TPG Mortgage Investment Trust (NYSE: MITT) agreed to acquire Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) in an all-stock-and-cash deal valued at $117.5 million, the companies announced Aug. 10, 2026, creating a combined residential mortgage REIT platform with roughly $9 billion in assets.
Under the terms disclosed in a joint Business Wire release, each CHMI shareholder will receive 0.3063 shares of MITT common stock plus $0.93 in cash, implying a value of $3.10 per CHMI share. That price represents a 29% premium to CHMI’s Aug. 7 closing price and a 32% premium to its 30-day volume-weighted average price. The cash portion, totaling about $35 million, will be funded $0.52 per share by MITT’s external manager, AG REIT Management, an affiliate of TPG, and $0.41 per share from MITT’s balance sheet.
Once the deal closes, current MITT stockholders will own approximately 73% of the combined company and CHMI stockholders about 27%. Both companies’ boards approved the merger unanimously; the deal still requires stockholder votes and regulatory clearance, with closing targeted for the fourth quarter of 2026.
“This combination represents a transformational, value-creating opportunity for both MITT and CHMI stockholders,” said T.J. Durkin, MITT’s president and chief executive, in the release, pointing to anticipated operational efficiencies and accretive earnings growth.
CHMI’s board chairman, Joseph Murin, said the deal followed “a thorough competitive process” and that the board “unanimously determined that this transaction with MITT is in the best interest of CHMI and its stockholders.” CHMI Chief Executive Jay Lown said the structure “will deliver immediate cash consideration to CHMI stockholders, together with an opportunity to participate in the potential upside of the combined company.”
The combined portfolio will be weighted toward non-agency residential credit (72%), with agency residential mortgage-backed securities and mortgage servicing rights making up 14.4%, home equity investments 12.6% and other assets the remainder, according to the release. The companies also project $7 million to $9 million in annual operating efficiencies from combining the two externally managed platforms.
The merger includes a conversion of CHMI’s preferred stock into new MITT preferred series: CHMI’s Series A preferred will convert into MITT Series D preferred (8.20% rate), and CHMI’s Series B will convert into MITT Series E preferred (8.250% floating rate).
MITT, externally managed by AG REIT Management on behalf of TPG β which oversees $327 billion in assets under management firmwide β has grown by acquisition before. The company absorbed Western Asset Mortgage Capital Corporation in a 2023 merger. CHMI, a smaller residential mortgage REIT that invests across agency RMBS, mortgage servicing rights and home equity assets, will be the second externally managed mortgage REIT MITT has folded into its platform in three years.
Piper Sandler & Co. is serving as financial advisor to MITT, with Hunton Andrews Kurth LLP and Freshfields LLP as legal counsel and Fried, Frank, Harris, Shriver & Jacobson LLP advising MITT’s independent directors. BTIG, LLC is CHMI’s financial advisor, with Mayer Brown LLP as legal counsel.
What it means: The deal continues a wave of consolidation among small and mid-size mortgage REITs, which have faced pressure to scale up in order to spread fixed management costs over a larger asset base and compete for capital-markets funding. RealtyWire previously reported on Two Harbors’ pending sale to CrossCountry Mortgage, another sign that scale has become a competitive necessity in the sector. The MITT-CHMI combination, at $9 billion, remains modest next to the largest agency-focused mortgage REITs, but it gives the combined company a broader mix of non-agency credit, servicing rights and home-equity exposure than either company held on its own.
The premium CHMI shareholders are receiving β nearly a third above the stock’s recent trading price β also reflects how thinly some smaller mortgage REITs have traded relative to book value in 2026, a dynamic that has made external managers with larger platforms, like TPG’s AG REIT Management, more aggressive about rolling up smaller peers.
