Announcement • Dec 07

AG Mortgage Investment Trust, Inc. (NYSE:MITT) completed the acquisition of Western Asset Mortgage Capital Corporation (NYSE:WMC) from shareholders.

AG Mortgage Investment Trust, Inc. (NYSE:MITT) submit a non binding proposal to acquire Western Asset Mortgage Capital Corporation (NYSE:WMC) from shareholders for $53.2 million on July 13, 2023. AG Mortgage Investment Trust, Inc. (NYSE:MITT) entered into a definitive merger agreement to acquire Western Asset Mortgage Capital Corporation (NYSE:WMC) from shareholders on August 8, 2023. The offer consists of a fixed exchange ratio (subject to adjustment based on certain transaction expenses of the parties, as described in the press release), representing an implied price of $9.88 per share, consisting of a common stock consideration of $8.90 per share and cash consideration of $0.98 per share as of July 12, 2023. The offer represents an 18.2% premium to WMC’s closing share price, all based on MITT and WMC stock prices as of July 12, 2023. MITT has approval from both of its board of directors and external manager Angelo, Gordon & Co., L.P. to make this proposal. MITT's proposal, reflecting an implied price of $9.88 per WMC share, is financially superior to the TPT deal because (1) it represents as 18.2% premium to WMC's closing price of $8.36 as of July 12, 2023 based on MITT's observable stock price, and (2) WMC shareholders will receive $0.98 per share of cash consideration whereas the TPT deal involves no cash. MTT's proposal is expected to be substantially accretive to earnings in the first year after closing. Upon completion of the merger, MITT’s President and Chief Executive Officer, T.J. Durkin, will serve as Chief Executive Officer of the combined company, which will continue to operate as “AG Mortgage Investment Trust, Inc.” and be managed by AG REIT Management, LLC, an affiliate of Angelo Gordon. MITT’s Board of Directors will be increased from six to eight directors to include two WMC-designated directors. The combined company will be headquartered in New York and will continue to trade on the NYSE under MITT’s current ticker symbol. As of July 18, 2023, Western Asset Mortgage Capital Corporation announced that WMC’s board of directors has determined in good faith, after consultation with its financial advisors and outside legal counsel, that the unsolicited proposal from AG Mortgage Investment Trust, Inc. (NYSE: MITT)(“MITT”) to acquire WMC is reasonably expected to lead to a “Parent Superior Proposal” within the meaning of WMC’s merger agreement with Terra Property Trust, Inc. As a result of the WMC board’s determination, WMC intends to engage in discussions with MITT regarding its proposal, in accordance with the terms of the merger agreement with TPT. As per final exchange ratio announced on October 19, 2023, each outstanding share of WMC common stock will be converted into the right to receive the following (i) 1.498 shares of MITT common stock; and (ii) the per share portion of a cash payment from MITT Manager equal to the lesser of $7,000,000 or approximately 9.9% of the aggregate Per Share Merger Consideration. In the event of a termination of the Merger Agreement under certain circumstances, including a change of recommendation or the acceptance of a superior proposal, MITT or WMC, as applicable, would be required to pay the other party a termination fee of, in the case of payment by WMC, $3,000,000 and, in the case of payment by MITT, $6,000,000. The transaction has been unanimously approved by the Boards of Directors of MITT and WMC and external managers of MITT and WMC. The transaction is expected to close in the fourth quarter of 2023, subject to the respective approvals by the stockholders of MITT and WMC, The Registration Statement shall have been declared effective by the SEC, The shares issued in the Merger shall have been approved for listing on the NYSE and other customary closing conditions set forth in the merger agreement. The Registration Statement was declared effective by the Securities and Exchange Commission (the 'SEC') on September 29, 2023. The companies currently expect the transaction to close on November 9, 2023. As on November 7, 2023, MITT shareholders approved the transaction and the merger is expected to close in the fourth quarter 2023. As of December 5, 2023, WMC stockholders approved the transaction. The Merger is expected to close on December 6, 2023, subject to the satisfaction of the remaining customary closing conditions. Piper Sandler & Co. is acting as exclusive financial advisor and fairness opinion provider and James A. Kennedy, II and Robert K. Smith of Hunton Andrews Kurth LLP is acting as legal counsel to MITT. MITT has agreed to pay Piper Sandler for its financial advisory services in connection with the Merger a fee of $1 million. MITT paid Piper Sandler (i) $400,000 in connection with a fairness opinion that Piper Sandler rendered on July 27, 2023 relating to the initial exchange ratio of 1.468 proposed by MITT in connection with its July 27, 2023 proposal, and (ii) $100,000 upon rendering its fairness opinion on August 3, 2023, which opinion fees will be credited in full towards the financial advisory fee which will become due and payable to Piper Sandler upon consummation of the merger. BTIG, LLC and JMP Securities LLC, a Citizens Company, are acting as financial advisors, and Thomas W. Greenberg, David J. Goldschmidt, Joe Penko and Sarah Beth Rizzo of Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to WMC. WMC has agreed to pay BTIG a fee of $0.5 million for its services. MITT has engaged Innisfree M&A Incorporated as proxy solicitor for a fee of approximately $50,000. WMC has engaged Morrow Sodali, LLC as proxy solicitor for a fee of approximately $20,000. Equiniti Trust Company, LLC is the transfer agent for MITT Common Stock. O. Keith Hallam III and Sanjay Murti of Cravath, Swaine & Moore LLP acted as legal advisors to MITT. Hogan Lovells US LLP acted as legal advisor to MITT. AG Mortgage Investment Trust, Inc. (NYSE:MITT) completed the acquisition of Western Asset Mortgage Capital Corporation (NYSE:WMC) from shareholders on December 6, 2023. Cash was paid in lieu of fractional shares of MITT common stock that would have been received as a result of the merger. In connection with the closing of the merger, the size of MITT’s board of directors was increased by two members, and M. Christian Mitchell and Lisa G. Quateman, former WMC board members, were appointed to MITT’s board of directors as independent directors.

