Adamas Trust, Inc. Reports Third Quarter 2025 Results NEW YORK, October 29, 2025 (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, 2025. Summary of Third Quarter 2025: (dollar amounts in thousands, except per share data) | Net income attributable to Company's common stockholders | $ | 32,702 | | --- | --- | --- | | Net income attributable to Company's common stockholders per share (basi ...

Core Viewpoint - Adamas Trust, Inc. has declared a regular quarterly cash dividend of $0.23 per share for the quarter ending September 30, 2025, payable on October 30, 2025, to stockholders of record as of September 25, 2025 [1] Group 1: Dividend Announcements - The Board declared cash dividends on various series of preferred stock, including Series D, E, F, and G, with specific amounts and payment dates [2] - The cash dividends for the preferred stock are as follows: Series D at $0.50, Series E at $0.7032991, Series F at $0.4296875, and Series G at $0.4375, all payable on October 15, 2025, with a record date of October 1, 2025 [3] Group 2: Company Overview - Adamas Trust, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes, focusing on deploying capital across complementary businesses to generate durable earnings and long-term value for stockholders [4]

Core Viewpoint - The company is rebranding from New York Mortgage Trust, Inc. to Adamas Trust, Inc., effective September 3, 2025, with a new ticker symbol "ADAM" on Nasdaq, reflecting its focus on strength, resilience, and long-term vision [1][2]. Group 1: Rebranding Details - The rebranding signifies a strategic evolution into a multi-dimensional investment and operating platform, aiming to generate durable earnings and long-term stockholder value [1][2]. - The new name "Adamas" means "firm," "unbreakable," and "lasting," aligning with the company's core principles and future direction [2]. Group 2: Financial Performance and Strategy - Over the past year, the company has increased its interest income by 55% through a portfolio realignment focused on Agency RMBS and the acquisition of Constructive Loans, LLC, a key player in business purpose loans for residential real estate investors [2]. - The management team has over 20 years of experience across market cycles, positioning the company to continue generating attractive, risk-adjusted returns and expand its investment management capabilities [2]. Group 3: Operational Impact - The rebranding will not affect the company's business operations, stockholder rights, or its qualification as a REIT for U.S. federal income tax purposes [4]. - All outstanding securities will remain valid, and no action is required from securityholders due to the name or ticker changes [4]. Group 4: Corporate Communication - A new corporate website, www.AdamasREIT.com, will be launched on September 3, 2025, to reflect the rebranding [5].

Investment Portfolio - As of June 30, 2025, the total investment portfolio amounted to $8,603,269,000, reflecting an increase of $338,604,000 from the previous quarter[271]. - The company acquired $914,732,000 in new investments during the quarter, while repayments totaled $558,534,000[271]. - The total investment securities available for sale and TBAs reached $5,119,765,000, reflecting an increase of $472,953,000 from the previous quarter[271]. - As of June 30, 2025, the total investment portfolio carrying value was $8,609,825, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 16.5%[308][309]. - The company acquired approximately $503.7 million of Agency investments with an average coupon of 5.29% during the second quarter of 2025[305]. - The total investment securities portfolio increased to $6.88 billion as of June 30, 2025, compared to $5.28 billion as of December 31, 2024[381]. Residential Loans - Residential loans decreased to $2,826,644,000, down from $2,954,018,000, representing a reduction of approximately 4.3%[271]. - The company’s residential loans totaled $4,026,027 thousand as of June 30, 2025, an increase from $3,841,738 thousand as of December 31, 2024[365]. - The total unpaid principal balance of acquired residential loans was $2,918,904,000, an increase from $3,017,702,000 as of December 31, 2024[367]. - The company purchased approximately $78.0 million and $228.7 million of residential loans from Constructive