Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 249

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 249
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 decrease in impairment of real estate in 2024 can be attributed to slowing cap rate widening as compared to 2023 as well as the sale or de-consolidation of certain multi-family real estate assets since December 31, 2023.

74

Loss on Reclassification of Disposal Group

The following table presents loss on reclassification of disposal group for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,20242023$ ChangeLoss on reclassification of disposal group$(14,636)$(16,163)$1,527 

One joint venture equity investment was reclassified from disposal group held for sale in 2024. As a result of this transfer, we adjusted the carrying value of the long-lived assets in the Consolidated Real Estate VIE to the lower of the carrying amount before the assets were classified as held for sale adjusted for depreciation and amortization expense that would have been recognized had the assets been continuously classified as held and used and the fair value of the assets at the date of the transfer and recognized an approximately $14.6 million loss on reclassification of disposal group.

In 2023, nine joint venture equity investments were reclassified from disposal group held for sale, resulting in a loss on reclassification of disposal group of approximately $16.2 million.

Other Income

The following table presents the components of other income for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,20242023$ ChangeGain on sale of real estate$27,835 $4,763 $23,072 Gain on de-consolidation of joint venture equity investments in Consolidated VIEs6,115 — 6,115 Servicing fee income906 — 906 Preferred equity and mezzanine loan premiums resulting from early redemption196 390 (194)Loss on extinguishment of collateralized debt obligations and mortgages payable on real estate(2,864)(796)(2,068)Provision for uncollectible receivables(3,207)— (3,207)Miscellaneous income168 379 (211)Total other income$29,149 $4,736 $24,413 

The net increase in other income in 2024 is primarily due to gains recognized on the sales of both certain multi-family properties and our membership interests