Redwood Trust Stock Price, News & Analysis

CoreVest American Finance Lender, LLC, a division of Redwood Trust (NYSE:RWT), has received a MOR CS3 commercial mortgage special servicer ranking from DBRS Morningstar, marking its first such recognition. This ranking acknowledges CoreVest's successful management of loans over recent years and positions it as capable of serving as a special servicer for its products. CEO Beth O'Brien expressed satisfaction with this acknowledgment, emphasizing their commitment to delivering strong performance on securitizations for investors.

Redwood Trust, Inc. (NYSE: RWT) has declared a regular dividend of $0.23 per share for Q2 2022, marking its 92nd consecutive quarterly dividend. This dividend is payable on June 30, 2022, to stockholders of record by June 23, 2022. The Company focuses on providing innovative housing credit solutions and aims to deliver attractive returns to shareholders through a combination of earnings, dividends, and capital appreciation.

Redwood Trust, Inc. (NYSE: RWT) announced it has priced $200 million of 7.75% convertible senior notes due 2027, increasing from a previously planned $150 million. The offering is set to close on June 9, 2022. The notes will be senior unsecured obligations, convertible into common stock at a rate of approximately 95.68 shares per $1,000 principal, at a conversion price of about $10.45 per share, representing a 12.5% premium. Proceeds will fund investments, acquisitions, and repurchase around 2.7 million shares of common stock. The offering has not been registered under the Securities Act.

Redwood Trust (NYSE: RWT) plans to offer $150 million in convertible senior notes due 2027 in a private offering to qualified institutional buyers. The offering may increase by an additional $22.5 million based on demand. Proceeds from the offering will support investments in mortgage banking, third-party securities, strategic acquisitions, and repurchase of common stock. The notes will be senior unsecured obligations and have not been registered under the Securities Act. This move aims to enhance Redwood's liquidity and investment capacity in the housing finance market.

Oasis Pro Inc. has successfully closed a $27+ million Series A financing round, significantly oversubscribed, attracting notable investors including Redwood Trust (NYSE:RWT) and the Avalanche Fund. This capital will support the expansion of its management team and technology platform, as well as accelerate its Digital Asset Security ATS platform. CEO Pat LaVecchia emphasized the importance of strategic partnerships in driving growth and innovation in the blockchain space, positioning Oasis Pro to bridge traditional and decentralized finance.

Redwood Trust (NYSE: RWT) has announced its acquisition of Riverbend Funding, LLC, a leading private mortgage lender specializing in financing for residential and commercial real estate investors. This all-cash transaction aims to enhance Redwood's CoreVest platform by expanding its product offerings and geographic reach. Over the last year, Riverbend originated over $1.0 billion in loans across 33 states. The deal is expected to close in Q2 2022, pending customary conditions, and Riverbend's leadership will remain post-acquisition.

Redwood Trust reported Q1 2022 financial results, showing a GAAP net income of $31 million or $0.24 per diluted share, reflecting a 9% annualized return on equity. Book value per share slightly declined to $12.01 from $12.06. The company deployed $128 million into investments and recorded a significant $920 million in business purpose loans, marking a 25% increase from the previous quarter. Redwood maintained a robust balance sheet with $409 million in unrestricted cash. Additionally, an acquisition of Riverbend Funding is set to enhance its mortgage banking platform.

Redwood Trust (NYSE: RWT) announced five new investments by its venture arm, RWT Horizons, in Q1 2022, focusing on financial and real estate technology. Notable investments include:

• Dwellsy: Online rental platform with 13 million listings.
• FutureProof Technologies: Insurtech company using AI for climate risk analysis.
• LeaseLock: Security deposit replacement provider for housing.
• Oasis Pro Markets: Platform for trading digital securities.
• Vesta Equity: Marketplace for tokenized home equity investments.

Redwood Trust, Inc. (NYSE: RWT) will announce its first quarter 2022 financial results on April 28, 2022, post-market. A conference call for discussing these results is scheduled for 2:00 p.m. PT / 5:00 p.m. ET the same day. The call will be accessible via webcast on Redwood's Investor Relations site. An audio replay will be available starting at 5:00 p.m. PT on April 28 until May 12, 2022. Redwood Trust focuses on providing liquidity in the housing market, offering customized housing credit investments through diverse platforms.