Adamas Trust, Inc. Delivers Strong Q2 2026 Results: Sustained Book Value Growth and Earnings Momentum
Key Financial Highlights for Q2 2026
- GAAP Basic Earnings Per Share: \$0.48
- Earnings Available for Distribution (EAD) Per Common Share: \$0.30 (up 36.4% year-over-year; 3.4% quarter-over-quarter)
- Quarterly Economic Return: 4.6%
- Quarterly Economic Return on Adjusted Book Value: 4.81%
- Book Value Per Share: \$10.16 (up 1.8% quarter-over-quarter)
- Adjusted Book Value Per Share: \$11.05 (up 2.3% quarter-over-quarter)
- Total Net Interest Income: \$50.2 million (up 3.7% quarter-over-quarter)
- Total Adjusted Net Interest Income: \$50.3 million (up 4.4% quarter-over-quarter)
- Declared Dividend: \$0.27 per share (17.4% increase; 11.5% annualized yield)
- Cumulative Stockholder Return: 31.2% for the quarter; 58.5% over the last twelve months
- Company Recourse Leverage Ratio: 5.5x
- Portfolio Recourse Leverage Ratio: 5.2x
Management Commentary
Jason Serrano, CEO, emphasized that Adamas Trust has achieved its fourth consecutive quarter of book value growth, highlighting the resilience and scalability of the company’s diversified investment platform. The addition of Constructive Loans, LLC (“Constructive”) has further strengthened Adamas’ competitive edge and earnings power. Serrano noted the company’s strategic flexibility and execution, which position it for continued growth across varying market environments. He expressed confidence that the business model’s durability will continue to drive shareholder value in the coming quarters.
Business and Portfolio Highlights
Investing & Origination Activity
- \$1.5 billion in new single-family residential investments acquired in Q2, including:
- \$798.3 million in Agency investments
- \$632.3 million in business purpose loans (BPL), including \$381.5 million originated by Constructive and transferred to the company
- Agency Investment Portfolio expanded to \$7.2 billion, with 89% in specified pools and an average coupon of 5.48%.
- BPL-Rental Portfolio grew to \$2.3 billion (UPB), supported by strong credit metrics (average FICO 750, LTV 71%, DSCR 1.35x).
- Constructive Originations: \$427.6 million in the quarter; over \$6.9 billion cumulative since 2017.
- Mezzanine Lending: Realized \$11.4 million in proceeds from redemption.
Financing & Capital Management
- Securitizations: Issued \$521.2 million of BPL-Rental securitizations across two deals at 5.48% effective cost.
- Redemptions: Redeemed a residential loan securitization with \$243.6 million principal at redemption.
- Warehouse Capacity: Increased to \$3.7 billion (up \$250.0 million in the quarter).
- Subsequent Event: Priced a \$341 million BPL-Rental securitization with a 5.73% effective cost.
Stockholder Value Enhancements
- Common Stock Dividend Raised: To \$0.27 per share, a 17.4% increase.
- Cumulative Common Stock Dividends Declared: \$1.5 billion since June 2004.
Segment Performance and Financial Position
Segment Results (Three Months Ended June 30, 2026):
- Investment Portfolio: \$58.8 million net interest income
- Constructive: \$470,000 net interest income
- Corporate/Other: (\$9.04 million) net interest loss
- Net Income Attributable to Common Stockholders: \$43.4 million
Balance Sheet (as of June 30, 2026):
- Total Assets: \$13.0 billion
- Total Liabilities: \$11.5 billion
- Company Stockholders’ Equity: \$1.47 billion
- Cash & Equivalents: \$212.3 million
- Investment Securities (Available for Sale): \$7.0 billion
- Residential Loans (Fair Value): \$4.8 billion
- Multi-family Loans (Fair Value): \$45.1 million
Key Non-GAAP Metrics and Adjustments
- Earnings Available for Distribution (EAD): \$27.1 million (Q2 2026); \$0.30 per share
- Adjusted Book Value per Common Share: \$11.05 (removes non-cash depreciation/amortization, non-controlling interest redemption adjustments, and adjusts liabilities to fair value)
- Yield on Average Interest Earning Assets: 6.03%
- Net Interest Spread: 1.48%
Potential Price-Sensitive and Shareholder-Relevant Information
- Dividend Increase: The board raised the quarterly dividend for common stockholders by 17.4% to \$0.27 per share. This is likely to be viewed positively by the market, signaling confidence in earnings stability and cash generation.
- Consistent Book Value Growth: The company has delivered four consecutive quarters of book value per share increases—an important metric for REIT investors.
- Strong Cumulative Shareholder Returns: 58.5% over the last twelve months, reflecting both share price appreciation and dividend reinvestment.
- Increased Origination/Acquisition Activity: The expansion and diversification of the investment platform (notably through Constructive) points to management’s successful execution and capacity for growth, which could drive further share appreciation.
- Leverage Ratios: Company recourse leverage at 5.5x and portfolio recourse leverage at 5.2x are relevant for risk assessment, especially in a rising rate environment.
- Effective Cost of Securitizations: The company’s ability to issue BPL-Rental securitizations at competitive rates (5.48% and 5.73% in recent deals) may preserve net interest margins going forward.
Forward-Looking Statements and Risks
The company cautions that forward-looking statements are subject to risks and uncertainties, including but not limited to: changes in interest rates and credit spreads, market volatility, default rates, prepayment rates, the company’s ability to identify and dispose of targeted assets, and the performance of operating partners. Investors should also consider risks related to leverage, regulatory changes, and the company’s ability to maintain its REIT status.
Investor Resources
A conference call to discuss these results is scheduled for July 30, 2026. Supplemental financial materials and the full Form 10-Q are available on the company’s website.
Disclaimer: This article is for informational purposes only and is not investment advice. All financial data is as reported by Adamas Trust, Inc. Investors should review the company’s SEC filings and consult their own advisors before making investment decisions. The company’s forward-looking statements are subject to risks that may cause actual results to differ materially from those expressed or implied.
