TPG Mortgage Investment Trust, Inc. (NYSE: MITT), with a market capitalization of approximately $0.29 billion, is a residential mortgage real estate investment trust focused on agency and selected non-agency U.S. residential mortgage-backed securities. The company originates, acquires, and securitizes loans to generate income and capital appreciation for shareholders while maintaining a disciplined, risk-adjusted approach to portfolio growth.
Management Summary and Strategic Remarks
Led by CEO and President T.J. Durkin, MITT has adopted a credit-first strategy with a focus on the U.S. residential mortgage market. The 2025 fiscal year was defined by a programmatic securitization approach, executing 10 transactions across Home Equity and Agency-Eligible loans. Management views the current landscape as an opportunity to generate attractive risk-adjusted returns, acting as both an aggregator and issuer of Non-Agency residential loan securitizations. Looking into 2026, management plans to enhance earnings through its call strategy, continued Arc Home profitability, and optimization of legacy assets.
M&A Activity: Arc Home Integration
MITT increased its ownership in Arc Home LLC to 66% from 44.6% on August 1, 2025, issuing 2.03 million restricted shares to acquire the additional stake from TPG-managed private funds.
Arc Home Contribution
Arc Home achieved record Non-Agency origination volumes, up 79% year-over-year, contributing $0.06 of EAD per share. Total funding volume for Arc Home reached $3.4 billion, with improved gain-on-sale margins enhancing profitability. The platform remains a major earnings driver and strategic differentiator for MITT.
Product Update and Portfolio Mix
MITT’s investment portfolio totaled $8.5 billion at year-end 2025. Key activities included:
- Home Equity Loans: Purchased $1.1 billion, securitized $2.4 billion across five transactions.
- Agency-Eligible Loans: Purchased $1.9 billion, securitized $1.8 billion across five transactions.
- Non-Agency Bonds Retained: $1.0 billion.
Portfolio composition was 92.6% Non-Agency Loans, 3.1% RPL/NPL loans, 1.9% Non-Agency RMBS, and 0.3% Agency RMBS (primarily IO strips).
Geographical Distribution and Credit Profile
Portfolio concentration is primarily in high-value U.S. housing markets:
- California: 40.7%
- Florida: 19.4%
- New York: 13.8%
- Texas: 8.2%
- New Jersey: 3.5%
- Other states: 14.3%
Credit quality remains strong, with weighted average FICO scores of 763 for Non-Agency loans and 748 for Home Equity loans. Current Loan-to-Value (LTV) ratios range 62–65%, providing substantial equity cushions.
Financing, Leverage, and Liquidity
As of December 31, 2025, MITT had $8.1 billion in total financing, including $7.2 billion non-recourse debt. GAAP leverage ratio was 14.4x, and economic leverage ratio was 1.6x. Total liquidity totaled $108.7 million, comprising $57.8 million in cash and $50.0 million in committed financing, supporting ongoing securitization and portfolio growth.
Legacy Asset Resolution and Outlook
Legacy WMC commercial loans now represent 1.1% of the portfolio. Management is focused on resolving these assets to optimize the balance sheet, while continuing Arc Home profitability and executing the securitization call strategy. Quarterly dividends on Series A, B, and C preferred stock are scheduled for March 2026.
Sector Context and Competitive Positioning
Mortgage REITs face ongoing pressure from higher interest rates and narrower spreads, compressing net interest margins. MITT competes with peers such as PennyMac Mortgage Investment Trust and AGNC Investment Corp., which vary in portfolio scale and agency vs. non-agency exposure. MITT’s origination and securitization platform provides differentiated earnings growth, capturing margins as both aggregator and issuer. Arc Home further strengthens MITT’s competitive position, offering access to Non-QM and Jumbo loans typically unavailable in the open market.
Government Schemes and Agency Exposure
MITT retains a strategic footprint in government-related products:
- Agency-Eligible Loans: Conform to GSE guidelines but retained to capture higher spreads.
- Agency RMBS: Minimal exposure (0.3% FMV), primarily Interest-Only strips.
Annual Financial Performance
For 2025, MITT reported:
- Book Value per Share: $10.48
- Annual Economic ROE: 6.5%
- Net Income Available to Common Stockholders: $0.90 per diluted share
- EAD: $0.86 per diluted share
- Total Common Dividends: $0.85, up 13.3% versus 2024
- Q4 Dividend: $0.23 per share, up 9.5% sequentially
2026 Outlook
Management expects continued portfolio growth and earnings enhancement through:
- Execution of the call strategy to redeem and re-securitize older high-cost loans.
- Scaling Arc Home origination and profitability.
- Resolution of legacy WMC commercial loans to streamline the balance sheet.
Dividend stability remains a priority, supported by strong liquidity and conservative leverage metrics.