Summary of Third Quarter 2025:
(dollar amounts in thousands, except per share data)
| Net income attributable to Company's common stockholders | $ | 32,702 | |
| Net income attributable to Company's common stockholders per share (basic) | $ | 0.36 | |
| Earnings available for distribution attributable to Company's common stockholders (1) | $ | 21,991 | |
| Earnings available for distribution per common share (1) | $ | 0.24 | |
| Yield on average interest earning assets (1) (2) | 6.33 | % | |
| Interest income | $ | 160,633 | |
| Interest expense | $ | 124,047 | |
| Net interest income | $ | 36,586 | |
| Net interest spread (1) (3) | 1.50 | % | |
| Book value per common share at the end of the period | $ | 9.20 | |
| Adjusted book value per common share at the end of the period (1) | $ | 10.38 | |
| Economic return on book value (4) | 3.51 | % | |
| Economic return on adjusted book value (5) | 3.41 | % | |
| Dividends per common share | $ | 0.23 |
| (1) | Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information." | |
| (2) | Calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company. | |
| (3) | Our calculation of net interest spread may not be comparable to similarly-titled measures of other companies who may use a different calculation. | |
| (4) | Economic return on book value is based on the periodic change in GAAP book value per common share plus dividends declared per common share, if any, during the period. | |
| (5) | Economic return on adjusted book value is based on the periodic change in adjusted book value per common share, a non-GAAP financial measure, plus dividends declared per common share, if any, during the period. | |
Key Developments:
Investing Activities
- Acquired approximately
$1 .8 billion of Agency investments with an average coupon of 5.27%. - Acquired approximately
$525 .7 million in residential loans with an average gross coupon of 8.81%. - Exited remaining joint venture equity investments at their approximate carrying value of
$17 .0 million. - Received approximately
$26 .4 million in proceeds from redemptions of Mezzanine Lending investments. - Acquired the outstanding 50% ownership interests in
Constructive Loans, LLC ("Constructive") that were not previously owned by the Company through the consummation of a membership interest purchase agreement.
Financing Activities
- Completed the issuance of
$115.0 million in aggregate principal amount of our 9.875% Senior Notes due 2030 in underwritten public offerings. The total proceeds to us from the offerings of the notes, after deducting the underwriters' discount and commissions and offering expenses, as applicable, were approximately$111.4 million . - Completed two securitizations of residential loans, resulting in approximately
$619.2 million in net proceeds to us after deducting expenses associated with the transactions. We utilized a portion of the net proceeds to redeem two residential loan securitizations and to repay approximately$270.5 million on outstanding repurchase agreements related to residential loans. - Increased common stock dividend declared in
September 2025 to$0.23 per common share.
Management Overview
Capital Allocation
The following table sets forth our allocated capital at
| Investment Portfolio (1) | Constructive | Corporate/ Other | Total | ||||||||||||
| Investment securities available for sale and TBAs (2) | $ | 6,869,358 | $ | — | $ | — | $ | 6,869,358 | |||||||
| Residential loans | 4,096,213 | 55,434 | — | 4,151,647 | |||||||||||
| Consolidated SLST CDOs | (1,016,952 | ) | — | — | (1,016,952 | ) | |||||||||
| Residential loans held for sale | — | 105,036 | — | 105,036 | |||||||||||
| Multi-family loans | 68,647 | — | — | 68,647 | |||||||||||
| Equity investments | 28,825 | — | — | 28,825 | |||||||||||
| Equity investments in consolidated multi-family properties (3) | 157,385 | — | — | 157,385 | |||||||||||
| Equity investments in disposal group held for sale (4) | 678 | — | — | 678 | |||||||||||
| Single-family rental properties | 131,984 | — | — | 131,984 | |||||||||||
| Mortgage servicing rights | 21,835 | 61 | — | 21,896 | |||||||||||
| Total investments | 10,357,973 | 160,531 | — | 10,518,504 | |||||||||||
| Liabilities: | |||||||||||||||
| Repurchase agreements, warehouse facilities and TBA cost basis (5) | (6,363,494 | ) | (148,341 | ) | — | (6,511,835 | ) | ||||||||
| Collateralized debt obligations | |||||||||||||||
| Residential loan securitization CDOs | (2,493,745 | ) | — | — | (2,493,745 | ) | |||||||||
| Non-Agency RMBS re-securitization | (66,762 | ) | — | — | (66,762 | ) | |||||||||
| Senior unsecured notes | — | — | (356,865 | ) | (356,865 | ) | |||||||||
| Subordinated debentures | — | — | (45,000 | ) | (45,000 | ) | |||||||||
| Cash, cash equivalents and restricted cash (6) | 104,964 | 15,400 | 174,204 | 294,568 | |||||||||||
| — | 22,396 | 22,396 | |||||||||||||
| Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | (54,782 | ) | — | — | (54,782 | ) | |||||||||
| Other | 122,686 | 15,410 | (53,798 | ) | 84,298 | ||||||||||
| $ | 1,606,840 | $ | 65,396 | $ | (281,459 | ) | $ | 1,390,777 | |||||||
| Company Recourse Leverage Ratio (7) | 5.0 | x | |||||||||||||
| Portfolio Recourse Leverage Ratio (8) | 4.7 | x | |||||||||||||
| (1) | The Company, through its ownership of certain securities, has determined it is the primary beneficiary of Consolidated SLST and has consolidated the assets and liabilities of Consolidated SLST in the Company’s condensed consolidated financial statements. Consolidated SLST is primarily presented on our condensed consolidated balance sheets as residential loans, at fair value and collateralized debt obligations, at fair value. Our investment in Consolidated SLST as of | |
| (2) | Includes implied fair value of outstanding TBAs of | |
| (3) | Represents the Company's equity investments in consolidated multi-family properties that are not in disposal group held for sale. See "Reconciliation of Financial Information" section below for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's condensed consolidated financial statements. | |
| (4) | Represents the Company's equity investments in multi-family properties that are held for sale in disposal group. See "Reconciliation of Financial Information" section below for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's condensed consolidated financial statements. | |
| (5) | Includes repurchase agreements and warehouse facilities with a carrying value of | |
| (6) | Excludes cash in the amount of | |
