Redwood Trust - RWT STOCK NEWS

Redwood Trust (NYSE: RWT), a company focused on expanding housing access for homebuyers and renters, has announced its schedule for releasing fourth quarter 2024 financial results. The results will be released on Thursday, February 13, 2025, after the NYSE closing.

The company will host a conference call with senior management to discuss the results at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on the same day. Investors can access the webcast through Redwood's Investor Relations website in listen-only mode. For phone participation, attendees should dial 1-877-423-9813 (domestic) or 1-201-689-8573 (international).

A replay will be available from 8:00 p.m. ET on February 13 until February 27, 2025, accessible via 1-844-512-2921 (domestic) or 1-412-317-6671 (international) with passcode 13750895.

Redwood Trust (NYSE: RWT) has released its dividend distribution tax information for 2024. The company's common stock dividend distributions for 2024 will be characterized as 6% ordinary income (Section 199A), 44% qualified dividends, and 50% return of capital.

For 2024, RWT will distribute quarterly common stock dividends of $0.16 per share in March and June, increasing to $0.17 in September and $0.18 in December, totaling $0.67 for the year. The preferred stock will pay $0.625 per share quarterly, totaling $2.50 annually, characterized as 11% ordinary income and 89% qualified dividends.

Individual taxpayers may generally deduct 20% of their ordinary income REIT dividends under section 199A, subject to holding period requirements. No portion of the 2024 distributions is expected to consist of unrelated business taxable income (UBTI).

Redwood Trust (NYSE: RWT) has announced the pricing of a $90 million public offering of senior notes due 2030, with a 9.125% interest rate. The company has granted underwriters a 30-day option to purchase up to an additional $13.5 million in notes for over-allotments. The notes, expected to close on January 17, 2025, will be listed on the NYSE under the symbol 'RWTP' and have received a BBB- investment grade rating from Egan-Jones.

The proceeds will be used for general corporate purposes, including funding residential and business lending operations, acquiring mortgage-backed securities, and potentially repaying existing debt. The notes will pay interest quarterly, mature on March 1, 2030, and will be issued in minimum denominations of $25. Redwood maintains the right to redeem the notes after March 1, 2027, at 100% of principal plus accrued interest.

Redwood Trust (NYSE: RWT) announced significant updates to its residential consumer operating platforms. The company is expanding its home equity platform, Aspire, to include alternative loan products alongside existing home equity offerings. The expansion aims to address growing consumer demand for flexible financing solutions amid high interest rates and housing supply.

The new Aspire offerings include loans for consumers qualifying through alternative income calculation methods, such as bank statements and CPA-prepared profit-and-loss statements, as well as debt service coverage ratio (DSCR) loans for housing investors. Additionally, Redwood is refreshing the branding of its jumbo loan platform under the Sequoia name, which has been associated with the company's securitization shelf that has issued over 130 transactions.

Redwood Trust (NYSE: RWT) has announced a 5.9% increase in its fourth quarter 2024 common stock dividend to $0.18 per share, marking its 102nd consecutive quarterly dividend and second consecutive quarter of dividend increases. The dividend will be paid on December 30, 2024, to stockholders of record on December 23, 2024.

Additionally, the company declared a Series A preferred stock dividend of $0.625 per share for Q4 2024, payable on January 15, 2025, to stockholders of record on January 1, 2025. CEO Christopher Abate stated that this dividend level provides shareholders with an attractive risk-adjusted return aligned with long-term objectives.

CoreVest, a division of Redwood Trust, has promoted Fred Matera to Chief Executive Officer. Matera, who previously served as CoreVest's Co-Head and Redwood's Chief Investment Officer, will oversee CoreVest's operating strategy, product growth, and distribution. With over 30 years of experience in residential lending and fixed income markets, Matera has been part of Redwood's leadership team since 2019. In his new role, he will continue reporting to Dash Robinson, Redwood's President, focusing on driving innovation and expanding distribution channels to enhance value for customers and stakeholders.

Redwood Trust (NYSE: RWT) announces two strategic hires to enhance its technology and non-Agency mortgage capabilities. Abhinav Asthana joins as Chief Technology Officer effective November 1st, bringing nearly two decades of tech experience to lead AI initiatives and digital transformation. Jason Kopcak joins as Head of Alternative Strategies to expand non-Agency products and distribution channels. Asthana, previously at Tavant, will oversee technology operations and AI implementation. Kopcak, with experience at Morgan Stanley and Nomura Holdings, will focus on serving underserved borrowers and strengthening institutional investor relationships.

Redwood Trust (NYSE:RWT) reported its Q3 2024 financial results with GAAP net income of $13.1 million ($0.09 per share) and non-GAAP Earnings Available for Distribution of $25.2 million ($0.18 per share). The company's book value per common share increased slightly to $8.74, delivering an economic return of 2.1% for Q3 and 6.8% YTD. The company increased its quarterly dividend by 6.25% to $0.17 per share. Residential Consumer Mortgage Banking achieved strong performance with $2.2 billion in loan locks and distributed $1.5 billion of jumbo loans. The Investment Portfolio deployed $157 million of capital, while maintaining a low recourse leverage ratio of 0.7x.

Redwood Trust (NYSE: RWT) has announced the date for its third quarter 2024 financial results webcast and conference call. The company will release its results on Wednesday, October 30, 2024, after the New York Stock Exchange closes. A conference call with senior management will follow at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on the same day.

Investors can access the webcast through Redwood's Investor Relations website. For those participating by phone, dial-in numbers are 1-877-423-9813 (domestic) or 1-201-689-8573 (international). A replay will be available until November 13, 2024, accessible via 1-844-512-2921 (domestic) or 1-412-317-6671 (international) with passcode 13749054.