Adamas Trust (ADAM) Q4 2024 earnings summary

Executive summary

• Portfolio grew by $2.2 billion (44% year-over-year) in 2024, driven by $4.1 billion in acquisitions, mainly in liquid agency bonds and higher spread bridge loans.

• Adjusted interest income rose 60% year-over-year and 11% sequentially in Q4, reflecting portfolio expansion.

• Final stages of multi-year portfolio restructuring, including divestment of underperforming multi-family JV equity holdings.

• Portfolio restructuring since 2022 has positioned the company for optimized returns and durable earnings.

• Net loss attributable to common stockholders of $41.8 million for Q4 2024 and $103.8 million for the full year, with basic loss per share of $0.46 and $1.14, respectively.

Financial highlights

• Q4 2024 GAAP loss per share of $0.44–$0.46; book value per share at $9.28, down 5.6% quarter-over-quarter; adjusted book value per share at $10.35, down 4.8%.

• Adjusted net interest income (EPS) rose to $0.36 per share in Q4, up from $0.32 in Q3 and $0.26 a year ago.

• Net interest spread improved by 5 basis points in Q4 to 1.37%.

• Q4 2024 interest income was $118.3 million, up from $78.8 million in Q4 2023; full year interest income was $401.3 million.

• Dividend yield above 13%, maintained at $0.20 per share for five quarters.

Outlook and guidance

• Recurring earnings expected to align with the $0.20 per share dividend.

• Management expects portfolio restructuring and balance sheet expansion to support durable earnings in future years.

• Adjusted book value up 1–2% so far in Q1 2025.

• G&A run rate projected at $11–$11.5 million per quarter, with further cost reduction opportunities.

• Capital allocation to favor Agency RMBS over residential credit in 2025, with continued investment in both.