Adamas Trust, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported GAAP basic loss per share of $1.89 for the quarter ended September 30, 2026.
• Earnings available for distribution (EAD) per common share was $0.30, representing a 25% year-over-year increase.
• Total net interest income was $48.8 million, down 2.8% quarter-over-quarter.
• Total adjusted net interest income was $51.5 million, up 2.4% quarter-over-quarter.
• Book value per share was $7.93, a 21.9% decrease quarter-over-quarter.
• Adjusted book value per share was $8.88, a 19.6% decrease quarter-over-quarter.
• Quarterly economic return was (19.00)%, and economic return on adjusted book value was (16.92)%.
• Company Economic Recourse Leverage Ratio was 4.8x; Portfolio Economic Recourse Leverage Ratio was 4.4x.
• Cumulative stockholder return was (14.2)% for the quarter and 26.6% over the last twelve months.

Guidance and Future Outlook:

• Management views the repricing of mortgage assets as creating attractive investment opportunities.
• The Company entered the fourth quarter with financial flexibility and a continued focus on disciplined portfolio management to provide long-term shareholder value.
• TBA short positions added in the latter half of the third quarter to mitigate rate and spread exposure were reduced by 76% subsequent to quarter-end.

Business Segments and Product Lines:

• Acquired $1.6 billion of new single-family residential investments, including $1.2 billion of Agency investments and $390.1 million of business purpose loans.
• The BPL-Rental portfolio grew to $2.6 billion in unpaid principal balance (UPB), supported by an average FICO of 751, average LTV of 70%, and average DSCR of 1.35x.
• Constructive originated $405.8 million of business purpose loans, surpassing $7.4 billion in cumulative originations since inception in 2017.
• Issued $340.6 million in BPL-Rental securitization with a 5.73% effective cost and a net financing spread of 136 bps.
• Issued $115.0 million in re-securitization of non-Agency RMBS with a 6.88% effective cost and a net financing spread of 250 bps.
• 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 of approximately $57.6 million.
• Increased warehouse capacity to $3.8 billion, an increase of $150.0 million in the quarter.

Market and Competitive Landscape:

• The third quarter presented a challenging market environment characterized by rising interest rates and volatility.
• Declines in adjusted book value were primarily driven by lower valuations for Agency mortgage securities.
• The Company proactively managed spread and convexity risks in its Agency securities portfolio through short TBA positions, lowering net Agency exposure.

Risks and Challenges:

• Market volatility and rising interest rates resulted in significant unrealized losses, contributing to the decline in book value and economic return.
• The Company faces risks related to interest rate changes, credit spreads, and the fair market value of assets, including potential margin calls.
• Forward-looking statements highlight risks regarding prepayment rates, default rates, vacancy rates, and the ability to identify and acquire targeted assets.

Management Commentary and Tone:

• CEO Jason Serrano stated that underlying business fundamentals remain strong, supported by solid credit performance, substantial liquidity, and earnings available for distribution that fully covered the recently increased dividend.
• Management expressed confidence in the Company's financial flexibility and its ability to capture opportunities created by the repricing of mortgage assets.

Other Key Points:

• Declared a third quarter common stock dividend of $0.30 per share, representing a 15.4% annualized yield.
• Raised the common stock dividend by 11.1% quarter-over-quarter.
• Cumulative common stock dividends declared since June 2004 total $1.6 billion.
• Raised net proceeds of $4.3 million under the common stock at-the-market program at an average price of $10.18 per share.
• Subsequent to quarter-end, issued $313.1 million in BPL-Rental securitization with a 6.40% effective cost and a net financing spread of 159 bps.
• The Constructive segment reported total net interest income of $469,000 for the quarter.
• The Investment Portfolio segment reported total net interest income of $58.5 million for the quarter.