8-K: NYMT Rebrands to Adamas Trust, Accelerates Asset Acquisitions

New York Mortgage Trust, Inc. is rebranding to Adamas Trust, Inc. and changing its Nasdaq ticker to ADAM, while also announcing significant residential asset acquisitions.

Summary

• New York Mortgage Trust, Inc. is changing its corporate name to Adamas Trust, Inc., effective September 3, 2025, at 12:01 a.m. Eastern Time.
• The company's common stock will trade under the new Nasdaq ticker symbol ADAM, with all other listed securities also changing to ADAM-prefixed tickers.
• A new corporate website, www.AdamasREIT.com, will launch on or about September 3, 2025.
• The rebrand signifies the company's evolution into a multi-dimensional investment and operating platform, emphasizing strength, resilience, and a long-term vision "unbound by geography."
• From July 1, 2025, through August 27, 2025, the company acquired approximately $2.1 billion in residential assets, representing a 164% increase from acquisitions in the three months ended June 30, 2025.
• The company recently completed the acquisition of Constructive Loans, LLC, an originator in business purpose loans for residential real estate investors.
• The rebrand will not affect business operations, stockholder rights, or the company's qualification as a REIT for U.S. federal income tax purposes.
• The company reported Earnings Available for Distribution (EAD) of $20.024 million, or $0.22 per common share, for Q2 2025, a significant increase from $7.990 million, or $0.09 per common share, in Q2 2024.
• The company's common stock discount to Adjusted Book Value was 31% as of August 27, 2025, based on Adjusted Book Value as of June 30, 2025.
• Excess liquidity capacity was $416 million as of June 30, 2025.

Sentiment

Score: 7

Explanation: The rebrand, significant asset acquisitions, and strong growth in Earnings Available for Distribution (EAD) are positive indicators. However, the continued GAAP net loss and the substantial discount to Adjusted Book Value suggest underlying challenges or market skepticism that temper overall sentiment.

Positives

• Significant increase in residential asset acquisitions, totaling approximately $2.1 billion from July 1 to August 27, 2025, a 164% increase over Q2 2025 acquisitions.
• Expanded interest income by 55% over the past year due to portfolio realignment towards Agency RMBS.
• Completed the acquisition of Constructive Loans, LLC, which is expected to contribute incremental income.
• Strong growth in Earnings Available for Distribution (EAD), increasing from $7.990 million ($0.09 per share) in Q2 2024 to $20.024 million ($0.22 per share) in Q2 2025.
• Maintained a substantial dividend history, declaring $1.5 billion in common stock dividends since June 2004, with a current dividend yield of 11.9%.
• Reported $416 million in excess liquidity capacity as of June 30, 2025.
• The rebrand to Adamas Trust, Inc. signals a strategic evolution towards a multi-dimensional investment and operating platform, aiming for durable earnings and long-term stockholder value.

Negatives

• GAAP net loss attributable to common stockholders for Q2 2025 was $(3.486) million, or $(0.04) per common share, indicating continued GAAP losses despite EAD improvement.
• Adjusted Book Value per Common Share decreased from $11.02 in Q2 2024 to $10.26 in Q2 2025.
• The common stock discount to Adjusted Book Value was 31% as of August 27, 2025, suggesting the market values the company significantly below its adjusted book value.

Risks

• Changes in business and investment strategy.
• Inflation and changes in interest rates, and the fair market value of assets, including negative changes resulting in margin calls.
• Changes in credit spreads.
• Changes in long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae.
• General volatility of the markets in which the company invests.
• Changes in prepayment rates on loans or underlying investment securities.
• Increased rates of default, delinquency, or vacancy and/or decreased recovery rates on assets.
• Ability to identify and acquire targeted assets, including those in the investment pipeline.
• Ability to dispose of assets from time to time on favorable terms.
• Changes in relationships with financing counterparties and ability to borrow to finance assets.
• Changes in relationships with and/or performance of operating partners.
• Ability to predict and control costs.
• Changes in laws, regulations, or policies affecting the business.
• Ability to make distributions to stockholders in the future.
• Ability to maintain REIT qualification for U.S. federal income tax purposes.
• Ability to maintain exemption from registration under the Investment Company Act of 1940, as amended.
• Impairments and declines in the value of collateral underlying investments.
• Changes in anticipated benefits from the acquisition of Constructive Loans, LLC.
• Ability to effectively integrate Constructive Loans, LLC and risks associated with its ongoing operation.
• Ability to manage or hedge credit risk, interest rate risk, and other financial and operational risks.
• Exposure to liquidity risk, risks associated with the use of leverage, and market risks.
• Risks associated with investing in real estate assets and/or operating companies, including changes in business conditions, general economy, investment opportunities, and market conditions for residential loans, mortgage-backed securities, structured multi-family investments, and other assets.

