What factors drove the changes in Adamas Pref F's revenue and profit?

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- **Strategic Rebranding Success**: EDA up 6 consecutive quarters to $0.24, dividend increased 29% to $0.23, with Agency RMBS portfolio tripling to $6.7B.
- **Constructive Integration**: Full ownership of BPL originator drives $14.1M in mortgage banking income, with 94% of Q3 originations in high-margin BPL Rental.
- **Financial Strength**: $10.4B investment portfolio, 47% YoY net interest income growth, and book value up 1.2% QoQ to $10.38.
- **Leverage Management**: 5x recourse leverage reflects disciplined capital deployment, with credit book leverage <1x via securitization.
- **Share Value**: 30% discount to book value highlights undervaluation, with Agency RMBS alone trading at 17% premium.

**【CEO Summary Section】**
- Adamas rebranded to reflect a broader strategic vision, with EDA rising to $0.24 per share (6th consecutive quarterly increase) and dividend increased to $0.23 per share.
- Agency RMBS now comprises 57% of total capital ($6.7B), up from 19% a year ago, driving earnings durability.
- Acquired full ownership of Constructive Loans, a leading BPL originator, to capitalize on housing affordability trends.
- Shares trade at 30% discount to adjusted book value, with Agency RMBS alone valued 17% above current price.

**【CFO Financial Commentary】**
- Investment portfolio grew to $10.4B (21% QoQ), with EAD per share up 9% to $0.24 and net interest income per share at $0.47 (47% YoY growth).
- Constructive contributed $14.1M in mortgage banking income, despite $3.8M net loss due to integration costs.
- Leverage ratios increased to 5x (recourse) and 4.7x (portfolio), driven by Agency RMBS acquisitions and Constructive consolidation.
- GAAP and adjusted book value per share rose to $9.20 and $10.38, respectively.

**【President's Market Update】**
- Q3 investment activity reached $2.3B, with $1.8B allocated to Agency RMBS and $262M to BPL Bridge loans.
- BPL Rental portfolio grew 24% to $1.16B, with 98% of loans having prepayment penalties and 60+ day delinquencies at 1.3%.
- Constructive originated $439M in loans (94% BPL Rental), with Adamas purchasing <50% of production to maintain market access.
- Multifamily JV exited, with mezzanine portfolio generating a 32.4% payoff rate (vs. 25.8% historical average).

**【Q&A Highlights】**
- Agency allocation to slow from 57% (Q3) as spreads tighten, with focus shifting to BPL Rental and Constructive origination.
- Share buybacks considered but balanced against asset allocation opportunities; no Q3 repurchases due to capital deployment.
- Book value up 2.5%-3% YTD, driven by Agency RMBS and whole loan valuation improvements.
- Leverage on credit book expected to remain below 1x, with securitization market access key to financing strategy.

Adamas Trust, Inc. (ADAM) Q3 2025 Earnings Call Transcript

- **EAD Exceeds Dividend**: Q2 EAD of $0.22 per share surpassed the $0.20 dividend, driven by $800 million in strategic investments and the Constructive acquisition.
- **Agency Growth Acceleration**: Agency RMBS now 57% of portfolio, with target to reach 50% of equity. Q2 net interest spread expanded to 150bps, up 18bps QoQ.
- **Constructive Synergies**: Immediate accretion expected from BPL origination, with potential to scale gain-on-sale income. Constructive's 93% BPL Rental focus aligns with NYMT's credit discipline.
- **Valuation Opportunity**: Shares trading at 70% of book value, with recurring earnings growth and $416 million liquidity to fuel expansion.
- **Market Resilience**: Despite Q2 rate volatility, BPL delinquency rates remain stable (2% for Rentals, 60+ days for Bridges), underscoring portfolio resilience.


**【CEO Summary Section】**
- **Strong EAD Performance**: Earnings available for distribution (EAD) exceeded the common dividend by $0.02 in Q2, driven by effective capital allocation and liquidity management.
- **$800M Investment Momentum**: Deployed $800 million into single-family opportunities, including Agency RMBS and business purpose loans (BPLs), with a focus on high return profiles.
- **Constructive Acquisition**: Completed the full acquisition of Constructive, a leading BPL originator, to accelerate growth in residential lending. The transaction is expected to deliver a 15% annual equity return and be immediately accretive to EAD.
- **Market Outlook**: Anticipate a steepening yield curve and housing market cooling, with rental demand growth supporting BPLs. NYMT shares trade at 70% of book value, highlighting undervaluation.

