Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 160

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 160
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secured notes and subordinated debentures that finance our investments are carried at amortized cost in our condensed consolidated financial statements. By adjusting these financing instruments to fair value, adjusted book value reflects the Company's net equity in investments on a comparable fair value basis.

We believe that the presentation of adjusted book value per common share provides a useful measure for investors and us as it provides a consistent measure of our value, allows management to effectively consider our financial position and facilitates the comparison of our financial performance to that of our peers.

120

A reconciliation of GAAP book value to adjusted book value and calculation of adjusted book value per common share as of September 30, 2025 and December 31, 2024, respectively, is presented below (amounts in thousands, except per share data):

September 30, 2025December 31, 2024Company's stockholders' equity$1,390,777 $1,394,720 Preferred stock liquidation preference(559,642)(554,110)GAAP book value831,135 840,610 Add:Cumulative depreciation expense on real estate (1)26,357 20,837 Cumulative amortization of lease intangibles related to real estate (1)4,620 4,620 Cumulative adjustment of redeemable non-controlling interest to estimated redemption value54,782 40,675 Adjustment of amortized cost liabilities to fair value20,481 30,619 Adjusted book value$937,375 $937,361 Common shares outstanding90,308 90,575 GAAP book value per common share (2)$9.20 $9.28 Adjusted book value per common share (3)$10.38 $10.35 

(1)Represents cumulative adjustments for the Company's share of depreciation expense and amortization of lease intangibles related to real estate held as of the end of the period presented for which an impairment has not been recognized.

(2)GAAP book value per common share is calculated using the GAAP book value and the common shares outstanding for the periods indicated.

(3)Adjusted book value per common share is calculated using the adjusted book value and the common shares outstanding for the periods indicated.

121

Critical Accounting Estimates 

We prepare our consolidated financial statements in conformity with GAAP, which requires the use of estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial