ADAMK

EX-99.1

2 exhibit991q32026.htm

EX-99.1

Document

Adamas Trust, Inc. Reports Third Quarter 2026 Results,

Maintains Focus on Disciplined Portfolio Management

NEW YORK, October 28, 2026 (GLOBE NEWSWIRE) - Adamas Trust, Inc. (Nasdaq: ADAM) (“Adamas,” the “Company,” “we,” “our” or “us”) today reported results for the three and nine months ended September 30, 2026.

Financial Highlights for Third Quarter 2026:

•GAAP basic loss per share of $1.89;

•Earnings available for distribution (or "EAD") (1) per common share of $0.30, up 25% year-over-year, reflecting continued portfolio expansion;

•Quarterly economic return (2) of (19.00)%; Quarterly economic return on adjusted book value (1)(2) of (16.92)%;

•Book value per share of $7.93, down 21.9% quarter-over-quarter;

•Adjusted book value (1) per share of $8.88, down 19.6% quarter-over-quarter;

•Total net interest income of $48.8 million, down 2.8% quarter-over-quarter; Total adjusted net interest income (1) of $51.5 million, up 2.4% quarter-over-quarter;

•Declared third quarter common stock dividend of $0.30 per share, representing a 15.4% annualized yield (3);

•Cumulative stockholder return (4) of (14.2)% for the quarter and 26.6% over the last twelve months; and

•Company Economic Recourse Leverage Ratio (1) of 4.8x; Portfolio Economic Recourse Leverage Ratio (1) of 4.4x.

Management Update To Our Stockholders

Jason Serrano, Chief Executive Officer, commented: “The third quarter presented a challenging market environment, with the rise in interest rates and volatility resulting in a decline in adjusted book value primarily driven by lower valuations for our Agency mortgage securities. As market volatility intensified in the quarter, we proactively managed spread and convexity risks in our Agency securities portfolio through short TBA positions, lowering net Agency exposure. Since quarter-end, we have significantly reduced these TBA short positions reflecting our view of receding Agency spread tail risks.

Our underlying business fundamentals remain strong, supported by solid credit performance, substantial liquidity, and earnings available for distribution that fully covered our recently increased dividend. Importantly, the repricing of mortgage assets has created some of the most attractive investment opportunities we have seen in several quarters. We entered the fourth quarter with financial flexibility and continued focus on disciplined portfolio management to provide long-term shareholder value.”

(1) Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Non-GAAP Financial Measures."

(2) Economic return on book value and economic return on adjusted book value are based on the periodic change in GAAP book value and adjusted book value, respectively, per common share plus dividends declared per common share, if any, during the period.

(3) Annualized yield is calculated using the current quarter dividend declared on common stock (annualized) and the closing share price of the Company's common stock on September 30, 2026.

(4) Cumulative stockholder return includes common stock price appreciation and common stock dividend reinvestment. Dividends assumed to be reinvested at the closing price on the ex-dividend date.

Business Highlights:

Investing & Origination Activity

•Acquired $1.6 billion of new single-family residential investments during the quarter, including $1.2 billion of Agency investments and $390.1 million of business purpose loans (5)

•BPL-Rental portfolio grew to $2.6 billion in UPB, supported by strong credit fundamentals, including average FICO of 751, average LTV of 70% and average DSCR of 1.35x

•Constructive originated $405.8 million of business purpose loans in the quarter, surpassing $7.4 billion in cumulative originations since inception in 2017 (6)

Financing & Capital

•Issued $340.6 million BPL-Rental securitization with a 5.73% effective cost (7) and net financing spread of 136 bps (8)

•Issued $115.0 million re-securitization of non-Agency RMBS with a 6.88% effective cost (7) and net financing spread of 250 bps (8)

•Issued $90.0 million of 9.600% Senior Notes due 2031 resulting in net proceeds of approximately $86.6 million

•Redeemed a non-Agency RMBS re-securitization with an outstanding principal balance at the time of redemption of approximately $57.6 million

•Increased warehouse capacity to $3.8 billion, up $150.0 million in the quarter

Stockholder Value

•Raised common stock dividend to $0.30, an increase of 11.1% quarter-over-quarter

•$1.6 billion in cumulative common stock dividends declared since June 2004

•Raised net proceeds of $4.3 million under the common stock at-the-market program at an average price of $10.18 per share, accretive to book value per share

Subsequent Events

•Issued $313.1 million BPL-Rental securitization with a 6.40% effective cost (7) and net financing spread of 159 b