UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ FORM 10-K ___________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ____________ Commission File Number 001-32216 ADAMAS TRUST, INC. (Exact name of registrant as specified in its charter) 90 Par ...

Financial Performance - In Q4 2025, Adamas Trust, Inc. reported a net income of $41.6 million, with a full-year net income of $101.1 million, representing a significant increase in profitability [4]. - The company increased its quarterly earnings available for distribution by 44% year-over-year, reaching $20.4 million in Q4 2025 and $80.6 million for the full year [3][4]. - Economic return on book value was 6.85% for Q4 2025 and 12.72% for the full year, reflecting effective capital management [4][8]. - The company reported a net income attributable to common stockholders of $101.1 million for the year ended December 31, 2025, compared to a net loss of $103.8 million in 2024 [30]. - Net income attributable to the Company for the three months ended December 31, 2025, was $53,527,000, and for the year it was $149,048,000 [15][16]. - Basic earnings per common share increased to $0.46 from $0.36, showing a positive trend in profitability [32]. - GAAP net income attributable to common stockholders for Q4 2025 was $41.605 million, compared to a loss of $41.828 million in Q4 2024 [46]. Investment and Asset Management - Adamas expanded its investment portfolio by $3.1 billion in 2025, with total investments amounting to $10.7 billion by year-end [3][10]. - The company completed the acquisition of Constructive for approximately $462.4 million in residential loans, enhancing its market position [8]. - The company exited its remaining multi-family joint venture equity investments, streamlining its investment strategy [8]. - Total assets increased to $12.64 billion as of December 31, 2025, up from $9.22 billion in 2024, representing a 37.5% growth [27]. - The company reported unrealized gains of $217.4 million for the year ended December 31, 2025, compared to unrealized losses of $90.5 million in 2024 [30]. - The net equity investment in consolidated multi-family properties as of December 31, 2025, was $153.477 million [56]. Income and Expenses - Total net interest income for the three months ended December 31, 2025, was $43,170,000, with a net loss from real estate of $3,292,000 [15]. - For the year ended December 31, 2025, total net interest income was $149,301,000, with a net loss from real estate of $12,417,000 [16]. - General, administrative, and operating expenses for the three months ended December 31, 2025, totaled $36,123,000 [15]. - General and administrative expenses increased to $72.7 million in 2025, compared to $48.7 million in 2024, reflecting a 49.3% increase [30]. - The Constructive segment incurred $10.2 million in direct general and administrative expenses and $4.3 million in direct loan origination costs for the three months ended December 31, 2025 [15]. Dividends and Shareholder Returns - The company raised its dividend by 15%, declaring $0.23 per common share for the last two quarters of 2025, totaling $0.86 for the full year [4][8]. - Dividends declared per common share were consistent at $0.23, maintaining shareholder returns [32]. - Earnings available for distribution (EAD) for Q4 2025 was $20.414 million, with EAD per common share at $0.23, slightly down from $0.24 in Q3 2025 [46]. Financing and Capital Structure - The company issued $82.5 million in 9.125% Senior Notes due 2030 and $115.0 million in 9.875% Senior Notes due 2030, raising approximately $190.7 million in net proceeds [8]. - As of December 31, 2025, Adamas had a net company capital allocated of $1.4 billion, with a recourse leverage ratio of 5.0x [10]. - Total liabilities increased to $11.21 billion as of December 31, 2025, from $7.81 billion in 2024, marking a 43.5% rise [27]. Performance Metrics - The yield on average interest-earning assets was 6.23% for Q4 2025 and 6.36% for the full year, indicating strong asset performance [4]. - The weighted average shares outstanding for basic earnings were 90.4 million in 2025, slightly down from 90.6 million in 2024 [30]. - The net interest spread remained stable at 1.52%, compared to 1.50% in the previous quarter [32]. - Adjusted book value per common share increased to $10.63 as of December 31, 2025, up from $10.38 in September 2025 [52]. Strategic Initiatives - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to enhance interest income levels [43]. - Adamas Trust focuses on generating durable earnings and long-term value for stockholders through disciplined portfolio management [19]. - The Company plans to release a supplemental financial presentation accompanying the conference call on its website [18].