| (7) | Represents the Company's total outstanding recourse repurchase agreement and warehouse facility financing, senior unsecured notes, subordinated debentures, and cost basis of outstanding TBAs divided by the Company's total stockholders' equity. Does not include Consolidated SLST CDOs amounting to | |
| (8) | Represents the Company's outstanding recourse repurchase agreement and warehouse facility financing and cost basis of outstanding TBAs divided by the Company's total stockholders' equity. | |
Net Interest Spread
The following table sets forth certain information about our interest earning assets by category and their related adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost and net interest spread for the three months ended
Three Months Ended
| Agency | Single-Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| Adjusted Interest Income (1) (2) | $ | 86,041 | $ | 59,305 | $ | 2,124 | $ | 2,030 | $ | 149,500 | |||||||||
| Adjusted Interest Expense (1) | (55,268) | (41,377) | — | (10,103) | (106,748) | ||||||||||||||
| Adjusted Net Interest Income (Loss) (1) | $ | 30,773 | $ | 17,928 | $ | 2,124 | $ | (8,073) | $ | 42,752 | |||||||||
| Average Interest Earning Assets (3) | $ | 5,873,080 | $ | 3,333,917 | $ | 71,026 | $ | 172,958 | $ | 9,450,981 | |||||||||
| Average Interest Bearing Liabilities (4) | $ | 5,300,885 | $ | 2,902,470 | $ | — | $ | 561,681 | $ | 8,765,036 | |||||||||
| Yield on Average Interest Earning Assets (1) (5) | 5.86 | % | 7.12 | % | 11.96 | % | 4.69 | % | 6.33 | % | |||||||||
| Average Financing Cost (1) (6) | (4.14) | % | (5.66) | % | — | (7.14) | % | (4.83) | % | ||||||||||
| Net Interest Spread (1) (7) | 1.72 | % | 1.46 | % | 11.96 | % | (2.45) | % | 1.50 | % | |||||||||
| (1) | Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information." | |
| (2) | Includes interest income earned on cash accounts held by the Company. | |
| (3) | Average Interest Earning Assets for the period include residential loans, residential loans held for sale, multi-family loans and investment securities and cost basis of outstanding TBAs and exclude all Consolidated SLST assets other than those securities owned by the Company. Average Interest Earning Assets is calculated based on the daily average amortized cost for the period. | |
| (4) | Average Interest Bearing Liabilities for the period include repurchase agreements and warehouse facilities, residential loan securitization and non-Agency RMBS re-securitization CDOs, senior unsecured notes and subordinated debentures and exclude Consolidated SLST CDOs and mortgages payable on real estate as the Company does not directly incur interest expense on these liabilities that are consolidated for GAAP purposes. Average Interest Bearing Liabilities is calculated based on the daily average outstanding balance for the period. | |
| (5) | Yield on Average Interest Earning Assets is calculated by dividing our annualized adjusted interest income relating to our portfolio of interest earning assets by our Average Interest Earning Assets for the period. | |
| (6) | Average Financing Cost is calculated by dividing our annualized adjusted interest expense by our Average Interest Bearing Liabilities. | |
| (7) | Net Interest Spread is the difference between our Yield on Average Interest Earning Assets and our Average Financing Cost. | |
Segment Information
The following tables present summarized financial information by reportable segment for the three and nine months ended
| For the Three Months Ended | |||||||||||||||
| Investment Portfolio | Constructive | Corporate/ Other | Total | ||||||||||||
| Total net interest income (loss) | $ | 45,023 | $ | 124 | $ | (8,561 | ) | $ | 36,586 | ||||||
| Total net loss from real estate | (3,878 | ) | — | — | (3,878 | ) | |||||||||
| Total other income (loss) | 41,720 | 12,162 | (5,278 | ) | 48,604 | ||||||||||
| Total general, administrative and operating expenses (1) | 10,809 | 16,062 | 14,954 | 41,825 | |||||||||||
| Income (loss) from operations before income taxes | 72,056 | (3,776 | ) | (28,793 | ) | 39,487 | |||||||||
| Income tax expense (benefit) | 12 | — | (310 | ) | (298 | ) | |||||||||
| Net income (loss) | 72,044 | (3,776 | ) | (28,483 | ) | 39,785 | |||||||||
| Net loss attributable to non-controlling interests | 5,035 | — | — | 5,035 | |||||||||||
| Net income (loss) attributable to Company | 77,079 | (3,776 | ) | (28,483 | ) | 44,820 | |||||||||
| Preferred stock dividends | — | — | (12,118 | ) | (12,118 | ) | |||||||||
| Net income (loss) attributable to Company's common stockholders | $ | 77,079 | $ | (3,776 | ) | $ | (40,601 | ) | $ | 32,702 | |||||
| For the Nine Months Ended | |||||||||||||||
| Investment Portfolio | Constructive | Corporate/ Other | Total | ||||||||||||
| Total net interest income (loss) | $ | 125,987 | $ | 124 | $ | (19,980 | ) | $ | 106,131 | ||||||
| Total net loss from real estate | (9,126 | ) | — | — | (9,126 | ) | |||||||||
| Total other income | 57,302 | 12,162 | 1,828 | 71,292 | |||||||||||
| Total general, administrative and operating expenses (1) | 27,906 | 16,062 | 42,849 | 86,817 | |||||||||||
| Income (loss) from operations before income taxes | 146,257 | (3,776 | ) | (61,001 | ) | 81,480 | |||||||||
| Income tax expense | 26 | — | 163 | 189 | |||||||||||
| Net income (loss) | 146,231 | (3,776 | ) | (61,164 | ) | 81,291 | |||||||||
| Net loss attributable to non-controlling interests | 14,231 | — | — | 14,231 | |||||||||||
| Net income (loss) attributable to Company | 160,462 | (3,776 | ) | (61,164 | ) | 95,522 | |||||||||
| Preferred stock dividends | — | — | (36,021 | ) | (36,021 | ) | |||||||||
| Net income (loss) attributable to Company's common stockholders | $ | 160,462 | $ | (3,776 | ) | $ | (97,185 | ) | $ | 59,501 | |||||
| (1) | General, administrative and operating expenses of the Constructive segment include | |
Conference Call
On
In connection with the release of these financial results, the Company will also post a supplemental financial presentation that will accompany the conference call on its website at www.adamasreit.com under the "Investors — Events and Presentations" section. Third quarter 2025 financial and operating data can be viewed in the Company’s Quarterly Report on Form 10-Q for the quarter ended
About
Defined Terms
The following defines certain of the commonly used terms that may appear in this press release: "Constructive" refers to
Cautionary Statement Regarding Forward-Looking Statements
When used in this press release, in future filings with the Securities and Exchange Commission (the “SEC”) or in other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “could,” “would,” “should,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, as such, may involve known and unknown risks, uncertainties and assumptions.
Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation: changes in the Company’s business and investment strategy; inflation and changes in interest rates and the fair market value of the Company’s assets, including negative changes resulting in margin calls relating to the financing of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the
These and other risks, uncertainties and factors, including the risk factors and other information described in the Company’s reports filed with the
For Further Information
| CONTACT: | AT THE COMPANY Phone: 212-792-0107 Email: [email protected] |
FINANCIAL TABLES FOLLOW
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) | |||||||
2025 | 2024 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Investment securities available for sale, at fair value | $ | 6,838,715 | $ | 3,828,544 | |||
| Residential loans, at fair value | 4,151,647 | 3,841,738 | |||||
| Residential loans held for sale, at fair value | 105,036 | — | |||||
| Multi-family loans, at fair value | 68,647 | 86,192 | |||||
| Equity investments, at fair value | 28,825 | 113,492 | |||||
| Cash and cash equivalents | 185,285 | 167,422 | |||||
| Real estate, net | 601,748 | 623,407 | |||||
| Assets of disposal group held for sale | 1,383 | 118,613 | |||||
| 22,396 | — | ||||||
| Other assets | 398,180 | 437,874 | |||||
| Total Assets (1) | $ | 12,401,862 | $ | 9,217,282 | |||
| LIABILITIES AND EQUITY | |||||||
| Liabilities: | |||||||
| Repurchase agreements and warehouse facilities | $ | 6,481,072 | $ | 4,012,225 | |||
| Collateralized debt obligations ( | 3,577,459 | 2,978,444 | |||||
| Senior unsecured notes ( | 356,865 | 159,196 | |||||
| Subordinated debentures | 45,000 | 45,000 | |||||
| Mortgages payable on real estate, net | 362,747 | 366,606 | |||||
| Liabilities of disposal group held for sale | 78 | 97,065 | |||||
| Other liabilities | 173,863 | 147,612 | |||||
| Total liabilities (1) | 10,997,084 | 7,806,148 | |||||
| Commitments and Contingencies | |||||||
| Redeemable Non-Controlling Interest in Consolidated Variable Interest Entities | 13,713 | 12,359 | |||||
| Stockholders' Equity: | |||||||
| Preferred stock, par value | 540,472 | 535,445 | |||||
| Common stock, par value | 903 | 906 | |||||
| Additional paid-in capital | 2,279,204 | 2,289,044 | |||||
| Accumulated other comprehensive loss | — | — | |||||
| Accumulated deficit | (1,429,802 | ) | (1,430,675 | ) | |||
| Company's stockholders' equity | 1,390,777 | 1,394,720 | |||||
| Non-controlling interests | 288 | 4,055 | |||||
| Total equity | 1,391,065 | 1,398,775 | |||||
| Total Liabilities and Equity | $ | 12,401,862 | $ | 9,217,282 | |||
| (1) | Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) (unaudited) | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| NET INTEREST INCOME: | |||||||||||||||
| Interest income | $ | 160,633 | $ | 108,361 | $ | 431,268 | $ | 283,027 | |||||||
| Interest expense | 124,047 | 88,124 | 325,137 | 225,883 | |||||||||||
| Total net interest income | 36,586 | 20,237 | 106,131 | 57,144 | |||||||||||
| NET LOSS FROM REAL ESTATE: | |||||||||||||||
| Rental income | 16,600 | 26,382 | 51,940 | 90,353 | |||||||||||
| Other real estate income | 2,504 | 5,521 | 8,457 | 16,093 | |||||||||||
| Total income from real estate | 19,104 | 31,903 | 60,397 | 106,446 | |||||||||||
| Interest expense, mortgages payable on real estate | 5,409 | 12,676 | 17,298 | 49,996 | |||||||||||
| Depreciation and amortization | 5,936 | 8,131 | 17,759 | 32,942 | |||||||||||
| Other real estate expenses | 11,637 | 18,591 | 34,466 | 60,476 | |||||||||||
| Total expenses related to real estate | 22,982 | 39,398 | 69,523 | 143,414 | |||||||||||
| Total net loss from real estate | (3,878 | ) | (7,495 | ) | (9,126 | ) | (36,968 | ) | |||||||
| OTHER INCOME (LOSS): | |||||||||||||||
| Realized losses, net | (5,610 | ) | (1,380 | ) | (50,481 | ) | (19,404 | ) | |||||||
| Unrealized gains, net | 54,852 | 96,949 | 197,670 | 41,046 | |||||||||||
| (Losses) gains on derivative instruments, net | (13,006 | ) | (60,640 | ) | (86,774 | ) | 4,042 | ||||||||
| Mortgage banking activities, net | 14,103 | — | 14,103 | — | |||||||||||
| (Loss) income from equity investments | (1,595 | ) | 6,054 | 567 | 10,026 | ||||||||||
| Impairment of real estate | (1,619 | ) | (7,823 | ) | (9,437 | ) | (48,142 | ) | |||||||
| Loss on reclassification of disposal group | — | — | — | (14,636 | ) | ||||||||||
| Other income | 1,479 | 19,715 | 5,644 | 16,541 | |||||||||||
| Total other income (loss) | 48,604 | 52,875 | 71,292 | (10,527 | ) | ||||||||||
| GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: | |||||||||||||||
| General and administrative expenses | 23,349 | 11,941 | 47,549 | 36,643 | |||||||||||
| Portfolio operating expenses | 6,747 | 8,531 | 21,307 | 23,672 | |||||||||||
| Loan origination costs | 3,788 | — | 3,788 | — | |||||||||||
| Financing transaction costs | 7,941 | 2,354 | 14,173 | 10,452 | |||||||||||
| Total general, administrative and operating expenses | 41,825 | 22,826 | 86,817 | 70,767 | |||||||||||
| INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 39,487 | 42,791 | 81,480 | (61,118 | ) | ||||||||||
