TPG Mortgage Investment Trust (MITT) Acquisition presentation summary

Transaction overview

• Agreement to acquire Cherry Hill Mortgage Investment Corporation (CHMI) through issuance of new MITT shares and cash, with a total consideration of $117.5 million, or $3.10 per CHMI share, representing a 29% premium to CHMI’s closing price on August 7, 2026.

• CHMI shareholders receive 0.3063 MITT shares per CHMI share plus $0.93 in cash, with $0.52 from TPG and $0.41 from MITT.

• MITT will assume CHMI’s preferred stock, exchanging it for new preferred shares with the same terms.

• TPG contributes ~$20 million to the cash consideration, and MITT’s external manager’s incentive fee structure will be amended to align with pro-forma book value and earnings.

• MITT’s board will expand to include two independent members from CHMI; closing expected in Q4 2026, pending shareholder and regulatory approvals.

Strategic rationale and anticipated benefits

• The combination creates a scaled residential mortgage platform with a $9.0 billion pro forma investment portfolio and $742.5 million in equity.

• Expected to increase MITT’s market capitalization by 36%, improve liquidity, and expand the equity capital base to ~$743 million.

• Anticipated to be accretive to earnings in 2027, with significant operating expense synergies of $7–$9 million annually.

• CHMI shareholders benefit from a 29% premium to current stock price and potential upside from MITT’s future performance.

• TPG’s $20 million cash contribution reduces book value dilution and signals ongoing support for growth.

Portfolio and operational highlights

• Combined portfolio spans Agency and Non-Agency residential mortgage assets, mortgage servicing rights (MSR), and home equity, targeting high-teen ROEs.

• Enhanced liquidity profile and reduced leverage ratio compared to CHMI’s standalone metrics.

• MITT’s credit-focused strategy complements CHMI’s agency-focused, stable cash flow approach.

• Access to TPG’s $327 billion global platform and structured credit expertise.

• MITT’s management team has a track record of successful, accretive M&A, as shown by the WMC acquisition and subsequent outperformance.