Financial Performance - Q3 2025 earnings per share (EPS) reported at $0.47, with net interest income of $20.2 million[17] - Earnings Available for Distribution (EAD) for the three months ended September 30, 2025, was $7,091, equating to $0.23 per diluted share[64] - The Company recorded an unrealized loss of $7.1 million for the three months ended September 30, 2025[44] - Net interest income for the three months ended September 30, 2025, was $19.482 million, an increase from $14.950 million in the same period of 2024, representing a growth of 30.3%[74] - The company reported a net income of $19.961 million for the three months ended September 30, 2025, compared to $16.640 million for the same period in 2024, reflecting an increase of 19.0%[74] - Earnings per share (EPS) for common stock was $0.47 for the three months ended September 30, 2025, compared to $0.40 for the same period in 2024, marking a 17.5% increase[74] Investment and Securitization - The company completed 4 securitizations and acquired an additional 21.4% interest in Arc Home, contributing to earnings growth[19] - The company executed 29 securitizations since 2021, retaining economic interests of $1.0 billion in high-quality Non-Agency collateral[26] - The Company acquired an additional 21.4% interest in Arc Home, contributing significantly to EAD[46] - Securitized residential mortgage loans at fair value increased to $8.289 billion as of September 30, 2025, from $6.198 billion as of December 31, 2024, a rise of 33.7%[72] Liquidity and Capital Structure - Total liquidity stands at $104.2 million, including $59.0 million in cash and cash equivalents[15] - The Company had a total borrowing capacity of $1.6 billion on its Agency-Eligible, Home Equity, and Non-Agency Loans[59] - The company replaced high-cost Legacy WMC financing, returning approximately $55 million of capital for immediate reinvestment[23] - The company’s cash and cash equivalents decreased to $59.0 million as of September 30, 2025, from $118.662 million as of December 31, 2024, a decline of 50.2%[72] Asset and Liability Management - Total assets as of September 30, 2025, were $8.976 billion, up from $6.914 billion as of December 31, 2024, indicating a growth of 29.8%[72] - Total liabilities as of September 30, 2025, were $8.416 billion, up from $6.370 billion as of December 31, 2024, representing an increase of 32.2%[72] Investment Portfolio Performance - The investment portfolio yield for Q3 2025 is 6.1%, while the cost of funds is 5.4%[15] - The weighted average cost of funds for the investment portfolio was 5.43%[58] - The total investment portfolio was valued at $8,791.5 million with a yield of 6.1% and a carrying value of $8,266.4 million[50] Economic Metrics - The economic return on equity (ROE) for Q3 2025 is reported at 2.7%[15] - MITT's Economic Leverage Ratio was 1.7x as of September 30, 2025[56] - The GAAP leverage ratio as of September 30, 2025, was 14.9x, while the economic leverage ratio was significantly lower at 1.7x[70] Changes in Fair Value - The company recorded $1.3 million of unrealized changes in the fair value of its investment in Arc Home, which were excluded from EAD[67]

Core Insights - AG Mortgage Investment Trust, Inc. reported strong financial results for the third quarter of 2025, highlighting increased book value, supported dividends, and strategic growth through an expanded stake in Arc Home [2][5]. Financial Highlights - Book value per share as of September 30, 2025, was $10.46 [5]. - The quarterly economic return on equity was 2.7% [5]. - Net income available to common stockholders was $0.47 per diluted share [5]. - Earnings Available for Distribution (EAD) was $0.23 per diluted share [5]. - A dividend of $0.21 per common share was declared for the third quarter of 2025 [5][30]. - The investment portfolio totaled $8.8 billion as of September 30, 2025 [5]. - The net interest margin was 0.7%, benefiting from interest rate swaps [5]. - Total liquidity was reported at $104.2 million as of September 30, 2025 [5]. Acquisition Details - The company acquired an additional 21.4% interest in Arc Home, increasing ownership from 44.6% to 66.0% [5]. - The investment in Arc Home was valued at $49.2 million using a multiple of 1.025x book value [5]. - The acquisition was supported by a fairness opinion from Keefe, Bruyette & Woods [5]. Financing and Leverage - Total financing as of September 30, 2025, was $8.4 billion, comprising $7.4 billion of non-recourse and $1.0 billion of recourse financing [5]. - The GAAP leverage ratio was 14.9x, while the economic leverage ratio was 1.7x [5]. Upcoming Events - The company will host a conference call on November 4, 2025, to discuss the third quarter earnings [6][29].

