Cherry Hill Mortgage Investment Corp

Two Harbors Investment, Cherry Hill Mortgage Investment, and Invesco Mortgage Capital are pursuing sharply different strategies despite being grouped as high-yield mortgage REITs. Two Harbors is pinned near its $12 per share cash buyout price after a 26.74% year-to-date gain, with the deal expected to close on Aug. 3. Cherry Hill surged 21.16% in the week ending Aug. 14 after TPG Mortgage Investment Trust agreed to acquire it for 0.3063 MITT shares plus 93 cents cash per CHMI share, an implied $3.10 value and 29% premium. Invesco Mortgage Capital remains the only standalone operator, paying a 19% annualized monthly dividend from an $8.2 billion Agency portfolio that grew 12.4% quarter-over-quarter.

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 $117.5 million. Under the terms, each CHMI common share will receive 0.3063 MITT common shares plus $0.93 in cash, implying a value of $3.10 per CHMI share based on MITT's August 7 closing price, a 29% premium to CHMI's unaffected price. The combined investment portfolio is expected to total approximately $9.0 billion, with management projecting $7 million to $9 million of annual operating efficiencies and 2027 earnings accretion. CHMI also reported second-quarter earnings available for distribution of $0.15 per share, exceeding estimates and marking its strongest quarterly core earnings performance since the first quarter of 2025. The transaction is expected to close in the fourth quarter of 2026, subject to stockholder approvals and customary conditions.