MITT agrees to buy Cherry Hill, creating $9B residential mortgage REIT

TPG Mortgage Investment Trust Inc. on Monday agreed to acquire Cherry Hill Mortgage Investment Corp. in a cash-and-stock deal that values Cherry Hill at about $117.5 million and will create a $9 billion residential mortgage real estate investment trust (REIT) platform. Under the definitive merger agreement, Cherry Hill stockholders will receive 0.3063 shares of TPG Mortgage Investment Trust (MITT) common stock and $0.93 in cash for each share of Cherry Hill (CHMI) common stock. Based on MITT’s Friday closing price, that equals $3.10 per Cherry Hill share, a 29% premium. In 2023, MITT acquired Western Asset Mortgage Capital Corp. President, CEO and board member T.J. Durkin said in a statement that the deal represents a “transformational, value-creating opportunity” that will generate operational efficiencies and deliver accretive earnings to stockholders. “We are excited to bring together two highly complementary portfolios to significantly enhance the scale of MITT’s residential mortgage platform,” said Durkin, who will continue as president and CEO. Cherry Hill will designate two independent directors to join MITT’s board, expanding the board to eight members. The combined company...