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 in Q4 2025.
• Earnings Available for Distribution (EAD): Reported at $0.25 per share for Q4, up from $0.23 in Q3, fully covering the newly declared dividend of $0.23.
• Economic Return on Equity: Achieved 2.4% for Q4 and 6.5% for the full year 2025.
• Total Return to Shareholders: 42% for the year, including dividends and stock price appreciation.
• GAAP Net Income: $8 million or $0.25 per share for Q4, driven by EAD and net unrealized gains offset by transaction-related expenses.
• Investment Portfolio Growth: Grew by 27% year-over-year to $8.5 billion, with $3 billion in total loan purchases in 2025.

2. Strategic Updates and Business Highlights

• Securitization Activity: Executed 10 securitizations in 2025 totaling $4.2 billion, with $1.3 billion in Q4 alone.
• Focus on Home Equity: Increased allocation to home equity loans, now comprising 35% of total equity allocation, with a strong performance noted.
• Arc Home Performance: Achieved breakeven earnings in Q2 2025, with a strong second half contributing positively to EAD. Arc Home originated over $3.4 billion in loans for the year.
• Cost Management: Maintained discipline on G&A expenses, with non-investment-related expenses remaining flat year-over-year.

3. Forward Guidance and Outlook

• 2026 Objectives: Focus on resolving legacy WMC CRE loans in H1 2026 and reinvesting into higher ROE strategies. Continued growth expected from Arc Home, with anticipated earnings momentum.
• Call Rights Strategy: Plans to exercise call rights on in-the-money securitizations to free up approximately $35 million in equity for redeployment into higher-returning strategies.

4. Bad News, Challenges, or Points of Concern

• Legacy WMC Loans: Continuing to carry legacy WMC CRE loans on nonaccrual status, with $28 million of equity still tied up in these assets, presenting a risk until resolved.
• Market Competition: Increased competition in the non-QM space could pressure margins, although demand remains strong.
• Book Value Stability: Despite tightening spreads in securitized financing markets, book value has not significantly increased, indicating potential challenges in asset performance.

5. Notable Q&A Insights

• Arc Home Volumes: January 2026 marked Arc Home's strongest month since returning to profitability, generating over $1 million in earnings. Continued growth in origination volumes and healthy margins were highlighted.
• Investment Focus: Management expressed a strong preference for home equity and agency-eligible credits, citing their superior performance and lower delinquency rates compared to other asset classes.
• Call Rights Execution: Management indicated plans to execute call rights aggressively, with a focus on freeing up capital in Q1 2026.

Overall, TPG Mortgage Investment Trust demonstrated solid financial performance in Q4 2025, with strategic initiatives aimed at enhancing earnings and shareholder value, despite facing challenges related to legacy assets and competitive pressures in the mortgage market.