TPG’s MITT to acquire Cherry Hill Mortgage in $9 billion residential credit merger
Cherry Hill Mortgage Investment Corp has entered a definitive agreement to be acquired by TPG Mortgage Investment Trust, creating a larger diversified residential mortgage REIT with a target close in the fourth quarter of 2026.
Cherry Hill Mortgage Investment Corp has entered into a definitive agreement to be acquired by TPG Mortgage Investment Trust in a transaction valued at approximately $9 billion. The deal offers a 29% premium to Cherry Hill’s unaffected share price, with closing targeted for the fourth quarter of 2026. The merger combines Cherry Hill’s Agency RMBS and conventional MSR platform with MITT’s broader residential credit franchise, creating a larger, more diversified residential mortgage REIT.
Under the agreement signed on August 9, 2026, each Cherry Hill common share will receive 0.3063 MITT common shares plus $0.93 in cash. This structure represents a signing value of $3.10 per share, with approximately 30% of the consideration paid in cash. Of the cash component, $0.41 per share is funded by MITT and $0.52 per share is contributed by AG REIT Management, an affiliate of TPG. Cherry Hill holders will retain approximately 27% ownership of the combined company.
The transaction is expected to create a combined investment portfolio of approximately $9.0 billion. Management anticipates $7 million to $9 million in annual operating efficiencies and earnings accretion in 2027. Pro forma economic leverage is expected to settle at roughly 2.9x. The outside closing date is set for March 9, 2027, subject to customary regulatory approvals and stockholder consent.
Cherry Hill’s second-quarter 2026 earnings attributable to common shareholders increased to $0.15 per share, beating expectations. The Street’s 2026E earnings estimate has been revised upward to $0.59 per share from $0.55. Book value per share declined modestly to $3.16 from $3.23 in the first quarter, and a $2.8 million impairment was recorded for Cherry Hill’s investment in Real Genius LLC.
The combination brings Cherry Hill’s Agency-oriented platform into MITT’s Non-Agency residential credit franchise. Cherry Hill contributes an Agency RMBS and conventional MSR platform, while MITT adds exposure to Non-Agency mortgage assets and home equity. The merged entity will benefit from TPG’s $327 billion asset-management platform, including proprietary securitization capabilities and broader credit finance resources.