during the three and six months ended June 30, 2025, respectively[370]. - The weighted average loan-to-value (LTV) at purchase for the acquired residential loans was 66% as of June 30, 2025, compared to 62% as of December 31, 2024[373]. - The current average FICO score at purchase increased to 791 as of June 30, 2025, from 767 as of December 31, 2024[373]. - The delinquency status showed that 92.4% of loans were current as of June 30, 2025, up from 91.2% as of December 31, 2024[369]. Financial Performance - The company generated net income attributable to common stockholders of $0.30 per share and earnings available for distribution of $0.42 per share for the first half of 2025, indicating continued momentum in portfolio growth and income generation[277]. - Interest income for the three months ended June 30, 2025, was $140,901, up 55.3% from $90,775 in the same period of 2024[313]. - Net interest income for the six months ended June 30, 2025, was $69,545, an increase of 88.5% compared to $36,907 for the same period in 2024[313]. - The Company reported a net income attributable to the Company of $8,546 for the three months ended June 30, 2025, compared to a net loss of $(15,589) in the same period of 2024, indicating a turnaround of $24,135[313]. - The yield on average interest-earning assets remained stable at 6.48% for both the three and six months ended June 30, 2025[301]. - Adjusted interest income for Q2 2025 was $132,479,000, an increase of approximately $48.4 million compared to Q2 2024[337]. - Adjusted net interest income for Q2 2025 was $40,108,000, compared to $27,334,000 in Q2 2024, reflecting a significant increase[337][338]. Leverage and Debt - As of June 30, 2025, the company's Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 3.8x and 3.6x, respectively, from 3.0x and 2.9x as of December 31, 2024, primarily due to financing of highly liquid Agency RMBS[281]. - The company completed the issuance of $82.5 million of 9.125% Senior Notes due 2030 in January 2025, and $90.0 million of 9.875% Senior Notes due 2030 in July 2025, predominantly used to acquire targeted assets[282]. - Total liabilities included repurchase agreements with a carrying value of $(4,917,495) as of June 30, 2025, compared to $(4,012,225) at the end of 2024, indicating a rise in leverage[308][309]. - The company had $4.6 billion outstanding under repurchase agreements, with a weighted average interest rate of 4.49%[386]. - The average balance of repurchase agreements increased from $1.85 billion in December 2023 to $4.51 billion in June 2025[387]. Economic Environment - The U.S. economy grew at an annualized rate of 3.0% in Q2 2025, compared to a 0.5% decrease in Q1 2025, while inflation remains persistently above the Federal Reserve's target of 2%[287]. - The U.S. unemployment rate was 4.1% at the end of June 2025, down from 4.2% at the end of March 2025, with average hourly earnings rising 3.7% year-over-year[288]. - The Federal Reserve cut the target range for the federal funds rate three times in 2024 for a total reduction of 100 basis points, but uncertainty remains regarding future adjustments due to elevated inflation and economic conditions[289]. - The probability of a recession in the next twelve months was reported at 33% in July 2025, down from 45% in April 2025, reflecting improved GDP forecasts despite ongoing trade uncertainties[290]. Strategic Repositioning - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[271]. - The company continues to execute its strategic repositioning, including the wind-down of multi-family joint venture equity investments, reducing exposure to $17.4 million as of June 30, 2025[279]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels[346]. Stockholder Returns - The company intends to make distributions to stockholders to comply with REIT status requirements and minimize corporate income tax[456]. - The company repurchased 231,200 shares of its common stock for a total cost of approximately $1.5 million, representing an average repurchase price of $6.50 per common share during the three and six months ended June 30, 2025[453]. - As of June 30, 2025, $188.2 million of the approved amount remained available for the repurchase of shares of the Company's common stock under the common stock repurchase program[453].

