Cherry Hill Mortgage Investment Corporation
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsCherry Hill Mortgage Investment Corp is an internally managed residential mortgage REIT that invests in Agency RMBS and servicing-related assets, and has agreed to be acquired by TPG Mortgage Investment Trust.
What they do
Cherry Hill acquires and manages a portfolio of Agency residential mortgage-backed securities (RMBS) and servicing-related assets, including mortgage servicing rights (MSRs) and excess MSRs. It operates through two segments: investments in RMBS and investments in servicing-related assets. The company finances RMBS with short-term borrowings under master repurchase agreements and uses derivatives to hedge interest rate and prepayment risk. It qualified as a REIT and holds servicing assets through its taxable REIT subsidiary, Aurora Financial Group.
Revenue drivers
- RMBS segment — Generates net interest income from Agency RMBS, financed with repurchase agreement leverage. In Q2 2026, net interest income was $4.7 million.
- Servicing Related Assets segment — Earns servicing fee income from MSRs and excess MSRs, net of servicing costs. In Q2 2026, net servicing income was $7.4 million, the largest income contributor.
- Derivatives and other gains — Realized and unrealized gains/losses on interest rate derivatives and RMBS fair value changes affect reported net income. Q2 2026 included a net realized gain on derivatives of $12.1 million.
Recent performance
For Q2 2026, the company reported GAAP net income applicable to common stockholders of $1.3 million, or $0.04 per share, and earnings available for distribution of $5.5 million, or $0.15 per diluted share. Common book value per share was $3.16 at June 30, 2026. Revenue for the quarter was $7.9 million, up from $4.6 million in Q1 2026. Full-year 2025 revenue was $23.3 million with net income of $6.9 million, down from 2024 revenue of $34.6 million and net income of $12.2 million.
Strategy
The company's stated strategy is to allocate a substantial portion of equity capital to servicing-related assets, create intercompany excess MSRs, acquire RMBS on a leveraged basis, and hedge prepayment and interest rate risk. It became internally managed in November 2024, eliminating the external management agreement. The company maintains a common stock ATM program and a share repurchase program. In August 2026, it announced a definitive merger agreement with TPG Mortgage Investment Trust, Inc.
Risks
- Distribution sustainability — The company may not generate sufficient revenue to sustain dividends, as results depend on interest rates, financing availability, and market conditions.
- Mortgage market deterioration — Adverse conditions in residential mortgage and real estate markets could reduce asset values and mortgage servicing income.
- Interest rate and prepayment risk — Changes in interest rates can cause mismatches between asset yields and borrowing costs and alter prepayment speeds on RMBS and MSRs.
- Merger completion risk — The pending acquisition by MITT may not close on the announced terms, and the company has suspended its earnings call due to the transaction.
Outlook
Management did not provide forward guidance in the latest earnings release. The company's immediate outlook is tied to the pending merger with TPG Mortgage Investment Trust, with an implied transaction value of $117.5 million at a 29% premium to the closing price on August 7, 2026. Due to the pending transaction, the company is not hosting a webcast or conference call. No other forward-looking statements were made in the provided materials.