Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 168

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 168
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 2023, we have endeavored to stabilize our portfolio through increased investment activity with a focus on generating recurring income for our stockholders.  During this time, our investment strategy focused on assets with less price sensitivity to credit deterioration, like Agency RMBS, and low duration, higher-coupon investments, like business purpose loans, while optimizing financing and growing partnerships with originators to increase acquisition volumes.  

Throughout this period, we have achieved solid momentum in our portfolio acquisition activity, acquiring approximately $4.1 billion of assets during the year ending December 31, 2024, and an additional $1.9 billion during the three months ended March 31, 2025. These efforts contributed to a 55% increase in interest income and a more than 57% increase in adjusted interest income, a supplemental non-GAAP financial measure, for the first quarter of 2025 over the same period in 2024. In addition, we generated net income attributable to common stockholders of $0.33 per share and earnings available for distribution, a supplemental non-GAAP financial measure, of $0.20 per share for the first quarter of 2025, demonstrating continued momentum in portfolio growth and income generation.

In September 2022, we announced that our Board of Directors approved a strategic repositioning of our business through the opportunistic disposition of our joint venture equity investments in multi-family properties over time and the reallocation of the returned capital from such investments to our targeted assets.  As of March 31, 2025, we have reduced our exposure to this disposal group of multi-family investments to $19.9 million over two multi-family properties. We are not currently targeting multi-family investments and anticipate allocating minimal new capital to such investments in the future solely to protect our existing interests. We expect that our multi-family portfolio, including our Mezzanine Lending investments, will wind down over time.  

Our targeted investments include (i) residential loans, including business purpose loans, (ii) Agency RMBS, (iii) non-Agency RMBS and (iv) certain other mortgage-, residential housing- and credit-related assets and strategic investments in companies from which we purchase, or may in the future purchase, our targeted assets. Subject to maintaining our qualification as a REIT and the maintenance of our exclusion from registration as an investment company under the Investment Company Act, we also may opportunistically acquire and manage various other types of mortgage-, residential housing- and other credit-related or alternative investments that we believe will compensate