Group 1 - New York Mortgage Trust (NYMT) has priced an offering of $85 million in new 9.875% exchange-traded senior notes due in 2030 [1] - The fixed coupon on these notes will be paid quarterly, and NYMT has the option to redeem them [1] Group 2 - The article mentions a focus on preferred stocks with a CDx3 Compliance Score, indicating a range of investment options for different investor profiles [1]

Financial Data and Key Metrics Changes - New York Mortgage Trust reported a 10% quarter-over-quarter increase in Earnings Available for Distribution (EAD) per share, rising to $0.22 from $0.20 in the previous quarter [12] - Adjusted net interest income per share also rose 10% quarter-over-quarter and 47% year-over-year to $0.44 per share, up from $0.40 per share in the prior quarter and $0.30 per share a year ago [13] - GAAP book value and adjusted book value per share decreased to $9.11 and $10.26 respectively, representing a 2.8% and 1.6% decrease compared to March 31 [15] Business Line Data and Key Metrics Changes - The company acquired an additional $915 million in assets during the quarter, bringing total acquisitions for 2025 to over $2.8 billion [12] - The agency RMBS holdings now constitute 57% of the portfolio assets, with a recourse leverage ratio increasing to 3.8 times from 3.4 times at the end of the previous quarter [10][15] - The BPL rental loans have grown to become the largest credit asset class within the portfolio, with a solid average Debt Service Coverage Ratio (DSCR) of 1.38 times [24] Market Data and Key Metrics Changes - Investor demand for BPL rental loans remains robust, with loans supported by property-level rental income and borrower guarantees [8] - The agency current coupon spreads to treasuries widened to as much as 164 basis points before ending the quarter at 147 basis points, three basis points wider quarter-over-quarter [21] - Delinquency rates in the BPL rental portfolio remain low, with only 2% of the portfolio being sixty-plus days delinquent [24] Company Strategy and Development Direction - The company announced the full acquisition of Constructive, marking a pivotal milestone in its expansion into residential business purpose lending [7] - The strategic repositioning efforts in recent years have significantly strengthened the company's ability to generate consistent recurring income, supporting a stable quarterly dividend of $0.20 per share [18] - The company aims to grow its agency portfolio to trend towards 50% of total equity, indicating a core long-term positioning in the agency space [35] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic indicators softened slightly in the second quarter, prompting some economists to lower full-year GDP forecasts for 2025 and 2026 [6] - The company anticipates a steepening yield curve in the months ahead, which is expected to benefit its portfolio composition [6] - Management expressed confidence in the long-term potential to meet the growing demand for non-agency credit and rental housing [7] Other Important Information - The company recorded $24.6 million in net unrealized gains, largely attributable to improved valuations in its agency RMBS and residential loan portfolios [13] - The company fully exited its remaining four joint venture equity positions in multifamily properties, limiting its remaining exposure to mezzanine lending [14] Q&A Session Summary Question: Discussion on equity allocation strategy and agency positioning - Management views the agency allocation trending towards 50% as a medium-term strategy, with a historical context of holding agency positions [34][35] Question: Conditions for balancing loans on the balance sheet - Management indicated that they will continue to purchase a portion of Constructive's production while also aiming for a capital-light approach [36][37] Question: Changes in book value in July - Adjusted book value was reported to be down slightly from quarter-end, between 0% to 1% [39] Question: Market activity in the beginning of Q3 - Management noted that while mortgage activity has moderated, there are areas for growth, particularly in the non-QM market [44][46] Question: Future leverage targets - Management indicated that leverage is market-dependent and can flex up or down based on asset class mix, with a potential target of around 4.5 times across the business [47] Question: Return on equity (ROE) comparisons - ROE for agency investments is seen in the mid-teens, while BPL rental and bridge loans also reflect similar returns [51][52] Question: Preference between BPL bridge and rental products - Management expressed a preference for growth in the BPL rental side, while still investing in BPL bridge loans [56]

