Highlights

  • Adamas shows 774.12% one-year basic EPS growth, a P/E of 4.65 and PEG of 0.00.
  • Second quarter basic EPS was $0.48, against a loss of $0.04 a year earlier.
  • Book value per common share was $10.16; adjusted book value per share was $11.05.
  • Adamas declared a $0.27 quarterly common dividend and repurchased 612,464 shares in six months.

Adamas Trust (NASDAQ:ADAM) reported second quarter 2026 net income attributable to common stockholders of $43.4 million, and the undervalued growth stock figures read 774.12% one-year growth in basic earnings per share, a trailing twelve-month P/E of 4.65 and an expected-basis PEG ratio of 0.00, with shares trading at USD 7.79 on October 28, 2026, down 0.89%. Alongside those figures, the internally managed REIT issued $90.0 million of 9.25% Senior Notes due 2031 on January 13, 2026, redeemed its $100.0 million 2026 Senior Notes on February 2, 2026, and declared a $0.27 per share common dividend on June 11, 2026.

Adamas Trust, Inc. is a Maryland corporation with its principal executive office at 90 Park Avenue, New York, New York. It is an internally managed real estate investment trust whose portfolio includes credit sensitive single-family and multi-family assets and fixed-income investments such as Agency RMBS, and its wholly owned subsidiary Constructive Loans, LLC originates business purpose loans for residential real estate investors. The company reports two segments: the investment portfolio and Constructive.

Growth: Second Quarter Earnings, Net Interest Income and Originations

Net income attributable to common stockholders was $43.4 million, or $0.48 per basic share, in the quarter ended June 30, 2026, against a net loss of $3,486 thousand, or $0.04 per share, a year earlier. Diluted earnings per share were $0.47 against a loss of $0.04. For the six months, basic earnings per share were $0.89 against $0.30.

Net interest income was $50,209 thousand against $36,447 thousand. Total other income was $45,158 thousand against a loss of $9,264 thousand. General and administrative expenses were $25,613 thousand against $11,786 thousand, which the company said reflects the inclusion of Constructive's results after its consolidation in the third quarter of 2025. Earnings available for distribution, a non-GAAP measure, were $0.30 per share.

The investment portfolio was approximately $11.7 billion, and Constructive funded $406.1 million of business purpose loans.

Valuation: P/E of 4.65, PEG of 0.00 and Book Value Per Share

The P/E ratio of 4.65 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. GAAP book value per common share was $10.16 at June 30, 2026, up 1.8%, and adjusted book value per share, a non-GAAP measure, was $11.05, up 2.3%. Economic return was 4.51% on book value and 4.81% on adjusted book value for the quarter, and 11.04% and 8.65% for the six months.

Capital: Dividends, Repurchases, Notes and Leverage

The board declared a second quarter common dividend of $0.27 per share on June 11, 2026, against $0.23 for the first quarter and $0.20 for the second quarter of 2025.

The company repurchased 612,464 common shares for approximately $5.0 million, an average of $8.17 per share, in the six months and none in the second quarter. The program expires March 31, 2027, with $183.2 million remaining. A June 12, 2026 equity distribution agreement allows up to $250.0 million of common stock sales, none of which has been issued.

Senior unsecured notes outstanding were $347.5 million, with repurchase agreements and warehouse facilities at a carrying value of $7.1 billion. Two securitizations produced net proceeds of approximately $518.0 million. The Company Recourse Leverage Ratio was 5.5x and the Portfolio Recourse Leverage Ratio was 5.2x, against 5.0x and 4.7x at December 31, 2025. Available cash was $181.8 million, with $440.2 million of unencumbered investment securities, and the company stated it has no near-term debt maturities.

Disclosed Risks and Outlook

The company said higher interest rates reduced valuations across a majority of its assets during the quarter, offset by spread tightening and derivative gains. It recognized net realized losses of $13.0 million. Consolidated SLST residential loans with an unpaid principal balance of $128.4 million were 90 days or more delinquent, against $134.7 million at December 31, 2025.

Repurchase agreements and warehouse facilities are subject to margin calls, and the company disclosed that a Federal Reserve path that includes possible rate hikes could negatively affect the value of its credit investments. The 21st Century ROAD to Housing Act, which became law in July 2026, generally prohibits large institutional investors with 350 or more single-family homes from buying additional ones, and the company stated such policies could materially adversely affect its single-family rental investments. It does not believe its legal proceedings will have a material adverse effect.

The filing contains no numeric guidance. Management stated its focus on disciplined portfolio growth and scaling Constructive's origination platform, and said it expects existing cash, financing and operating cash flows to meet liquidity requirements for at least the next 12 months.