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2] - The article discusses preferred stocks of AG Mortgage Investment Trust, Inc. (NYSE: MITT), a mortgage REIT, indicating a move down the capital structure from previously discussed notes [3]

Core Insights - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service, emphasizing sustainable portfolio income, diversification, and inflation hedging [2] - The article discusses preferred stocks of AG Mortgage Investment Trust, Inc. (NYSE: MITT), a mortgage REIT, indicating a move down the capital structure from previously discussed notes [3] Investment Strategies - The service offers a free two-week trial to explore top ideas across exclusive income-focused portfolios [2] - The author has a background in data analysis and pension fund management, focusing on strategies for retirement preparation through various investment vehicles [3] Market Position - The emphasis on premium dividend yields and income-producing assets positions the service as a valuable resource for investors seeking income and diversification [1][2]

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service, emphasizing sustainable portfolio income, diversification, and inflation hedging [2] - The article mentions a review of AG Mortgage Investment Trust, Inc. (NYSE: MITT) and previously assigned a Hold rating [3]

Core Points - AG Mortgage Investment Trust, Inc. has declared a dividend of $0.21 per common share for the third quarter of 2025 [1] - The dividend is scheduled to be payable on October 31, 2025, to shareholders of record as of September 30, 2025 [1] - AG Mortgage Investment Trust, Inc. operates as a residential mortgage REIT, focusing on investing in a diversified risk-adjusted portfolio [1]

Core Insights - AG Mortgage Investment Trust (MITT) experienced a disappointing quarter with a minor decrease in book value (BV) and core earnings/EAD, but the situation is not alarming [1][13] - The underperformance was primarily attributed to unrealized losses in the legacy commercial whole loan sub-portfolio and increased transaction-related expenses [3][8] Financial Performance - MITT's BV decreased slightly during Q2 2025, with a variance of 2.0% from expectations [11] - Core earnings/EAD showed a modest underperformance with a decrease of $0.035 per common share compared to projections [10][12] - The company reported a net interest spread/income of $17.8 million in Q2 2025, down from $18.8 million in Q1 2025, which was below the projected $19.0 million [12] Investment Activities - MITT continued to expand its investment portfolio through its subsidiary Arc Home, with origination volumes increasing from $716 million in Q1 2025 to $757 million in Q2 2025 [4] - The company did not purchase any fixed-rate agency MBS for the second consecutive quarter, focusing instead on capital allocation to Arc Home [5] - MITT acquired $100 million in home equity loans in Q2 2025, aligning with projections [6] Loan Portfolio Management - A significant disappointment arose from a legacy commercial loan backed by hotel properties, which was placed on non-accrual status, impacting core earnings significantly [10][14] - The company anticipates partial repayments on the commercial loans by late 2025 or early 2026 [8][14] Strategic Moves - MITT increased its ownership in Arc Home from 45% to 66%, which is expected to enhance core earnings/EAD in the long term despite a short-term BV dilution of approximately 2.0% [16] - The refinancing of high legacy debt is projected to free up $40 million for investment in high-return opportunities [15] Market Position - MITT's stock is viewed as a speculative investment with potential for high rewards, particularly for investors with a high risk tolerance [25] - The current dividend yield stands at 10.87%, with a payout ratio of 4% [23]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's discussion for the periods ended June 30, 2025 [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents AG Mortgage Investment Trust's unaudited consolidated financial statements for the periods ended June 30, 2025 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section summarizes the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$7,462,425** | **$6,913,609** | | Securitized residential mortgage loans, at fair value | $6,648,988 | $6,197,678 | | Residential mortgage loans, at fair value | $327,454 | $220,217 | | **Total Liabilities** | **$6,926,018** | **$6,370,186** | | Securitized debt, at fair value | $5,937,637 | $5,491,967 | | Financing arrangements | $843,537 | $742,108 | | **Total Stockholders' Equity** | **$536,407** | **$543,423** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details net interest income, expenses, and net income for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Net Interest Income | $17,752 | $16,381 | $36,601 | $33,560 | | Total Other Income/(Loss) | $(2,713) | $(4,896) | $(1,164) | $5,915 | | Total Expenses | $11,325 | $8,471 | $21,431 | $17,608 | | Net Income/(Loss) | $3,945 | $3,925 | $15,422 | $24,815 | | Net