| Income tax (benefit) expense | (298 | ) | 2,325 | 189 | 2,556 | ||||||||||
| NET INCOME (LOSS) | 39,785 | 40,466 | 81,291 | (63,674 | ) | ||||||||||
| Net loss attributable to non-controlling interests | 5,035 | 2,383 | 14,231 | 33,034 | |||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY | 44,820 | 42,849 | 95,522 | (30,640 | ) | ||||||||||
| Preferred stock dividends | (12,118 | ) | (10,439 | ) | (36,021 | ) | (31,317 | ) | |||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 32,702 | $ | 32,410 | $ | 59,501 | $ | (61,957 | ) | ||||||
| Basic earnings (loss) per common share | $ | 0.36 | $ | 0.36 | $ | 0.66 | $ | (0.68 | ) | ||||||
| Diluted earnings (loss) per common share | $ | 0.36 | $ | 0.36 | $ | 0.65 | $ | (0.68 | ) | ||||||
| Weighted average shares outstanding-basic | 90,406 | 90,582 | 90,437 | 90,895 | |||||||||||
| Weighted average shares outstanding-diluted | 91,614 | 90,586 | 91,352 | 90,895 | |||||||||||
SUMMARY OF QUARTERLY EARNINGS (LOSS) (Dollar amounts in thousands, except per share data) (unaudited) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| September 30, 2025 | 2025 | 2025 | December 31, 2024 | September 30, 2024 | |||||||||||||||
| Interest income | $ | 160,633 | $ | 140,901 | $ | 129,734 | $ | 118,253 | $ | 108,361 | |||||||||
| Interest expense | 124,047 | 104,454 | 96,636 | 91,542 | 88,124 | ||||||||||||||
| Total net interest income | 36,586 | 36,447 | 33,098 | 26,711 | 20,237 | ||||||||||||||
| Total net loss from real estate | (3,878 | ) | (3,014 | ) | (2,235 | ) | (5,871 | ) | (7,495 | ) | |||||||||
| Total other income (loss) | 48,604 | (9,264 | ) | 31,952 | (31,710 | ) | 52,875 | ||||||||||||
| Total general, administrative and operating expenses | 41,825 | 19,890 | 25,102 | 20,929 | 22,826 | ||||||||||||||
| Income (loss) from operations before income taxes | 39,487 | 4,279 | 37,713 | (31,799 | ) | 42,791 | |||||||||||||
| Income tax (benefit) expense | (298 | ) | (161 | ) | 648 | (1,520 | ) | 2,325 | |||||||||||
| Net income (loss) | 39,785 | 4,440 | 37,065 | (30,279 | ) | 40,466 | |||||||||||||
| Net loss (income) attributable to non-controlling interests | 5,035 | 4,106 | 5,090 | (1,110 | ) | 2,383 | |||||||||||||
| Net income (loss) attributable to Company | 44,820 | 8,546 | 42,155 | (31,389 | ) | 42,849 | |||||||||||||
| Preferred stock dividends | (12,118 | ) | (12,032 | ) | (11,870 | ) | (10,439 | ) | (10,439 | ) | |||||||||
| Net income (loss) attributable to Company's common stockholders | 32,702 | (3,486 | ) | 30,285 | (41,828 | ) | 32,410 | ||||||||||||
| Basic earnings (loss) per common share | $ | 0.36 | $ | (0.04 | ) | $ | 0.33 | $ | (0.46 | ) | $ | 0.36 | |||||||
| Diluted earnings (loss) per common share | $ | 0.36 | $ | (0.04 | ) | $ | 0.33 | $ | (0.46 | ) | $ | 0.36 | |||||||
| Weighted average shares outstanding - basic | 90,406 | 90,324 | 90,583 | 90,579 | 90,582 | ||||||||||||||
| Weighted average shares outstanding - diluted | 91,614 | 90,324 | 91,091 | 90,579 | 90,586 | ||||||||||||||
| Yield on average interest earning assets (1) | 6.33 | % | 6.48 | % | 6.47 | % | 6.57 | % | 6.69 | % | |||||||||
| Net interest spread (1) | 1.50 | % | 1.50 | % | 1.32 | % | 1.37 | % | 1.32 | % | |||||||||
| Earnings available for distribution attributable to Company's common stockholders (1) | $ | 21,991 | $ | 20,024 | $ | 18,194 | $ | 14,178 | $ | 9,326 | |||||||||
| Earnings available for distribution per common share - basic (1) | $ | 0.24 | $ | 0.22 | $ | 0.20 | $ | 0.16 | $ | 0.10 | |||||||||
| Book value per common share | $ | 9.20 | $ | 9.11 | $ | 9.37 | $ | 9.28 | $ | 9.83 | |||||||||
| Adjusted book value per common share (1) | $ | 10.38 | $ | 10.26 | $ | 10.43 | $ | 10.35 | $ | 10.87 | |||||||||
| Dividends declared per common share | $ | 0.23 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | |||||||||
| Dividends declared per preferred share on Series D Preferred Stock | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | |||||||||
| Dividends declared per preferred share on Series E Preferred Stock | $ | 0.70 | $ | 0.69 | $ | 0.69 | $ | 0.49 | $ | 0.49 | |||||||||
| Dividends declared per preferred share on Series F Preferred Stock | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | |||||||||
| Dividends declared per preferred share on Series G Preferred Stock | $ | 0.44 | $ | 0.44 | $ | 0.44 | $ | 0.44 | $ | 0.44 | |||||||||
| (1) | Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information." | |
Reconciliation of Financial Information
Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures, including adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost, net interest spread, earnings available for distribution and adjusted book value per common share. Our management team believes that these non-GAAP financial measures, when considered with our GAAP financial statements, provide supplemental information useful for investors as it enables them to evaluate our current performance and trends using the metrics that management uses to operate our business. Our presentation of non-GAAP financial measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. Because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP should be carefully evaluated.
