Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 291

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 291
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 in thousands):    For the Three Months Ended March 31,Investment Name20252024Single-Family Equity Ownership Interests (1)Constructive Loans, LLC $919 $(1,689)Total Income (Loss) - Single-Family Equity Ownership Interests$919 $(1,689)Joint Venture Equity Investments in Multi-Family Properties (2)GWR Cedars Partners, LLC$(141)$(1,620)GWR Gateway Partners, LLC(86)(2,430)Total Loss - Joint Venture Equity Investments in Multi-Family Properties$(227)$(4,050)(1)Includes net unrealized losses of $1.6 million and $2.2 million for the three months ended March 31, 2025 and 2024, respectively.(2)Includes net unrealized losses of $0.2 million and $4.1 million for the three months ended March 31, 2025 and 2024, respectively.

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7.Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE)

Financing VIEsThe Company uses SPEs to facilitate transactions that involve securitizing financial assets or re-securitizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement.    The Company has entered into financing transactions, including residential loan securitizations and re-securitizations, which required the Company to analyze and determine whether the SPEs that were created to facilitate the transactions are VIEs in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. During the three months ended