TPG Mortgage Investment Trust (NYSE: MITT) reported second-quarter 2026 earnings available for distribution (EAD) of $0.24 per share, fully covering its declared dividend. The mortgage investment trust also announced a definitive agreement to acquire Cherry Hill Mortgage Investment Corporation, a move expected to increase market capitalization by approximately 36% and generate annual G&A cost synergies of $7 million to $9 million.

Financial Performance

The company delivered stable performance despite a challenging interest rate environment driven by inflation concerns and Federal Reserve policy uncertainty. Book value per share increased from $9.97 to $10.00, reflecting a disciplined leverage profile and capital rotation into higher-returning residential credit strategies.

GAAP net income stood at approximately $9.1 million, or $0.29 per share. This result was driven by durable EAD across the investment portfolio and Arc Home, hedge-adjusted gains on residential investments, and unrealized gains on legacy WMC commercial loans. These gains were supported by $3.5 million in payments received, which reduced the cost basis and facilitated deleveraging.

Net interest income, inclusive of the hedge portfolio, was $0.65 per share. This exceeded $0.45 of expenses and preferred dividends, generating net earnings of $0.20 per share. Arc Home contributed an additional $0.04 per share to EAD, consistent with the prior quarter, driven by origination volume growth. The investment portfolio generated high-teen returns on equity (ROEs) while expenses remained controlled.

Strategic Acquisition

The acquisition of Cherry Hill is expected to close in the fourth quarter of 2026. The transaction creates an equity capital base of approximately $750 million and improves stock liquidity. TPG is contributing approximately $20 million in cash, alongside $15 million from MITT’s balance sheet, resulting in a cash-to-stock consideration mix of approximately 30%.

Cherry Hill’s portfolio includes agency RMBS and low-WACC mortgage servicing rights (MSR), providing predictable cash flows that complement MITT’s residential loan strategy. Management expects the combination to strengthen net interest margins and provide immediate earnings benefits. Pro forma economic leverage upon combination will settle at approximately 2.9 turns, de-risking Cherry Hill’s historical profile while maintaining a conservative balance sheet relative to peers.

Portfolio Rotation & Legacy Resolutions

MITT continued rotating excess capital into home equity and non-agency credit markets. The company successfully issued two securitizations with an aggregate balance over $750 million during the quarter. Economic leverage increased modestly by 0.1 turns quarter-over-quarter to 1.8 turns. The company ended the quarter with $112 million in liquidity, leaving ample post-close flexibility after funding the $15 million cash consideration for Cherry Hill.

Resolution of legacy commercial loans remains a key catalyst. A buyer has been selected for the retail exposure, with closure expected by year-end. Two of four remaining hospitality exposures are on track to resolve by the end of the third quarter, in line with current carrying values. Management expects these resolutions to unlock roughly $30 million in capital for reinvestment into higher-yielding residential investments.

What the Numbers Show

The resolution of legacy commercial loans is projected to contribute approximately $0.20 in aggregate incremental annual EAD. This figure comprises an estimated $0.05 in short-term incremental EAD from immediate redeployment and an additional $0.15+ per share from the eventual recycling of capital from two repositioned hospitality assets. This indicates that a significant portion of future earnings growth is dependent on the successful wind-down and capital recycling of non-core legacy assets rather than solely organic growth in the core residential portfolio.

Halper Sadeh LLC has initiated an investigation into four proposed corporate transactions, alleging potential violations of federal securities laws and breaches of fiduciary duties to shareholders. The New York-based investor rights law firm claims that terms within these deals may limit superior competing offers and provide substantial financial benefits to insiders that are not available to ordinary shareholders.

The investigation covers mergers and acquisitions involving TPG Mortgage Investment Trust, Accelerant Holdings, Harte Hanks, and Fulcrum Therapeutics. Halper Sadeh LLC states it may seek increased consideration, additional disclosures, or other relief on behalf of shareholders. The firm represents investors globally and operates on a contingent fee basis, meaning clients are not responsible for out-of-pocket legal fees.

Transaction Details

The probe focuses on specific deal structures and consideration packages across the four companies:

• TPG Mortgage Investment Trust (NYSE: MITT): The firm is examining its merger with Cherry Hill Mortgage Investment Corporation. Upon closing, TPG Mortgage shareholders are expected to own approximately 73% of the combined entity.
• Accelerant Holdings (NYSE: ARX): The investigation covers its sale to Thoma Bravo for $20.25 per share in cash.
• Harte Hanks (NASDAQ: HHS): The firm is reviewing its sale to Star Equity Holdings. Shareholders have the option to receive either $5.00 in cash per share or 0.50 shares of Star Equity’s publicly traded 10% Series A Cumulative Perpetual Preferred Stock for each Harte Hanks share.
• Fulcrum Therapeutics (NASDAQ: FULC): The probe includes its merger with Slate Medicines. Fulcrum shareholders are expected to own 5.0% of the combined company upon closing.

What the Numbers Show

A significant divergence exists in the post-transaction equity stakes offered to shareholders. While TPG Mortgage shareholders retain a controlling interest with approximately 73% ownership, Fulcrum Therapeutics shareholders are diluted to a minimal 5.0% stake in the combined entity with Slate Medicines. This disparity highlights varying degrees of value retention and control across the investigated deals.

Shareholders of the involved companies are encouraged to contact Halper Sadeh LLC to discuss their rights and options. The firm asserts that prior results do not guarantee similar outcomes in ongoing investigations.