Adjusted Net Interest Income (Loss) and Net Interest Spread
Financial results for the Company during a given period include the net interest income earned on our investments, such as residential loans, residential loans held for sale, investment securities and preferred equity investments and mezzanine loans, where the risks and payment characteristics are equivalent to and accounted for as loans (collectively, our “interest earning assets”). Adjusted net interest income (loss) and net interest spread (both supplemental non-GAAP financial measures) are impacted by factors such as our cost of financing, including our hedging costs, and the interest rate that our investments bear. Furthermore, the amount of premium or discount paid on purchased investments and the prepayment rates on investments will impact adjusted net interest income (loss) as such factors will be amortized over the expected term of such investments.
We provide the following non-GAAP financial measures, in total and by investment category, for the respective periods:
- adjusted interest income – calculated as our GAAP interest income reduced by the interest expense recognized on Consolidated SLST CDOs and adjusted to include TBA dollar roll income,
- adjusted interest expense – calculated as our GAAP interest expense reduced by the interest expense recognized on Consolidated SLST CDOs and adjusted to include the net interest component of interest rate swaps,
- adjusted net interest income (loss) – calculated by subtracting adjusted interest expense from adjusted interest income,
- yield on average interest earning assets – calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company,
- average financing cost – calculated as the quotient of our adjusted interest expense and the average outstanding balance of our interest bearing liabilities, excluding Consolidated SLST CDOs and mortgages payable on real estate, and
- net interest spread – calculated as the difference between our yield on average interest earning assets and our average financing cost.
These measures remove the impact of Consolidated SLST that we consolidate in accordance with GAAP and include both the net interest component of interest rate swaps utilized to hedge the variable cash flows associated with our variable-rate borrowings and dollar roll income associated with TBAs, which are included in (losses) gains on derivative instruments, net in the Company's condensed consolidated statements of operations. With respect to Consolidated SLST, we only include the interest income earned by the Consolidated SLST securities that are actually owned by the Company as the Company only receives income or absorbs losses related to the Consolidated SLST securities actually owned by the Company. We include the net interest component of interest rate swaps in these measures to more fully represent the cost of our financing strategy. We include TBA dollar roll income as it represents the economic equivalent of net interest income on the underlying Agency RMBS over the TBA dollar roll period (interest income less implied financing cost).
We provide the non-GAAP financial measures listed above because we believe these non-GAAP financial measures provide investors and management with additional detail and enhance their understanding of our interest earning asset yields, in total and by investment category, relative to the cost of our financing and the underlying trends within our portfolio of interest earning assets. In addition to the foregoing, our management team uses these measures to assess, among other things, the performance of our interest earning assets in total and by asset, possible cash flows from our interest earning assets in total and by asset, our ability to finance or borrow against the asset and the terms of such financing and the composition of our portfolio of interest earning assets, including acquisition and disposition determinations.
A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the three months ended as of the dates indicated is presented below (dollar amounts in thousands):
| Agency | Single- Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| GAAP interest income | $ | 85,975 | $ | 70,504 | $ | 2,124 | $ | 2,030 | $ | 160,633 | |||||||||
| GAAP interest expense | (60,472 | ) | (53,080 | ) | — | (10,495 | ) | (124,047 | ) | ||||||||||
| GAAP total net interest income (loss) | $ | 25,503 | $ | 17,424 | $ | 2,124 | $ | (8,465 | ) | $ | 36,586 | ||||||||
| GAAP interest income | $ | 85,975 | $ | 70,504 | $ | 2,124 | $ | 2,030 | $ | 160,633 | |||||||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | (11,199 | ) | — | — | (11,199 | ) | ||||||||||||
| TBA dollar roll income | 66 | — | — | — | 66 | ||||||||||||||
| Adjusted interest income | $ | 86,041 | $ | 59,305 | $ | 2,124 | $ | 2,030 | $ | 149,500 | |||||||||
| GAAP interest expense | $ | (60,472 | ) | $ | (53,080 | ) | $ | — | $ | (10,495 | ) | $ | (124,047 | ) | |||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | 11,199 | — | — | 11,199 | ||||||||||||||
| Net interest benefit of interest rate swaps | 5,204 | 504 | — | 392 | 6,100 | ||||||||||||||
| Adjusted interest expense | $ | (55,268 | ) | $ | (41,377 | ) | $ | — | $ | (10,103 | ) | $ | (106,748 | ) | |||||
| Adjusted net interest income (loss) (1) | $ | 30,773 | $ | 17,928 | $ | 2,124 | $ | (8,073 | ) | $ | 42,752 | ||||||||
| Agency | Single- Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| GAAP interest income | $ | 69,743 | $ | 67,506 | $ | 2,203 | $ | 1,449 | $ | 140,901 | |||||||||
| GAAP interest expense | (48,564 | ) | (48,637 | ) | — | (7,253 | ) | (104,454 | ) | ||||||||||
| GAAP total net interest income (loss) | $ | 21,179 | $ | 18,869 | $ | 2,203 | $ | (5,804 | ) | $ | 36,447 | ||||||||
