TPG Mortgage Investment Trust: The Forward Earnings Case Is Getting Stronger

TPG Mortgage Investment Trust (MITT) retains a Buy rating as Q2 results improved the forward earnings outlook despite a thinner dividend cushion. Book value stabilized at $10.00, high-teen ROEs are emerging, and capital rotation from legacy WMC assets is progressing with quantified EAD upside. MITT trades at a 33% discount to book, with a reasonable-value target of $8 (0.80x book), offering a 12% yield at that level. Cherry Hill acquisition adds diversification and potential EAD accretion, but leverage and execution risks remain; future dividend coverage prospects are stronger.

TPG Mortgage Investment Trust, Inc. (MITT) has not worked as a stock since my June article. Shares are now down ~17% since my original speculative Buy rating at $8.12.