# Adamas Trust, Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Adamas Trust, Inc).

## Overview

Adamas Trust, Inc. is an internally managed U.S. REIT that allocates capital across residential real estate credit and mortgage-related fixed-income investments to generate recurring earnings and long-term value. The portfolio spans credit-sensitive single-family and multi-family exposures as well as Agency RMBS, combining real estate and capital markets execution. Through its wholly owned subsidiary Constructive, the company also originates business purpose loans to residential real estate investors, adding an operating platform alongside the investment portfolio. The company rebranded from New York Mortgage Trust, Inc. to Adamas Trust, Inc. on September 3, 2025.

## Products & services

• Agency RMBS investments
• Credit-sensitive residential loans (single-family & multi-family)
• Business purpose loan origination via Constructive
• Joint venture equity investments in multi-family properties
• Repurchase-agreement financed investment securities portfolio

- **Agency RMBS** (35%) — Agency residential mortgage-backed securities and related TBA activity used to generate spread and roll income with lower credit risk.
- **Business purpose loans (Constructive)** (25%) — Short-duration, higher-coupon loans originated to residential real estate investors for business purposes.
- **Credit-sensitive residential assets** (20%) — Single-family and multi-family credit exposures where returns depend on borrower/property performance and credit conditions.
- **Multi-family equity/JV investments** (10%) — Preferred/common equity positions in multi-family joint ventures, including structures with redeemable non-controlling interests.
- **Other fixed-income and structured investments** (10%) — Other mortgage/structured fixed-income positions held and financed within the broader investment portfolio.

- Agency RMBS investments
- Credit-sensitive residential loans (single-family & multi-family)
- Business purpose loan origination via Constructive
- Joint venture equity investments in multi-family properties
- Repurchase-agreement financed investment securities portfolio

## Customers

As a mortgage REIT, Adamas Trust’s economic “customers” are primarily capital providers and financing counterparties rather than traditional end-users: it raises equity capital from public shareholders and uses secured financing to invest in mortgage and real estate credit assets. On the operating side, Constructive originates business purpose loans to residential real estate investors, who borrow to acquire, renovate, or operate residential properties. The company also interacts with broker-dealers, dealers, and market counterparties when transacting in Agency RMBS and TBA markets. For its multi-family equity and mezzanine-related structures, the company partners with third-party investors in joint ventures, including holders of non-controlling interests with redemption features.

- **Residential real estate investors (borrowers)** (primary) — Borrow business purpose loans originated by Constructive to finance residential investment properties and projects, valuing speed, certainty of execution, and loan terms.
- **Capital markets counterparties** (primary) — Dealers and market counterparties that facilitate Agency RMBS and TBA trading and provide liquidity and pricing for portfolio repositioning.
- **Secured financing providers** (primary) — Banks and financial institutions offering repurchase agreements tied to collateral fair values, enabling leverage and portfolio scale.
- **Joint venture partners / non-controlling interest holders** (secondary) — Third-party investors participating in multi-family JV structures, sometimes with put rights that create redemption obligations for the company.
- **Public shareholders** (secondary) — Equity investors providing permanent capital and expecting distributions and book value preservation through disciplined portfolio management.

- Residential real estate investors borrowing business purpose loans
- Broker-dealers/dealers transacting Agency RMBS and TBA positions
- Repurchase agreement counterparties providing secured funding
- Third-party JV investors in multi-family entities (NCI holders)
- Public equity investors seeking REIT distributions and exposure

## Geography

Adamas Trust is headquartered in New York, New York and maintains additional offices in Charlotte, North Carolina; Woodland Hills, California; and Oakbrook Terrace, Illinois. The investment strategy is U.S.-focused, with underlying collateral tied to U.S. residential real estate and U.S. mortgage markets. Reported disclosures highlight state-level concentration examples within certain real estate holdings (e.g., Texas appearing in property-level tables), but the filings provided do not include an authoritative revenue-by-geography split. Geographic exposure matters primarily through regional housing fundamentals, property cash flows, and local economic conditions that influence credit performance and valuations.

