AG Mortgage Investment Trust, Inc. (MITT): Business Model Canvas [Dec-2025 Updated]

You're digging into how AG Mortgage Investment Trust, Inc. actually makes money, and honestly, it's more complex than just collecting mortgage payments. As someone who's spent two decades mapping out these structures, I can tell you their model hinges on a smart, vertically integrated play: they manage an investment portfolio totaling $8.8 billion as of September 30, 2025, but the real juice comes from their majority stake in originator Arc Home, which feeds their securitization engine. This setup lets them aim for those attractive risk-adjusted returns, delivering a $0.21 per common share dividend in Q3 2025 while managing massive financing obligations-we're talking $373.54 million in TTM interest expense alone. Dive into the canvas below to see exactly how their key partnerships and revenue streams, from net interest income to earnings from equity investments, line up to support that dividend story.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power AG Mortgage Investment Trust, Inc.'s operations, specifically how they source assets and secure the necessary funding to run the business. These partnerships are defintely critical, especially given the shift toward a vertically integrated model.

The structure relies heavily on a few key external and internal relationships to drive its residential mortgage investment strategy. The management structure, for instance, is outsourced to an expert team.

• External Manager: AG REIT Management, LLC, which operates as an affiliate of TPG Angelo Gordon.
• Residential Mortgage Originator: Arc Home, where AG Mortgage Investment Trust, Inc. increased its ownership stake to 66.0% as of September 30, 2025.
• Nonbank Mortgage Originators: Strategic partnerships are in place to facilitate programmatic securitizations, particularly for the growing home equity loan portfolio.

The financing side of the house is heavily dependent on relationships with financial institutions to fund the investment portfolio. As of the end of Q3 2025, the total financing commitment stood at a substantial figure.

Here's the quick math on the financing AG Mortgage Investment Trust, Inc. secured from these financial institutions:

This $8.4 billion in financing supports the investment portfolio, which itself reached $8.8 billion at the same time. Also, the relationship with Arc Home is becoming more central; the contribution from Arc Home to Earnings Available for Distribution (EAD) was approximately $0.03 per share in Q3 2025, supporting the strategy of sourcing high-quality collateral through this originator.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Key Activities

Investing in a diversified portfolio of residential mortgage-related assets

The Investment Portfolio size stood at $8.8 billion as of September 30, 2025. This followed a portfolio size of $7.3 billion on June 30, 2025 and $7.1 billion on March 31, 2025.

The Net Interest Margin (NIM) for the portfolio, which excludes cash held, was reported at 0.7% as of September 30, 2025. This compares to a 0.6% NIM reported on June 30, 2025.

The portfolio composition includes Agency RMBS, Residential Investments, Commercial Investments, and ABS. Specific loan purchases during the year included:

• Purchased $367 million of Agency Eligible loans in Q1 2025.
• Purchased $128 million of home equity loans in Q1 2025.
• Purchased $104 million of home equity loans in Q2 2025.
• Total Q2 2025 loan purchases reached $444.9 million fair value.

Securitizing agency-eligible and home equity loans (HELOCs/closed-end seconds)

The company executed significant securitization activity across its target asset classes.

• Securitized over $2 billion of UPB in 2025 Year-to-Date across 5 transactions as of Q2 2025.
• In Q1 2025, cosponsored a securitization of $492 million UPB of closed-end seconds.
• In Q2 2025, purchased and securitized $331.4 million UPB of agency-eligible loans.
• In Q2 2025, sponsored a securitization backed by $647 million of closed-end second loans.
• In July 2025, finalized a securitization of $301.3 million UPB of home equity loans.

Managing the investment in Arc Home to generate earnings and source collateral

AG Mortgage Investment Trust, Inc. increased its ownership stake in Arc Home to 66.0% as of September 30, 2025, up from 44.6%. This was achieved on August 1, 2025, by issuing 2,027,676 restricted shares of common stock.

The investment in Arc Home, through AG Arc LLC, was valued at $49.2 million as of September 30, 2025, using a valuation multiple of 1.025x book value. This compares to a $32.2 million investment as of March 31, 2025, valued at 1.00x book value.

Arc Home's contribution to Earnings Available for Distribution (EAD) per share was $0.03 in the third quarter of 2025. In the first quarter of 2025, the contribution was reported as breakeven. Arc Home reported origination volumes of $716 million in Q1 2025 and $757 million in Q2 2025.

Executing interest rate hedging strategies to manage market risk

Interest rate hedging is executed primarily through interest rate swaps, which provide a benefit to the Net Interest Margin (NIM).

