Cherry Hill Mortgage posts Q2 profit, announces merger deal

Cherry Hill Mortgage Investment

10/08/2026 11:57

Overview
U.S. real estate finance firm's Q2 net income applicable to common stockholders returned to profit after prior quarter loss
Earnings available for distribution for Q2 totaled $5.5 mln, or $0.15 per diluted share
Company entered definitive merger agreement with TPG Mortgage Investment Trust, with an implied transaction value of $117.5 million
Under deal, TPG Mortgage Investment Trust to acquire co, with co's Stockholders to receive 0.3063 TPG shares and $0.93 cash per share

Outlook
Company did not provide specific financial guidance due to pending merger with TPG Mortgage Investment Trust

Result Drivers
NET SERVICING INCOME - Net servicing income contributed $7.4 mln to Q2 results
DERIVATIVES AND RMBS LOSSES - Realized and unrealized losses on RMBS and derivatives, as well as servicing-related asset losses and credit impairments, weighed on results, partially offset by a realized gain on derivatives
OPERATING EXPENSES - General and administrative expenses and compensation totaled $4.0 mln in Q2

Company press release: ID:nBw7Cm65va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.04
 
Q2 Net Income Applicable to Common Stockholders
 
$1.34 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Cherry Hill Mortgage Investment Corporation is $3.00, about 24.5% above its August 7 closing price of $2.41
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)