Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 357

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 357
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  The multi-family apartment communities generally lease their apartment units to individual tenants at market rates for the production of rental income. These apartment units are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point. Operating real estate, net is periodically evaluated for impairment. As of June 30, 2025, the Company determined that no multi-family properties owned by joint venture equity investments were impaired.  As of June 30, 2024, the Company determined that two multi-family properties owned by joint venture equity investments were impaired. The calculation of impairment amounts for multi-family properties utilized fair values that were estimated based upon discounted cash flow analyses using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and equity return rates. Accordingly, the Company recognized a $1.8 million and $13.8 million impairment of real estate in the three and six months ended June 30, 2024, respectively.Single-family Rental PropertiesAs of June 30, 2025 and December 31, 2024, the Company owned single-family rental homes.  These units are leased to individual tenants for the production of rental income and are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point.  During the six months ended June 30, 2025, the Company determined that certain single-family rental properties met the criteria to be classified as held for sale, transferred the properties from operating real estate to real estate held for sale and recognized losses upon transfer of $0.2 million and $0.3 million during the three and six months ended June 30, 2025, respectively, which are included in impairment of real estate on the accompanying condensed consolidated statements of operations.  

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During the six months ended June 30, 2024, the Company determined that certain single-family rental properties met the criteria to be classified as held for sale, transferred the properties from operating real estate to real estate held for sale and recognized losses upon transfer of $0.5 million and $4.5 million during the three and six months ended June 30, 2024, respectively.  Real estate held for sale, net is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.  Fair value for single-family rental properties held for sale was based upon local broker price opinions and automated valuation model data. During the three and six months ended June