Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 331

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 331
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 — — 305,735 Balance at the end of period$640,729 $738,126 $1,724,250 $91,905 $137,943 $3,332,953 (1)Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned, single-family rental properties and other assets. (2)During the three months ended March 31, 2024, the Company transferred certain residential loans into residential loan securitizations (see Note 7 for further discussion of the Company's residential loan securitizations).The following table details changes in valuation for the Level 3 liabilities for the three months ended March 31, 2025 and 2024, respectively (dollar amounts in thousands):Level 3 Liabilities:Consolidated SLST CDOs Three Months Ended March 31, 20252024Balance at beginning of period$811,591 $593,737 Total gains (realized/unrealized)Included in earnings 8,637 1,396 Paydowns(14,955)(12,506)Balance at the end of period$805,273 $582,627 

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The following table discloses quantitative information regarding the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value (dollar amounts in thousands, except input values):March 31, 2025Fair ValueValuation Technique Unobservable InputWeighted Average RangeAssetsResidential loans:Residential loans and residential loans held in securitization trusts (1)$2,779,673Discounted cash flowLifetime CPR8.6%—-49.8%Lifetime CDR0.6%—-30.2%Loss severity11.6%—-96.8%Yield7.4%5.0%-32.9%$174,345Liquidation modelAnnual home price appreciation/(depreciation)0.5%—-9.7%Liquidation timeline (months)181-54Property value$2,106,041$6,000-$12,750,000Yield7.6%7.5%-26.8%Consolidated SLST (4)$959,250Liability priceN/ATotal$3,913,268Multi-family loans (1) (2)$87,222Discounted cash flowDiscount rate12.5%11