| GAAP interest income | $ | 69,743 | $ | 67,506 | $ | 2,203 | $ | 1,449 | $ | 140,901 | |||||||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | (8,429 | ) | — | — | (8,429 | ) | ||||||||||||
| TBA dollar roll income | 7 | — | — | — | 7 | ||||||||||||||
| Adjusted interest income | $ | 69,750 | $ | 59,077 | $ | 2,203 | $ | 1,449 | $ | 132,479 | |||||||||
| GAAP interest expense | $ | (48,564 | ) | $ | (48,637 | ) | $ | — | $ | (7,253 | ) | $ | (104,454 | ) | |||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | 8,429 | — | — | 8,429 | ||||||||||||||
| Net interest benefit of interest rate swaps | 3,149 | 183 | — | 322 | 3,654 | ||||||||||||||
| Adjusted interest expense | $ | (45,415 | ) | $ | (40,025 | ) | $ | — | $ | (6,931 | ) | $ | (92,371 | ) | |||||
| Adjusted net interest income (loss) (1) | $ | 24,335 | $ | 19,052 | $ | 2,203 | $ | (5,482 | ) | $ | 40,108 | ||||||||
| Agency | Single- Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| GAAP interest income | $ | 55,668 | $ | 67,266 | $ | 2,605 | $ | 4,195 | $ | 129,734 | |||||||||
| GAAP interest expense | (38,367 | ) | (48,308 | ) | — | (9,961 | ) | (96,636 | ) | ||||||||||
| GAAP total net interest income (loss) | $ | 17,301 | $ | 18,958 | $ | 2,605 | $ | (5,766 | ) | $ | 33,098 | ||||||||
| GAAP interest income | $ | 55,668 | $ | 67,266 | $ | 2,605 | $ | 4,195 | $ | 129,734 | |||||||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | (6,964 | ) | — | — | (6,964 | ) | ||||||||||||
| Adjusted interest income | $ | 55,668 | $ | 60,302 | $ | 2,605 | $ | 4,195 | $ | 122,770 | |||||||||
| GAAP interest expense | $ | (38,367 | ) | $ | (48,308 | ) | $ | — | $ | (9,961 | ) | $ | (96,636 | ) | |||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | 6,964 | — | — | 6,964 | ||||||||||||||
| Net interest benefit of interest rate swaps | 2,180 | 258 | — | 674 | 3,112 | ||||||||||||||
| Adjusted interest expense | $ | (36,187 | ) | $ | (41,086 | ) | $ | — | $ | (9,287 | ) | $ | (86,560 | ) | |||||
| Adjusted net interest income (loss) (1) | $ | 19,481 | $ | 19,216 | $ | 2,605 | $ | (5,092 | ) | $ | 36,210 | ||||||||
| Agency | Single- Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| GAAP interest income | $ | 45,054 | $ | 65,026 | $ | 2,683 | $ | 5,490 | $ | 118,253 | |||||||||
| GAAP interest expense | (34,393 | ) | (47,054 | ) | — | (10,095 | ) | (91,542 | ) | ||||||||||
| GAAP total net interest income (loss) | $ | 10,661 | $ | 17,972 | $ | 2,683 | $ | (4,605 | ) | $ | 26,711 | ||||||||
| GAAP interest income | $ | 45,054 | $ | 65,026 | $ | 2,683 | $ | 5,490 | $ | 118,253 | |||||||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | (6,563 | ) | — | — | (6,563 | ) | ||||||||||||
| Adjusted interest income | $ | 45,054 | $ | 58,463 | $ | 2,683 | $ | 5,490 | $ | 111,690 | |||||||||
| GAAP interest expense | $ | (34,393 | ) | $ | (47,054 | ) | $ | — | $ | (10,095 | ) | $ | (91,542 | ) | |||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | 6,563 | — | — | 6,563 | ||||||||||||||
| Net interest benefit of interest rate swaps | 4,243 | 195 | — | 1,402 | 5,840 | ||||||||||||||
| Adjusted interest expense | $ | (30,150 | ) | $ | (40,296 | ) | $ | — | $ | (8,693 | ) | $ | (79,139 | ) | |||||
| Adjusted net interest income (loss) (1) | $ | 14,904 | $ | 18,167 | $ | 2,683 | $ | (3,203 | ) | $ | 32,551 | ||||||||
| Agency | Single- Family Credit | Multi-Family Credit | Corporate/ Other | Total | |||||||||||||||
| GAAP interest income | $ | 43,260 | $ | 61,351 | $ | 2,699 | $ | 1,051 | $ | 108,361 | |||||||||
| GAAP interest expense | (35,116 | ) | (47,641 | ) | — | (5,367 | ) | (88,124 | ) | ||||||||||
| GAAP total net interest income (loss) | $ | 8,144 | $ | 13,710 | $ | 2,699 | $ | (4,316 | ) | $ | 20,237 | ||||||||
| GAAP interest income | $ | 43,260 | $ | 61,351 | $ | 2,699 | $ | 1,051 | $ | 108,361 | |||||||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | (7,375 | ) | — | — | (7,375 | ) | ||||||||||||
| Adjusted interest income | $ | 43,260 | $ | 53,976 | $ | 2,699 | $ | 1,051 | $ | 100,986 | |||||||||
| GAAP interest expense | $ | (35,116 | ) | $ | (47,641 | ) | $ | — | $ | (5,367 | ) | $ | (88,124 | ) | |||||
| Adjusted for: | |||||||||||||||||||
| Consolidated SLST CDO interest expense | — | 7,375 | — | — | 7,375 | ||||||||||||||
| Net interest benefit of interest rate swaps | 7,542 | 545 | — | 366 | 8,453 | ||||||||||||||
| Adjusted interest expense | $ | (27,574 | ) | $ | (39,721 | ) | $ | — | $ | (5,001 | ) | $ | (72,296 | ) | |||||
| Adjusted net interest income (loss) (1) | $ | 15,686 | $ | 14,255 | $ | 2,699 | $ | (3,950 | ) | $ | 28,690 | ||||||||
| (1) | Adjusted net interest income (loss) is calculated by subtracting adjusted interest expense from adjusted interest income. | |
Earnings Available for Distribution
Previously, we presented undepreciated earnings (loss) as a supplemental non-GAAP financial measure comparable to GAAP net income (loss) attributable to Company's common stockholders. Commencing with the quarter ended
When presented in prior periods, undepreciated earnings (loss) was calculated as GAAP net income (loss) attributable to Company's common stockholders excluding the Company's share in depreciation expense and lease intangible amortization expense, if any, related to operating real estate, net for which an impairment has not been recognized. Over the past few years, we have executed a strategic repositioning of our business through the disposition of certain joint venture equity investments in multi-family properties and acquisition of assets that expand our interest income levels, such as Agency RMBS and business purpose loans. As a result, we believe EAD provides a clearer indication of the current income generating capacity of the Company's business operations than undepreciated earnings (loss) and we present EAD and EAD per common share as supplemental non-GAAP financial measures.
