBAs" refers to to-be-announced securities that are forward contracts for the purchase or sale of Agency fixed-rate RMBS at a predetermined price, face amount, issuer, coupon, and stated maturity on an agreed-upon future date; "Agency investments" refer to Agency RMBS and TBAs; "TBA dollar roll income" refers to the difference in price between two TBA contracts with the same terms but different settlement dates that are simultaneously bought and sold; "non-Agency RMBS" refers to RMBS that are not guaranteed by any agency of the U.S. Government or any GSE; "IOs" refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; "POs" refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; "CDO" refers to collateralized debt obligation and includes debt that permanently finances the residential loans held in Consolidated SLST, the Company's residential loans held in securitization trusts and a non-Agency RMBS re-securitization that we consolidate or consolidated in our financial statements in accordance with GAAP; "Consolidated SLST" refers to Freddie Mac-sponsored residential loan securitizations, comprised of seasoned re-performing and non-performing residential loans, of which we own the first loss subordinated securities and certain IOs, that we consolidate in our financial statements in accordance with GAAP; "Consolidated VIEs" refers to variable interest entities ("VIE") where the Company is the primary beneficiary, as it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE and that we consolidate in our financial statements in accordance with GAAP; "Consolidated Real Estate VIEs" refers to Consolidated VIEs that own multi-family properties; "business purpose loans" refers to (i) short-term loans that are collateralized by residential properties and are made to investors who intend to rehabilitate and sell the residential property for a profit or (ii) loans that finance (or refinance) non-owner occupied residential properties that are rented to one or more tenants; "Mezzanine Lending" refers, collectively, to preferred equity and mezzanine loan investments in multi-family properties; "Cross-Collateralized Mezzanine Lending" refers to a cross-collateralized preferred equity and joint venture equity investment in multi-family properties; "Multi-Family Credit" includes Mezzanine Lending; "Single-Family Credit" includes residential loans, residential loans held for sale, non-Agency RMBS and single-family rental properties; and "Corporate/Other" includes, or included, other investment securities and an equity investment in an entity that originates residential loans.
Cautionary Statement Regarding Forward-Looking Statements
When used in this press release, in future filings with the Securities and Exchange Commission (the "SEC") or in other written or oral communications, statements which are not historical in nature, including those containing words such as "will," "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "could," "would," "should," "may" or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and, as such, may involve known and unknown risks, uncertainties and assumptions.
Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation: changes in the Company's business and investment strategy; inflation and changes in interest rates and the fair market value of the Company's assets, including negative changes resulting in margin calls relating to the financing of the Company's assets; changes in credit spreads; changes in the long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae; general volatility of the markets in which the Company invests; changes in prepayment rates on the loans the Company owns or that underlie the Company's investment securities; increased rates of default, delinquency or vacancy and/or decreased recovery rates on or at the Company's assets; the Company's ability to identify and acquire targeted assets, including assets in its investment pipeline; the Company's ability to dispose of assets from time to time on terms favorable to it; changes in relationships with the Company's financing counterparties and the Company's ability to borrow to finance its assets and the terms thereof; changes in the Company's relationships with and/or the performance of its operating partners; the Company's ability to predict and control costs; changes in laws, regulations or policies affecting the Company's business; the Company's ability to make distributions to its stockholders in the future; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company's ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended; impairments and declines in the value of the collateral underlying the Company's investments; changes in the benefits the Company anticipates from the acquisition of Constructive; the Company's ability to effectively integrate Constructive into the Company and the risks associated with the ongoing operation thereof; the Company's ability to manage or hedge credit risk, interest rate risk, and other financial and operational risks; the Company's exposure to liquidity risk, risks associated with the use of leverage, and market risks; and risks associated with investing in real estate assets and/or operating companies, including changes in business conditions and the general economy, the availability of investment opportunities and conditions in markets for residential loans, mortgage-backed securities, structured multi-family investments and other assets that the Company owns or in which the Company invests.
These and other risks, uncertainties and factors, including the risk factors and other information described in the Company's reports filed with the SEC pursuant to the Exchange Act, could cause the Company's actual results to differ materially from those projected in any forward-looking statements the Company makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Further Information
CONTACT: AT THE COMPANY Phone: 212-792-0107Email: [email protected]
FINANCIAL TABLES FOLLOW
ADAMAS TRUST, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Dollar amounts in thousands, except share data)
December 31, 2025
December 31, 2024
(unaudited)
ASSETS
Investment securities available for sale, at fair value
$
6,904,781
$
3,828,544
Residential loans, at fair value
4,358,175
3,841,738
Residential loans held for sale, at fair value
80,707
—
Multi-family loans, at fair value
55,476
86,192
Equity investments, at fair value
24,711
113,492
Cash and cash equivalents
210,333
167,422
Real estate, net
553,496
623,407
Assets of disposal group held for sale
1,256
118,613
Goodwill
22,396
—
Other assets
427,516
437,874
Total Assets (1)
$
12,638,847
$
9,217,282
LIABILITIES AND EQUITY
Liabilities:
Repurchase agreements and warehouse facilities
$
6,753,417
$
4,012,225
Collateralized debt obligations ($3,148,157 at fair value and $363,645 at amortized cost, net as of December 31, 2025 and $2,135,680 at fair value and $842,764 at amortized cost, net as of December 31, 2024)
3,511,802
2,978,444
Senior unsecured notes ($260,852 at fair value and $99,585 at amortized cost, net as of December 31, 2025 and $60,310 at fair value and $98,886 at amortized cost, net as of December 31, 2024)
360,437
159,196
Subordinated debentures
45,000
45,000
Mortgages payable on real estate, net
332,131
366,606
Liabilities of disposal group held for sale
122
97,065
Other liabilities
205,501
147,612
Total liabilities (1)
11,208,410
7,806,148
Commitments and Contingencies
Redeemable Non-Controlling Interest in Consolidated Variable Interest Entities
3,016
12,359
Stockholders' Equity:
Preferred stock, par value $0.01 per share, 31,500,000 shares authorized, 22,385,674 and 22,164,414 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively ($559,642 and $554,110 aggregate liquidation preference as of December 31, 2025 and December 31, 2024, respectively)
540,472
535,445
Common stock, par value $0.01 per share, 200,000,000 shares authorized, 90,303,863 and 90,574,996 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively
903
906
Additional paid-in capital
2,294,194
2,289,044
Accumulated other comprehensive loss
—
—
Accumulated deficit
