Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 248

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 248
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 value of interest rate swaps entered into during the year and lower valuations of interest rate caps. This was offset by gains realized upon termination of interest rate cap contracts in connection with sales of multi-family properties and repayment of related mortgages payable in our joint venture equity investments in disposal group held for sale.

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Income from Equity Investments

The following table presents the components of income from equity investments for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,20242023$ ChangePreferred return on preferred equity investments accounted for as equity$12,775 $19,308 $(6,533)Unrealized (losses) gains, net on preferred equity investments accounted for as equity(4,863)1,154 (6,017)Loss from unconsolidated joint venture equity investments in multi-family properties(4,382)(3,291)(1,091)Income from entity that originates residential loans12,481 614 11,867 Total income from equity investments$16,011 $17,785 $(1,774)

The decrease in income from equity investments in 2024 was primarily due to 1) decreases in preferred return on preferred equity investments accounted for as equity as a result of redemptions that have occurred since December 31, 2023 and 2) unrealized losses recognized on preferred equity investments accounted for as equity and unconsolidated joint venture equity investments in multi-family properties as a result of property performance and wider cap rates during the current period. The decrease in total income from equity investments was partially offset by an increase in income from an entity that originates residential loans due to increased origination volume and profitability in 2024.

Impairment of Real Estate

The following table presents impairment of real estate for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,20242023$ ChangeImpairment of real estate$(48,875)$(89,548)$40,673 

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. We also recognized 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 in 2024.

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