Adamas Trust Q1 EPS $0.41, 45% EAD Growth and 12.5% Yield
Adamas Trust reported Q1 GAAP EPS of $0.41 and earnings available for distribution of $0.29 per share, up 45% year-over-year and 26% quarter-over-quarter, supporting a $0.23 dividend yielding 12.5% annualized. Book value rose 4.0% to $9.98 while economic return hit 6.35% for the quarter.
1. Strong Earnings and Yield
Adamas Trust delivered GAAP EPS of $0.41 and earnings available for distribution of $0.29 per share in Q1, marking 45% year-over-year and 26% quarter-over-quarter growth. Book value per share climbed 4.0% to $9.98 while quarterly economic return reached 6.35%, supporting a $0.23 dividend with a 12.5% annualized yield.
2. Portfolio Expansion and Business Growth
The company acquired $1.0 billion of single-family residential investments, including $510.1 million of Agency RMBS and $487.2 million of business purpose loans. Its Agency portfolio now totals $6.8 billion at a 5.50% average coupon, and the BPL-Rental segment grew to $1.8 billion in UPB with average FICO of 748, LTV of 71% and DSCR of 1.35x.
3. Financing Activities and Capital Management
Adamas issued $90.0 million of 9.25% senior unsecured notes due 2031, redeemed $100.0 million of 5.75% notes due 2026, and completed securitizations totaling $571.9 million at effective costs under 5.6%. The company repurchased 612,464 shares at $8.17 each, reinforcing its capital return strategy.