Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 361

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 361
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ation of the related mortgages payable as of December 31, 2024.Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $2.0 million as of June 30, 2025 and December 31, 2024.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 as of June 30, 2025 is based upon negotiated sale prices less anticipated selling costs. During the three and six months ended June 30, 2025, the Company recognized net impairment losses of $3.6 million and $7.2 million for real estate, net in the disposal group held for sale, respectively. During the three and six months ended June 30, 2024, the Company recognized net impairment losses of $1.8 million and $21.9 million for real estate, net in the disposal group held for sale, respectively. See Note 17 for descriptions of valuation methodologies utilized for financial instruments included in assets and liabilities of disposal group held for sale.The following table presents the pretax losses of the disposal group held for sale as of June 30, 2025 for the three and six months ended June 30, 2025 and 2024, respectively (dollar amounts in thousands):For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Pretax loss of disposal group held for sale$(3,878)$(12,587)$(7,041)$(60,532)Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs266 1,301 559 6,138 Pretax loss of disposal group attributable to Company's common stockholders$(3,612)$(11,286)$(6,482)$(54,394)

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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, TBAs, 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 purchase options on