Income/(Loss) Available to Common Stockholders | $(1,376) | $(661) | $4,797 | $15,643 | | Basic EPS | $(0.05) | $(0.02) | $0.16 | $0.53 | | Diluted EPS | $(0.05) | $(0.02) | $0.16 | $0.53 | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in stockholders' equity, including net income and dividends, for the periods presented - Total Stockholders' Equity decreased from **$543.4 million** at the beginning of 2025 to **$536.4 million** at June 30, 2025, primarily due to common and preferred dividends declared exceeding net income for the period[20](index=20&type=chunk) - For the three months ended June 30, 2025, the company declared common dividends of **$0.21 per share**, totaling **$6,235 thousand**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,515 | $25,704 | | Net cash used in investing activities | $(485,249) | $(921,516) | | Net cash provided by financing activities | $423,335 | $918,673 | | **Net change in cash** | **$(38,399)** | **$22,861** | [Notes to Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Organization](index=8&type=section&id=Note%201.%20Organization) AG Mortgage Investment Trust (MITT) is a residential mortgage REIT primarily acquiring and securitizing U.S. residential mortgage loans - The Company's primary business involves acquiring and securitizing newly-originated residential mortgage loans, sourced through its affiliate Arc Home (in which it holds a **~44.6% interest**) and other third-party partners[28](index=28&type=chunk) - The Company acquired Western Asset Mortgage Capital Corporation ("WMC") on **December 6, 2023**, expanding its portfolio with residential mortgage loans, real estate securities, and commercial real estate loans[29](index=29&type=chunk) - The Company operates as a single reportable segment, "Loans and Securities," and is externally managed by AG REIT Management, LLC, a subsidiary of TPG Angelo Gordon[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 3. Loans](index=12&type=section&id=Note%203.%20Loans) This note details the company's $7.0 billion residential and commercial loan portfolio, including securitized loans and geographic concentration Residential Mortgage Loan Portfolio Summary (in thousands) | Category | Unpaid Principal Balance | Fair Value | | :--- | :--- | :--- | | **June 30, 2025** | | | | Securitized residential mortgage loans | $6,910,472 | $6,648,988 | | Residential mortgage loans | $305,290 | $327,454 | | **Total** | **$7,215,762** | **$6,976,442** | | **December 31, 2024** | | | | Securitized residential mortgage loans | $6,565,315 | $6,197,678 | | Residential mortgage loans | $216,547 | $220,217 | | **Total** | **$6,781,862** | **$6,417,895** | - For the six months ended June 30, 2025, the company purchased residential mortgage loans with a fair value of **$939.9 million**, a significant increase from **$708.5 million** in the same period of 2024[63](index=63&type=chunk) - The company's residential loan portfolio has a significant geographic concentration in **California (33%)**, **Florida (10%)**, and **New York (10%)** as of June 30, 2025[67](index=67&type=chunk) - Three commercial loans (Loans A, B, and C) with a combined fair value of **$42.8 million** were in default and on non-accrual status as of June 30, 2025[83](index=83&type=chunk) [Note 4. Real Estate Securities](index=17&type=section&id=Note%204.%20Real%20Estate%20Securities) This note details the company's $223.3 million real estate securities portfolio, including Non-Agency RMBS and CMBS Real Estate Securities Portfolio Summary (in thousands) | Security Type | Fair Value at June 30, 2025 | Fair Value at Dec 31, 2024 | | :--- | :--- | :--- | | Non-Agency RMBS | $149,117 | $127,579 | | Legacy WMC CMBS | $56,205 | $52,785 | | Agency RMBS Interest Only | $17,954 | $20,996 | | **Total** | **$223,276** | **$201,360** | [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note details fair value measurements, with most assets ($7.2 billion) and liabilities ($5.9 billion) classified as Level 3 - As of June 30, 2025, financial instruments measured at fair value totaled **$7.39 billion** in assets and **$5.94 billion** in liabilities, with the majority, including securitized residential mortgage loans and securitized debt, classified as **Level 3**, indicating reliance on unobservable inputs for valuation[95](index=95&type=chunk) Level 3 Asset/Liability Reconciliation for Six Months Ended June 30, 2025 (in thousands) | Category | Beginning Balance | Purchases/Issuances | Sales/Repayments | Net Unrealized Gain/(Loss) | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Mortgage Loans | $6,416,066 | $939,621 | $(480,146) | $96,383 | $6,974,999 | | Legacy WMC Commercial Loans | $67,005 | $0 | $0 | $(2,455) | $64,883 | | Non-Agency RMBS | $115,533 | $25,963 | $(3,702) | $1,669 | $137,945 | | AG Arc | $30,778 | $0 | $0 | $0 | $32,205 | | Securitized Debt | $(5,491,967) | $(723,330) | $383,149 | $(92,032) | $(5,937,637) | [Note 6. Financing](index=24&type=section&id=Note%206.