Company: ADAMM
Filing Date: 2025-06-13
Form Type: 424B5
Source: 0001104659-25-059349
Chunk: 120

Company: ADAMAS TRUST, INC.
Filing Date: 2025-06-13
Form: 424B5
Chunk 120
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 operated in conformity with the requirements for qualification and taxation as a REIT under the Code. However, if a subsidiary REIT were to fail to qualify as a REIT, then (1) such subsidiary REIT would become subject to regular U.S. federal corporate income tax (as described in “Material U.S. Federal Income Tax Considerations — Failure to Qualify” in the accompanying prospectus) and (2) our ownership of stock in such subsidiary REIT would cease to be a qualifying real estate asset for purposes of the 75% asset test and would become subject to the 5% asset test, the 10% vote test and the 10% value test generally applicable to ownership in corporations other than REITs, qualified REIT subsidiaries and TRSs. See “Material U.S. Federal Income Tax Considerations — Requirements for Qualification — Asset Tests” in the accompanying prospectus. If any subsidiary REIT were to fail to qualify as a REIT, it is possible that we may not meet the 10% vote test and the 10% value test with respect to our interest in such subsidiary REIT, in which event we would fail to qualify as a REIT unless we could avail ourself of certain relief provisions. We may make a protective TRS election with respect to any subsidiary REIT. If the IRS respects our protective TRS election with respect to such subsidiary REIT, the failure of such subsidiary REIT to qualify as a REIT would generally only cause us to fail the REIT asset tests to the extent that the total value of interests in TRSs represents more than 20% of our assets. See “Material U.S. Federal Income Tax Considerations — Requirements for Qualification — Asset Tests” in the accompanying prospectus.

Taxable Mortgage Pools . As discussed in the accompanying prospectus under “Material U.S. Federal Income Tax Considerations — Requirements for Qualification — Organizational Requirements — Taxable Mortgage Pools,” if a REIT is a taxable mortgage pool (“TMP”), or if a REIT owns a qualified REIT subsidiary that is a TMP, then a portion of the REIT’s income will be treated as “excess inclusion income” and a portion of the dividends the REIT pays to its stockholders will be considered to be excess inclusion income. In addition, although the law is unclear, the IRS has taken the position that a REIT is taxable at the highest U.S. federal corporate income tax rate on the portion of any excess inclusion income that