**【CFO Financial Commentary】**
- **EAD Growth**: Q2 EAD per share rose 10% QoQ to $0.22, supported by $915 million in asset acquisitions and improved net interest spread (150bps vs. 132bps in Q1).
- **Financial Metrics**: Adjusted net interest income per share increased 10% QoQ and 47% YoY to $0.44. GAAP book value per share decreased 2.8% to $9.11, while adjusted book value fell 1.6% to $10.26.
- **Balance Sheet Management**: Agency RMBS now represent 57% of portfolio assets, up from 34% in Q1. Recourse leverage ratio rose to 3.8x (from 3.4x) due to financing for Agency RMBS growth.
- **Constructive Impact**: The acquisition will increase G&A expenses to 6.2-6.4% and add 0.2x to recourse leverage, with $90 million of unsecured notes issued in July to support asset deployment.

**【President's Market & Strategy Update】**
- **Agency RMBS Expansion**: Allocated $504 million to Agency RMBS in Q2, targeting 50% of equity over time. Current coupon spreads widened to 164bps vs. 147bps in Q2, positioning for rate decline benefits.
- **BPL Performance**: BPL Bridge delinquencies declined to 60+ days, while BPL Rental loans maintain a 1.38x DSCR and 2% delinquency rate. Constructive's origination pipeline supports future growth.
- **Multifamily Transition**: Exited remaining multifamily JV equity positions in Q2, rotating proceeds into core strategies. Mezzanine loans payoff at 17% annualized rate, with higher activity expected in H2.
- **Constructive Integration**: Full ownership enables direct control over BPL origination, with plans to scale gain-on-sale income while maintaining a capital-light model.

**【Q&A Highlights】**
- **Agency Allocation Strategy**: Targeting 50% of equity in Agency RMBS over time, with medium-term focus on 38-40% allocation. Leverage in the agency book (8.6x) is comfortably scalable.
- **Constructive Utilization**: NYMT expects to purchase ~25% of Constructive's production, balancing capital deployment with fee income generation. Originations may moderate in Q3 due to rate volatility but remain optimistic on long-term growth.
- **Book Value Trends**: Adjusted book value decreased ~1% in July, reflecting market volatility. Management emphasizes long-term value creation over short-term book fluctuations.
- **Leverage Flexibility**: Recourse leverage in residential credit remains low (0.5x), while agency leverage (8.6x) provides flexibility for opportunistic acquisitions. Total leverage could trend toward 4.5x as agency allocation grows.
- **ROE Comparisons**: Agency RMBS ROE on fully hedged basis is mid-teens, similar to BPL Rental loans. Multifamily Mezzanine ROE is low double digits, supporting rotation into higher-margin assets.


New York Mortgage Trust, Inc. (NYMT) Q2 2025 Earnings Call Transcript

- **Earnings Growth**: Q1 EAD of $0.20 per share (vs. $0.16 in Q4 2024) reflects successful portfolio repositioning to Agency RMBS and BPL.
- **Liquidity Strength**: $407 million excess liquidity (20% QoQ increase) supports opportunistic investing amid market volatility.
- **Valuation Discount**: Shares trade at 10% discount to book value, with management highlighting undervaluation and dividend sustainability.
- **Market Strategy**: Focused on Agency RMBS (163bp spreads) and BPL-Rental, avoiding BPL-Bridge due to competitive yields.
- **Risk Mitigation**: Reduced credit leverage to 0.5x and Multi-Family exposure to 19%, with 10% Mezzanine portfolio resolution YTD.

**【CEO Summary Section】**
- NYMT achieved recurring earnings consistent with its $0.20 per share dividend in Q1 2025, driven by a strategic shift to high-liquidity Agency RMBS and short-duration credit assets.
- The company doubled its investment pace compared to Q4 2024, deploying $1.8 billion while increasing excess liquidity by 20% to $407 million.
- Portfolio restructuring reduced G&A expenses and improved dividend coverage, with near-term opportunities to generate service fee income.
- NYMT's equity is trading at a 10% discount to book value, with management emphasizing its undervalued position.

