Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 103

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 from real estate$(2,235)$(16,369)$14,134 

The decrease in net loss from real estate in 2025 was primarily attributable to a reduction in expenses as a result of the sale or de-consolidation, since March 31, 2024, of certain multi-family real estate assets owned by entities in which we had joint venture equity investments. Rental income also decreased in 2025 due to the aforementioned sales or de-consolidation of multi-family real estate assets.

Other Income (Loss)

Realized Losses, Net 

The following table presents the components of realized losses, net recognized for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands):

Three Months Ended March 31,20252024$ ChangeResidential loans and real estate owned$(14,282)$(10,164)$(4,118)Investment securities(26,818)(369)(26,449)Total realized losses, net$(41,100)$(10,533)$(30,567)

In 2025, we recognized net realized losses of $26.8 million, primarily related to the sale of U.S. Treasury securities. The net realized losses on our U.S. Treasury securities were largely offset by realized gains on our derivative instruments, as discussed below. Net realized losses related to our residential loan portfolio increased in 2025, primarily as a result of increased losses on foreclosed properties. Realized losses recognized on conversion of residential loans to real estate owned assets were largely offset by the reversal of previously recognized unrealized losses associated with the residential loans.

Net realized losses in 2024 included losses incurred on foreclosed properties, losses recognized on the sale of certain performing and non-performing residential loans and losses on write-downs of non-Agency RMBS.

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Unrealized Gains (Losses), Net

The following table presents the components of unrealized gains (losses), net recognized for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands): 

Three Months Ended March 31,20252024$ ChangeResidential loans$30,356 $(2,968)$33,324 Consolidated SLST3,264 (36)3,300 CDOs at fair value(4,674)1,637 (6,311)Senior unsecured notes at fair value3,049 — 3,049