AG Mortgage Achieves 42% 2025 Return, Releases $55M Equity, Targets $35M Calls
AG Mortgage Investment Trust earned 42% returns in 2025 by executing 10 securitizations totaling $4.2bn and refinancing 11.5% repo debt to release $55m equity. Management will resolve $28m of legacy WMC CRE equity and call $35m of securitizations in H1 2026, expecting Arc Home—over $1m earnings in January—to boost margins.
1. Strong 2025 Performance
AG Mortgage Investment Trust delivered 42% total returns last year by executing 10 securitizations totaling $4.2bn and rotating capital from legacy WMC residential and commercial exposures into higher-yield home equity and agency-eligible strategies.
2. Balance Sheet Optimization
The company refinanced its 11.5% structured repo debt, unlocking $55m in equity for reinvestment, maintained a conservative 1.6 turns economic leverage profile, and grew its investment portfolio by 27% year-over-year.
3. 2026 Strategic Objectives
Management aims to resolve $28m of nonaccrual legacy WMC CRE equity in the first half of 2026 and plans to exercise call rights on $35m of securitizations to redeploy capital into higher-ROE opportunities.
4. Arc Home Profitability
Arc Home reported over $1m in earnings for January, and management expects further margin expansion and market share gains in the non-QM mortgage sector to drive primary earnings growth this year.