Future Outlook

The company anticipates continued growth in Earnings Available for Distribution (EAD) by expanding recurring income through balance sheet growth and rotating remaining real property exposure into interest-earning assets. It also aims to expand its platform by attracting fee income to further support company earnings. The recent acquisition of Constructive Loans, LLC is expected to contribute incremental income over the short and long term, with plans for continued origination growth. The rebrand to Adamas Trust, Inc. is positioned as a strategic evolution to generate durable earnings and long-term stockholder value as a multi-dimensional investment and operating platform.

Management Comments

• "Rebranding to Adamas Trust, Inc. represents more than a name change, it is a statement of who we are and where we are headed."
• "We believe our new name and its meaning exemplify our unwavering core principles."

Industry Context

The company's strategic shift towards Agency RMBS and business purpose loans, coupled with the exit of multi-family positions, aligns with broader trends in the real estate investment trust (REIT) sector where companies are optimizing portfolios for stable, recurring income streams and adapting to evolving real estate and capital markets. The rebrand to 'Adamas Trust, Inc.' and the emphasis on being 'unbound by geography' suggests a move towards a more diversified and flexible investment strategy, potentially seeking opportunities beyond traditional regional limitations, which could be a response to increased competition or changing market dynamics in specific geographic areas.

Comparison to Industry Standards

• The company's 11.9% dividend yield is notably high, potentially indicating a higher risk profile or a market undervaluation compared to more established, lower-yielding REITs.
• The 31% common stock discount to Adjusted Book Value suggests a significant market skepticism or undervaluation relative to peers that might trade closer to or above book value, such as well-established mortgage REITs like Annaly Capital Management (NLY) or AGNC Investment Corp (AGNC), which often trade at varying discounts or premiums depending on market conditions and portfolio composition.
• The 164% increase in residential asset acquisitions in Q3 2025 (thus far) compared to Q2 2025 indicates an aggressive growth strategy, which could be seen as opportunistic in the current market, but also carries execution risk. This level of quarter-over-quarter growth in acquisitions is higher than typical for mature, large-cap REITs and suggests a more dynamic, potentially higher-growth phase for the company.

Corporate Governance

Related Party Transactions

• The Bylaws (Article XI) outline a policy regarding "Prohibited Investments and Activities" which restricts transactions with directors, officers, employees, or affiliates (owning more than a 5% interest) without the approval of a majority of disinterested Directors, except for certain acquisitions related to the initial public offering. All such transactions must be fair and reasonable to the Corporation.

Stakeholder Impact

• Shareholders: Will see a name and ticker symbol change, but no change to rights or validity of securities. The strategic rebrand and asset acquisitions aim to generate durable earnings and long-term value, potentially leading to increased stock performance and dividend growth. The 31% discount to Adjusted Book Value suggests potential for upside if the strategic initiatives are successful.
• Employees: No direct impact on employment or operations mentioned, but the strategic evolution could imply future growth opportunities or shifts in focus.
• Customers/Clients: The acquisition of Constructive Loans, LLC and focus on business purpose loans for residential real estate investors suggests an expansion of services and offerings to this client segment.
• Creditors: The change in company name and ticker symbols will apply to outstanding senior notes. The company's stated strong balance sheet and liquidity position are positive for creditors.

Next Steps

• Launch new corporate website www.AdamasREIT.com on or about September 3, 2025.
• Continue to grow Earnings Available for Distribution by expanding recurring income through balance sheet growth.
• Rotate remaining real property exposure into interest-earning assets.
• Expand the platform by attracting fee income to further support company earnings.
• Continue origination growth for business purpose loans through Constructive Loans, LLC.

Key Dates

Recommendation

The rebranding and strategic shift, coupled with significant asset acquisitions and strong EAD growth, present a compelling long-term vision. However, the persistent GAAP net loss and the substantial discount to Adjusted Book Value indicate that the market has not fully priced in the anticipated benefits or perceives ongoing risks. While the strategic direction is positive, a 'hold' recommendation is appropriate until there is clearer evidence of sustained GAAP profitability and a narrowing of the discount to Adjusted Book Value, which would signal successful execution of the new strategy and improved market confidence.

Keywords

Adamas Trust, New York Mortgage Trust, NYMT, ADAM, REIT, Real Estate Investment Trust, Corporate Rebranding, Residential Assets, Agency RMBS, Constructive Loans, Business Purpose Loans, Mortgage-Backed Securities, Financial Performance, Earnings Available for Distribution, Stockholder Value, Corporate Governance, SEC Filing