Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 231

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 231
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 GAAP net income (loss) in order to provide additional transparency into the operating performance of our portfolio. In addition, EAD serves as a useful indicator for investors in evaluating our performance and facilitates comparisons to industry peers and period to period. EAD should not be utilized in isolation, nor should it be considered as a substitute for or superior to GAAP net income (loss) attributable to Company's common stockholders or GAAP net income (loss) attributable to Company's common stockholders per basic share.  Our presentation of EAD may not be comparable to similarly-titled measures of other companies, who may use different calculations. We may add additional reconciling items to our EAD calculation as appropriate. 

We view EAD as one measure of our investment portfolio's ability to generate income for distribution to common stockholders. EAD is one factor, but not the exclusive factor, that our Board of Directors uses to determine the amount, if any, of dividends on our common stock. Other factors that our Board of Directors may consider when determining the amount, if any, of dividends on our common stock include, among others,  our earnings and financial condition, capital requirements, maintenance of our REIT qualification, restrictions on making distributions under Maryland law and such other factors as our Board of Directors deems relevant. EAD should not be considered as an indication of our REIT taxable income, a guaranty of our ability to pay dividends, or as a proxy for the amount of dividends we may pay, as EAD excludes certain items that impact our liquidity. 

A reconciliation of GAAP net (loss) income attributable to Company's common stockholders to EAD for the three and six months ended June 30, 2025 and 2024, respectively, is presented below (amounts in thousands, except per share data):

For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024GAAP net (loss) income attributable to Company's common stockholders$(3,486)$(26,028)$26,799 $(94,367)Adjustments:Realized losses, net3,771 7,491 44,871 18,024 Unrealized (gains) losses, net(24,614)16,512 (142,818)55,902 Losses (gains) on derivative instruments, net (1)30,627 (7,181)80,541 (48,060)