Redwood Trust Stock Price, News & Analysis

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.

Redwood Trust (NYSE: RWT) has priced a $40 million reopening of its 7.75% convertible senior notes due 2027. The notes will be part of the same series as the $207,410,000 aggregate principal amount currently outstanding. The offering is expected to close on October 11, 2024. The conversion rate is 95.6823 shares of common stock per $1,000 principal amount, equivalent to a conversion price of approximately $10.45 per share, a 38% premium to the closing price on October 9, 2024.

Redwood estimates net proceeds of $38.2 million after deducting costs. The company intends to use the proceeds to repurchase a portion of its 5.75% exchangeable senior notes due 2025 and for general corporate purposes. The notes and any shares issuable upon conversion have not been registered under the Securities Act and can only be offered or sold pursuant to exemptions from registration requirements.

Redwood Trust, Inc. (NYSE: RWT) has announced a 6.25% increase in its third quarter 2024 common stock dividend to $0.17 per share, marking its 101st consecutive quarterly dividend. The dividend is payable on September 30, 2024, to stockholders of record on September 23, 2024. CEO Christopher Abate expressed confidence in the company's balance sheet strength and outlook amid an expected more accommodative interest rate environment. Redwood anticipates further scale in mortgage banking operations and unlocking embedded value in its investment portfolio, driving earnings and book value expansion. Additionally, the company declared a Series A preferred stock dividend of $0.625 per share for Q3 2024, payable on October 15, 2024.

Redwood Trust (NYSE:RWT) reported its Q2 2024 financial results, showing a GAAP net income of $13.8 million or $0.10 per share. The company's GAAP book value per common share was $8.73 as of June 30, 2024, with an economic return on book value of 1.3% for the quarter. Redwood's residential consumer mortgage banking saw a 49% increase in lock volume to $2.7 billion, while the residential investor mortgage banking funded $459 million in loans, up 41% from Q1. The company maintained a recourse leverage ratio of 2.1x and declared a quarterly dividend of $0.16 per common share. Redwood also reported $276 million in unrestricted cash and $332 million in unencumbered assets at quarter-end.

Redwood Trust (NYSE: RWT) is set to release its Q2 2024 financial results on August 1, 2024, before the NYSE opens.

The company's senior management will host a conference call to discuss the results at 5:00 a.m. Pacific Time / 8:00 a.m. Eastern Time the same day.

The call will be webcast live on Redwood's Investor Relations website. Participants are advised to register and download the necessary software 15 minutes before the start.

The live call can be accessed by dialing 1-877-423-9813 (domestic) or 1-201-689-8573 (international). A replay will be available shortly after the call, accessible until August 15, 2024, using passcode 13746920.

Redwood Trust has announced an underwritten public offering of $85 million in senior notes, with a 9.00% interest rate due in 2029, and a 30-day option for underwriters to purchase an additional $12.75 million. The offering is set to close on June 18, 2024, pending certain conditions. The notes are expected to trade on the NYSE under the symbol RWTO, and have received a BBB rating from Egan-Jones. The proceeds will be used for general corporate purposes, including funding business activities and repaying existing debt. Interest payments will be quarterly, starting September 1, 2024, and the notes will mature on September 1, 2029.

Redwood Trust (NYSE: RWT) has declared its second quarter 2024 dividends for both common and preferred stocks. The Board of Directors announced a $0.16 per share common stock dividend, marking the 100th consecutive quarterly dividend. It will be payable on June 28, 2024, to stockholders of record as of June 21, 2024.

Additionally, the Board declared a $0.625 per share dividend for the Series A preferred stock, which will be payable on July 15, 2024, to stockholders of record as of July 1, 2024.

Redwood Trust, a leader in housing access, reported impressive financial results for Q1 2024. GAAP book value per share increased to $8.78, with a 3.5% return on book value. Net income was $29 million. The company saw growth in jumbo loans and mortgage lock volumes. They deployed capital into investments, renewed financing facilities, and completed a strategic partnership. Operational efficiency improvements led to cost savings. The CEO expressed confidence in the company's momentum and strategic positioning.