Company: ADAMM
Filing Date: 2025-07-01
Form Type: 424B5
Source: 0001104659-25-064730
Chunk: 109

Company: ADAMAS TRUST, INC.
Filing Date: 2025-07-01
Form: 424B5
Chunk 109
---
 derive from the REMIC residual interests equal to the percentage of our stock that is held by “disqualified organizations.” Although the law is not entirely clear, the IRS has taken the position that similar rules may apply if we own an equity interest in a TMP. To the extent that we own a REMIC residual interest or an equity interest in a TMP through a TRS, we will not be subject to this tax. For a discussion of “excess inclusion income,” see “Requirements for Qualification — Organizational Requirements — Taxable Mortgage Pools.” A “disqualified organization” includes:

•

the United States;

•

any state or political subdivision of the United States;

•

any foreign government;

•

any international organization;

•

any agency or instrumentality of any of the foregoing;

<div align='center'>39</div>

TABLE OF CONTENTS

•

any other tax-exempt organization, other than a farmer’s cooperative described in Section 521 of the Code, that is exempt both from income taxation and from taxation under the unrelated business taxable income provisions of the Code; and

•

any rural electrical or telephone cooperative.

For this reason, our charter prohibits disqualified organizations from owning our stock.

#### Requirements for Qualification

#### Organizational Requirements
A REIT is a corporation, trust, or association that meets each of the following requirements:

(1)

It is managed by one or more trustees or directors.

(2)

Its beneficial ownership is evidenced by transferable shares, or by transferable certificates of beneficial interest.

(3)

It would be taxable as a domestic corporation, but for Sections 856 through 860 of the Code.

(4)

It is neither a financial institution nor an insurance company subject to special provisions of the U.S. federal income tax laws.

(5)

At least 100 persons are beneficial owners of its shares or ownership certificates.

(6)

Not more than 50% in value of its outstanding shares or ownership certificates is owned, directly or indirectly, or by application of certain attribution rules, by five or fewer individuals, which the U.S. federal income tax laws define to include certain entities, during the last half of any taxable year.

(7)

It elects to be a REIT, or has made such election for a previous taxable year, and satisfies all relevant filing and other administrative requirements established by the IRS that must be met to elect and maintain REIT status.

(8)

It meets certain other qualification tests, described below, regarding the nature of its income and assets and the distribution of its income