MITT Signs Cherry Hill Merger After Book Value Recovers
The residential mortgage REIT posted $0.24 of earnings available for distribution a share, matching its dividend, and lifted book value to $10.00.
TPG Mortgage Investment Trust, Inc. (MITT) reported earnings available for distribution of $0.24 a share for the quarter ended June 30, 2026, matching the $0.24 common dividend it declared on June 16. The figure was down from $0.26 a share in the first quarter, when EAD more than covered the same dividend. Chief Executive Officer and President T.J. Durkin said disciplined leverage, capital rotation into residential credit, and momentum at Arc Home produced the result and lifted book value to $10.00 a share.
Book value per share rose to $10.00 from $9.97 at March 31, and quarterly economic return on equity flipped to 2.7% from a 2.6% decline. GAAP net income available to common stockholders swung to a $0.29 a share profit from a $0.27 a share loss. The common dividend held at $0.24 after a 4.3% increase in the first quarter from $0.23 in the fourth quarter of 2025.
The investment portfolio shrank to $7.7 billion from $8.1 billion. Net interest margin expanded to 0.7% from 0.6%, each including a 0.02% benefit from the net interest component of interest-rate swaps. Financing fell to $7.3 billion from $7.7 billion. Non-recourse financing dropped to $6.3 billion from $6.8 billion while recourse financing rose to $1.0 billion from $0.9 billion. The GAAP leverage ratio declined to 13.4x from 14.1x; the economic leverage ratio rose to 1.8x from 1.7x. Total liquidity increased to $111.6 million from $100.0 million, including $61.6 million of cash and cash equivalents and $50.0 million of available committed financing on certain home equity loans.
The company’s investment in Arc Home, a licensed mortgage originator held through AG Arc LLC, declined to $46.4 million from $52.3 million, still valued at a 1.05x book-value multiple. MITT’s stake in AG Arc was 66% as of June 30. EAD from equity-method investments contributed $1.28 million, or $0.04 a share, to the quarter’s $7.74 million of earnings available for distribution. Net unrealized losses of $4.42 million, or $0.15 a share, were excluded from EAD, as were $1.84 million of net realized losses, or $0.06 a share.
With the second-quarter results, MITT announced a definitive agreement to acquire Cherry Hill Mortgage Investment Corporation by merger. The company expects to file a registration statement on Form S-4 that will include a prospectus of MITT and a joint proxy statement of MITT and Cherry Hill. The merger will be submitted to Cherry Hill stockholders, and issuance of MITT stock in the deal will be submitted to MITT stockholders. Durkin said the company believes the agreement will enhance scale and long-term earnings power by expanding the equity capital base, driving cost synergies, and incorporating complementary cash flows.
On July 30, MITT declared quarterly cash dividends of $0.51563, $0.50, and $0.664786 a share on its Series A, Series B, and Series C preferred stock, payable September 17 to holders of record on August 31. The company is externally managed by AG REIT Management, LLC, an affiliate of TPG Inc.
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