EAD is defined as GAAP net income (loss) attributable to Company's common stockholders excluding (a) realized and unrealized gains (losses) on our investment portfolio, (b) gains (losses) on derivative instruments (excluding the net interest benefit of interest rate swaps and TBA dollar roll income), (c) impairment of real estate, (d) loss on reclassification of disposal group, (e) other non-recurring gains (losses), (f) depreciation and amortization of operating real estate, (g) non-cash expenses, (h) non-recurring transaction expenses, (i) the income tax effect of non-EAD income (loss) items and (j) EAD attributable to non-controlling interests.
We believe EAD provides management, analysts and investors with additional details regarding our underlying operating results and investment trends by excluding certain unrealized, non-cash or non-recurring components of GAAP net income (loss) in order to provide additional transparency into our operating performance. In addition, EAD serves as a useful indicator for investors in evaluating our performance and facilitates comparisons to industry peers and period to period. EAD should not be utilized in isolation, nor should it be considered as a substitute for or superior to GAAP net income (loss) attributable to Company's common stockholders or GAAP net income (loss) attributable to Company's common stockholders per basic share. Our presentation of EAD may not be comparable to similarly-titled measures of other companies, who may use different calculations. We may add additional reconciling items to our EAD calculation as appropriate.
We view EAD as one measure of our ability to generate income for distribution to common stockholders. EAD is one factor, but not the exclusive factor, that our Board of Directors uses to determine the amount, if any, of dividends on our common stock. Other factors that our Board of Directors may consider when determining the amount, if any, of dividends on our common stock include, among others, our earnings and financial condition, capital requirements, maintenance of our REIT qualification, restrictions on making distributions under
A reconciliation of GAAP net income (loss) attributable to Company's common stockholders to EAD for the respective periods ended is presented below (amounts in thousands, except per share data):
| For the Three Months Ended | |||||||||||||||||||
| September 30, 2025 | 2025 | 2025 | December 31, 2024 | September 30, 2024 | |||||||||||||||
| GAAP net income (loss) attributable to Company's common stockholders | $ | 32,702 | $ | (3,486 | ) | $ | 30,285 | $ | (41,828 | ) | $ | 32,410 | |||||||
| Adjustments: | |||||||||||||||||||
| Realized losses, net | 5,610 | 3,771 | 41,100 | 9,947 | 1,380 | ||||||||||||||
| Unrealized (gains) losses, net | (54,852 | ) | (24,614 | ) | (118,203 | ) | 131,576 | (96,949 | ) | ||||||||||
| Losses (gains) on derivative instruments, net (1) | 19,172 | 30,627 | 49,914 | (86,114 | ) | 69,093 | |||||||||||||
| Unrealized losses (gains), net on equity investments (2) | 2,860 | 3,352 | 1,098 | (1,570 | ) | 1,097 | |||||||||||||
| Impairment of real estate | 1,619 | 3,913 | 3,905 | 733 | 7,823 | ||||||||||||||
| Other losses (gains) (3) | 311 | (548 | ) | (775 | ) | (12,263 | ) | (21,124 | ) | ||||||||||
| Depreciation and amortization of operating real estate | 5,936 | 5,928 | 5,895 | 6,879 | 8,131 | ||||||||||||||
| Non-cash expenses (4) | 2,961 | 2,561 | 2,199 | 2,664 | 2,531 | ||||||||||||||
| Transaction expenses (5) | 9,233 | 1,340 | 6,317 | 1,885 | 2,454 | ||||||||||||||
| Income tax effect of adjustments | (336 | ) | (173 | ) | 486 | (1,478 | ) | 2,325 | |||||||||||
| EAD adjustments attributable to non-controlling interests | (3,225 | ) | (2,647 | ) | (4,027 | ) | 3,747 | 155 | |||||||||||
| Earnings available for distribution attributable to Company's common stockholders | $ | 21,991 | $ | 20,024 | $ | 18,194 | $ | 14,178 | $ | 9,326 | |||||||||
| Weighted average shares outstanding - basic | 90,406 | 90,324 | 90,583 | 90,579 | 90,582 | ||||||||||||||
| GAAP net income (loss) attributable to Company's common stockholders per common share - basic | $ | 0.36 | $ | (0.04 | ) | $ | 0.33 | $ | (0.46 | ) | $ | 0.36 | |||||||
| EAD per common share - basic | $ | 0.24 | $ | 0.22 | $ | 0.20 | $ | 0.16 | $ | 0.10 | |||||||||
| (1) | Excludes net interest benefit of interest rate swaps of approximately | |
| (2) | Included in income from equity investments on the Company's condensed consolidated statements of operations. | |
| (3) | Included in other income on the Company's condensed consolidated statements of operations and primarily includes non-recurring items such as gains (losses) on sales of real estate, gains (losses) on de-consolidation, gains (losses) on extinguishment of debt, preferred equity premiums resulting from early redemption, property loss insurance proceeds and provision for uncollectible receivables. | |
| (4) | Includes stock-based compensation and intangible asset amortization. | |
| (5) | Includes non-recurring expenses such as financing transaction costs and transaction and/or restructuring expenses. | |
Adjusted Book Value Per Common Share
Adjusted book value per common share is a supplemental non-GAAP financial measure calculated by making the following adjustments to GAAP book value: (i) exclude the Company's share of cumulative depreciation and lease intangible amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, (ii) exclude the cumulative adjustment of redeemable non-controlling interests to estimated redemption value and (iii) adjust our amortized cost liabilities that finance our investment portfolio to fair value.
