Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 198

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 198
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 of $0.42 per share for the first half of 2025, demonstrating continued momentum in portfolio growth and income generation.

On July 15, 2025, we acquired the remaining 50% interest in Constructive, a leading originator of business purpose loans for residential real estate investors, resulting in our full ownership of the platform and consolidation of Constructive's financial results in our consolidated financial statements beginning in the third quarter. Constructive operates in 48 states and originated over $1.7 billion of loans during the twelve months ended June 30, 2025. This all-cash transaction supports our long-term strategy to expand our presence in residential credit markets, enhance recurring earnings, and align our platform with scalable origination capacity and strong credit underwriting standards. 

We continue to execute on our previously announced strategic repositioning, including the wind-down of our multi-family joint venture equity investments.  As of June 30, 2025, our exposure was reduced to $17.4 million across four multi-family properties, which were subsequently disposed in July 2025. 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 us appropriately for the risks associated with them, including, without limitation, CMBS, collateralized mortgage obligations, MSRs, excess mortgage servicing spreads, securities issued by newly originated securitizations, including credit sensitive securities from these securitizations, ABS and debt or equity investments in alternative assets or businesses.

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As of June 30, 2025, the Company’s Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio (as defined in footnotes 6 and 7 to the table under "— Capital Allocation") increased to 3.8x