Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 234

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 234
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epreciated basis. 

The substantial majority of our remaining assets are financial or similar instruments that are carried at fair value in accordance with the fair value option in our condensed consolidated financial statements. However, unlike our use of the fair value option for the assets in our investment portfolio, certain CDOs issued by our residential loan securitizations, certain senior unsecured notes and subordinated debentures that finance our investment portfolio assets are carried at amortized cost in our condensed consolidated financial statements. By adjusting these financing instruments to fair value, adjusted book value reflects the Company's net equity in investments on a comparable fair value basis.

We believe that the presentation of adjusted book value per common share provides a useful measure for investors and us as it provides a consistent measure of our value, allows management to effectively consider our financial position and facilitates the comparison of our financial performance to that of our peers.

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A reconciliation of GAAP book value to adjusted book value and calculation of adjusted book value per common share as of June 30, 2025 and December 31, 2024, respectively, is presented below (amounts in thousands, except per share data):

June 30, 2025December 31, 2024Company's stockholders' equity$1,381,203 $1,394,720 Preferred stock liquidation preference(558,498)(554,110)GAAP book value822,705 840,610 Add:Cumulative depreciation expense on real estate (1)25,170 20,837 Cumulative amortization of lease intangibles related to real estate (1)4,620 4,620 Cumulative adjustment of redeemable non-controlling interest to estimated redemption value49,574 40,675 Adjustment of amortized cost liabilities to fair value24,153 30,619 Adjusted book value$926,222 $937,361 Common shares outstanding90,314 90,575 GAAP book value per common share (2)$9.11 $9.28 Adjusted book value per common share (3)$10.26 $10.35 

(1)Represents cumulative adjustments for the Company's share of depreciation expense and amortization of lease intangibles related to real estate held as of the end of the period presented for which an impairment has not been recognized.

(2)GAAP book value per common share is calculated using the GAAP book value and the common shares outstanding for the periods