%20Financing) This note details the company's $6.88 billion financing structure, primarily non-recourse securitized debt Financing Summary as of June 30, 2025 (in thousands) | Financing Type | Carrying Value | Weighted Avg Funding Cost | | :--- | :--- | :--- | | Financing Arrangements | $843,537 | 6.20% | | Securitized debt, at fair value | $5,937,637 | 5.22% | | Senior Unsecured Notes | $96,080 | 10.61% | | **Total Financing** | **$6,877,254** | **5.41%** | - The company has financing arrangements with six counterparties, with significant exposure to **Goldman Sachs Bank USA ($137.7 million at risk)** and **BofA Securities, Inc. ($129.6 million at risk)**, representing **25.7%** and **24.2%** of stockholders' equity, respectively[141](index=141&type=chunk)[142](index=142&type=chunk) - As of June 30, 2025, the company was in compliance with all financial covenants related to its financing arrangements[145](index=145&type=chunk) [Note 8. Earnings per share](index=29&type=section&id=Note%208.%20Earnings%20per%20share) This note details basic and diluted EPS, reporting $(0.05) for Q2 2025 and $0.16 for the six months ended June 30, 2025 Earnings Per Share Calculation (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net Income/(Loss) Available to Common Stockholders | $(1,376) | $4,797 | | Basic weighted average common shares outstanding | 29,686 | 29,672 | | Diluted weighted average common shares outstanding | 29,686 | 29,697 | | **Basic EPS** | **$(0.05)** | **$0.16** | | **Diluted EPS** | **$(0.05)** | **$0.16** | - The company declared a common stock dividend of **$0.21 per share** for the quarter ended June 30, 2025, and **$0.20** for the quarter ended March 31, 2025, totaling **$0.41** for the six-month period[163](index=163&type=chunk) [Note 10. Related party transactions](index=32&type=section&id=Note%2010.%20Related%20party%20transactions) This note details related party transactions, including management fees and expense reimbursements to the external manager Fees to Manager (in thousands) | Fee Type | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Management fee to affiliate | $2,301 | $4,628 | | Expense reimbursements | $1,508 | $3,807 | - The company's investment in AG Arc, which holds its interest in mortgage originator Arc Home, was carried at a fair value of **$32.2 million** as of June 30, 2025[199](index=199&type=chunk) - For the six months ended June 30, 2025, Arc Home sold residential mortgage loans with an unpaid principal balance of **$61.0 million** to the company[206](index=206&type=chunk) [Note 11. Equity](index=36&type=section&id=Note%2011.%20Equity) This note details equity structure, including common and preferred stock repurchase programs and the 2025 Equity Incentive Plan - The company has two active common stock repurchase programs with a total of **$16.5 million** remaining authorized for future repurchases as of June 30, 2025, with no repurchases made during the first six months of 2025[212](index=212&type=chunk)[213](index=213&type=chunk) - A preferred stock repurchase program with up to **$20.0 million** in authorization is in place, but no shares have been repurchased since its authorization in February 2021[214](index=214&type=chunk) - On **May 5, 2025**, the company's 2025 Equity Incentive Plan became effective, authorizing up to **800,000 new shares** of common stock for issuance, plus shares available from the prior 2020 plan[221](index=221&type=chunk) [Note 14. Subsequent Events](index=39&type=section&id=Note%2014.%20Subsequent%20Events) This note discloses subsequent events, including preferred dividends, securitizations, and increased ownership in AG Arc - On **August 1, 2025**, the company acquired an additional **21.4% interest** in AG Arc, bringing its total ownership to approximately **66.0%**, by issuing **2,027,676 restricted shares** of common stock[247](index=247&type=chunk) - In **July 2025**, the company executed two rated Non-Agency securitizations of Home Equity Loans with a combined total unpaid principal balance of **$948.3 million**, converting recourse financing to non-recourse financing[243](index=243&type=chunk)[246](index=246&type=chunk) - On **July 31, 2025**, the Board of Directors declared third quarter 2025 dividends for its Series A, B, and C preferred stock[242](index=242&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial condition, operating results, investment activities, and liquidity, highlighting key metrics [Second Quarter 2025 Executive Summary](index=44&type=section&id=Second%20Quarter%202025%20Executive%20Summary) This section provides a high-level overview of the company's financial performance and key strategic activities for Q2 2025 Q2 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Book Value per share | $10.39 | | Net Income/(Loss) per diluted common share | $(0.05) | | Earnings Available for Distribution (EAD) per diluted common share | $0.18 | | GAAP Leverage Ratio | 12.8x | | Economic Leverage Ratio | 1.3x | | Dividend per common share | $0.21 | - Subsequent to quarter end, the company purchased an additional **21.4% interest** in AG Arc, increasing its ownership to approximately **66.0%**[258](index=258&type=chunk) - The company executed a rated securitization of Agency-Eligible Loans with a total unpaid principal balance of **$331.4 million** during the quarter[261](index=261&type=chunk) [Market Conditions](index=46&type=section&id=Market%20Conditions) This section analyzes the broader financial market environment, including interest rates, monetary policy, and RMBS activity - In Q2 2025, financial markets saw positive performance with rising equities and bond prices, though uncertainty persisted around inflation and monetary policy, with the **2-year U.S. Treasury yield declining by 17 bps to 3.72%** and the **10-year yield relatively flat at 4.23%**[274](index=274&type=chunk) - The Federal Reserve maintained a data-dependent approach, holding the federal funds rate steady at **4.25%-4.50%** in its July 2025 meeting, but indicated openness to rate cuts later in the year[275](index=275&type=chunk)[276](index=276&type=chunk) - Primary RMBS market activity was **$35 billion** in Q2 2025, up **6% year-over-year**, with Non-QM issuance rising **57% YoY to nearly $16 billion**, while home price growth decelerated nationally, with the S&P Case-Shiller Index up **2.3% YoY** in May 2025[278](index=278&type=chunk)[279](index=279&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of net interest income, other income, expenses, and net income for the reporting periods - Net interest income for Q2 2025 was **$17.8 million**, an increase from **$16.4 million** in Q2 2024, driven by a larger investment portfolio and a higher weighted average yield, which offset increased interest expense[290](index=290&type=chunk)[292](index=292&type=chunk)[295](index=295&type=chunk) - The company reported a net loss available to common stockholders of **$1.4 million** in Q2 2025, compared to a net loss of **$0.7 million** in Q2 2024, primarily due to higher net realized losses and increased transaction expenses[290](index=290&type=chunk) - For the six months ended June 30, 2025, net income available to common stockholders was **$4.8 million**, a decrease from **$15.6 million** in the prior year period, mainly due to lower other income and higher expenses[323](index=323&type=chunk) [Earnings Available for Distribution](index=60&type=section&id=Earnings%20Available%20for%20Distribution) This section reconciles GAAP net income to Earnings Available for Distribution (EAD) for the three and six months ended June 30, 2025 Reconciliation of Net Income to Earnings Available for Distribution (EAD) (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net Income/(loss) available to common stockholders | $(1,376) | $4,797 | | Adjustments (Net realized/unrealized losses, transaction expenses, etc.) | $6,727 | $6,536 | | **Earnings available for distribution** | **$5,351** | **$11,333** | | **EAD per Diluted Share** | **$0.18** | **$0.38** | [Investment activities](index=62&type=section&id=Investment%20activities) This section details the company's investment portfolio, strategy, and activities, including residential and commercial investments Investment Portfolio Summary as of June 30, 2025 (in thousands) | Asset Class | Amortized Cost | Fair Value | Allocated Equity | | :--- | :--- | :--- | :--- | | Residential Investments | $7,397,253 | $7,138,182 | $419,940 | | Agency RMBS | $17,787 | $17,954 | $6,122 | | Legacy WMC Commercial Investments | $126,001 | $121,088 | $69,988 | | **Total Investment Portfolio** | **$7,541,041** | **$7,277,224** | **$496,050** | - The company's investment strategy primarily involves acquiring newly-originated residential mortgage loans and securitizing them to obtain long-term, non-recourse financing[354](index=354&type=chunk) - As of June 30, 2025, the company held retained certificates from its Non-Agency VIEs with a fair value of **$675.6 million**, of which **$472.4 million** was held to comply with Risk Retention Rules[372](index=372&type=chunk)[373](index=373&type=chunk) [Financing activities](index=67&type=section&id=Financing%20activities) This section describes the company's financing structure, including recourse and non-recourse debt, and leverage ratio Leverage Ratio Reconciliation as of June 30, 2025 (in thousands) | Metric | Amount | Ratio | | :--- | :--- | :--- | | GAAP Leverage | $6,875,160 | 12.8x | | Less: Non-recourse financing arrangements | $(5,981,082) | | | Less: Net TBA (receivable)/payable adjustment | $(194,855) | | | **Economic Leverage** | **$699,223** | **1.3x** | | Stockholders' Equity | $536,407 | | - The company utilizes a mix of recourse financing (repurchase agreements, senior unsecured notes) and non-recourse financing (securitized debt), with total recourse financing at **$896.2 million** and non-recourse financing at **$5.98 billion** as of June 30, 2025[397](index=397&type=chunk) [Liquidity and capital resources](index=70&type=section&id=Liquidity%20and%20capital%20resources) This section discusses the company's liquidity position, capital resources, and management of liquidity risk - As of June 30, 2025, the company had **$89.7 million of liquidity**, consisting