Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 303

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 303
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 the primary beneficiary.Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $2.3 million and $2.0 million as of March 31, 2025 and December 31, 2024, respectively.Real estate, net included in assets of disposal group held for sale 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 real estate was based upon a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and equity return rates. During the three months ended March 31, 2025, the Company recognized net impairment losses of $3.6 million for real estate, net in the disposal group held for sale. As of March 31, 2024, the fair value, net of selling costs of a multi-family property owned by one of the joint venture entities in which we held an equity investment that had previously been impaired was more than the property's net carrying value. Accordingly, the Company recognized a $0.6 million recovery of value in the three months ended March 31, 2024. See Note 17 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale.

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The following table presents the pretax losses of the disposal group held for sale as of March 31, 2025 for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands):For the Three Months Ended March 31,20252024Pretax (loss) income of disposal group held for sale$(2,936)$651 Pretax loss (income) of disposal group attributable to non-controlling interest in Consolidated VIEs293 (30)Pretax (loss) income of disposal group attributable to Company's common stockholders$(2,643)$621 

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10.      Derivative InstrumentsThe Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company enters into derivative financial instruments in connection with its risk management activities. These derivative instruments may include interest rate swaps, interest rate caps, credit default swaps, futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures. The Company may also pursue forward-settling purchases or sales of Agency RMBS where the