**【CFO Financial Commentary】**
- Introduced a new non-GAAP metric, Earnings Available for Distribution (EAD), which rose to $0.20 per share in Q1 2025 (up from $0.16 in Q4 2024).
- Adjusted net interest income per share increased 11% QoQ and 38% YoY to $0.40, supported by lower financing costs and improved spread management.
- GAAP book value and adjusted book value per share grew to $9.37 and $10.43, respectively, reflecting reduced credit leverage and portfolio optimization.
- Notably, the portfolio recourse leverage ratio decreased to 0.5x from 1.1x in Q4 2024, driven by securitizations and asset sales.

**【President Market Update】**
- Acquired $1.5 billion in Agency RMBS (4x Q4 2024 pace) and $397 million in BPL loans, with a focus on Rental loans due to their stronger credit profile.
- Completed two BPL securitizations totaling $254 million, maintaining liquidity despite record investment levels.
- Agency RMBS spreads widened to 163 basis points (from 143 basis points in Q1), presenting attractive entry points amid market volatility.
- Reduced Multi-Family exposure to 19% of assets (from 27% a year ago), with 10% of the Mezzanine portfolio resolving year-to-date.

**【Q&A Key Takeaways】**
- **GSE Reform Impact**: Management expects no near-term changes, noting GSE transition would take years and could raise mortgage rates.
- **Book Value Performance**: Q2 2025 adjusted book value down 1.5% through April, reflecting market volatility but maintaining long-term growth trajectory.
- **Capital Allocation**: Prioritizing Agency RMBS due to recession-resilient spreads, with BPL-Rental as secondary focus; avoiding BPL-Bridge due to competitive pricing.
- **Multi-Family Resolution**: Anticipating robust 2025 payoff rates, with proceeds reinvested into core strategies.


New York Mortgage Trust (NYMT)-1 May 25-2025 Q1 Earnings call transcript

- **44% Asset Growth**: $4.1B new investments drove 60% YoY interest income rise
- **$0.36 EPS Contribution**: Q4 NII up 38% YoY, despite 41% book value discount
- **Cost Efficiency**: 3% G&A ratio vs. 4.5% prior year
- **Liquidity Deployment**: $343M excess cash used for 6 securitizations
- **Multifamily Cleanup**: 5 assets sold, reducing quarterly REO loss by 21%

**【CEO Opening Remarks】**
- **2024 Portfolio Growth**: Total assets expanded 44% YoY to $11.2 billion, driven by $4.1 billion in new investments (agency bonds + bridge loans). Adjusted interest income rose 60% YoY to $128.3 million.
- **Earnings Contribution**: Adjusted NII EPS of $0.36 in Q4 (+$0.10 YoY), with 38% YoY growth. 41% discount to book value ($10.35/share) vs. $7.17/share market price.
- **Liquidity Utilization**: $343M excess cash deployed via 6 securitizations in 2024, including $83M baby bond issuance in Q1 2025. Targeting non-recourse leverage for growth.
- **Cost Efficiency**: G&A expenses maintained at 3% of assets, down from 4.5% in 2023.

**【CFO Financial Highlights】**
- **Q4 Results**: Undepreciated EPS loss of $(0.44) vs. $(0.39) in Q3, driven by $131.6M unrealized losses on Agency RMBS and residential loans. Partially offset by $92M swap gains.
- **Net Interest Income**: $0.36 EPS contribution (+12.5% QoQ, +38% YoY). Net interest spread +5bps QoQ, +35bps YoY. Swaps reduced funding cost by 38bps QoQ.
- **Multifamily JV Progress**: 5 assets sold in Q4, leaving $21M in 4 remaining properties. Disposals reduced quarterly REO loss from $(7.5M) to $(5.9M).
- **Balance Sheet Metrics**: GAAP book value $10.35/share (-4.8% QoQ). Recourse leverage 3.0x (up from 2.6x). $272M net discount on portfolio assets ($3.05/share potential recovery).

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