Financial Performance - The Company's Earnings Available for Distribution ("EAD") per share was $0.22[15], a 10% increase from the prior quarter[15, 30] - The Company's adjusted interest income totaled $132.5 million[15], an 8% increase compared to the previous quarter[15, 26] - The Company's book value per share was $9.11[15], representing a -2.77% change quarter-over-quarter[15] - The Company's adjusted book value per share was $10.26[15], a -1.63% change quarter-over-quarter[15] Investment Portfolio - The Company's total investment portfolio increased by $339 million[15], a 4% increase quarter-over-quarter[15, 28] reaching $8.6 billion[13] - The Company acquired $798 million in new single-family residential investments[15], including $504 million in Agency investments with an average coupon of 5.29%[15] and $280 million in Residential Loans (99% BPL - Bridge/Rental)[15] - The Company's common stock dividend yield was 11.94%[15] based on the share price as of June 30, 2025[15] Capital Allocation and Leverage - The Company's recourse leverage ratio was 3.8x[15] - The Company's portfolio recourse leverage ratio was 3.6x[15] - The Company had excess liquidity capacity of $416 million[15], including $156 million in available cash[15] Strategic Developments - The Company completed the acquisition of the remaining 50% ownership interest in Constructive Loans, LLC ("Constructive") for approximately $38.4 million[15, 82], a leading originator of business purpose loans for residential real estate investors[15]

Company Performance - New York Mortgage Trust (NYMT) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and a significant improvement from a loss of $0.25 per share a year ago, representing an earnings surprise of +10.00% [1] - The company posted revenues of $36.45 million for the quarter ended June 2025, which was 8.43% below the Zacks Consensus Estimate, compared to revenues of $19.04 million in the same quarter last year [2] - Over the last four quarters, NYMT has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - NYMT shares have increased approximately 12.5% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $40.8 million, and for the current fiscal year, it is $0.61 on revenues of $155 million [7] Industry Outlook - The REIT and Equity Trust industry, to which NYMT belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Executive Summary [Second Quarter 2025 Highlights](index=1&type=section&id=Summary%20of%20Second%20Quarter%202025) Despite a **$3.486 million net loss**, **EAD of $0.22 per share** exceeded the **$0.20 dividend**, with a **1.50% net interest spread** Summary of Second Quarter 2025 Financial Results | Metric | Amount (in thousands) | | :---------------------------------------------------------- | :-------------------- | | Net loss attributable to Company's common stockholders | $ (3,486) | | Net loss attributable to Company's common stockholders per share (basic) | $ (0.04) | | Earnings available for distribution attributable to Company's common stockholders (1) | $ 20,024 | | Earnings available for distribution per common share (1) | $ 0.22 | | Yield on average interest earning assets (1) (2) | 6.48 % | | Interest income | $ 140,901 | | Interest expense | $ 104,454 | | Net interest income | $ 36,447 | | Net interest spread (1) (3) | 1.50 % | | Book value per common share at the end of the period | $ 9.11 | | Adjusted book value per common share at the end of the period (1) | $ 10.26 | | Economic return on book value (4) | (0.64)% | | Economic return on adjusted book value (5) | 0.29 % | | Dividends per common share | $ 0.20 | [Key Developments](index=1&type=section&id=Key%20Developments) Q2 2025 saw significant **Agency investments** and **residential loan acquisitions**, with **Constructive Loans acquisition** post-quarter - Investing Activities (Q2 2025): * Acquired approximately **$503.7 million** of Agency investments with an average coupon of **5.29%**[5](index=5&type=chunk) * Acquired approximately **$280.2 million** in residential loans with an average gross coupon of **9.76%**[5](index=5&type=chunk) * Received approximately **$13.0 million** in proceeds from the redemption of a Mezzanine Lending investment[5](index=5&type=chunk) - Subsequent Events (Post Q2 2025): * Issued **$90.0 million** in 9.875% Senior Notes due 2030, generating approximately **$86.6 million** in net proceeds (July 8, 2025)[6](index=6&type=chunk) * Acquired the remaining **50% ownership