Adamas Trust 7.000% Series G Preferred Stock

ADAMZ

You can read all the published reports on inflation, jobs and guess what the Fed will do next. Or you could collect a rich income stream, no matter where interest rates are headed. We choose the latter, and are cash collectors across market conditions.

Adamas Trust, Inc. (ADAM) Q1 2026 Earnings Call Transcript

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

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 hiked its common share dividend by 14% and grew its adjusted book value by 12 cents sequentially during the third quarter. ADAM currently covers its common share dividend by 104% and grew EAD by 2 cents per share sequentially to $0.24 per share. The mREIT's Series G preferreds offer a current yield of 9.3% and are trading at a 25% discount to their liquidation value.

Adamas Trust, Inc. ( ADAM ) Q3 2025 Earnings Call October 30, 2025 9:00 AM EDT Company Participants Kristi Mussallem Jason Serrano - CEO & Director Kristine Nario - Secretary, CFO & Principal Accounting Officer Nicholas Mah - President Conference Call Participants Bose George - Keefe, Bruyette, & Woods, Inc., Research Division Jason Weaver - JonesTrading Institutional Services, LLC, Research Division Presentation Operator " Kristi Mussallem " Jason Serrano CEO & Director " Kristine Nario Secretary, CFO & Principal Accounting Officer " Nicholas Mah President " Bose George Keefe, Bruyette, & Woods, Inc., Research Division " Keefe, Bruyette, & Woods, Inc., Research Division Jason Weaver JonesTrading Institutional Services, LLC, Research Division " JonesTrading Institutional Services, LLC, Research Division [":p id="A00"name="Unknown Analyst" type="A" />" Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Adamas Trust Third Quarter 2025 Results Conference Call.

We take a look at the action in preferreds and baby bonds through the second week of July and highlight some of the key themes we are watching. Preferreds outperformed broader markets last week; sector credit spreads have tightened, making valuations expensive and yields less attractive. Bonds offer more protection than preferreds, but preferreds provide higher yields; choice depends on issuer quality, tax treatment, and investor objectives.

We take a look at the action in preferreds and baby bonds through the third week of January and highlight some of the key themes we are watching. Preferred stocks started the year strong with a 1% return, despite Treasury market volatility, with all sectors except BDCs showing gains. NYMT Series E preferred reset its coupon to SOFR + 6.691%, raising the yield to over 11%, highlighting the importance of tracking floating-rate resets.

We take a look at the action in preferreds and baby bonds through the second week of January and highlight some of the key themes we are watching. All preferreds sectors declined due to rising Treasury yields, but the yield on the sector has become more attractive, rising to around 6.8%. The market's expectation for rate cuts has significantly decreased, impacting the relative value of floating-rate, reset, and fixed-rate preferred securities.

The Fed is expected to lower short-term rates soon, impacting distributions for investment vehicles like CEFs and BDCs. Investors should focus on both distribution paths and valuations of CEFs, as valuation changes can significantly affect portfolio wealth. BDCs, despite holding floating-rate assets, offer high dividend coverage and income diversification, making them attractive even in a rate-cutting cycle.