Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 42

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.(2)As of June 30, 2024, multi-family properties owned by two joint venture equity investments were in default on a mortgage payable in the amount of $121.2 million. The events of default included a breach of the loan document in failure to secure a replacement interest rate cap agreement and failure to pay $1.1 million of interest owed to the lender.  During the year ended December 31, 2024, the Company sold its joint venture equity investments in these entities, which resulted in the de-consolidation of the related mortgages payable as of December 31, 2024.Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $2.0 million as of June 30, 2025 and December 31, 2024.Real estate, net included in assets of disposal group held for sale is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.  Fair value for real estate as of June 30, 2025 is based upon negotiated sale prices less anticipated selling costs. During the three and six months ended June 30, 2025, the Company recognized net impairment losses of $3.6 million and $7.2 million for real estate, net in the disposal group held for sale, respectively. During the three and six months ended June 30, 2024, the Company recognized net impairment losses of $1.8 million and $21.9 million for real estate, net in the disposal group held for sale, respectively. See Note 17 for descriptions of valuation methodologies utilized for financial instruments included in assets and liabilities of disposal group held for sale.The following table presents the pretax losses of the disposal group held for sale as of June 30, 2025 for the three and six months ended June 30, 2025 and 2024, respectively (dollar amounts in thousands):For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Pretax loss of disposal group held for sale$(3,878)$(12,587)$(7,041)$(60,532)Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs266 1,301