• The NIM as of September 30, 2025, included a 0.05% benefit from the net interest component of interest rate swaps.
• The NIM as of June 30, 2025, also included a 0.05% benefit from swaps.
• The benefit was 0.04% as of March 31, 2025.
• Net interest income earned on the swap portfolio increased by $1 million or 5% from the prior quarter in Q1 2025.
• The company basically maintained its derivatives, which were primarily interest rate payer swaps, during Q2 2025.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Key Resources

You're looking at the core assets that power AG Mortgage Investment Trust, Inc. (MITT) right now. These aren't just line items; they're the actual engines driving their business model as of late 2025.

Investment Portfolio

The heart of AG Mortgage Investment Trust, Inc.'s operation is its investment portfolio, which grew substantially. As of September 30, 2025, this portfolio totaled $8.8 billion, marking a 21% increase for the quarter. This growth came from acquiring over $1.7 billion of residential mortgage loans, immediately financed into four separate securitizations. The focus has clearly shifted toward residential assets, especially home equity, which is a key strategic move.

Here's a quick look at what was making up that $8.8 billion figure at the end of Q3 2025:

Honestly, the quality metrics on the home equity side are strong, with borrowers showing an average FICO score of 747 and a combined loan-to-value ratio of 66%.

Total Liquidity

Having dry powder is crucial, especially in the mortgage space. AG Mortgage Investment Trust, Inc. maintained a solid liquidity position, reporting total liquidity of $104.2 million as of Q3 2025. This isn't just cash sitting idle; it's a mix of immediately accessible funds and committed credit lines ready to deploy into new assets.

The components of that liquidity look like this:

• Cash and cash equivalents: $59.0 million
• Available committed financing on Home Equity Loans: $44.5 million
• Unencumbered Agency RMBS: $0.7 million

That $44.5 million in committed financing is tied to specific Home Equity Loans, giving them a defined advance rate of 87.5% on pledged collateral.

External Management Expertise

AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC. This entity is an affiliate of TPG Angelo Gordon. TPG Angelo Gordon itself is a major player, operating as a diversified credit and real estate investing platform within TPG. As of late 2025, this platform manages approximately $99 billion across various strategies. This relationship gives AG Mortgage Investment Trust, Inc. access to deep, specialized expertise in credit and real estate investing, which is definitely a key intangible asset.

Vertically Integrated Platform

The majority stake in Arc Home is a significant differentiator. AG Mortgage Investment Trust, Inc. increased its ownership in this residential mortgage originator to 66.0% from 44.6% on August 1, 2025, for an incremental investment of $16 million, paid for with restricted stock. This move solidifies the vertical integration, allowing MITT to control the origination and securitization pipeline for Non-QM and non-agency loans. Arc Home is already contributing to the bottom line, providing $0.03 per share to Earnings Available for Distribution (EAD) in Q3 2025. Arc Home originated $959.3 million of mortgages during that same quarter.

Finance: draft 13-week cash view by Friday.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Value Propositions

You're looking at the core reasons why AG Mortgage Investment Trust, Inc. (MITT) attracts capital right now, late in 2025. It's about the structure they've built to generate returns in this market.

Attractive Risk-Adjusted Returns

The value proposition here centers on disciplined capital management. AG Mortgage Investment Trust, Inc. targets returns by carefully managing how much they borrow versus what they own. As of September 30, 2025, the company maintained an Economic Leverage Ratio of 1.7x.

This approach is paired with a focus on asset quality. For instance, the Home Equity Loan portfolio, a key focus area, had an average FICO score of 747 and a combined loan-to-value ratio of 66% as of the third quarter of 2025, with no loans in serious delinquency at that time. This discipline aims to translate into tangible shareholder value, evidenced by the 2.7% quarterly economic return on equity reported for Q3 2025.

Here's a quick snapshot of the Q3 2025 financial position supporting this:

Consistent Shareholder Dividends

For income-focused investors, the consistent payout is a major draw. AG Mortgage Investment Trust, Inc. declared a Q3 2025 common dividend of $0.21 per common share, payable on October 31, 2025. That dividend level underscores confidence in their current earnings power, especially since the Earnings Available for Distribution (EAD) per diluted share for that quarter was $0.23.

The market is pricing this in, too. The current dividend yield for AG Mortgage Investment Trust, Inc. stands around 10.24%.

You can see the commitment to the distribution:

• Q3 2025 Dividend Declared: $0.21 per share.
• Q2 2025 Dividend Declared: $0.21 per share (a 5% increase from Q1 2025).
• EAD per Share (Q3 2025): $0.23.

