Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 178

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 178
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 The Company determined that it has the power to direct the activities of the VIE and consolidates this VIE into its condensed consolidated financial statements. 

During the three months ended September 30, 2024, the Company negotiated a short-term maturity extension on one preferred equity investment that included an increase in preferred return rate to a current market rate.  During the nine months ended September 30, 2025, the Company negotiated a further short-term maturity extension on this preferred equity investment for which the underlying property was subject to a purchase and sale agreement with a closing date subsequent to the scheduled maturity of the preferred equity investment. This investment was redeemed during the nine months ended September 30, 2025. 

During the nine months ended September 30, 2024, the Company reduced the fair value of one defaulted preferred equity investment to zero as a result of developments with respect to the property, its financing and market conditions. This investment represents 2.7% of the total investment amount of the Mezzanine Lending portfolio. The Company has also ceased accruals of preferred return on one preferred equity investment and its preferred equity investment in a Consolidated VIE as a result of its evaluation of the hypothetical liquidation value for the respective investments. These investments represent 26.2% of the total investment amount of the Mezzanine Lending portfolio.  

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The following tables summarize our Mezzanine Lending portfolio as of September 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands): 

September 30, 2025CountFair Value (1) (2)Investment Amount (2)Weighted Average Preferred Return Rate (3)Weighted Average Remaining Life (Years)Preferred equity investments14 $97,472 $108,725 12.33 %4.8 Preferred equity investment in Consolidated VIE (4)1 18,138 18,162 13.89 %6.3   Total 15 $115,610 $126,887 12.55 %5.0 

December 31, 2024CountFair Value (1) (2)Investment Amount (2)Weighted Average Preferred Return Rate (3)Weighted Average Remaining Life (Years)Preferred equity investments18 $159,628 $169,518 12.80 %3.8 Preferred equity investment in Consolidated VIE (4)1 16