MITT-PB — AG Mortgage Investment Trust, Inc.

Summary of TPG Mortgage Investment Trust Inc (MITT-PB) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Book Value: Increased slightly from $10.46 to $10.48 per share.
• Earnings Available for Distribution (EAD): Reported at $0.25 per share, up from $0.23 in the previous quarter, fully covering the increased dividend.
• Quarterly Dividend: Raised to $0.23 per share, marking a 21% increase for the year.
• Economic Return: Achieved a 2.4% return for the quarter and a 6.5% return on equity for the full year.
• GAAP Net Income: $8 million or $0.25 per share, influenced by EAD and transaction-related expenses.

2. Strategic Updates and Business Highlights

• Securitization Activity: Executed 10 securitizations in 2025, totaling $4.2 billion, with $1.3 billion in Q4 alone.
• Investment Portfolio Growth: Grew by 27% year-over-year to $8.5 billion, driven by $3 billion in loan purchases.
• Arc Home Performance: Achieved breakeven earnings in Q2 2025 and continued to show strong origination volumes, contributing significantly to EAD.
• Legacy WMC Loans: Continued efforts to resolve legacy loans on nonaccrual status, with $28 million of equity tied to these assets.

3. Forward Guidance and Outlook

• 2026 Objectives: Focus on resolving legacy WMC loans and reinvesting into higher return strategies. Anticipate further earnings growth from Arc Home and capital rotation.
• Call Rights Strategy: Plans to exercise call rights on in-the-money securitizations to redeploy capital into higher yielding investments, with an expected $35 million of equity to be freed up.

4. Bad News, Challenges, or Points of Concern

• Legacy WMC Loans: Ongoing challenges with $28 million in equity tied to nonaccrual loans, which could impact future earnings.
• Market Conditions: While spreads in securitized financing markets have tightened, this has not yet translated into increased book value, indicating potential underlying issues.
• Competitive Pressures: Increased competition in the non-QM mortgage space could impact margins and market share.

5. Notable Q&A Insights

• Arc Home Volumes: Continued growth in originations and margins, with January 2026 marking a strong month post-profitability.
• Investment Focus: Emphasis on home equity and agency-eligible credits, with a cautious approach to other asset classes.
• Securitization ROEs: Expected to remain higher than competitors, clocking in at 5-10% above mid-teens ROEs seen in the market.
• Call Rights Execution: Anticipated to begin in Q1 2026, with a focus on freeing up equity from legacy deals.

Overall, TPG Mortgage Investment Trust Inc. demonstrated solid financial performance in Q4 2025, with strategic initiatives aimed at enhancing shareholder value while navigating challenges related to legacy assets and competitive pressures.