Our rental property portfolio includes fee simple interests in single-family rental homes and joint venture equity interests in multi-family properties owned by Consolidated Real Estate VIEs. By excluding our share of cumulative non-cash depreciation and amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, adjusted book value reflects the value, at their undepreciated basis, of our single-family rental properties and joint venture equity investments that the Company has determined to be recoverable at the end of the period.
Additionally, in connection with third party ownership of certain of the non-controlling interests in certain of the Consolidated Real Estate VIEs, we record redeemable non-controlling interests as mezzanine equity on our condensed consolidated balance sheets. The holders of the redeemable non-controlling interests may elect to sell their ownership interests to us at fair value once a year, subject to annual minimum and maximum amount limitations, resulting in an adjustment of the redeemable non-controlling interests to fair value that is accounted for by us as an equity transaction in accordance with GAAP. A key component of the estimation of fair value of the redeemable non-controlling interests is the estimated fair value of the multi-family apartment properties held by the applicable Consolidated Real Estate VIEs. However, because the corresponding real estate assets are not reported at fair value and thus not adjusted to reflect unrealized gains or losses in our condensed consolidated financial statements, the cumulative adjustment of the redeemable non-controlling interests to fair value directly affects our GAAP book value. By excluding the cumulative adjustment of redeemable non-controlling interests to estimated redemption value, adjusted book value more closely aligns the accounting treatment applied to these real estate assets and reflects our joint venture equity investment at its undepreciated basis.
The substantial majority of our remaining assets are financial or similar instruments that are carried at fair value in accordance with the fair value option in our condensed consolidated financial statements. However, unlike our use of the fair value option for these assets, certain CDOs issued by our residential loan securitizations, certain senior unsecured notes and subordinated debentures that finance our investments are carried at amortized cost in our condensed consolidated financial statements. By adjusting these financing instruments to fair value, adjusted book value reflects the Company's net equity in investments on a comparable fair value basis.
We believe that the presentation of adjusted book value per common share provides a useful measure for investors and us as it provides a consistent measure of our value, allows management to effectively consider our financial position and facilitates the comparison of our financial performance to that of our peers.
A reconciliation of GAAP book value to adjusted book value and calculation of adjusted book value per common share as of the dates indicated is presented below (amounts in thousands, except per share data):
| September 30, 2025 | 2025 | 2025 | December 31, 2024 | September 30, 2024 | |||||||||||||||
| Company's stockholders' equity | $ | 1,390,777 | $ | 1,381,203 | $ | 1,401,946 | $ | 1,394,720 | $ | 1,444,147 | |||||||||
| Preferred stock liquidation preference | (559,642 | ) | (558,498 | ) | (554,110 | ) | (554,110 | ) | (554,110 | ) | |||||||||
| GAAP book value | 831,135 | 822,705 | 847,836 | 840,610 | 890,037 | ||||||||||||||
| Add: | |||||||||||||||||||
| Cumulative depreciation expense on real estate (1) | 26,357 | 25,170 | 22,989 | 20,837 | 19,180 | ||||||||||||||
| Cumulative amortization of lease intangibles related to real estate (1) | 4,620 | 4,620 | 4,620 | 4,620 | 4,903 | ||||||||||||||
| Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | 54,782 | 49,574 | 46,011 | 40,675 | 48,282 | ||||||||||||||
| Adjustment of amortized cost liabilities to fair value | 20,481 | 24,153 | 22,488 | 30,619 | 21,961 | ||||||||||||||
| Adjusted book value | $ | 937,375 | $ | 926,222 | $ | 943,944 | $ | 937,361 | $ | 984,363 | |||||||||
| Common shares outstanding | 90,308 | 90,314 | 90,529 | 90,575 | 90,579 | ||||||||||||||
| GAAP book value per common share (2) | $ | 9.20 | $ | 9.11 | $ | 9.37 | $ | 9.28 | $ | 9.83 | |||||||||
| Adjusted book value per common share (3) | $ | 10.38 | $ | 10.26 | $ | 10.43 | $ | 10.35 | $ | 10.87 | |||||||||
| (1) | Represents cumulative adjustments for the Company's share of depreciation expense and amortization of lease intangibles related to real estate held as of the end of the period presented for which an impairment has not been recognized. | |
| (2) | GAAP book value per common share is calculated using the GAAP book value and the common shares outstanding for the periods indicated. | |
| (3) | Adjusted book value per common share is calculated using the adjusted book value and the common shares outstanding for the periods indicated. | |
Equity Investments in Multi-Family Entities
We own joint venture equity investments in entities that own multi-family properties. We determined that these joint venture entities are VIEs and that we are the primary beneficiary of these VIEs, resulting in consolidation of the VIEs, including their assets, liabilities, income and expenses, in our condensed consolidated financial statements with non-controlling interests for the third-party ownership of the joint ventures' membership interests.
The Company repositioned its business through the opportunistic disposition over time of certain of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, as of
We also own a preferred equity investment in a VIE that owns a multi-family property and for which, as of
A reconciliation of our net equity investments in consolidated multi-family properties and disposal group held for sale to our condensed consolidated financial statements as of
| Cash and cash equivalents | $ | 3,147 | |
| Real estate, net | 469,764 | ||
| Assets of disposal group held for sale (1) | 1,383 | ||
| Other assets | 16,251 | ||
| Total assets | $ | 490,545 | |
| Mortgages payable on real estate, net | $ | 362,747 | |
| Liabilities of disposal group held for sale (1) | 78 | ||
| Other liabilities | 10,563 | ||
| Total liabilities | $ | 373,388 | |
| Redeemable non-controlling interest in Consolidated VIEs | $ | 13,713 | |
| Less: Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | (54,782 | ) | |
| Non-controlling interest in Consolidated VIEs | (464 | ) | |
| Non-controlling interest in disposal group held for sale | 627 | ||
| Net equity investment (2) | $ | 158,063 | |
| (1) | Assets and liabilities of disposal group held for sale as of | |
| (2) | The Company's net equity investment as of | |