Seeking Alpha • Oct 24

AG Mortgage Investment: A High Yielding Relatively Risky mREIT At A Risk-Adjusted Price

Summary Multiple interest rate hikes, coupled with a likely recession, will be a hindrance for MITT stock in generating a high revenue and resulting profit. MITT repurchased 1.4 million shares for an average price of $7.70 per share during Q2 2022, and its board has authorized a further buy-back budget of $15 million. MITT is generating a payout of $0.21, and once the unrealized losses are absorbed, MITT will hopefully be in a position to generate such payout on a steady basis. ~ by Snehasish Chaudhuri, MBA (Finance) AG Mortgage Investment Trust, Inc. (MITT) is a real estate investment trust ((REIT)), that invests, acquires and manages a diversified portfolio of residential mortgage assets, and other real estate-related securities. Once a well performing stock, MITT has failed to perform since the covid-19 pandemic hit the market during March, 2020. The pandemic has been followed by Russia's invasion of Ukraine, which has resulted in record-high inflation, multiple hikes in interest rates and an increased risk of recession. While MITT used to trade around $50 prior to the pandemic, post-pandemic it traded mostly around $10, and off late has come down to a level of $4. Further interest rate hikes are expected to cause further pain to this mREIT. However, there also lies an opportunity for investors to make good money, as I don't think it can get much worse. An Overview of AG Mortgage Investment Trust, Inc. Incorporated in 2011, AG Mortgage Investment Trust, Inc. primarily invests in agency-backed residential mortgage-backed securities ((RMBS)). The company also deals in non-qualifying mortgage loans, government-sponsored entity non-owner occupied loans, re/non-performing loans, land related financing, and commercial investments. MITT restructured its portfolio in 2021 and reduced the exposure to commercial investments. In order to focus on core activities it liquidated almost all non-core assets. Like most mREIT, MITT is mostly owned by common people. 58 percent is held by the public, whereas 26 percent is owned by financial institutions. In my last coverage on 28th June, I mentioned that "Before the pandemic, it generated a high yield in the range of 11 percent to 16 percent. The pandemic year was a disruption, but yield seems to be slowly picking up. However, the dividend has fallen significantly due to a decline in interest income, which seems to have triggered a panic decrease in the payout ratio. The payout ratio is now very low - in fact, it is lower than industry standards. Therefore, such a low dividend is probably sustainable." Since then, AG Mortgage Investment Trust, Inc. has been able to sustain its quarterly payout of $0.21 for another 2 quarters, and has been able to generate an average yield of 12 percent this year. However, contrary to my expectations, price has dropped drastically. The price dropped by almost 55 percent to $3.53 and then has again started rising. Yield Remains Strong, as Price Dips. But Is the pay-out Sustainable? Given the low price, lower than even during the pandemic period crash in March 2020, the investment decision comes down to primarily two things. Firstly, is there any chance of the company going bankrupt? And secondly, is the pay-out sustainable? I don't think things can get worse than this. The stock is trading at its historical low. The company at present is running on loss, as it is accounting for its unrealized losses. Else the company would have made profit. In fact, last year, the profit was positive. The management, too, is quite optimistic about the company's future. They repurchased 1.4 million shares for an average price of $7.70 per share in the second quarter of 2022. MITT's board has authorized a further buy-back budget of $15 million. However, when it comes to the pay-out, there are doubts. The company increased its payout in Q3, 2021, and is paying $0.21 for the past 5 quarters. Once the unrealized losses are absorbed, the company will hopefully be in a position to generate such payout on a steady basis. As I am not expecting a huge price rise, not at least beyond $10 anytime in the near future, the yield is expected to remain strong. However, risk remains high for this fund. The current macroeconomic situation has the potential to jeopardize all the future income potential and price stability of AG Mortgage Investment Trust, Inc. Impact of Monetary Tightening and the Fear of Economic Recession AG Mortgage Investment Trust, Inc. performed well and paid a strong dividend prior to the covid-19 pandemic. Post-pandemic, the fund has not performed that well, and after witnessing a series of volatility, is currently trading at $4.3. There is a popular belief that mREITs work best when interest rates are on the rise, because it helps in enhancing the interest rate spreads. However, rising interest rates have proved to be a bane under the current economic situation. It has resulted in rising cost of borrowings, and thus decreased demand for mortgage loans. Origination of less mortgage loans have reduced the capacity of micro-cap mREITs like MITT to acquire more assets. Also, there lies a scope for existing assets to generate lower yields than the current level.

Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	2/6
Dividends	3/6

Historical stock prices
Current Share Price	US$7.81
52 Week High	US$9.27
52 Week Low	US$6.86
Beta	1.68
1 Month Change	1.30%
3 Month Change	4.97%
1 Year Change	7.58%
3 Year Change	24.36%
5 Year Change	-40.15%
Change since IPO	-86.74%

	MITT	US Mortgage REITs	US Market
7D	1.7%	0.5%	-2.4%
1Y	7.6%	-2.9%	21.5%

MITT volatility
MITT Average Weekly Movement	4.2%
Mortgage REITs Industry Average Movement	3.8%
Market Average Movement	7.3%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.1%

MITT fundamental statistics
Market cap	US$246.48m
Earnings (TTM)	US$12.54m
Revenue (TTM)	US$73.82m

MITT income statement (TTM)
Revenue	US$73.82m
Cost of Revenue	US$10.20m
Gross Profit	US$63.62m
Other Expenses	US$51.09m
Earnings	US$12.54m

Earnings per share (EPS)	0.39
Gross Margin	86.19%
Net Profit Margin	16.98%
Debt/Equity Ratio	1,413.8%

Data	Last Updated (UTC time)
Company Analysis	2026/06/12 23:15
End of Day Share Price	2026/06/12 00:00
Earnings	2026/03/31
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Kenneth Bruce	BofA Global Research
Eric Hagen	BTIG
Trevor Cranston	Citizens JMP Securities, LLC

