Cherry Hill Mortgage Investment Corporation enters the second half of 2026 in a transitional posture shaped by the announced all-stock-plus-cash combination with TPG Mortgage Investment Trust, Inc. disclosed in a current report filed August 10, 2026. Net interest spread widened to three and sixty-seven hundredths percent at June 30, 2026, the strongest reading in the trailing twelve month window disclosed in the most recent quarterly filing, with average cost of funds compressing fifteen basis points quarter over quarter to one and forty-nine hundredths percent. Second quarter net income returned to profitability on a per share basis at four cents, reversing a comparable period loss in the prior year, although the six month results remained modestly negative on a per share basis. The portfolio remains anchored by Agency RMBS and a servicing related asset portfolio of $211.1 million, with repurchase agreement financing representing the dominant funding source. The pending merger, the addition of two board designees to the parent board at closing, and the quarter over quarter spread expansion together redirect the analytical focus toward the proxy and stockholder vote cycle and identified combination efficiencies.
The transaction structure is the defining element of the equity story. Holders of common stock are slated to receive a fixed combination of TPG Mortgage Investment Trust common stock plus cash consideration from the Parent and an additional cash payment from AG REIT Management, LLC, while holders of the Series A and Series B preferred stock are slated to exchange share for share into newly issued TPG preferred stock with substantially identical rights, preferences, privileges, and voting powers. During the pendency of the transaction the issuer has capped its quarterly common dividend at ten cents per share, a meaningful step down that depresses trailing cash yield and skews relative value comparisons toward the announced exchange ratio plus cash consideration. Holders of the preferred stock retain their full cumulative dividend stream, with the Series A at eight and twenty hundredths percent and the Series B at eight and twenty-five hundredths percent, which provides a degree of yield insulation that the capped common dividend does not offer.