Exposure to the Growing Home Equity Market

AG Mortgage Investment Trust, Inc. is strategically pivoting toward the home equity space. This focus is designed to capture growth in a market segment supported by the existing housing stock and borrower behavior. The Home Equity Loan portfolio specifically reached $1.0 billion in unpaid principal balance (UPB) as of Q3 2025.

These assets offer attractive yields. The average coupon on that home equity loan book was 9.8% in the third quarter. Furthermore, the company actively executed on this strategy, finalizing a $301 million UPB securitization of home equity loans in July 2025.

Vertically Integrated Structure

The structure provides a defintely reliable asset pipeline, which is key for a mortgage REIT. This comes primarily through their investment in Arc Home LLC, a residential mortgage originator. AG Mortgage Investment Trust, Inc. increased its stake in Arc Home to 66.0% ownership as of August 1, 2025, up from 44.6% previously.

This integration is expected to enhance earnings potential by securing collateral sourcing. The investment in Arc Home as of September 30, 2025, was valued at $49.2 million using a valuation multiple of 1.025x book value. This move is management's play to ensure a consistent flow of target assets, like the home equity loans, directly into their investment portfolio.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Customer Relationships

You're looking at how AG Mortgage Investment Trust, Inc. (MITT) manages its different groups of stakeholders as of late 2025. The relationships are segmented based on the level of direct interaction required.

Transactional/Automated

For the broad base of public shareholders, the relationship is largely transactional and automated, centered on capital return and mandatory disclosure. The most concrete evidence of this is the declared dividend. For the third quarter of 2025, AG Mortgage Investment Trust, Inc. declared a common dividend of $0.21 per share, payable on October 31, 2025. This distribution is a key touchpoint for this segment. Furthermore, shareholders are informed through the reported performance metrics that underpin these distributions, such as the Book Value per share of $10.46 as of September 30, 2025, and the Earnings Available for Distribution (EAD) of $0.23 per diluted common share for that same quarter. This automated flow of capital and data defines the primary relationship with the retail investor base.

Here's a quick look at the key shareholder-relevant figures from the third quarter of 2025:

Managed

The relationship with financing counterparties, crucial for funding the investment portfolio, requires direct, managed engagement, primarily through repurchase agreements (repos). This is where AG Mortgage Investment Trust, Inc. manages its liability side. As of September 30, 2025, the total financing across the balance sheet stood at $8.4 billion. This total financing is segmented into two types of obligations, which dictates the nature of the relationship with the respective lenders or dealers.

• Recourse Financing: $1.0 billion.
• Non-recourse Financing: $7.4 billion.

The management of these relationships involves maintaining specific leverage metrics, such as the GAAP Leverage Ratio of 14.9x and the Economic Leverage Ratio of 1.7x as of the same date. While specific 2025 counterparty names aren't immediately available, historical context shows relationships with major institutions like Bank of America, N.A., Credit Suisse Securities (USA) LLC, and Wells Fargo Bank, National Association, indicating a network of sophisticated financial partners requiring active management to secure and maintain funding lines.

Strategic

The relationship with the management and owners of Arc Home is strategic, reflecting a deep, integrated operational alignment. AG Mortgage Investment Trust, Inc. actively manages this relationship by increasing its stake in the residential mortgage originator. On August 1, 2025, the Company increased its ownership in Arc Home to 66.0%, up from 44.6%, by issuing 2,027,676 restricted shares of common stock as consideration. This strategic investment was valued at $49.2 million as of September 30, 2025, determined using a valuation multiple of 1.025x book value. This move signals a commitment to integrating the origination channel, which contributed $0.03 per share to EAD in Q3 2025, directly influencing the trust's asset flow and earnings quality.

Investor Relations

Transparency for all stakeholders is maintained through formal Investor Relations channels, which are critical for a publicly traded REIT. This involves regular communication beyond the automated dividend notices. For instance, the Third Quarter 2025 results were discussed in a formal Earnings Conference Call held on November 5, 2025. Furthermore, compliance with regulatory bodies mandates consistent filings. The investment portfolio size as of September 30, 2025, was $8.8 billion, and total liquidity was $104.2 million, figures disclosed through these required channels. You can expect quarterly SEC filings to provide the detailed breakdown supporting these figures and the narrative provided by management, such as CEO T.J. Durkin's remarks on the quarter's success.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Channels

You're looking at how AG Mortgage Investment Trust, Inc. (MITT) gets its assets, capital, and information out to the world. It's a mix of public markets and direct institutional dealings, which is pretty standard for a mortgage REIT.

