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Adamas Trust, Inc. (ADAM) Q4 2025 Earnings Call Transcript

Angel Oak Mortgage REIT, Inc. and Adamas Trust, Inc. both offer 2029 Notes with attractive coupons, reflecting their respective credit profiles. AOMR's lower equity coverage and recent coupon increase signal higher perceived risk, yet income generally covers interest obligations. ADAM's recent 9.25% Note issuance highlights tighter income coverage but maintains reasonable equity protection for debt holders.

Adamas Trust (ADAM) offers a compelling 10.8% yield on its ADAMM preferred shares, standing out among its nine income options. Despite steady net interest income growth and expanding the investment portfolio, ADAM faces heightened leverage and liquidity risks if rates rise. I remain cautious on ADAM common shares due to persistent book value declines and a history of dividend cuts.

Adamas Trust, Inc. 8% RED PFD D, ticker ADAMN, offers high yield but exhibits the weakest payment and coverage ratios among peer mREIT preferreds, resulting in a Sell rating. ADAMN's payment ratio stands at 2.7x and the coverage ratio at 1.6x, well below the 10x comfort threshold for risk mitigation. While ADAMN features a superior floating rate formula to some peers, its risk of missed payments and principal loss…