CHMI swings to Q2 profit, unveils $117.5M merger with MITT at 29% premium
CHMI sits 25% above its 52-week low of $2.17.
Summary
Cherry Hill Mortgage posted Q2 2026 net income of $1.3 million and agreed to merge with MITT at a 29% premium, valuing the company at $117.5 million.
Key Events · Earnings and Guidance · CHMI
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Q2 2026 Net Income of $1.3M
GAAP net income applicable to common stockholders reached $1.3 million, or $0.04 per share, rebounding from a loss of $2.0 million in Q1 2026.
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EAD of $5.5M, $0.15/Share
Non-GAAP earnings available for distribution attributable to common stockholders rose to $5.5 million, or $0.15 per diluted share, compared with $5.3 million in the prior quarter.
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Book Value of $3.16/Share
At June 30, 2026, common book value per share was $3.16, supported by unrestricted cash of $52.1 million and portfolio leverage of 5.02x.
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Merger with MITT at 29% Premium
CHMI agreed to be acquired by MITT for 0.3063 MITT shares plus $0.93 cash per CHMI share, implying a value of $3.10 per share — a 29% premium to the August 7 closing price.
Analysis · CHMI · Real Estate & Construction
A sharp turnaround in earnings and a transformative merger define this report. Cherry Hill Mortgage Investment Corp. delivered Q2 2026 GAAP net income of $1.3 million ($0.04/share) and non-GAAP earnings available for distribution of $5.5 million ($0.15/share), while book value held at $3.16 per share. More notably, the company entered a definitive agreement to be acquired by TPG Mortgage Investment Trust (MITT) in a deal valuing CHMI at $3.10 per share — a 29% premium to the unaffected closing price. Under the terms, CHMI shareholders will receive 0.3063 MITT shares plus $0.93 cash per share. The transaction, expected to close in Q4 2026, offers a clear exit at a significant premium and is supported by a solid capital base that includes $52.1 million in unrestricted cash.
At the time of this filing, CHMI was trading at $2.72 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $88.5M. The 52-week trading range was $2.17 to $3.04. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.