Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 112

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 112
---
ated SLST and has consolidated Consolidated SLST into the Company's condensed consolidated financial statements. Our GAAP interest income includes interest income recognized on the underlying seasoned re-performing and non-performing residential loans held in Consolidated SLST. Our GAAP interest expense includes interest expense recognized on the Consolidated SLST CDOs that permanently finance the residential loans in Consolidated SLST and are not owned by the Company. We calculate adjusted interest income by reducing our GAAP interest income by the interest expense recognized on the Consolidated SLST CDOs and adjusted interest expense by excluding, among other things, the interest expense recognized on the Consolidated SLST CDOs, thus only including the interest income earned by the SLST securities that are actually owned by the Company in adjusted net interest income (loss).

For the three-month period, adjusted interest income increased by approximately $44.7 million, primarily due to an increase in interest earnings assets driven by increased investment in Agency RMBS and residential loans since March 31, 2024. Yield on average interest earnings assets also increased, primarily driven by our continued investment in higher yielding business purpose loans.

Adjusted interest expense increased for the three-month period by approximately $34.7 million as a result of increased financing obtained to fund investing activity through repurchase agreements and securitizations as well as issuance of senior unsecured notes. Average financing cost increased for the three-month period primarily due to the issuance of new securitizations and corporate debt at higher interest rates than our then-average financing costs. 

A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the three months ended March 31, 2025 and 2024, respectively, is presented below (dollar amounts in thousands):

Three Months Ended March 31,20252024Single-FamilyMulti-FamilyCorporate/OtherTotalSingle-FamilyMulti-FamilyCorporate/OtherTotalGAAP interest income$122,932 $2,605 $4,197 $129,734 $81,227 $2,665 $— $83,892 GAAP interest expense(85,560)— (11,076)(96,636)(61,740)— (4,289)(66,029)GAAP total net interest income (loss)$37,372 $2,605 $(6,879)$33,098