Redwood Trust Stock Price, News & Analysis

Redwood Trust reported Q3 2022 financial results, highlighting a GAAP net loss of $(0.44) per diluted share, with a book value per share of $10.18, down 5.6% from Q2 2022. The company generated Non-GAAP Earnings Available for Distribution of $0.16 per share. Key operations included $167 million in new investments and $570 million in funded business purpose loans. Despite challenging market conditions, Redwood maintained a robust balance sheet with $297 million in cash and significant unused financing capacity. The company declared a quarterly dividend of $0.23, demonstrating ongoing commitment to shareholder returns.

Redwood Trust, Inc. (NYSE: RWT) provided preliminary financial results for Q3 2022, showing a GAAP book value per share estimated between $10.15 to $10.25, a decrease of 4.9% to 5.8% from $10.78 at the end of Q2 2022. The company reported strong liquidity with $297 million in unrestricted cash and $500 million in unencumbered assets. They added $900 million in financing capacity and repurchased 3.4 million shares for $24 million, adding $0.12 per share to book value. A dividend of $0.23 per share was also declared.

Redwood Trust (NYSE: RWT) is collaborating with LauraMac to develop a new loan acquisition technology tailored to enhance Redwood's loan process and client experience. This system, based on LauraMac's Loan Acquisition System, features an intuitive seller dashboard, automated document recognition, and a robust rules engine, aimed at improving transaction efficiency and transparency. Both companies express strong optimism about this partnership's potential to innovate in the mortgage capital markets.

Redwood Trust, Inc. (NYSE: RWT) announced leadership changes aimed at enhancing its organizational structure. Fred Matera, previously Head of Residential, has been appointed as Chief Investment Officer, overseeing investment, capital markets, and distribution functions. The transition coincides with the upcoming departure of CoreVest’s CEO Beth O’Brien and President Christopher Hoeffel on October 14, 2022, marking three years since Redwood's acquisition of CoreVest. The company aims to maintain strong leadership while continuing to provide exceptional service through its mortgage banking platforms.

Redwood Trust (NYSE: RWT) has announced a third quarter 2022 dividend of $0.23 per share, marking its 93rd consecutive quarterly dividend. This dividend is payable on September 30, 2022, to stockholders on record by September 23, 2022. Redwood Trust is a specialty finance company focusing on housing credit, with a commitment to providing liquidity in underserved segments of the U.S. housing market. The company aims to deliver attractive returns to shareholders through a stable stream of earnings and dividends, alongside ongoing innovations.

Redwood Trust (NYSE:RWT) has authorized a new stock repurchase program of up to $125 million, replacing a previous program of $100 million. This initiative allows for opportunistic repurchases without a set time limit, aiming to enhance shareholder value. In Q2 2022, Redwood repurchased $33 million in shares that positively impacted book value. CEO Christopher Abate emphasized a balanced approach to capital allocation, considering other investments alongside stock repurchases.

Redwood Trust reported Q2 2022 results, showing a 10% decrease in GAAP book value per share to $10.78 and a GAAP net loss of $(0.85) per diluted share. This loss was largely driven by unrealized fair value changes on long-term investments. The company maintained a recourse leverage ratio of 2.5x and deployed $166 million into new investments. Despite a challenging market, Redwood's balance sheet remains robust with $371 million in unrestricted cash and a new share repurchase program authorized for $125 million.

Redwood Trust (NYSE: RWT) will announce its Q2 2022 financial results on July 28, 2022, after market close. A conference call to discuss these results is scheduled for 2:00 PM PT on the same day. Investors can listen to the call via live webcast on the company's Investor Relations website. Following the call, a replay will be available until August 11, 2022.

Redwood Trust specializes in housing credit and operates in segments including Residential and Business Purpose Mortgage Banking, aiming to deliver liquidity and innovative solutions in the U.S. housing market.

Redwood Trust, Inc. (NYSE: RWT) has completed its acquisition of Riverbend Funding, LLC, a leading private mortgage lender, in an all-cash transaction. This acquisition, first announced on April 28, 2022, aims to enhance Redwood's CoreVest American Finance Lender platform by adding single asset bridge origination. The integration is expected to expand the company's product offerings, geographic reach, and client base, supporting revenue growth amidst a higher interest rate environment.