Adamas Trust Q3 book value falls 22% amid market volatility
ADAM•Adamas Trust's Q3 book value per share fell 22% quarter over quarter, and it reported a $1.89 GAAP basic loss per share. Earnings available for distribution per share rose 25% year over year, and the company raised its quarterly dividend 11% to $0.30 per share.
1. Q3 results
Adamas Trust said its adjusted book value declined primarily because of lower valuations for Agency mortgage securities amid rising interest rates and market volatility. Earnings available for distribution per share rose 25% year over year, which the company attributed to continued portfolio expansion.
2. Outlook and dividend
The company said mortgage asset repricing has created attractive investment opportunities for Q4 and that it expects to manage its remaining TBA short positions based on market conditions. It raised its quarterly dividend by 11% to $0.30 per share.
