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Adamas Trust Q3 book value falls 22% amid market volatility

By Reuters News


Overview

  • U.S. mortgage REIT's Q3 book value per share fell 22% quarter-over-quarter amid market volatility

  • GAAP basic loss per share was $1.89; earnings available for distribution per share rose 25% yr/yr

  • Company raised quarterly dividend by 11% to $0.30 per share


Outlook

  • Company says repricing of mortgage assets has created attractive investment opportunities for Q4

  • Adamas Trust expects to manage remaining TBA short positions based on market conditions


Result Drivers

  • AGENCY SECURITIES VALUATIONS - Co said decline in adjusted book value was primarily driven by lower valuations for Agency mortgage securities due to rising interest rates and market volatility

  • PORTFOLIO EXPANSION - Earnings available for distribution per share rose 25% yr/yr, which co attributed to continued portfolio expansion


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$1.89


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy."

  • Wall Street's median 12-month price target for Adamas Trust, Inc. is $9.50, about 20.9% above its October 27 closing price of $7.86

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 26 - TPG RE Finance Trust Q3 distributable earnings fall on realized loan loss

  • Oct 26 - Welltower Q3 normalized FFO per share rises 25%, guidance raised

  • Oct 27 - Ventas Q3 normalized FFO per share rises 10% on senior housing strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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