New York Stock Exchange (NYSE): For common stock and preferred share trading

This is where the public equity trades hands. AG Mortgage Investment Trust, Inc. trades under the ticker MITT on the NYSE. As of the end of the third quarter 2025, the company had a reported Market Cap of $260.94 million as of October 28, 2025.

For the common stock, the price as of December 4, 2025, was $8.26 per share, with a 52-week range noted between a low of $5.63 and a high of $8.37.

The preferred shares, specifically the 8.25% Preferred Series A (MITTA), also trade on the NYSE. The previous close for MITTA was $22.64, and its 52-week range was between $18.60 and $23.99. On December 5, 2025, the trading volume for MITTA was 4,191 shares.

Here's a quick look at the trading data we have for the preferred shares:

Securitization Markets: Issuing Residential Mortgage-Backed Securities (RMBS) to institutional investors

The core of the asset channel involves packaging mortgages, especially Home Equity Loans, and selling them as securities. This is how AG Mortgage Investment Trust, Inc. moves assets off its books and raises capital for new investments. The Investment Portfolio stood at $8.8 billion as of September 30, 2025.

The company was active in this channel during the third quarter of 2025, executing four securitizations. This built upon prior activity, such as sponsoring a securitization backed by $647 million of closed-end second loans in Q2 2025, and in Q1 2025, cosponsoring a securitization of $492 million UPB of closed-end seconds, retaining $26 million of non-Agency RMBS securities.

The Home Equity Loan portfolio, a key collateral source, reached $1.0 billion as of September 30, 2025.

Key securitization and portfolio metrics:

• Investment Portfolio (Sep 30, 2025): $8.8 billion
• Home Equity Loan Portfolio (Sep 30, 2025): $1.0 billion
• Q3 2025 Securitizations Executed: 4
• Q1 2025 Retained Non-Agency RMBS: $26 million

Investment Banks/Dealers: For financing (repo agreements) and hedging instruments (swaps)

This channel is critical for funding the asset portfolio and managing interest rate risk. Total financing for AG Mortgage Investment Trust, Inc. was $8.4 billion as of September 30, 2025. This financing is split into $7.4 billion of non-recourse debt and $1.0 billion of recourse financing.

The use of derivatives is evident in the Net Interest Margin (NIM) for Q3 2025, which included a 0.05% benefit from the net interest component of interest rate swaps. This shows active hedging through these dealer relationships. For context on financing structure, the company ended Q1 2025 with only $223 million of warehouse financing, indicating a preference for securitized debt over short-term warehouse lines for their Home Equity loans.

Financing and Hedging Data Points:

Corporate Website/IR Portal: Distributing financial results and investor presentations

The official corporate website, www.agmit.com, serves as the primary hub for official investor communications. You can find the latest financial narrative there.

For instance, the Q3 2025 Earnings Presentation was made available on the website in the 'Presentations' section under 'News & Presentations' prior to the November 4, 2025 conference call. Furthermore, an audio replay of that call was made available on the site through 9:00 a.m. Eastern Time on December 4, 2025.

Key distribution points on the IR portal:

• Latest Financial Results: Q3 2025 Earnings Release available November 4, 2025.
• Investor Presentations: Q3 2025 Earnings Presentation posted on www.agmit.com.
• Replay Access: Audio replay available until December 4, 2025.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Customer Segments

You're looking at the key groups AG Mortgage Investment Trust, Inc. (MITT) serves or relies upon as of late 2025. Here's a breakdown of those segments with the latest hard numbers we have from the Q3 2025 reports.

Public Shareholders: Seeking high dividend yields and capital appreciation from a REIT structure.

This group is focused on the total return generated by AG Mortgage Investment Trust, Inc. (MITT). They are interested in the book value stability and the cash distributed.

• Book Value per share as of September 30, 2025: $10.46.
• Dividend per common share declared in Q3 2025: $0.21.
• Earnings Available for Distribution (EAD) per diluted common share in Q3 2025: $0.23.
• Market Capitalization: $8.36 billion.
• Shares Outstanding: Approximately 31.74 million.

Institutional Investors: Purchasers of the company's securitized products (RMBS).

While AG Mortgage Investment Trust, Inc. (MITT) is the primary investor in these assets, the underlying structure relies on the market for these securities. The scale of the portfolio is the relevant metric here.

Financing Counterparties: Banks and dealers providing warehouse and repurchase financing.

These counterparties provide the necessary leverage to fund AG Mortgage Investment Trust, Inc. (MITT)'s investment portfolio. Their comfort level is tied to the leverage employed.

TPG Angelo Gordon: The ultimate parent of the external manager.

This segment represents the relationship with the external manager, AG REIT Management, LLC, an affiliate of TPG Angelo Gordon. Their scale and prior transactions are key indicators of this relationship.

• TPG Angelo Gordon platform manages approximately $99 billion across credit and real estate strategies.
• On August 1, 2025, AG Mortgage Investment Trust, Inc. (MITT) acquired an additional 21.4% interest in Arc Home from TPG Angelo Gordon managed funds.
• This transaction increased AG Mortgage Investment Trust, Inc. (MITT)'s ownership in Arc Home to 66.0% from 44.6%.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Cost Structure

You're looking at the core expenses AG Mortgage Investment Trust, Inc. (MITT) faces to run its business, primarily driven by the cost of money and external management.

The largest cost component is the expense associated with the debt used to finance the investment portfolio. This is the cost of borrowing, which is highly sensitive to prevailing interest rates.

Total Interest Expense for the Trailing Twelve Months (TTM) ending September 2025 was $373.54 million on financing obligations.

General and Administrative (G&A) and other day-to-day running costs are relatively small compared to the interest expense, which makes sense for a highly leveraged REIT.

Total Operating Expenses, which include G&A and other costs, totaled $22.55 million for the TTM ending September 2025.

Management Fees are a key structural cost because AG Mortgage Investment Trust, Inc. (MITT) is externally managed by AG REIT Management, LLC, an affiliate of TPG Angelo Gordon. This fee structure means a portion of the revenue is paid out to the manager for advisory and administrative services.

Preferred Dividends represent fixed cash payments required for the preferred stock outstanding. These are contractual obligations, making them a fixed cost element in the structure, similar to debt interest.

We can see the fixed nature of these dividend payments across the preferred stock series:

While a specific TTM dollar amount for only Preferred Dividends is not explicitly isolated in the search results, the total cash outflow for all dividends (common and preferred) for the TTM ended September 2025 was -$44.87 Million.

The key cost drivers are:

• Total Interest Expense: $373.54 million (TTM Sep '25).
• Total Operating Expenses: $22.55 million (TTM Sep '25).
• Management Fees: Paid to AG REIT Management, LLC.
• Preferred Dividends: Fixed payments on outstanding preferred stock.

The cost structure is heavily weighted toward financing costs, which is typical for a mortgage REIT. Finance: review the Q4 2025 interest rate forecast impact on the next TTM interest expense by Monday.

AG Mortgage Investment Trust, Inc. (MITT) - Canvas Business Model: Revenue Streams

You're looking at how AG Mortgage Investment Trust, Inc. (MITT) actually brings in the money, which is key to understanding its stability, especially given the current rate environment. Honestly, for a mortgage REIT, the revenue streams are pretty focused, centered around the spread between what they earn on assets and what they pay for financing.

The biggest piece, by far, is the Net Interest Income: From the investment portfolio, totaling $76.82 million (TTM Sep '25). This is the core engine. It comes from holding assets like agency and non-agency residential mortgage-backed securities and loans, and then borrowing money to buy more of those assets. If you look at the Q3 2025 results, the Net Interest Margin (NIM) averaged 0.7%, which includes a small 0.05% boost from their interest rate swaps. That NIM figure tells you the direct profitability of their core lending/investing activity before other factors.

To give you a clearer picture of the TTM Sep '25 performance across the main income drivers, check out this breakdown:

Also contributing meaningfully is the strategic move into vertical integration. The Earnings from Equity Investments: Primarily from the Arc Home stake, contributing $4.1 million (TTM Sep '25). Remember, AG Mortgage Investment Trust, Inc. increased its ownership in Arc Home to 66.0% as of September 30, 2025. That move is designed to generate earnings from origination and gain-on-sale margins, not just interest income. In Q3 alone, Arc Home added $0.03 of EAD per share to the bottom line.

Finally, you have the transactional income. The Gain on Sale of Investments: From securitization and disposition activity, totaling $6.57 million (TTM Sep '25) shows the success of their efforts to move assets off the balance sheet, often through securitizations. This is a variable stream, but it was strong in Q3, where they executed four securitizations. Here are a few other numbers that frame the revenue picture from that recent quarter:

• Q3 2025 Revenue was reported at $30.2 million.
• Earnings Available for Distribution (EAD) per diluted common share was $0.23.
• Book Value per share stood at $10.46 as of September 30, 2025.
• The dividend declared for Q3 2025 was $0.21 per common share.

The strategy is clearly about maximizing the spread income while getting an increasing, high-quality contribution from the Arc Home platform. Finance: draft 13-week cash view by Friday.