interests** in Constructive Loans, LLC for approximately **$38.4 million**, accelerating expansion into residential business purpose lending (July 15, 2025)[6](index=6&type=chunk) * Completed a securitization of residential loans, yielding approximately **$345.9 million** in net proceeds, used to redeem two prior securitizations (July 24, 2025)[6](index=6&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Overview) CEO Jason Serrano highlighted **solid Q2 performance** with **recurring earnings exceeding dividends**, emphasizing **Constructive acquisition** for strategic expansion - CEO Jason Serrano commented on: * **Solid second-quarter performance** with recurring earnings surpassing the dividend[7](index=7&type=chunk) * Effective execution of long-term capital allocation strategy and **strong liquidity position**[7](index=7&type=chunk) * Pivotal acquisition of Constructive Loans, LLC, accelerating expansion into **residential business purpose lending**[7](index=7&type=chunk) * Strategic move to enhance ability to meet demand for non-agency credit and diversify the balance sheet for greater stockholder value[7](index=7&type=chunk) Financial Performance [Condensed Consolidated Balance Sheets](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to **$10.55 billion**, driven by **residential loans** and **investment securities**, with **equity at $1.38 billion** Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------------------- | :------------------------ | :---------------- | | **ASSETS** | | | | Residential loans, at fair value | $ 4,026,027 | $ 3,841,738 | | Investment securities available for sale, at fair value | $ 5,109,601 | $ 3,828,544 | | Total Assets | $ 10,552,332 | $ 9,217,282 | | **LIABILITIES AND EQUITY** | | | | Repurchase agreements | $ 4,907,436 | $ 4,012,225 | | Collateralized debt obligations | $ 3,364,600 | $ 2,978,444 | | Total liabilities | $ 9,155,677 | $ 7,806,148 | | Company's stockholders' equity | $ 1,381,203 | $ 1,394,720 | | Total Liabilities and Equity | $ 10,552,332 | $ 9,217,282 | - Assets of consolidated variable interest entities (VIEs) totaled **$4.414 billion** as of June 30, 2025, up from **$3.989 billion** at December 31, 2024[24](index=24&type=chunk) - Liabilities of consolidated VIEs also increased to **$3.859 billion** from **$3.477 billion** over the same period[24](index=24&type=chunk) [Condensed Consolidated Statements of Operations](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Net interest income significantly increased to **$36.4 million**, resulting in **net income of $8.5 million** and **basic EPS of $0.04** Condensed Consolidated Statements of Operations (Selected Items, in thousands) | Item | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | :-------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Interest income | $ 140,901 | $ 90,775 | | Interest expense | $ 104,454 | $ 71,731 | | Total net interest income | $ 36,447 | $ 19,044 | | Total net loss from real estate | $ (3,014) | $ (13,106) | | Total other (loss) income | $ (9,264) | $ (6,080) | | Total general, administrative and operating expenses | $ 19,890 | $ 23,599 | | Income (loss) from operations before income taxes | $ 4,279 | $ (23,741) | | NET INCOME (LOSS) | $ 4,440 | $ (24,083) | | NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY | $ 8,546 | $ (15,589) | | Preferred stock dividends | $ (12,032) | $ (10,439) | | NET (LOSS) INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ (3,486) | $ (26,028) | | Basic (loss) earnings per common share | $ (0.04) | $ (0.29) | | Diluted (loss) earnings per common share | $ (0.04) | $ (0.29) | [Summary of Quarterly Earnings](index=13&type=section&id=SUMMARY%20OF%20QUARTERLY%20%28LOSS%29%20EARNINGS) Quarterly net interest income increased to **$36.4 million**, with **EAD per share at $0.22** consistently covering the **$0.20 dividend** Summary of Quarterly Earnings (Selected Metrics, in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Interest income | $ 140,901 | $ 129,734 | $ 118,253 | $ 108,361 | $ 90,775 | | Total net interest income | $ 36,447 | $ 33,098 | $ 26,711 | $ 20,237 | $ 19,044 | | Net (loss) income attributable to Company's common stockholders | $ (3,486) | $ 30,285 | $ (41,828) | $ 32,410 | $ (26,028) | | Basic (loss) earnings per common share | $ (0.04) | $ 0.33 | $ (0.46) | $ 0.36 | $ (0.29) | | Earnings available for distribution per common share - basic (1) | $ 0.22 | $ 0.20 | $ 0.16 | $ 0.10 | $ 0.09 | | Book value per common share | $ 9.11 | $ 9.37 | $ 9.28 | $ 9.83 | $ 9.69 | | Adjusted book value per common share (1) | $ 