Form type: 10-Q
Period end: 2026-03-31
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Interest income | 129,808,000 | 109,130,000 |
| Total interest income | ||
| Income tax expense (benefit) | 182,000 | 28,000 |
| Interest expense, operating | 109,165,000 | 90,281,000 |
| Management fees | 2,319,000 | 2,327,000 |
| Other expenses | 1,979,000 | 1,083,000 |
| Other income (expense), net | 16,176,000 | -1,549,000 |
| Other income statement items (derived) | 3,549,000 | 5,483,000 |
| Total Expenses | ||
| Net Income | - | |
| Less: preferred stock dividends | -5,153,000 | -5,304,000 |
| Net income (loss) available to common stockholders | - | |
| Basic earnings per share | - |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 49,307,000 | 57,832,000 |
| Interest receivable | 44,673,000 | 47,868,000 |
| Investments at fair value | 0 | 61,333,000 |
| Other assets (derived) | 8,175,920,000 | 8,526,008,000 |
| Restricted cash and equivalents | 18,415,000 | 18,489,000 |
| Total Assets | ||
| Liabilities | ||
| Collateralized financings, net | 6,749,708,000 | 7,177,923,000 |
| Distributions payable | 7,617,000 | 7,301,000 |
| Other liabilities (derived) | 889,939,000 | 869,114,000 |
| Unsecured and other notes, net | 96,655,000 | 96,458,000 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 544,396,000 | 560,734,000 |
| Total Equity | ||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -3,562,000 | 11,477,000 |
| Stock-based compensation | 165,000 | 208,000 |
| Changes in operating assets and liabilities, net | 23,738,000 | 312,000 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | 326,897,000 | -314,725,000 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | -355,837,000 | 293,377,000 |
| Net cash from financing activities | - | |
| Net change in cash | - | - |
| Cash at beginning of period | 138,568,000 | |
| Cash at end of period | 129,217,000 | |
| Amount | |
|---|---|
| Balance at beginning of period | 560,734,000 |
| Net income | -3,562,000 |
| Other equity movements | -12,776,000 |
| Balance at end of period | 544,396,000 |
TPG Mortgage Investment Trust, Inc. is a public reporting company classified under Real Estate Investment Trusts, and an affiliate of TPG, a leading global alternative asset management firm, holds overall responsibility for the day-to-day duties and obligations arising under the Company's management agreement. The accompanying condensed financial statements as of and for the period ended March 31, 2026 are unaudited and have been prepared from the connected books, and the results of operations for the interim period are not necessarily indicative of the results that may be expected for a full fiscal year. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been included. Cash and cash equivalents were $49,307,000 at period end, compared with $115,549,000 in the prior period, a decrease of 57.3%, while restricted cash and equivalents increased 34.7% to $18,415,000 from $13,668,000.
Revenue for the period, consisting of interest income, was $129,808,000, an increase of 18.9% from $109,130,000 in the prior period. Interest expense on operations was $109,165,000, up 20.9% from $90,281,000, and interest receivable increased 19.0% to $44,673,000 from $37,545,000. Management fees were $2,319,000, substantially unchanged from $2,327,000, other expenses increased 82.7% to $1,979,000 from $1,083,000, and income tax expense was $182,000 compared with $28,000 in the prior period. The Company reported a net loss of $3,562,000 for the period.
Basic loss per share was $(0.27), computed using weighted-average basic shares outstanding of 31,738,000 and the net loss of $3,562,000 for the period. Distributions payable at period end were $7,617,000, an increase of 28.4% from $5,932,000 in the prior period. During the year ended December 31, 2025, the Company declared a dividend of $0.85 per common share, an increase of 13.3% from the $0.75 dividend per common share declared during 2024.