TPG Mortgage Investment Trust (MITT) Stock Overview

Rewards

Risk Analysis

Analyst Price Targets

Mortgage Market Headwinds Will Restrict Origination Yet Build Resilience

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Top Analyst Narratives

Mortgage Market Headwinds Will Restrict Origination Yet Build Resilience

Housing Demand And Arc Home Will Revitalize Residential Portfolios

Rising US Housing Demand And Digital Underwriting Will Unlock Opportunities

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Price History & Performance

Recent News & Updates

MITT: Rising Dividend And Stronger Margins Will Support Future Returns

Now 21% overvalued

MITT: Dividend Increase Will Support Constructive View On Earnings Power

New minor risk - Profit margin trend

TPG Mortgage Investment Trust, Inc. to Report Q1, 2026 Results on Apr 29, 2026

MITT: Higher Dividend And Stable Earnings Power Will Drive Future Upside

Recent updates

MITT: Rising Dividend And Stronger Margins Will Support Future Returns

Now 21% overvalued

MITT: Dividend Increase Will Support Constructive View On Earnings Power

New minor risk - Profit margin trend

TPG Mortgage Investment Trust, Inc. to Report Q1, 2026 Results on Apr 29, 2026

MITT: Higher Dividend And Stable Earnings Power Will Drive Future Upside

MITT: Higher Dividend And Earnings Multiple Will Support Future Upside

Fourth quarter dividend of US$0.24 announced

MITT: Higher Dividend And Cleaner Earnings Profile Will Support Future Returns

TPG Mortgage Investment Trust, Inc., Annual General Meeting, Apr 27, 2026

Now 21% undervalued after recent price drop

MITT: Higher Fair Value And Dividend Outlook Will Support Future Upside

MITT: Revised Discount Rate And Margin Outlook Will Support Future Upside Potential

New minor risk - Earnings quality

TPG Mortgage Investment Trust, Inc. to Report Q4, 2025 Results on Feb 17, 2026

MITT: Higher Discount Rate And Dividend Policy Will Shape Near-Term Risk Balance

MITT: Higher Dividend Will Support Bullish Outlook On Future Returns

MITT: Higher Dividend And Name Change Will Support Bullish Outlook

MITT: Dividend Increase And Name Change Will Shape Balanced Outlook

Third quarter dividend of US$0.23 announced

AG Mortgage Investment Trust, Inc. Increases Common Share Dividend for the Fourth Quarter of 2025, Payable on January 30, 2026

AG Mortgage Investment Trust, Inc. to Report Q3, 2025 Results on Nov 04, 2025

AG Mortgage Investment Trust PFD Update: Too Risky For My Taste

Second quarter dividend of US$0.21 announced

AG Mortgage Investment Trust, Inc. Announces Third Quarter 2025 Common Dividend, Payable on October 31, 2025

Consensus EPS estimates fall by 39%

AG Mortgage Investment Trust, Inc. to Report Q2, 2025 Results on Aug 01, 2025

AG Mortgage Investment Trust, Inc.(NYSE:MITT) dropped from Russell 2500 Growth Index

First quarter dividend of US$0.21 announced

AG Mortgage Investment Trust, Inc. Increases Quarterly Common Dividend for the Second Quarter 2025, Payable on July 31, 2025

Consensus EPS estimates increase by 23%

New minor risk - Profit margin trend

AG Mortgage Investment Trust, Inc. to Report Q1, 2025 Results on May 06, 2025

Consensus EPS estimates increase by 11%

Investor sentiment deteriorates as stock falls 17%

AG Mortgage Investment Trust, Inc., Annual General Meeting, May 05, 2025

Fourth quarter dividend of US$0.20 announced

Ag Mortgage Investment Trust, Inc. Increases Quarterly Common Dividend for the First Quarter 2025, Payable on April 30, 2025

Consensus EPS estimates fall by 11%

AG Mortgage Investment Trust, Inc. to Report Q4, 2024 Results on Mar 03, 2025

Dividend of US$0.19 announced

AG Mortgage Investment Trust, Inc. Announces Fourth Quarter 2024 Common Dividend, Payable on January 31, 2025

AG Mortgage Investment Trust, Inc. has filed a Follow-on Equity Offering in the amount of $75 million.

AG Mortgage Investment Trust, Inc. to Report Q3, 2024 Results on Nov 05, 2024

Now 21% undervalued

Decisive Moves Aim To Boost Margins, But Analysts Warn Of Shrinking Profits And Valuation Pressures

Dividend of US$0.19 announced

AG Mortgage Investment Trust, Inc. Announces Third Quarter 2024 Common Dividend, Payable on October 31, 2024

Consensus EPS estimates increase by 15%

AG Mortgage Investment Trust, Inc. to Report Q2, 2024 Results on Aug 02, 2024

Now 20% undervalued

Dividend of US$0.19 announced

Consensus EPS estimates increase by 100%

Now 20% overvalued

AG Mortgage Investment Trust, Inc. to Report Q1, 2024 Results on May 03, 2024