Adamas Trust Earnings Call Transcripts
Fiscal Year 2026
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Earnings and book value grew in Q2 2026, driven by diversified income streams and disciplined capital allocation. Portfolio expansion, strong agency and residential credit performance, and cost-saving initiatives position the company for continued growth in H2 2026.
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The meeting, held virtually, saw all seven director nominees re-elected and shareholder approval for executive compensation, an amendment to the equity incentive plan, and the auditor's appointment. No shareholder proposals or questions were raised.
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First quarter 2026 saw strong earnings and book value growth, driven by robust portfolio performance, strategic hedging, and gains from asset sales. Continued focus on scaling Constructive, disciplined capital allocation, and closing the share price discount.
Fiscal Year 2025
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2025 marked a transformative year with strong portfolio growth, higher recurring earnings, and the strategic acquisition of Constructive. Agency RMBS and BPL rental loans drove returns, while disciplined capital allocation and robust liquidity position the company for continued growth in 2026.
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Third quarter saw strong earnings growth, record investment activity, and a strategic pivot to agency RMBS and business purpose lending. Full acquisition of Constructive and increased capital allocation to agency RMBS drove higher recurring income and book value.
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Earnings available for distribution and net interest income rose 10% quarter-over-quarter, with strong portfolio growth and a pivotal acquisition of Constructive Loans. Agency RMBS and BPL rental loans are key growth areas, while leverage and liquidity remain robust.
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Recurring earnings matched the dividend as portfolio restructuring and increased Agency RMBS investments drove growth. Liquidity rose despite record purchases, and EAD per share improved to $0.20. The company remains focused on Agency RMBS amid market volatility and sees no near-term impact from GSE reform.
Fiscal Year 2024
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Portfolio grew 44% year-over-year, with strong asset acquisitions and a focus on recurring earnings. Adjusted net interest income and spreads improved, while book value declined modestly. Capital allocation will favor Agency RMBS in 2025, with robust liquidity and a stable dividend.
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Q3 2024 saw sharply higher income and EPS of $0.36, driven by a strategic shift to recurring interest income assets and robust portfolio growth. Agency RMBS and BPL bridge loans performed strongly, while multifamily exposure was further reduced. Book value volatility has largely subsided.
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Adjusted interest income surged 63% year-over-year, driven by portfolio rotation into agency RMBS and BPLs, while multifamily exposure was reduced to under 1%. Leverage increased to support growth, and the company is positioned to benefit from potential Fed rate cuts.