Terra Property Trust, Inc. (TPT) and Western Asset Mortgage Capital Corporation (WMC) have announced a definitive merger agreement to form a new real estate investment trust (REIT) with approximately $1.2 billion in assets and $436 million of adjusted book value.  

Under the agreement, TPT stockholders are expected to own approximately 76% of the combined company’s common stock, while WMC stockholders will own approximately 24%. The merger aims to provide increased operational scale, cost synergies, and long-term investment opportunities in a diversified, credit-oriented platform. The combined company looks to prioritize capital preservation, maintain a strong balance sheet, and generate attractive risk-adjusted returns for shareholders. 

“This compelling combination is a unique opportunity to establish a diversified REIT that prioritizes capital preservation, maintains a robust balance sheet, and consistently generates attractive risk-adjusted returns for its shareholders,” said Vik Uppal, chief executive officer of TPT.