of **$88.7 million in cash and cash equivalents** and **$1.0 million in unencumbered Agency RMBS**[408](index=408&type=chunk) - The company's primary liquidity risk arises from financing long-maturity assets with shorter-term borrowings and potential margin calls on pledged collateral and derivatives if asset values decline[409](index=409&type=chunk)[410](index=410&type=chunk) - For the six months ended June 30, 2025, cash and restricted cash decreased by **$38.4 million**, resulting from **$485.2 million used in investing activities**, partially offset by **$423.3 million provided by financing activities** and **$23.5 million from operating activities**[413](index=413&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's market risk exposures, including interest rate, credit, and liquidity risks Interest Rate Sensitivity Analysis as of June 30, 2025 | Change in Interest Rates (bps) | Change in Fair Value as a % of GAAP Equity | Change in Fair Value as a % of Assets | % Change in Projected Net Interest Income | | :--- | :--- | :--- | :--- | | +75 | (0.7)% | (0.1)% | 1.2% | | +50 | (0.5)% | 0.0% | 0.9% | | +25 | (0.2)% | 0.0% | 0.5% | | -25 | 0.3% | 0.0% | (0.5)% | | -50 | 0.6% | 0.0% | (1.4)% | | -75 | 0.9% | 0.1% | (2.1)% | - The company is exposed to credit risk from potential borrower defaults and credit spread widening, managed through pre-acquisition due diligence and non-recourse financing[471](index=471&type=chunk) - Liquidity risk, stemming from financing long-term assets with short-term borrowings and potential margin calls, is mitigated by maintaining cash, unpledged securities, and managing counterparty relationships[465](index=465&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control - The company's principal executive officer and principal financial officer concluded that as of **June 30, 2025**, the disclosure controls and procedures were effective to provide reasonable assurance[481](index=481&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[482](index=482&type=chunk) PART II. OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, and other significant disclosures [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in legal proceedings expected to materially impact its financial condition - The company is not currently party to any litigation or legal proceedings that would have a material adverse effect on its results of operations or financial condition[484](index=484&type=chunk) [Risk Factors](index=79&type=page&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K - The report directs investors to refer to the Risk Factors section in the Annual Report on Form 10-K for the year ended **December 31, 2024** for a discussion of potential risks[485](index=485&type=chunk) [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) This section discloses the acquisition of an additional 21.385% interest in AG Arc, increasing total ownership to 66.0% - On **August 1, 2025**, the company acquired an additional **21.385% interest** in AG Arc, LLC, increasing its total interest to approximately **66.0%**[489](index=489&type=chunk) - The acquisition was completed by issuing **2,027,676 restricted shares** of common stock as consideration in a private placement[489](index=489&type=chunk)

Company Performance - AG Mortgage Investment Trust (MITT) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.23 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -21.74% [1] - The company posted revenues of $17.75 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 11.24%, compared to year-ago revenues of $16.38 million [2] - Over the last four quarters, AG Mortgage Investment Trust has not surpassed consensus EPS or revenue estimates [2] Stock Performance - AG Mortgage Investment Trust shares have increased approximately 13.7% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] - The current consensus EPS estimate for the coming quarter is $0.25 on $22 million in revenues, and for the current fiscal year, it is $0.94 on $83 million in revenues [7] Industry Outlook - The REIT and Equity Trust industry, to which AG Mortgage Investment Trust belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

[Second Quarter 2025 Earnings Overview](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Overview) The company reported its second quarter 2025 financial results, highlighting management's strategic remarks and key financial and operational performance metrics [Management Remarks](index=1&type=section&id=MANAGEMENT%20REMARKS) Management highlighted strong second quarter results, including a dividend increase, modest book value decline, and a strategic acquisition of Arc Home expected to be accretive to EAD - Common dividend increased by **5%**, and book value declined by a modest **2.4%**[4](index=4&type=chunk) - Acquired an additional **21.4%** interest in Arc Home, increasing total ownership to **66.0%**[4](index=4&type=chunk)[8](index=8&type=chunk) - The Arc Home transaction is expected to be accretive to Earnings Available for Distribution (EAD) in **2026**, with minimal **~2%** dilution