Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 360

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 360
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 investments that owned multi-family properties, respectively, which resulted in the de-consolidation of the respective joint venture entities' assets and liabilities and a gain on de-consolidation of approximately $0.3 million, which is included in other income (loss) in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2024.  In June 2025, in response to productive negotiations with operating partners, the Company determined that two joint venture equity investments accounted for as equity investments met the criteria to be classified as held for sale and transferred its equity investments in the joint venture entities to disposal group held for sale on the accompanying condensed consolidated balance sheets as of June 30, 2025. As these investments are carried at fair value, the Company recognized no gain or loss on the transfer.

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As of June 30, 2025, four joint venture equity investments are classified as disposal group held for sale. The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of June 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):June 30, 2025December 31, 2024Cash and cash equivalents (1)$1,395 $2,461 Equity investments500 — Real estate, net (1)106,485 111,032 Other assets (1)3,120 5,120 Total assets of disposal group held for sale$111,500 $118,613 Mortgages payable on real estate, net (2)$89,422 $93,370 Other liabilities2,729 3,695 Total liabilities of disposal group held for sale (1)$92,151 $97,065 (1)Certain assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.(2)As of June 30, 2024, multi-family properties owned by two joint venture equity investments were in default on a mortgage payable in the amount of $121.2 million. The events of default included a breach of the loan document in failure to secure a replacement interest rate cap agreement and failure to pay $1.1 million of interest owed to the lender.  During the year ended December 31, 2024, the Company sold its joint venture equity investments in these entities, which resulted in the de-consolid