Total debt at March 31, 2026 was $7,743,919,000, consisting of collateralized financings, net, of $6,749,708,000 and unsecured and other notes, net, of $96,655,000. Collateralized financings, net, increased 15.6% from $5,836,691,000 in the prior period, and unsecured and other notes, net, increased 0.8% from $95,898,000. [COMPLETE: description of lease obligations, if any]. Total stockholders' equity was $544,396,000 at period end, an increase of 0.1% from $543,870,000 in the prior period. Book value per share was $10.48, and the Company's GAAP leverage ratio was 14.4x with an economic leverage ratio of 1.6x.
| Current | Prior | |
|---|---|---|
| Collateralized financings, net | 6,749,708,000 | 7,177,923,000 |
| Unsecured and other notes, net | 96,655,000 | 96,458,000 |
| Total debt | 6,846,363,000 | 7,274,381,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 544,396,000 | 560,734,000 |
| Total stockholders' equity | 544,396,000 | 560,734,000 |
TPG Mortgage Investment Trust, Inc. is a public reporting company classified under Real Estate Investment Trusts, and its primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, with no material foreign currency or commodity price exposure. The following discussion compares the company's results of operations for the period ended March 31, 2026 to the comparable prior-year period, and should be read together with the risks and uncertainties previously identified, including changes in interest rates and the fair value of our assets, changes in the yield curve, changes in prepayment rates on the loans we own or that underlie our investment securities, and our ability to obtain and maintain financing arrangements on terms favorable to us or at all.
Interest income for the period was $129,808,000, an increase of 18.9% from $109,130,000 in the prior period, while interest expense on operations was $109,165,000, an increase of 20.9% from $90,281,000. The increase in interest expense relative to interest income reflects the company's reliance on leverage to finance its investment activities, which magnifies its exposure to changes in borrowing rates. Results for the current period also reflect other expense, net, of $16,176,000, compared with other income, net, of $1,549,000 in the prior period, and other expenses of $1,979,000, an increase of 82.7% from $1,083,000. Management fees were $2,319,000, essentially flat with $2,327,000 in the prior period, and income tax expense was $182,000, compared with $28,000 in the prior period. For the current period, the company reported a net loss of $0.27 per basic share on weighted-average basic shares outstanding of 31,738,000, which corresponds to a net loss of $3,562,000.
As of March 31, 2026, the company held cash and cash equivalents of $49,307,000, down 57.3% from $115,549,000 in the prior period, and restricted cash and equivalents of $18,415,000, up 34.7% from $13,668,000. On the liability side, collateralized financings, net, totaled $6,749,708,000 at period end, an increase of 15.6% from $5,836,691,000 in the prior period, and unsecured and other notes, net, totaled $96,655,000, up 0.8% from $95,898,000. Stockholders' equity was $544,396,000 at period end, an increase of 0.1% from $543,870,000, and distributions payable increased 28.4% to $7,617,000 from $5,932,000. We declared a $0.24 dividend per common share in the first quarter of 2026, which reflected an increase from $0.23 per common share in the fourth quarter of 2025, representing a 4.3% increase, although our ability to sustain or grow distributions in future periods will depend on our earnings, liquidity, and capital requirements, and no assurance can be given that distributions will continue at current levels. Management believes that our cash and cash equivalents, restricted cash, and access to financing arrangements will be sufficient to meet our liquidity and capital requirements for at least the next twelve months.
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. Interest rate movements affect the income we earn on cash, cash equivalents, and short-term investments, and they also affect the value of and returns on our investment portfolio and the cost of our borrowings. We are a residential mortgage REIT with a focus on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market, and we focus our investment activities primarily on acquiring and securitizing newly-originated residential mortgage loans within the non-agency segment of the housing market. Our portfolio includes Non-Agency residential mortgage-backed securities, which represent fixed- and floating-rate RMBS issued by entities other than U.S. GSEs or agencies of the U.S. government and are primarily secured by Non-QM, Agency-Eligible, Home Equity, and Prime Jumbo Loans, as well as Agency RMBS, which represent interests in pools of residential mortgage loans guaranteed by a GSE such as Fannie Mae or Freddie Mac, or an agency of the U.S. Government such as Ginnie Mae. The interest rate sensitivity of these fixed- and floating-rate instruments means that changes in prevailing interest rates can affect both the fair value of our assets and the net interest income we generate.