to book value[4](index=4&type=chunk)[8](index=8&type=chunk) [Second Quarter Financial and Operational Highlights](index=1&type=section&id=SECOND%20QUARTER%20FINANCIAL%20HIGHLIGHTS) The company reported key financial metrics including book value, economic return, EAD, and detailed its investment portfolio, financing, and liquidity positions [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) This section presents a summary of the company's core financial performance indicators for the quarter Key Financial Metrics (as of June 30, 2025) | Metric | Value (as of June 30, 2025) | | :---------------------------------------------------------------- | :-------------------------- | | Book Value per share | $10.39 | | Quarterly economic return on equity | (0.5)% | | Net Income/(Loss) Available to Common Stockholders per diluted common share | $(0.05) | | Earnings Available for Distribution ("EAD") per diluted common share | $0.18 | | Dividend per common share declared (Q2 2025) | $0.21 (5.0% increase over Q1 2025) | [Investing and Financing Highlights](index=1&type=section&id=INVESTING%20AND%20FINANCING%20HIGHLIGHTS) This section details the company's investment portfolio, financing structure, leverage ratios, and liquidity position Investing and Financing Highlights (as of June 30, 2025) | Metric | Value (as of June 30, 2025) | | :------------------------------------------ | :-------------------------- | | Investment Portfolio | $7.3 billion | | Net Interest Margin | 0.6% (includes 0.05% benefit from interest rate swaps) | | Investment in Arc Home | $32.2 million (valued at 1.00x book value) | | Total Financing | $6.9 billion | | Non-recourse financing | $6.0 billion | | Recourse financing | $0.9 billion | | GAAP Leverage Ratio | 12.8x | | Economic Leverage Ratio | 1.3x | | Total Liquidity | $89.7 million | [Acquisition of Additional Interest in AG ARC LLC](index=1&type=section&id=ACQUISITION%20OF%20ADDITIONAL%20INTEREST%20IN%20AG%20ARC%20LLC) The company increased its ownership in Arc Home, a strategic move expected to enhance future earnings and expand product offerings - On August 1, 2025, acquired an additional **21.4%** interest in Arc Home, a residential mortgage originator, from certain private funds managed by TPG Angelo Gordon[8](index=8&type=chunk) - Increased ownership in Arc Home to **66.0%** from **44.6%** by issuing approximately **2.0 million** common shares as consideration[8](index=8&type=chunk) - The acquisition is expected to enhance earnings potential as Arc Home scales and expands product offerings, be accretive to EAD in **2026**, and result in minimal **~2%** dilution to book value[8](index=8&type=chunk) [Dividends and Investor Information](index=2&type=section&id=Dividends%20and%20Investor%20Information) This section outlines the company's dividend declarations for common and preferred stock, along with details for the investor conference call [Dividend Declarations](index=2&type=section&id=Dividend%20Declarations) The company declared a second quarter common dividend of **$0.21** per share and quarterly cash dividends for its Series A, B, and C Preferred Stock Dividend Declarations | Dividend Type | Amount per Share | Declaration Date | Payable Date | Record Date | | :-------------------------------- | :--------------- | :--------------- | :----------- | :---------- | | Common Stock (Q2 2025) | $0.21 | June 17, 2025 | N/A | N/A | | Series A Preferred Stock | $0.51563 | July 31, 2025 | September 17, 2025 | August 29, 2025 | | Series B Preferred Stock | $0.50 | July 31, 2025 | September 17, 2025 | August 29, 2025 | | Series C Preferred Stock | $0.706042 | July 31, 2025 | September 17, 2025 | August 29, 2025 | [Stockholder Conference Call and Presentation](index=2&type=section&id=STOCKHOLDER%20CALL) The company hosted its second quarter earnings conference call on August 1, 2025, with presentation materials and an audio replay available online - Q2 2025 earnings conference call held on Friday, August 1, 2025, at **8:30 a.m. Eastern Time**, with Conference ID **MITTQ225**[9](index=9&type=chunk)[10](index=10&type=chunk) - Live webcast available at https://event.on24.com/wcc/r/5005699/B02EC3F7A49E21DED7559DD94BDBCD24[10](index=10&type=chunk) - An earnings presentation detailing financial results and an audio replay are available on the Company's website, www.agmit.com[11](index=11&type=chunk) [About the Company and Advisor](index=2&type=section&id=About%20the%20Company%20and%20Advisor) This section provides an overview of AG Mortgage Investment Trust, Inc. and its external advisor, TPG Angelo Gordon [About AG Mortgage Investment Trust, Inc.](index=2&type=section&id=ABOUT%20AG%20MORTGAGE%20INVESTMENT%20TRUST%2C%20INC.) AG Mortgage Investment Trust, Inc. (MITT) is a residential mortgage REIT investing in diversified U.S. residential mortgage-related assets, externally managed by AG REIT Management, LLC - AG Mortgage Investment Trust, Inc. is a residential mortgage REIT[12](index=12&type=chunk) - Focuses on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market[12](index=12&type=chunk) - Externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P. (TPG