Company: ADAMM
Filing Date: 2025-07-01
Form Type: 424B5
Source: 0001104659-25-064730
Chunk: 39

Company: ADAMAS TRUST, INC.
Filing Date: 2025-07-01
Form: 424B5
Chunk 39
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. Federal Income Tax Considerations — Requirements for Qualification” in the accompanying prospectus. Each of them also may be subject to tax on certain of its income as described therein. We currently have one subsidiary REIT, and we believe that our subsidiary REIT has been organized and operated in conformity with the requirements for qualification and taxation as a REIT under the Code. However, if our subsidiary REIT were to fail to qualify as a REIT, then (i) 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 (ii) 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 our subsidiary REIT were to fail to qualify as a REIT, it is possible that we may not meet the 10% vote test or 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 have made a protective TRS election with respect to our 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 only cause us to fail to qualify as a REIT to the extent that the total value of interests in TRSs represent 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 corresponding portion of the