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Cherry Hill Mortgage agrees to be acquired in a deal at a 29% premium
The merger with TPG Mortgage Investment Trust is slated to close in 4Q26 and targets a combined residential mortgage REIT portfolio of about $9.0 billion.
Cherry Hill Mortgage (CHMI) entered into a definitive agreement to be acquired by TPG Mortgage Investment Trust (MITT), with closing targeted for 4Q26, according to Yahoo Finance.
The $3.10 signing value represents a 29% premium to CHMI's unaffected $2.41 share price and about 0.98x June 30 BVPS of $3.16. Approximately 30% of announced consideration is cash, while CHMI holders are expected to retain about 27% ownership of the combined company, the outlet reported.
Under the fixed 0.3063 exchange ratio, CHMI’s stock component is designed to provide near-term value realization and continued exposure to MITT’s earnings, book value, and potential rerating after closing. Strategically, the merger is expected to create a larger and more diversified residential mortgage REIT, with management projecting about $7 million to $9 million of annual operating efficiencies, 2027 earnings accretion, and lower pro forma economic leverage of roughly 2.9x.
The combined investment portfolio is expected to total approximately $9.0 billion, and MITT cited its proprietary securitization capabilities plus experience originating, acquiring, and managing MSRs as sources of scale and broader capital allocation flexibility, per the report. Yahoo Finance also noted CHMI’s 2Q26 EAD beat expectations, with EAD rising to $0.15 per share from $0.14 in 1Q26, while dividend coverage expanded to about 1.5x on the $0.10 quarterly payout.