Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 105

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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$3,517 $(1,310)Unrealized gains, net on preferred equity investments accounted for as equity689 86 603 Loss from unconsolidated joint venture equity investments in multi-family properties(227)(4,050)3,823 Income (loss) from entity that originates residential loans920 (1,689)2,609 Total income (loss) from equity investments$3,589 $(2,136)$5,725 

The increase in income from equity investments in 2025 was primarily due to 1) less significant unrealized losses recognized on unconsolidated joint venture equity investments in multi-family properties due to lower remaining investment balances, 2) increased income from an entity that originates residential loans due to increased origination volume and profitability and 3)  unrealized gains recognized on preferred equity investments accounted for as equity as a result of improved underlying property performance. These increases were partially offset by a  decrease in preferred return on preferred equity investments accounted for as equity as a result of redemptions that have occurred since March 31, 2024.

Impairment of Real Estate

The following table presents impairment of real estate for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands):

Three Months Ended March 31,20252024$ ChangeImpairment of real estate$(3,905)$(36,247)$32,342 

The decrease in impairment of real estate recognized in 2025 can be attributed to the sale or de-consolidation of a significant portion of our multi-family real estate assets since March 31, 2024. In 2024, we recognized impairment losses on certain multi-family real estate assets due to lower valuations driven by a decrease in net operating income estimates and wider cap rates. 

In 2025, we also recognized less impairment losses on certain single-family rental properties transferred to held for sale as a result of the remeasurement of those assets to estimated fair value less costs to sell as compared to the prior period.

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Loss on Reclassification of Disposal Group

The following table presents loss on reclassification of disposal group for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands):

Three Months Ended March 31,20252024$ ChangeLoss on reclassification of disposal group$— $(14,636)$14,636 

One joint venture equity