Redwood Trust Files 8-K on Financials

TL;DR

RWT filed an 8-K detailing its financial condition and key debt/equity instruments.

AI Summary

Redwood Trust, Inc. filed an 8-K on January 15, 2025, reporting on its results of operations and financial condition. The filing includes information related to its common stock, Series A Preferred Stock, 9.125% Senior Notes due 2029, and 9% Senior Notes due 2029.

Why It Matters

This filing provides investors with updated information on Redwood Trust's financial performance and capital structure, which can influence investment decisions.

Risk Assessment

Risk Level: low — This is a routine 8-K filing reporting on financial condition and operations, not indicating any immediate new risks.

Key Players & Entities

• REDWOOD TRUST INC (company) — Registrant
• January 15, 2025 (date) — Date of earliest event reported
• 001-13759 (other) — Commission File Number
• 68-0329422 (other) — I.R.S. Employer Identification No.
• us-gaap:CommonStockMember (other) — Financial reporting item
• us-gaap:SeriesAPreferredStockMember (other) — Financial reporting item
• rwt:Percent9125SeniorNotesDue2029Member (other) — Financial reporting item
• rwt:Percent9SeniorNotesDue2029Member (other) — Financial reporting item

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share RWT New York Stock Exchange
• $0.18 — fourth quarter common stock dividend of $0.18 per share (which was a 5.9% increase re
• $8.40 — per common share to be in the range of $8.40 to $8.50 at December 31, 2024, down app
• $8.50 — on share to be in the range of $8.40 to $8.50 at December 31, 2024, down approximatel
• $8.74 — pproximately 2.75% to 4.00% compared to $8.74 at September 30, 2024. During the fourt
• $248 million — x and our unrestricted cash balance was $248 million. In response to the Los Angeles wildfir
• $14.0 billion — 24, recourse debt excludes an estimated $14.0 billion of consolidated securitization debt (AB
• $42 million — ckholders' equity excludes an estimated $42 million of goodwill and intangible assets. On a
• $2.8 billion — asis, we estimate our recourse debt was $2.8 billion and that our stockholders' equity was $
• $1.1 billion — n and that our stockholders' equity was $1.1 billion at December 31, 2024. Our financial st

Filing Documents

• tm253198d2_8k.htm (8-K) — 41KB
• 0001104659-25-003630.txt ( ) — 271KB
• rwt-20250115.xsd (EX-101.SCH) — 4KB
• rwt-20250115_def.xml (EX-101.DEF) — 27KB
• rwt-20250115_lab.xml (EX-101.LAB) — 38KB
• rwt-20250115_pre.xml (EX-101.PRE) — 26KB
• tm253198d2_8k_htm.xml (XML) — 7KB

02. Results of Operations and Financial Condition

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, 2024. Preliminary Estimate of Book Value Per Common Share at December 31, 2024 Although our financial results for the fourth quarter of 2024 are not yet finalized, on a preliminary basis we estimate, after giving effect to the payment of our fourth quarter common stock dividend of $0.18 per share (which was a 5.9% increase relative to the third quarter 2024), book value per common share to be in the range of $8.40 to $8.50 at December 31, 2024, down approximately 2.75% to 4.00% compared to $8.74 at September 30, 2024. During the fourth quarter of 2024, the positive impact of increased volume in our operating businesses was more than offset by the net negative impact of higher benchmark interest rates which negatively impacted valuations in our securities portfolio and additional credit-related valuation declines on our bridge loans. We estimate that at December 31, 2024 our recourse leverage ratio was in the range of 2.4x to 2.5x and our unrestricted cash balance was $248 million. In response to the Los Angeles wildfires, we continue to assess the impact to our business and we are currently monitoring the affected areas. While the fires are ongoing and the full extent of their total impact is yet to be determined, based on our assessments to date, we have not identified circumstances that we believe would have a material adverse impact on our business. Estimated book value per common share at December 31, 2024 is based on 132,519,579 common shares issued and outstanding as of such date. Shares of common stock outstanding do not include a total of approximately 79 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

Forward-Looking Statements" below and "Risk Factors" beginning on page 6 of our Annual Report on Form 10-K for the year

Forward-Looking Statements" below and "Risk Factors" beginning on page 6 of our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of factors that could impact our actual results of operations. Grant Thornton LLP, our independent registered public accounting firm, has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Accordingly, Grant Thornton LLP does not express an opinion or provide any form of assurance with respect thereto. The information contained in Item 2.02 is furnished to and not filed with the Securities and Exchange Commission, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing. Cautionary Statement Regarding Forward-Looking Statements This Current Report on Form 8-K contains certain "forward-looking" are predictive in nature, that depend on or relate to future events or conditions, or that include words such as "believes", "anticipates", "expects", "may", "will", "would," "should", "estimates", "could", "intends", "plans" or other similar expressions are forward-looking statements, including the Company's preliminary financial results for the quarter ended December 31, 2024. These forward-looking statements are based on the Company's current assumptions, expectations and beliefs and are subject to numerous risks, including, among other things, those set forth under the caption "Risk Factors" in the Company's most recent filings with the Securities and Exchange Commission, uncertainties, assumptions and changes in circumstances that may cause the Company's actual results, performance or achievements to differ mate

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 15, 2025 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