- Headquarters in New York, NY supports capital markets execution
- Additional offices in NC, CA, and IL broaden origination/ops footprint
- Underlying collateral is U.S. residential real estate and mortgages
- State-level property exposure can concentrate credit/valuation risk
- Regional housing cycles affect defaults, prepayments, and recoveries

## Strategy

Since 2023, the company has repositioned its portfolio to increase recurring income and reduce sensitivity to credit deterioration, emphasizing Agency RMBS and short-duration, higher-coupon business purpose loans. Management has also focused on optimizing financing structures, which is central to mortgage REIT returns given reliance on secured funding and collateral haircuts. The acquisition of Constructive expanded the operating platform and supports higher acquisition/origination volumes through a broader network of originator partnerships. Overall, the strategy is a capital rotation approach aimed at improving liquidity, strengthening the platform, and capturing opportunities across real estate and capital markets.

- **Increase recurring income via portfolio repositioning** (medium-term) — Shifting mix toward Agency RMBS and higher-coupon, short-duration loans targets more durable earnings through cycles.
- **Improve funding efficiency and stability** (short-term) — Mortgage REIT performance depends on secured funding availability, haircuts, and rates linked to SOFR; better structures reduce forced sales risk.
- **Scale the operating platform through Constructive and partnerships** (medium-term) — Origination capabilities and partner networks can increase volume and control over asset sourcing versus relying solely on secondary markets.

- Rotate toward Agency RMBS to reduce credit deterioration sensitivity
- Grow short-duration business purpose loans for higher coupon income
- Optimize financing structures to improve resilience to funding shocks
- Expand originator partnerships to increase acquisition/origination flow
- Strengthen portfolio liquidity to support active repositioning

## Risks

Adamas Trust is exposed to interest rate and spread volatility because it finances mortgage and fixed-income assets with secured borrowings whose costs move with benchmarks such as SOFR, while asset values can reprice quickly. Liquidity and counterparty risks are material: repurchase agreement financing is collateral-based, and adverse market moves can trigger margin calls or force asset sales at unfavorable prices. Credit risk remains relevant in credit-sensitive single-family and multi-family exposures and in business purpose loans, where borrower/property performance can deteriorate in a housing downturn. The company also faces regulatory-structure risk, as maintaining an exemption from registration under the Investment Company Act constrains operations and a failure could require major changes to leverage and portfolio composition. Operational risks include cybersecurity threats to IT systems and reliance on third-party vendors supporting business processes.

- **Loss of exemption from Investment Company Act registration** [high] — Could force asset sales, change operations, or require registration, limiting leverage and affecting distributions and business model sustainability.
- **Repurchase agreement counterparty default / inability to roll financing** [high] — If a counterparty fails to return collateral or financing cannot be replaced, the company may surrender collateral and realize losses.
- **Cybersecurity threats to IT systems and third-party vendor ecosystem** [medium] — Systems supporting decision-making and business processes are susceptible; incidents could disrupt operations and require costly remediation.

- Repo funding liquidity risk and margin calls tied to collateral values
- Interest rate/spread volatility impacting book value and earnings
- Credit losses in credit-sensitive residential assets and BPLs
- Counterparty default risk in repurchase agreements
- Investment Company Act exemption risk constraining leverage/portfolio
- Valuation risk for Level 3 assets and real estate held for sale
- Cybersecurity incidents disrupting operations and data integrity

## Accounting

Financial reporting is heavily influenced by fair value measurement because a significant portion of the investment portfolio and consolidated vehicles are marked using market inputs and valuation models, making results sensitive to assumptions and market liquidity. The company consolidates certain structures under GAAP (including securitization/structured entities and real estate VIEs), which can inflate reported assets and liabilities relative to the company’s economic exposure and complicate leverage analysis. Valuation of redeemable non-controlling interests requires discounted cash flow modeling and discount rate assumptions tied to expected cash flows from multi-family properties, affecting book value and equity attribution. Estimates used in pricing models for real estate held for sale and other Level 3 measurements are subjective, and changes can drive impairments or volatility in reported earnings.

- **Fair value measurement of investment securities and real estate**
- **Consolidation accounting for VIEs (structured and real estate entities)**
- **Redeemable non-controlling interests valuation**

- Fair value marks drive earnings/book value volatility for investments
- Consolidation of VIEs affects reported assets, liabilities, leverage
- DCF valuation for redeemable non-controlling interests impacts equity
- Impairment judgments for real estate held for sale can be material
- Use of estimates/assumptions under GAAP can shift period results

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*Last updated: 2026-09-24T11:19:56.195862+00:00*