Where would incremental capital from the renewed ATM program be deployed, and what are the targeted returns?

Capital would be deployed into areas with the best risk-adjusted returns, currently favoring residential credit over agencies due to expanded ROEs. Targeted equity returns are 15%+. “for a return on capital, we're looking for 15%+ type of equity returns on that capital.”

Can you provide an updated book value quarter-to-date?

Quarter-to-date adjusted book value was down approximately 2.3% as of close of business on July 28. “We estimate that quarter-to-date adjusted book value was down approximately 2.3% as of close of business on July 28.”

What is the timing for resolutions in the multifamily book, and where will the capital be redeployed?

Consistent payoff rates are expected, supported by 93% of loans having mark-to-market provisions. The focus is on duration management. Capital will be redeployed into higher-yielding core strategies (residential credit or agencies) for an expected earnings pickup. “93% of our portfolio, we have that control to bring the asset to market if we feel like we do not want to continue being a part of the loan arrangement.”

ADAM

Adamas Trust (ADAM) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Jul 30, 2026

Source: earnings call transcript

Executive summary

New York Mortgage Trust Q2 FY26 — Strong Earnings Growth and Book Value Expansion

New York Mortgage Trust delivered strong Q2 FY26 results, marked by consistent earnings growth, increased book value, and significant expansion of its diversified investment portfolio, particularly in residential credit. The company navigated market volatility effectively, leveraging its integrated origination platform and disciplined capital allocation. Management remains focused on further scaling its Constructive platform and closing the valuation gap.

Highlights

Generated GAAP earnings of $0.48 per common share and EAD of $0.30 per share, marking the ninth EAD increase in 10 quarters.
GAAP book value increased 1.8%, while adjusted book value increased 2.3%, marking the fourth consecutive quarter of book value growth.
Expanded the investment portfolio by over $800 million to $11.7 billion, representing 36% growth from a year ago.
Added a record $632 million of business purpose loans, primarily sourced from Constructive's origination platform.
Stock significantly outperformed the broader mortgage REIT index by approximately 46% on a total return basis over the past year.

Concerns

Operated in a volatile market environment, including a meaningful bear flattener of the Treasury curve.
Higher interest rates created temporary pressure on asset valuations, resulting in $8.5 million of net unrealized losses on portions of the investment portfolio.
Quarter-to-date adjusted book value was down approximately 2.3% as of July 28.

Guidance & targets

Category	Target	Timeline	Confidence
BPL rental securitizations	5 to 6 medium materiality	FY26	Medium
Constructive Annual ROE	15% medium materiality	Annual	Medium
Consolidated G&A ratio	7% to 7.5% low materiality	FY26	High
Company recourse leverage	Slightly increase medium materiality	Over the year · FY26	Medium

Deals & partnerships

New institutional loan financing counterparty Onboarded a new counterparty for loan financing for Constructive.

This new counterparty will provide approximately 60 basis points of savings compared to existing financing lines, along with materially fewer aging restrictions and greater capital flexibility for Constructive.

Risks & headwinds

Volatile market environment Q2 FY26

meaningful bear flattener of the Treasury curve

Mitigation:Diversified platform, effective hedging strategy.

Temporary pressure on asset valuations from higher interest rates Q2 FY26

$8.5 million net unrealized losses on investment portfolio

Mitigation:Diversified portfolio and hedging strategy performed as intended, derivative gains offset losses.

Quarter-to-date book value decline Q3 FY26 (quarter-to-date as of July 28)

down approximately 2.3%

Mitigation:Overall strategy focuses on book value stability through diversification and active management.

What to watch in Q3 FY26

Constructive Cost Savings Implementation

Latter half of 2026 and into 2027

Current Approximately $3 million annual savings identified

Target Start to flow through to financials

Why it matters

These savings are expected to improve Constructive's profitability and help achieve the 15% ROE target, impacting overall company earnings.

And we expect the implementation of these improvements to occur over the coming quarters. As a result, these annual savings should start to flow through to Constructive's financials in the latter half of 2026 and into 2027.

Find out whether ADAM delivers this. Inve re-checks your case every morning.

Q&A highlights

What are the current trends in Constructive's BPL pipeline, including coupons, volume, and competition, given recent rate movements?

Constructive's pipelines are strong with higher coupons than at quarter-end. Cost savings initiatives are being implemented. Institutional demand for securitizations remains robust, providing pricing benchmarks and confidence for whole loan buyers, making markets conducive for business despite volatility.

“We see the pipelines in Constructive as being strong so far, and furthermore that the coupons that are in the pipeline are higher than the coupons that we had at quarter end.”

asked by Francesco Labetti · answered by Nicholas Mah

2 min read 6 chapters

Detailed narrative

Diversified Business Model

New York Mortgage Trust has transformed into a diversified mortgage REIT with three core businesses: a high-quality agency RMBS portfolio, a growing residential credit platform focused on business purpose lending, and an integrated origination platform. This diversification aims to improve earnings quality, book value stability, and operating efficiency, contributing to consistent shareholder value over the long term.

Investment Portfolio Expansion

The company expanded its investment portfolio by over $800 million to $11.7 billion in Q2 FY26, representing 36% year-over-year growth. This expansion was driven by disciplined capital allocation, with agency RMBS remaining the cornerstone at 61% of the portfolio, and a record $632 million in business purpose loans added, primarily from Constructive's origination platform.

Constructive Platform Performance

Constructive, a top five specialist business purpose loan originator, demonstrated strong performance, contributing to a record quarter for BPL purchases. It has been profitable in 28 of the last 30 months and is implementing initiatives to improve funding costs by approximately 60 basis points and reduce operating expenses by an identified $3 million annually, targeting a 15% annual ROE.

Multifamily Portfolio Wind-Down

The multifamily book, valued at $192 million, is undergoing a steady wind-down with consistent payoff rates. The portfolio benefits from a 12% coupon, contributing positively to recurring income, and 93% of loans contain mark-to-market provisions, incentivizing timely resolutions. Capital from these payoffs is redeployed into higher-yielding core strategies to generate stronger returns.

Capital Allocation and Leverage Strategy

NYMT dynamically allocates capital to the best relative value opportunities across its core strategies, currently favoring residential credit due to expanded ROEs. Agency leverage increased from 7.8x to 8.3x, within the target range, and overall company recourse leverage of 5.5x is considered comfortable, with potential for slight increases as unlevered non-core assets roll off into levered strategies.

Market Outperformance and Valuation Gap

NYMT's stock has significantly outperformed the broader mortgage REIT index by approximately 46% on a total return basis over the past year. The company's share price continued to narrow its discount to book value, extending progress in closing the valuation gap, though management believes shares still do not reflect the intrinsic value of the company.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.