Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 104

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 16
Chunk 104
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, the maximum redeemable amount of non-controlling ownership interest was $6.8 million, of which non-controlling interest holders elected to sell $0.6 million to the Company.The following table presents activity in redeemable non-controlling interest in Consolidated VIEs for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):Years Ended December 31,202420232022Beginning balance$28,061 $63,803 $66,392 Contributions46 6 462 Distributions(8,809)(4,021)(7,083)Net loss attributable to redeemable non-controlling interest in Consolidated VIEs(16,926)(17,067)(38,190)Adjustment of redeemable non-controlling interest to estimated redemption value (1)10,613 (14,175)44,237 Redemption of redeemable non-controlling interest(626)(485)(2,015)Ending balance$12,359 $28,061 $63,803 (1)The Company determines the fair value of the redeemable non-controlling interest utilizing market assumptions and discounted cash flows. The Company applies a discount rate to the estimated future cash flows from the multi-family apartment properties held by the applicable Consolidated VIEs that are allocatable to the redeemable non-controlling interest.  This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 in the fair value hierarchy.  Significant unobservable inputs utilized in the estimation of fair value of redeemable non-controlling interest as of December 31, 2024 include a weighted average capitalization rate of 5.6% (ranges from 5.0% to 6.3%) and a weighted average discount rate of 14.8% (ranges from 13.9% to 15.6%).

F-41

Unconsolidated VIEsAs of December 31, 2024 and 2023, the Company evaluated its investment securities available for sale and preferred equity, equity and other investments to determine whether they are VIEs and should be consolidated by the Company. Based on a number of factors, the Company determined that, as of December 31, 2024 and 2023, it does not have a controlling financial interest and is not the primary beneficiary of these VIEs. The following tables present the classification and