10.26 | $ 10.43 | $ 10.35 | $ 10.87 | $ 11.02 | | Dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | Capital Allocation & Portfolio Overview [Capital Allocation by Investment Category](index=4&type=section&id=Capital%20Allocation) Total investment portfolio carrying value reached **$8.61 billion**, primarily in **Single-Family residential loans** and **investment securities** Allocated Capital at June 30, 2025 (in thousands) | Item | Single-Family | Multi-Family | Corporate/Other | Total | | :-------------------------------------------- | :------------ | :----------- | :-------------- | :---------- | | Residential loans | $ 4,026,027 | $ — | $ — | $ 4,026,027 | | Investment securities available for sale and TBAs | $ 4,979,330 | $ — | $ 140,435 | $ 5,119,765 | | Total investment portfolio carrying value | $ 8,129,984 | $ 302,290 | $ 177,551 | $ 8,609,825 | | Net Company capital allocated | $ 1,240,849 | $ 251,156 | $ (110,802) | $ 1,381,203 | - Leverage Ratios (June 30, 2025): * Company Recourse Leverage Ratio: **3.8x**[9](index=9&type=chunk) * Portfolio Recourse Leverage Ratio: **3.6x**[9](index=9&type=chunk) [Interest Earning Assets and Net Interest Spread](index=5&type=section&id=Interest%20Earning%20Assets%20and%20Net%20Interest%20Spread) Total adjusted net interest income was **$40.1 million**, with a **6.48% yield** on assets and **1.50% net interest spread** Interest Earning Assets Performance (Three Months Ended June 30, 2025, in thousands) | Metric | Single-Family | Multi-Family | Corporate/Other | Total | | :------------------------------------ | :------------ | :----------- | :-------------- | :---------- | | Adjusted Interest Income | $ 128,824 | $ 2,203 | $ 1,452 | $ 132,479 | | Adjusted Interest Expense | $ (84,529) | $ — | $ (7,842) | $ (92,371) | | Adjusted Net Interest Income (Loss) | $ 44,295 | $ 2,203 | $ (6,390) | $ 40,108 | | Average Interest Earning Assets | $ 7,972,569 | $ 74,273 | $ 126,552 | $ 8,173,394 | | Yield on Average Interest Earning Assets | 6.46 % | 11.86 % | 4.59 % | 6.48 % | | Average Financing Cost | (4.86)% | — | (6.59)% | (4.98)% | | Net Interest Spread | 1.60 % | 11.86 % | (2.00)% | 1.50 % | - Key Definitions: * **Yield on Average Interest Earning Assets**: Annualized adjusted interest income divided by average interest earning assets[12](index=12&type=chunk) * **Average Financing Cost**: Annualized adjusted interest expense divided by average interest bearing liabilities[12](index=12&type=chunk) * **Net Interest Spread**: Difference between Yield on Average Interest Earning Assets and Average Financing Cost[12](index=12&type=chunk) Non-GAAP Financial Measures Reconciliation [Adjusted Net Interest Income (Loss) and Net Interest Spread](index=14&type=section&id=Adjusted%20Net%20Interest%20Income%20%28Loss%29%20and%20Net%20Interest%20Spread) Adjusted net interest income and spread are non-GAAP measures for clearer asset yields and financing costs, excluding SLST impact - Adjusted Net Interest Income (Loss) and Net Interest Spread are non-GAAP measures calculated by: * Adjusting GAAP interest income by reducing Consolidated SLST CDO interest expense and including TBA dollar roll income[31](index=31&type=chunk)[32](index=32&type=chunk) * Adjusting GAAP interest expense by reducing Consolidated SLST CDO interest expense and including the net interest component of interest rate swaps[31](index=31&type=chunk)[32](index=32&type=chunk) * These adjustments remove the impact of Consolidated SLST and include hedging costs and TBA dollar roll income to better represent the cost of financing and economic equivalent of net interest income[31](index=31&type=chunk)[32](index=32&type=chunk) Reconciliation of GAAP to Adjusted Net Interest Income (Loss) (Three Months Ended June 30, 2025, in thousands) | Item | Single-Family | Multi-Family | Corporate/Other | Total | | :------------------------------------ | :------------ | :----------- | :-------------- | :---------- | | GAAP interest income | $ 137,246 | $ 2,203 | $ 1,452 | $ 140,901 | | Consolidated SLST CDO interest expense | $ (8,429) | $ — | $ — | $ (8,429) | | TBA dollar roll income | $ 7 | $ — | $ — | $ 7 | | **Adjusted interest income** | $ 128,824 | $ 2,203 | $ 1,452 | $ 132,479 | | GAAP interest expense | $ (96,107) | $ — | $ (8,347) | $ (104,454) | | Consolidated SLST CDO interest expense | $ 8,429 | $ — | $ — | $ 8,429 | | Net interest benefit of interest rate swaps | $ 3,149 | $ — | $ 505 | $ 3,654 | | **Adjusted interest expense** | $ (84,529) | $ — | $ (7,842) | $ (92,371) | | **Adjusted net interest income (loss)** | $ 44,295 | $ 2,203 | $ (6,390) | $ 40,108 | [Earnings Available for Distribution (EAD)](index=18&type=section&id=Earnings%20Available%20for%20Distribution) EAD, a new non-GAAP measure, indicates income-generating capacity by excluding unrealized, non-cash, or non-recurring items - EAD is defined as GAAP net income (loss) attributable to Company's common stockholders, excluding: * Realized and unrealized gains (losses)[39](index=39&type=chunk) * Gains (losses) on derivative instruments (excluding net interest benefit of interest rate swaps and TBA dollar roll income)[39](index=39&type=chunk) * Impairment of real estate, loss on reclassification of disposal group, and other non-recurring gains (losses)[39](index=39&type=chunk) * Depreciation and amortization of operating real estate, non-cash expenses, non-recurring transaction expenses[39](index=39&type=chunk) * Income tax effect of non-EAD items and EAD attributable to non-controlling interests[39](index=39&type=chunk) Reconciliation of GAAP Net (Loss) Income to EAD (Three Months Ended June 30, 2025, in thousands) | Item | June 30, 2025 | | :-------------------------------------------------------- | :------------ | | GAAP net (loss) income attributable to Company's common stockholders | $ (3,486) | | Adjustments: | | | Realized losses, net | $ 3,771 | | Unrealized (gains) losses, net | $ (24,614) | | Losses (gains) on derivative instruments, net (1) | $ 30,627 | | Unrealized losses (gains), net on equity investments (2) | $ 3,352 | | Impairment of real estate | $ 3,913 | | Other (gains) losses (3) | $ (548) | | Depreciation and amortization of operating real estate | $ 5,928 | | Non-cash expenses (4) | $ 2,561 | | Transaction expenses (5) | $ 1,340 | | Income tax effect of adjustments | $ (173) | | EAD adjustments attributable to non-controlling interests | $ (2,647) | | **Earnings available for distribution attributable to Company's common stockholders** | **$ 20,024** | | EAD per common share - basic | $ 0.22 | [Adjusted Book Value Per Common Share](index=20&type=section&id=Adjusted%20Book%20Value%20Per%20Common%20Share) Adjusted book value per common share is a non-GAAP measure modifying GAAP book value by excluding depreciation and adjusting liabilities to fair value - Adjusted book value per common share is calculated by making the following adjustments to GAAP book value: * Exclude the Company's share of cumulative depreciation and lease intangible amortization expenses related to real estate[43](index=43&type=chunk) * Exclude the cumulative adjustment of redeemable non-controlling interests to estimated redemption value[43](index=43&type=chunk) * Adjust amortized cost liabilities that finance the investment portfolio to fair value[43](index=43&type=chunk) Reconciliation of GAAP to Adjusted Book Value (June 30, 2025, in thousands) | Item | June 30, 2025 | | :-------------------------------------------------------- | :------------ | | Company's stockholders' equity | $ 1,381,203 | | Preferred stock liquidation preference | $ (558,498) | | **GAAP book value** | **$ 822,705** | | Add: | | | Cumulative depreciation expense on real estate (1) | $ 25,170 | | Cumulative amortization of lease intangibles related to real estate (1) | $ 4,620 | | Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | $ 49,574 | | Adjustment of amortized cost liabilities to fair value | $ 24,153 | | **Adjusted book value** | **$ 926,222** | | Common shares outstanding | 90,314 | | GAAP book value per common share (2) | $ 9.11 | | Adjusted book value per common share (3) | $ 10.26 | [Equity Investments in Multi-Family Entities](index=22&type=section&id=Equity%20Investments%20in%20Multi-Family%20Entities) The company is strategically repositioning by disposing of **multi-family joint venture equity investments** and reallocating capital - Strategic Repositioning: * Opportunistic disposition of joint venture equity investments in multi-family properties[50](index=50&type=chunk) * Reallocation of capital away from multi-family assets to targeted assets[50](index=50&type=chunk) * Certain joint venture equity investments classified as held for sale as of June 30, 2025[50](index=50&type=chunk) Reconciliation of Net Equity Investments in Consolidated Multi-Family Properties and Disposal Group Held for Sale (June 30, 2025, in thousands) | Item | Amount | | :---------------------------------------------------------------- | :-------- | | Cash and cash equivalents | $ 3,941 | | Real estate, net | $ 473,586 | | Assets of disposal group held for sale | $ 111,500 | | Other assets | $ 14,821 | | **Total assets** | **$ 