Angelo Gordon)[12](index=12&type=chunk) [About TPG Angelo Gordon](index=2&type=section&id=ABOUT%20TPG%20ANGELO%20GORDON) TPG Angelo Gordon, founded in 1988, is a diversified credit and real estate investing platform within TPG, managing approximately **$92 billion** across various strategies - Founded in **1988**, Angelo, Gordon & Co., L.P. ("TPG Angelo Gordon") is a diversified credit and real estate investing platform within TPG[14](index=14&type=chunk) - The platform currently manages approximately **$92 billion** across a broad range of credit and real estate strategies[14](index=14&type=chunk) [Forward-Looking Statements](index=2&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section contains cautionary forward-looking statements, subject to risks and uncertainties, with actual results potentially differing materially from expectations - The press release includes "forward-looking statements" intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of **1995**[15](index=15&type=chunk) - Forward-looking statements are based on beliefs, assumptions, and expectations of future operations and are not guarantees of future performance[15](index=15&type=chunk) - Important factors that could cause actual results to differ materially include changes in general economic or market conditions, government regulations, the Company's ability to grow its residential loan portfolio, and financing needs[15](index=15&type=chunk)[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles key non-GAAP financial measures, including Earnings Available for Distribution (EAD) and Economic Leverage Ratio [Earnings Available for Distribution (EAD)](index=3&type=section&id=Earnings%20Available%20for%20Distribution) EAD is a non-GAAP measure, defined as Net Income/(loss) available to common stockholders adjusted for specific non-recurring items, totaling **$5,351 thousand** or **$0.18** per diluted share for Q2 2025 - EAD is a non-GAAP financial measure, defined as Net Income/(loss) available to common stockholders excluding specific items like unrealized/realized gains/losses, transaction-related expenses, and deferred taxes[19](index=19&type=chunk)[26](index=26&type=chunk) Reconciliation of GAAP Net Income/(loss) to EAD (Three Months Ended June 30, 2025) | Item | Amount (in thousands) | Per Diluted Share | | :------------------------------------------ | :-------------------- | :---------------- | | Net Income/(loss) available to common stockholders | $(1,376) | $(0.05) | | Add (Deduct): | | | | Net realized (gain)/loss | 3,494 | 0.12 | | Net unrealized (gain)/loss | 40 | — | | Transaction related expenses and deal related performance fees | 3,079 | 0.10 | | Equity in (earnings)/loss from affiliates | (231) | (0.01) | | EAD from equity method investments | 456 | 0.02 | | Dollar roll income/(loss) | (111) | — | | **Earnings available for distribution** | **$5,351** | **$0.18** | [Economic Leverage Ratio](index=4&type=section&id=Economic%20Leverage%20Ratio) The Economic Leverage Ratio is a non-GAAP metric adjusting GAAP leverage by excluding non-recourse financing and including net TBA positions, resulting in **1.3x** compared to **12.8x** GAAP leverage - Economic Leverage Ratio is a non-GAAP metric, defined as GAAP leverage exclusive of fully non-recourse financing arrangements, plus the net TBA position[23](index=23&type=chunk)[30](index=30&type=chunk) Reconciliation of GAAP Leverage to Economic Leverage (June 30, 2025) | Item | Leverage (in thousands) | Stockholders' Equity (in thousands) | Leverage Ratio | | :------------------------------------------ | :---------------------- | :-------------------------- | :------------- | | Securitized debt, at fair value | $5,937,637 | | | | Financing arrangements | 843,537 | | | | Senior unsecured notes | 96,080 | | | | Restricted cash posted on Financing arrangements | (2,208) | | | | Payable on unsettled trades | 114 | | | | **GAAP Leverage** | **$6,875,160** | **$536,407** | **12.8x** | | (a) Non-recourse financing arrangements | (5,981,082) | | | | Net TBA (receivable)/payable adjustment | (194,855) | | | | **Economic Leverage** | **$699,223** | **$536,407** | **1.3x** | [Footnotes](index=4&type=section&id=Footnotes) This section provides detailed definitions and explanations for key financial terms and calculations, ensuring clarity and transparency for investors - Book value is calculated using stockholders' equity less the liquidation preference of cumulative redeemable preferred stock (**$228.0 million**)[25](index=25&type=chunk) - EAD (non-GAAP) definition includes specific exclusions like unrealized/realized gains/losses, transaction expenses, and deferred taxes, and includes net interest income and other income on a yield-adjusted basis[26](index=26&type=chunk) - Investment Portfolio consists of Residential Investments, Agency RMBS, and Legacy WMC Commercial Investments, held at fair value, and includes securities owned through equity method affiliates and long TBA positions[27](index=27&type=chunk)