Investment Securities - For the three months ended September 30, 2025, total investment securities increased to $10,511.648 million, up from $8,603.269 million[304]. - The company acquired $1,856.142 million in new investment securities during the quarter, while repayments totaled $516.156 million[304]. - The fair value of Agency RMBS and TBAs rose to $6,658.646 million, reflecting an increase of $1,718.683 million[304]. - The company reported a total of $158.791 million in consolidated SLST investment securities as of September 30, 2025[305]. - As of September 30, 2025, total investments amounted to $10,518,504, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 42.8%[337][338]. - The company had $6.1 billion outstanding under repurchase agreements as of September 30, 2025, with a weighted average interest rate of 4.43%[404][405]. - The fair value of investment securities pledged as collateral under repurchase agreements was $6.3 billion as of September 30, 2025, compared to $3.7 billion as of December 31, 2024[402]. - The total unrealized gains on investment securities were $111.4 million as of September 30, 2025, compared to $23.9 million as of December 31, 2024[401]. - The carrying value of Agency RMBS and TBAs increased to $8.01 billion as of September 30, 2025, compared to $4.24 billion as of December 31, 2024, indicating significant growth in this segment[400][401]. - The weighted average yield for total investment securities was 5.86% as of September 30, 2025, up from 5.94% as of December 31, 2024[401][405]. Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32.7 million, or $0.36 per share, with Earnings Available for Distribution (EAD) increasing 9% quarter-over-quarter to $0.24 per share, marking a 140% year-over-year improvement[311]. - The company achieved a quarterly economic return of 3.51% on GAAP book value per share and 3.41% on adjusted book value per share[311]. - The company reported a net income attributable to common stockholders of $32,702 for the three months ended September 30, 2025, slightly up from $32,410 in 2024, while for the nine months, it was $59,501, down from $121,458 in 2024[342]. - The company reported a comprehensive income attributable to common stockholders of $59.5 million for the nine months ended September 30, 2025, compared to a loss of $61.9 million in 2024[363]. - The economic return on book value for the nine months ended September 30, 2025, was 5.93%[333]. - The Company’s recourse leverage ratio as of September 30, 2025, was 5.0x, an increase from 3.0x as of December 31, 2024[338]. - The Company declared a quarterly dividend of $0.23 per share, a 15% increase from the prior quarter, equating to a 13.2% annualized dividend yield as of September 30, 2025[311]. - The Company increased its common stock dividend to $0.23 per share in September 2025[334]. Loan Performance - Residential loans at fair value decreased slightly to $2,969.048 million from $2,826.644 million[304]. - The fair value of residential loans held for sale was reported at $105.036 million[304]. - Constructive originated approximately $1.8 billion of loans over the twelve months ended September 30, 2025, including $439.3 million in Q3 2025, a 9% increase from the prior quarter[313]. - The current fair value of residential loans backing first loss subordinated securities is $1,182,599,000, up from $965,672,000 as of December 31, 2024, representing a 22.5% increase[419]. - The current unpaid principal balance of these loans increased to $1,329,199,000 from $1,111,633,000, reflecting a growth of 19.6%[419]. - The number of loans backing these securities rose to 8,763 from 7,246, indicating an increase of 20.9%[419]. - The delinquency status showed that 94.7% of residential loans were current as of September 30, 2025, an increase from 91.2% as of December 31, 2024[415]. Expenses and Liabilities - The Company incurred general and administrative expenses of $23,349 for the three months ended September 30, 2025, up from $11,941 in 2024, reflecting a 95.5% increase[342]. - Total liabilities as of September 30, 2025, were $6,511,835, which includes repurchase agreements and warehouse facilities totaling $6,363,494[337][338]. - The Company’s preferred stock dividends for the nine months ended September 30, 2025, were $(36,021), compared to $(31,317) in 2024, indicating an increase in dividend payments[342]. - Total expenses related to real estate decreased by $16.416 million to $22.982 million for the three months ended September 30, 2025, from $39.398 million in 2024[344]. Market Conditions - The U.S. GDP grew at an annualized rate of 3.9% in Q3 2025, continuing the growth trend from Q2 2025[321]. - The unemployment rate trended up slightly to 4.3% at the end of August 2025, indicating a cooling labor market[322]. - Effective rents for professionally managed apartments fell 0.3% in Q3 2025, indicating a potential decline in rental housing fundamentals[326]. - The median existing-home sales price in August 2025 was $422,600, up 2.0% from $414,200 in August 2024, marking 26 consecutive months of year-over-year price increases[326]. - Total housing inventory as of the end of August 2025 was up 11.7% year-over-year, indicating potential moderation in the residential real estate market[326]. Strategic Initiatives - The company is focused on reallocating capital away from joint venture equity investments in multi-family properties to targeted assets[306]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, including Agency RMBS and business purpose loans[382]. - The Company has repositioned its business by reallocating capital from joint venture equity investments in multi-family properties to targeted assets[436]. - The Company sold its equity interests in two joint venture entities during the three months ended September 30, 2025, with a fair value of $1,338,000 as of December 31, 2024[443]. Debt and Financing - The Company completed the issuance of $115 million in Senior Notes due 2030, resulting in net proceeds of approximately $111.4 million after expenses[334]. - The Company issued $90.0 million in aggregate principal amount of its 9.875% Senior Notes due 2030 on July 8, 2025, and an additional $25.0 million on August 22, 2025[452]. - The Company approved a $100.0 million preferred stock repurchase program, with $97.6 million remaining available as of September 30, 2025[486]. - The common stock repurchase program was increased to $246.0 million, with $188.2 million remaining available as of September 30, 2025[487]. - The Company’s debt as of September 30, 2025, includes senior unsecured notes and subordinated debentures, with trust preferred securities outstanding of $45.0 million at a weighted average interest rate of 8.24%[456]. Cash Flow - Net cash flows from operating activities totaled $72.0 million for the nine months ended September 30, 2025[466]. - Net cash flows used in investing activities were $2.7 billion, primarily due to purchases of investment securities and residential loans[467]. - Net cash flows provided by financing activities amounted to $2.6 billion, mainly from repurchase agreements and issuance of CDOs[470]. - The company had an aggregate amount at risk under repurchase agreements of approximately $93.5 million as of September 30, 2025[472].

Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32,702,000, with earnings per share of $0.36[3] - For the three months ended September 30, 2025, total net interest income was $36,586,000, with a net loss from real estate of $(3,878,000)[13] - Net income attributable to the Company's common stockholders for the three months ended September 30, 2025, was $32,702,000, while for the nine months it was $59,501,000[13] - The company reported a net loss attributable to non-controlling interests of $5,035,000 for the three months and $14,231,000 for the nine months ended September 30, 2025[13] - The company reported a net income attributable to common stockholders of $32,702 thousand for the three months ended September 30, 2025, compared to $32,410 thousand for the same period in 2024, a slight increase of 0.9%[26] - GAAP net income attributable to common stockholders for the three months ended September 30, 2025, was $32,702,000, compared to a loss of $3,486,000 in the previous quarter[42] Interest Income and Expenses - Interest income for the quarter reached $160,633,000, while interest expense was $124,047,000, resulting in net interest income of $36,586,000[3] - Interest income rose to $160,633 thousand for the three months ended September 30, 2025, compared to $108,361 thousand in the same period of 2024, marking a 48.3% increase[26] - Interest income for the three months ended September 30, 2025, was $160,633,000, an increase of 14% from $140,901,000 in the previous quarter[28] - The yield on average interest earning assets was 6.33%, with a net interest spread of 1.50%[3][10] - Total net interest income for the same period was $36,586,000, compared to $36,447,000 in the previous quarter, reflecting a slight increase[28] Dividends and Shareholder Returns - The quarterly dividend was increased to $0.23 per common share, marking a significant increase in shareholder returns[6] - Dividends declared per common share were $0.23, up from $0.20 in the previous quarter[28] Assets and Liabilities - The company’s total investments amounted to $10,518,504,000 as of September 30, 2025[8] - Total assets increased to $12,401,862 thousand as of September 30, 2025, up from $9,217,282 thousand as of December 31, 2024, representing a growth of 34.5%[24] - Total liabilities increased to $10,997,084 thousand as of September 30, 2025, up from $7,806,148 thousand as of December 31, 2024, reflecting a growth of 40.0%[24] - Total liabilities as of September 30, 2025, were $373,388,000, including mortgages payable on real estate of $362,747,000[52] Operational Highlights - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, such as Agency RMBS and business purpose loans[38] - The company exited remaining joint venture equity investments at a carrying value of approximately $17 million[4] - The company has repositioned its business by classifying certain joint venture equity investments as held for sale as of September 30, 2025[50] Expenses - Total general, administrative, and operating expenses for the three months ended September 30, 2025, were $41,825,000, and for the nine months, they were $86,817,000[13] - General and administrative expenses increased to $23,349 thousand for the three months ended September 30, 2025, compared to $11,941 thousand for the same period in 2024, a rise of 95.5%[26] Future Outlook - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projections[19] - The conference call to discuss these financial results is scheduled for October 30, 2025, at 9:00 a.m. Eastern Time[14] - A supplemental financial presentation will accompany the conference call and will be available on the Company's website[15] Earnings Available for Distribution - Earnings Available for Distribution (EAD) is now presented as a supplemental non-GAAP financial measure, replacing the previously used undepreciated earnings measure[37] - EAD provides a clearer indication of the current income-generating capacity of the company's operations, excluding certain non-recurring and non-cash items[39] - Earnings available for distribution (EAD) attributable to common stockholders increased to $21,991,000 for the three months ended September 30, 2025, from $20,024,000 in the previous quarter[42]

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]