603,848** | | Mortgages payable on real estate, net | $ 364,100 | | Liabilities of disposal group held for sale | $ 92,151 | | Other liabilities | $ 8,877 | | **Total liabilities** | **$ 465,128** | | Redeemable non-controlling interest in Consolidated VIEs | $ 12,782 | | Less: Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | $ (49,574) | | Non-controlling interest in Consolidated VIEs | $ 582 | | Non-controlling interest in disposal group held for sale | $ 1,963 | | **Net equity investment (1)** | **$ 172,967** | - The net equity investment as of June 30, 2025, consists of **$155.6 million** in consolidated multi-family properties and **$17.4 million** in disposal group held for sale[52](index=52&type=chunk) Company Information & Disclosures [About New York Mortgage Trust](index=7&type=section&id=About%20New%20York%20Mortgage%20Trust) New York Mortgage Trust, Inc. is an internally managed REIT focused on acquiring, investing in, financing, and managing mortgage-related residential assets - New York Mortgage Trust, Inc. is an internally managed REIT[16](index=16&type=chunk) - Its business involves acquiring, investing in, financing, and managing primarily mortgage-related residential assets[16](index=16&type=chunk) [Defined Terms](index=8&type=section&id=Defined%20Terms) This section defines various financial and investment terms used in the report, covering securities, instruments, and portfolio categories [Cautionary Statement Regarding Forward-Looking Statements](index=9&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This cautionary statement advises that forward-looking statements are based on estimates, with actual results potentially differing due to market and operational risks [Conference Call & Supplemental Information](index=7&type=section&id=Conference%20Call) Executive management will host a conference call and webcast on **July 31, 2025**, to discuss Q2 2025 results, with supplemental materials and Form 10-Q available - Conference Call Details: * Date: **Thursday, July 31, 2025**[14](index=14&type=chunk) * Time: **9:00 a.m., Eastern Time**[14](index=14&type=chunk) * Access: Pre-registration required via provided link; live audio webcast available on Investor Relations section of company website[14](index=14&type=chunk) * Replay: Webcast replay link available for 12 months[14](index=14&type=chunk) - Supplemental Information: * A supplemental financial presentation will be posted on the company's website[15](index=15&type=chunk) * The Quarterly Report on Form 10-Q for Q2 2025 is expected to be filed with the SEC on or about **August 1, 2025**, and will be available on the company's website[15](index=15&type=chunk)

Core Viewpoint - New York Mortgage Trust, Inc. reported a net loss for the second quarter of 2025, but highlighted strong recurring earnings that exceeded dividends, indicating effective capital allocation and liquidity management [2][8]. Financial Performance - The net loss attributable to common stockholders was $3.486 million, translating to a loss of $0.04 per share [2]. - Earnings available for distribution were $20.024 million, or $0.22 per share [2]. - Interest income increased to $140.901 million, up from $90.775 million in the same quarter of the previous year [37]. - Interest expense rose to $104.454 million, compared to $71.731 million in the prior year [37]. - Net interest income for the quarter was $36.447 million, compared to $19.044 million in the same quarter last year [37]. - The book value per common share at the end of the period was $9.11, while the adjusted book value was $10.26 [2]. Investment Activities - The company acquired approximately $503.7 million in Agency investments with an average coupon of 5.29% and $280.2 million in residential loans with an average gross coupon of 9.76% [7]. - On July 8, 2025, the company completed the issuance of $90 million in Senior Notes due 2030, raising approximately $86.6 million in net proceeds [6]. - The acquisition of Constructive Loans, LLC for approximately $38.4 million is expected to enhance the company's position in residential business purpose lending [10]. Capital Allocation - As of June 30, 2025, the total investment portfolio carrying value was $8.609 billion, with significant allocations in residential loans and investment securities [9]. - The company reported a recourse leverage ratio of 3.8x and a portfolio recourse leverage ratio of 3.6x [9]. Subsequent Events - On July 24, 2025, the company completed a securitization of residential loans, resulting in approximately $345.9 million in net proceeds [10].