Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 181

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 181
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 Company determined that these joint venture entities are VIEs and that the Company is the primary beneficiary of all but two of these VIEs, resulting in consolidation of the VIEs where we are the primary beneficiary, including their assets, liabilities, income and expenses, in our condensed consolidated financial statements in accordance with GAAP.  We receive a preferred return and/or pro rata variable distributions from these investments and, in certain cases, management fees based upon property performance.  We also will participate in allocation of excess cash upon sale of the multi-family real estate assets.  

The Company repositioned its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and the assets and liabilities of the respective Consolidated VIEs are included in assets and liabilities of disposal group held for sale on the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. See Note 9 in the Notes to Condensed Consolidated Financial Statements for additional information. The Company's net equity in consolidated joint venture equity investments ("Consolidated JVs") and disposal group held for sale totaled $139.9 million and $153.7 million as of September 30, 2025 and December 31, 2024, respectively.  

139

A reconciliation of our net equity investments in Consolidated JVs and disposal group held for sale, including one preferred equity investment in a Consolidated VIE, to our condensed consolidated financial statements as of September 30, 2025 and December 31, 2024, respectively, is shown below (dollar amounts in thousands):

September 30, 2025December 31, 2024Cash and cash equivalents$3,147 $4,151 Real estate, net469,764 481,161 Assets of disposal group held for sale (1)1,383 118,613 Other assets16,251 16,696 Total assets$490,545 $620,621 Mortgages payable on real estate, net (2)$362,747 $366,606 Liabilities of disposal group held for sale (1)78 97,065 Other liabilities10,563 10,621 Total liabilities$373,388 $474,292