Adamas Trust Q3 book value falls 22% amid market volatility

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

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

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(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.)