$3.10 per Cherry Hill Mortgage Investment Trust (CHMI) share is the signing-date merger consideration under the August 9, 2026 definitive agreement for CHMI's acquisition by TPG Mortgage Investment Trust (MITT). That figure implies a 29% premium to CHMI's unaffected $2.41 close and approximately 0.98x its June 30 book value per share of $3.16, with an aggregate transaction value of approximately $117.5 million. The math reconciles: 0.3063 MITT shares at MITT's August 7 closing price of $7.09 contributes $2.17 of stock value; add $0.93 in cash to reach $3.10, while CHMI holders retain roughly 27% ownership of the combined company.
Deal structure: fixed ratio, split cash, and the merger spread
| Component | Per share |
|---|---|
| MITT stock (0.3063 x $7.09) | $2.17 |
| Cash: MITT $0.41 + TPG $0.52 | $0.93 |
| Signing-date total | $3.10 |
| Unaffaired CHMI close | $2.41 |
| Announced premium | 29% |
Cash draws from two sources: MITT contributes $0.41 per share and AG REIT Management, MITT's external manager and a TPG affiliate, adds $0.52 per share, approximately $20 million total. Cash represents about 30% of announced consideration. Because the 0.3063 exchange ratio is fixed, the stock component's market value moves with MITT's price through closing. At MITT's most recent price of $6.32, the ratio plus cash implies approximately $2.87 per CHMI share, a current spread of roughly 2.7%. Target close is 4Q26; outside date is March 9, 2027. CHMI's 8.20% Series A and 8.250% Series B preferred shares convert 1-for-1 into newly issued MITT preferred securities with substantially equivalent rights, and MITT expects to issue approximately 11.608 million new common shares.
Combined platform: $9B portfolio, 2.9x pro forma leverage, $7-$9M of annual savings
The combined investment portfolio is expected to total approximately $9.0 billion, comprising 72.0% Non-Agency Residential Credit, 14.4% Agency RMBS and MSRs, 12.6% Home Equity, and 1.0% other. CHMI's conventional MSR portfolio contributes $211 million of carrying value and $15.2 billion of unpaid principal balance. Pro forma economic leverage is expected to settle at approximately 2.9x, versus CHMI's current 5.02x. Management projects $7 to $9 million of annual operating expense efficiencies and 2027 earnings accretion, with total equity capital reaching roughly $742 million and MITT's market capitalization expanding by approximately 36%. TPG's broader platform, at approximately $327 billion of assets under management, adds proprietary securitization capabilities to the combined entity.
2Q26 results: EAD $0.15 a share, NII up, leverage falls to 5.02x
EAD reached $0.15 per share in 2Q26, up from $0.14 in 1Q26 and $0.11 in 4Q25, the strongest quarterly result since 1Q25 and above the $0.13 Street estimate. Net interest income rose to $4.7 million from $4.5 million while interest expense fell to $10.0 million from $11.4 million; RMBS net interest spread widened 55 basis points to 3.45% from 2.90%. Dividend coverage expanded to approximately 1.5x on the $0.10 quarterly payout. BVPS eased 2.2% sequentially to $3.16, a marked improvement on the 6.1% drop posted in 1Q26. Unrestricted cash rose 12% to $52.1 million; aggregate leverage fell to 5.02x from 5.49x. The Street's 2026 EAD estimate, sourced from TIKR, was revised to $0.59 per share from $0.55, with $0.15 per share projected for each of 3Q26 and 4Q26.
Valuation: MITT at 0.6x book versus the 0.9x peer average
At $2.79, CHMI trades at approximately 0.88x June 30 book value and 4.7x 2026 EAD, with a market capitalization of approximately $103 million. MITT trades at roughly 0.6x book and 5.6x next-twelve-month earnings, versus peer averages of approximately 0.9x and 6.4x. MITT's 15.2% dividend yield is broadly in line with the peer average of 15.3%, placing the discount in book and earnings multiples rather than income. CHMI holders receive 0.3063 MITT shares per share, leaving them exposed to any rerating of the combined platform. MITT's June 30 BVPS was $10.00 against its August 7 close of $7.09.