Redwood Trust Files 8-K on Operations & Financial Condition

TL;DR

**RWT just filed an 8-K on its financial results, expect more details soon.**

AI Summary

REDWOOD TRUST, INC. filed an 8-K on January 17, 2024, to report on its 'Results of Operations and Financial Condition.' This filing indicates that the company is providing an update on its financial performance, which is crucial for investors to understand the health and trajectory of the company. While specific dollar amounts are not detailed in this summary filing, the fact that they are reporting on operations and financial condition means investors should anticipate more detailed financial results soon, which will directly impact the stock's valuation and future prospects.

Why It Matters

This filing signals that REDWOOD TRUST, INC. is updating the market on its financial health, which is critical for investors to assess the company's performance and make informed decisions about their investment.

Risk Assessment

Risk Level: medium — The filing itself is administrative, but the underlying 'Results of Operations and Financial Condition' could contain positive or negative news, creating uncertainty.

Analyst Insight

A smart investor would monitor REDWOOD TRUST, INC.'s news feed closely for the detailed 'Results of Operations and Financial Condition' report that this 8-K foreshadows, as it will contain the specific financial data needed for a thorough analysis.

Key Numbers

• $0.01 — par value per share (par value of REDWOOD TRUST, INC.'s Common Stock)

Key Players & Entities

• REDWOOD TRUST, INC. (company) — the registrant filing the 8-K
• New York Stock Exchange (company) — where REDWOOD TRUST, INC.'s Common Stock is registered
• RWT (company) — trading symbol for REDWOOD TRUST, INC. Common Stock
• $0.01 (dollar_amount) — par value per share of Common Stock

Forward-Looking Statements

• REDWOOD TRUST, INC. will release a more detailed financial report or earnings call transcript within the next few weeks. (REDWOOD TRUST, INC.) — high confidence, target: 2024-02-17

FAQ

Key Financial Figures

• $0.01 — ichregistered Common Stock, par value $0.01 per share RWT New York Stock Exchange
• $0.16 — fourth quarter common stock dividend of $0.16 per share, book value per common share
• $8.58 — per common share to be in the range of $8.58 to $8.68 at December 31, 2023, compared
• $8.68 — on share to be in the range of $8.58 to $8.68 at December 31, 2023, compared to $8.77
• $8.77 — $8.68 at December 31, 2023, compared to $8.77 at September 30, 2023. Interest rate an
• $293 million — x and our unrestricted cash balance was $293 million. Estimated book value per common share
• $10.7 billion — 23, recourse debt excludes an estimated $10.7 billion of consolidated securitization debt (AB
• $52 million — ckholders' equity excludes an estimated $52 million of goodwill and intangible assets. On a
• $2.6 billion — asis, we estimate our recourse debt was $2.6 billion and that our stockholders' equity was $
• $1.2 billion — n and that our stockholders' equity was $1.2 billion at December 31, 2023. Our financial st

Filing Documents

• tm243330d2_8k.htm (8-K) — 36KB
• 0001104659-24-004342.txt ( ) — 253KB
• rwt-20240117.xsd (EX-101.SCH) — 3KB
• rwt-20240117_def.xml (EX-101.DEF) — 26KB
• rwt-20240117_lab.xml (EX-101.LAB) — 36KB
• rwt-20240117_pre.xml (EX-101.PRE) — 25KB
• tm243330d2_8k_htm.xml (XML) — 5KB

02. Results of Operations and

Item 2.02. Results of Operations and Financial Condition. Redwood Trust, Inc. is disclosing certain preliminary results of operations for the quarter ended December 31, 2023. Preliminary Estimate of Book Value Per Common Share at December 31, 2023 Although our financial results for the fourth quarter of 2023 are not yet finalized, on a preliminary basis we estimate, after giving effect to the payment of our fourth quarter common stock dividend of $0.16 per share, book value per common share to be in the range of $8.58 to $8.68 at December 31, 2023, compared to $8.77 at September 30, 2023. Interest rate and broader market volatility at the onset of the fourth quarter ultimately gave way to declining interest rates and tightening credit spreads in the final month of 2023. During the fourth quarter of 2023, we issued 12.6 million shares through our At-the-Market ("ATM") program, and we invested the proceeds of such sales into, among other things, our mortgage banking businesses and investment portfolio, as well as to repurchase certain convertible debt. We estimate that at December 31, 2023 our recourse leverage ratio was 2.2x and our unrestricted cash balance was $293 million. Estimated book value per common share at December 31, 2023 is based on 131.5 million common shares issued and outstanding as of such date. Shares of common stock outstanding do not include a total of approximately 76.5 million shares of common stock (i) issuable in respect of vested and unvested deferred stock units, and restricted stock units; (ii) issuable in respect of unvested performance stock units (assuming maximum vesting under the performance-based vesting formula), (iii) reserved for issuance under our equity and incentive compensation plans, (iv) reserved for issuance under our at-the-market offering program, (v) reserved for issuance under our direct stock purchase and dividend reinvestment plans, (vi) issuable upon conversion or exchange of our outstanding convertible or excha

forward-looking statements contained in this Current Report on Form 8-K

forward-looking statements contained in this Current Report on Form 8-K. Further information on these and other factors that could affect the Company's financial results and the forward-looking statements in this Current Report on Form 8-K is included in the Company's filings with the Securities and Exchange Commission, including, among others, the Company's Annual Report on Form 10-K for the year ended December 31, 2022, particularly under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company undertakes no obligation to update or revise any forward-looking

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: January 17, 2024 REDWOOD TRUST, INC. By: /s/ Brooke E. Carillo Name: Brooke E. Carillo Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR