TPG Mortgage Investment Trust, Inc.

Good day and thank you for standing by. Welcome to the TPG Mortgage Investment Trust, Inc. Second Quarter 2026 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 the 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 2026 earnings call for TPG Mortgage Investment Trust. With me on the call today are TJ 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 SEC filings, including our most recently filed Form 10-K for the year ended December 31, 2025, and our subsequent reports filed 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 and the transaction presentation that were posted to our website this morning. To view the slide presentation, turn to our website, www.mitt.tpg.com, and click the link for the Q2 2026 earnings presentation or the transaction presentation as applicable 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 very pleased to report another strong quarter for MIT, highlighted by second quarter earnings and the announcement of our definitive agreement to acquire Cherry Hill Mortgage Investment Corporation. We believe this transaction represents a transformational step forward for MIT. The combined scale will benefit from significantly enhanced scale, meaningful G&A synergies, and a highly complementary portfolio mix that remains firmly centered on our core focus, the residential mortgage ecosystem. As a reminder, MIT has a proven track record of executing and creating value through strategic acquisitions, including the WMC transaction that closed in December 2023. Since that acquisition, MIT has dramatically outperformed its peers, increasing our dividend five times for a cumulative growth of 33%, while delivering approximately 140% growth in our quarterly EAD. With the addition of Cherry Hill, the combined company's market capitalization will increase by approximately 36%, materially improving stock liquidity and trading volumes, while creating an equity capital base of approximately $750 million. This greater scale will position us to compete more effectively, operate more efficiently, and create stronger long-term earnings power for our shareholders. We're also pleased that MIT's manager, TPG, is making a direct cash contribution of approximately $20 million alongside approximately $15 million from MIT's balance sheet, creating an attractive cash-to-stock consideration mix of approximately 30%. We believe this differentiates the transaction from a traditional REIT acquisition and meaningfully enhances the value proposition for both Cherry Hill and MIT shareholders. Cherry Hill shareholders will also gain access to the full breadth of TPG's platform, capabilities, relationships, and operating expertise. In addition, we believe the combination will generate substantial G&A efficiencies with expected annual cost synergies in the range of approximately seven to nine million further supporting earnings growth and returns over time. We expect to close the strategic acquisition in the fourth quarter. Turning back to the second quarter, the market navigated a challenging interest rate environment driven by renewed inflation concerns and continued uncertainty around Federal Reserve policy. Despite this backdrop, MIT delivered another quarter of stable performance and disciplined execution. Book value increased from $9.97 to $10 even per share during the quarter as we maintained a disciplined leverage profile and continued rotating capital into higher returning residential credit strategies. At the same time, Arc Home continued to scale meaningfully with funding volumes reaching multi-year highs. These initiatives helped generate EAD of 24 cents per share for the quarter, fully covering our recently declared dividend of 24 cents. Notably, our company has continued to demonstrate earnings growth over the past year, despite the ongoing headwind of having our legacy commercial loan exposure on non-accrual status, which leaves room for significant upside as we continue to wind down this exposure. On the topic of our legacy commercial loans, as we discussed last quarter, the sale process for our retail exposure is progressing well. A buyer has been selected, and we currently expect the transaction to close by year end. within the hospitality portfolio, we remain on track to resolve two or four remaining exposures by the end of the third quarter. More importantly, we expect all three of these resolutions to occur in line with our current carrying values. These resolutions are important catalysts for MIT. As capital from these legacy positions is redeployed into our core residential strategies, we expect it to contribute approximately five cents of incremental EAD in the short term, Looking ahead, the remaining two hospitality assets are actively being repositioned under new management, and we expect to begin remarketing those assets next year. The eventual recycling of that capital is expected to provide an additional annual EAD benefit in excess of 15 cents per share. So combined, that's 20 cents in aggregate incremental EAD per annum. All in all, we believe MIT is entering a new phase for growth. We have consistently executed on the objectives we laid out over the last several years, strengthening the platform, improving earnings power, and positioning the company for higher and more durable returns. As we look towards closing out 2026, we believe we have a clear line of sight to stronger ROEs, higher EAD, and continued dividend growth. We have already raised a dividend in four of the last seven quarters, reflecting the momentum we are building and the confidence we have in the trajectory of the business. We remain excited about the opportunities ahead and look forward to continuing to share our progress in the quarters to come. With that, I'll turn the call over to Nick. Thanks, TJ.