Cherry Hill Posts $3.9M Q3 Loss, Reaffirms $117.5M TPG Mortgage Merger
Cherry Hill Mortgage (CHMI) reported a Q3 2026 GAAP net loss of $3.9M ($0.11 per share) but positive non-GAAP EAD of $5.2M ($0.14 per diluted share). The loss was driven by unrealized RMBS losses, offset by gains on derivatives. Net interest income and servicing income were $4.5M and $7.5M, respectively. The company reaffirmed its $117.5M merger with TPG Mortgage (MITT) and declared a $0.10 per share dividend. Book value was $2.73 per share.
How this was made
The 30-second read
Why it matters
The earnings loss highlights balance‑sheet sensitivity, while the merger premium offers potential upside for both parties.
Market read
Provides fresh earnings data and merger details for two listed REITs, influencing short‑term price action.
What to watch
RMBS mark‑to‑market volatility could reverse, affecting future earnings.
Background
Cherry Hill Mortgage Investment Corp reported Q3 results and reaffirmed its merger with TPG Mortgage Investment Trust.
Ticker impact
Q3 2026 GAAP net loss of $3.9M and reaffirmed merger with MITT.
likely pressure as market prices in earnings loss and merger uncertainty
The loss signals short‑term weakness, while the pending merger offers a potential upside if approved.
Merger with CHMI reaffirmed, implying a 29% premium to MITT shares.
potential upside as premium is priced in
The announced premium should lift MITT's stock if the deal closes.
Market effects
Mortgage REIT sector may see heightened scrutiny on RMBS exposure.
US mortgage REITs could experience short‑term volatility.
Limited to US mortgage REIT investors.
Counterpoint
Loss may be temporary; focus on merger premium could justify buying.
Key entities
- companyCherry Hill Mortgage Investment Corp
US‑listed mortgage REIT reporting Q3 loss.
- companyTPG Mortgage Investment Trust
Merger target receiving a 29% premium.
