TPG Mortgage Investment Trust, Inc.

Welcome to the AG Mortgage Investment Trust, Inc. Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question and answer session. In order to ask a question during this session, please press the star key followed by the number one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I'd now like to turn the call over to Jenny Neslin, General Counsel for the company. Please go ahead.

Thank you. Good morning, everyone, and welcome to the second quarter 2025 earnings call for AG Mortgage Investment Trust. With me on the call today are T.J. Durkin, our CEO and President, Nick Smith, our Chief Investment Officer, and Anthony Rossiello, our Chief Financial Officer. Before we begin, please note that the information discussed in today's call may contain forward-looking statements. Any forward-looking statements made during today's call are subject to certain risks and uncertainties, which are outlined in our SEC filings, including under the headings Cautionary Statement Regarding Forward-Looking Statements, Risk Factors, and Management Discussion and Analysis. The company's actual results may differ materially from these statements, we encourage you to read the disclosure regarding forward-looking statements contained in our ICC filings, including our most recently filed Form 10-K for the year ended December 31, 2024, and our subsequent reports from time to time with the SEC. Except as required by law, we are not obligated and do not intend to update or to review or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. During the call today, we will refer to certain non-GAAP financial measures. Please refer to our SEC filings for reconciliations to the most comparable GAAP measures. We will also reference the earnings presentation that was posted to our website this morning. To view the slide presentation, turn to our website, www.agmit.com, and click on the link for the Q2 2025 earnings presentation on the homepage. Again, welcome to the call, and thank you for joining us today. With that, I'd like to turn the call over to TJ.

Thank you, Jenny. Good morning, everyone. I'm pleased to report our second quarter earnings, which showcases the continued execution of our core business strategy and industry-leading results, particularly around book value stability. During the second quarter, we increased our common dividend by 5% or one penny per share. Focusing on the second quarter, Liberation Week in April created volatility in the broader markets we hadn't seen in some time. The merits of our core strategy and discipline around terming out warehouses with securitization showed in the continued strength of our capital structure. We entered the tightened period of vol with materially less financial leverage and smarter leverage like our non-market-to-market whole-loan warehouses. This setup means we are not as vulnerable to forced de-levering or panicked delta hedging. As a result, we saw a modest book value decline of 2.4%, moving from 1065 to 1039, while supporting and paying our increased 21-cent dividend. Therefore, producing a roughly break-even quarterly economic return on equity for our shareholders in a very difficult quarter for the MREIT space. We hope our shareholders can appreciate the results amidst differentiated business strategy and discipline around risk coming out of such a challenging quarter. For the second quarter, we experienced what we expect to be a one-time drop in EAD, mostly related to three of our remaining CRE loans to one borrower from the WMC acquisition hitting their maturity date. And therefore, we're taking off accrual as we work towards the ultimate resolution, which we believe should be by year-end. On a more positive and longer-term note, subsequent to quarter-end, MIT refinanced the expensive structured repo we inherited from the WMC acquisition into current market terms which will have a significant lift to go forward ead which nick will give more details on later in addition to our normal activity during the quarter we are excited to announce this just a strategic transaction for the company this morning mitt acquired an additional 21.4 percent of our comb from original seed investors in private funds managed by tpg ag A total of 2 million mid-shares were issued for consideration for their interests, creating minimal dilution of 2% to June 30th book value, while creating meaningful earnings accretion potential. The sellers are funds that are generally in the later or liquidating stage of their life cycle. We're obligated to register the shares pursuant to a registration rights agreement, which can take a bit of time, and there are various restrictions in that agreement governing timing of sales. Based on that, we don't expect the sellers to be able to sell meaningfully before year-end. When we embarked upon MIT 2.0 in 2021, we set out to be a best-in-class, vertically integrated residential mortgage origination and securitization platform. We believe this is a logical next step for our company's business strategy. The transaction will bring many benefits to MIT, with meaningful earnings accretion expected in 2026, driven by anticipated growth in the mortgage market and ARK's proven capability to be a leader in the non-QM space. There's also a positive step forward in scaling the company and enhancing our cap table. As we've said on prior calls, we will continue to seek and pursue opportunities that further this goal, only where we believe the results are to enhance value for shareholders. Both Nick and Anthony will go into more detail on the transaction later in the call. I'll now hand it over to Nick.