As of March 31, 2026, we held cash and cash equivalents of $49.3 million, a decrease of 57.3% from $115.5 million in the prior period, and restricted cash and equivalents of $18.4 million, an increase of 34.7% from $13.7 million. Our interest-rate-sensitive liabilities included collateralized financings, net of $6,749.7 million, an increase of 15.6% from $5,836.7 million, and unsecured and other notes, net of $96.7 million. For the period, we recognized interest income of $129.8 million, an increase of 18.9% from $109.1 million, while interest expense increased 20.9% to $109.2 million from $90.3 million, reflecting the sensitivity of both our asset yields and our funding costs to changes in interest rates. In March 2026, we extended the maturity of our financing arrangement collateralized by Legacy WMC Commercial Loans to September 19, 2026, with all proceeds from asset paydowns or sales to be applied to reduce the outstanding balance, which was $25.4 million as of March 31, 2026, and $50 million of our available financing is contractually committed as of that date.
We do not have material foreign currency or commodity price exposure. Because our exposure to those risks is not material, our market risk management efforts are concentrated on monitoring and managing our sensitivity to changes in interest rates. Changes in interest rates in future periods could affect our net interest income, the fair value of our portfolio, and our borrowing costs, and there can be no assurance that our results will not be adversely affected by future interest rate movements.
Our management, with the participation of our [COMPLETE: titles of certifying officers, e.g., Chief Executive Officer and Chief Financial Officer], evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-14(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report for TPG Mortgage Investment Trust, Inc. as of March 31, 2026. Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including our certifying officers, to allow timely decisions regarding required disclosure. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.
There were no changes in our internal control over financial reporting during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
The conclusion language set forth above must be reviewed and adopted by management before this report is filed. [COMPLETE: Confirmation that management has reviewed and adopted the foregoing conclusions prior to filing.]
From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. Management does not currently believe that any pending matter is material to the Company's financial statements.
Although the outcome of litigation is inherently uncertain, based on information currently available, management does not expect that the resolution of any currently pending matter will have a material adverse effect on the Company's financial condition, results of operations, or cash flows.
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could adversely affect the value of our assets and our cost of borrowing. Our principal market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, although we do not have material foreign currency or commodity price exposure. For the quarter ended March 31, 2026, we generated revenue of $129.8 million and recorded a net loss of $3.6 million, and we reported a net loss available to common stockholders of $(0.27) per diluted common share. Rising funding costs have contributed to this pressure, as interest expense increased 20.9% to $109.2 million from $90.3 million in the prior period, outpacing the 18.9% growth in interest income to $129.8 million. If our borrowing costs continue to rise faster than the yields on our investments, our results of operations and ability to pay distributions could be materially and adversely affected.
We are also subject to risks arising from our securitization activities and retained interests. During the quarter, we partnered with a third-party mortgage originator and executed a rated securitization collateralized by $504.5 million of Home Equity Loans, and as co-sponsor we retained an "eligible vertical interest" to comply with risk retention rules, which consists of retaining at least 5% of each class of securities issued in the securitization. Upon evaluating our retained interest in the securitization trust, we determined we were not the primary beneficiary and, as a result, did not consolidate the securitization trust, which resulted in us recording an investment in Non-Agency RMBS, and the value and performance of these retained interests are subject to credit and market risks associated with the underlying collateral. In addition, we pledged Home Equity Loans with a fair value of $66.2 million and an unpaid principal balance of $63.7 million, in which we have no outstanding financing but have the ability to borrow at an advance rate of 87.5% of unpaid principal balance pledged as collateral, and any deterioration in the value of pledged collateral could limit our borrowing capacity.
Our use of leverage magnifies the potential impact of adverse market developments on our financial condition. Collateralized financings, net increased 15.6% to $6.7 billion from $5.8 billion, and total liabilities of $7.7 billion substantially exceeded total stockholders' equity of $544.4 million, and our GAAP leverage ratio was 14.1x and our economic leverage ratio was 1.7x. At the same time, our cash and cash equivalents declined 57.3% to $49.3 million from $115.5 million, which could reduce our flexibility to respond to margin calls, collateral value declines, or other liquidity demands. We are also involved in legal proceedings arising in the ordinary course of business from time to time, although management does not currently believe any pending matter is material to the financial statements. Any of the foregoing risks, individually or in combination, could materially and adversely affect our business, financial condition, results of operations, and ability to make distributions to our stockholders.
Pursuant to Item 408(a) of Regulation S-K, the following disclosure addresses the adoption and termination of Rule 10b5-1 trading arrangements by directors and officers of TPG Mortgage Investment Trust, Inc. during the quarterly period ended March 31, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]