Redwood Trust Stock Price, News & Analysis

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company and internally managed real estate investment trust (REIT) that focuses on several distinct areas of U.S. housing credit. The company states that it provides liquidity to growing segments of the housing market that are not well served by government programs. Redwood’s activities center on delivering customized housing credit investments to a diverse mix of investors through securitization platforms, whole-loan distribution, joint ventures, and its publicly traded equity and debt securities.

According to company disclosures, Redwood operates through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside a complementary Redwood Investments portfolio that is primarily composed of assets sourced through these platforms. Through these businesses, Redwood participates in mortgage banking and related investment activities across different segments of the housing credit market.

Core operating platforms

The Sequoia and Aspire platforms are described by Redwood as part of its residential consumer-focused mortgage banking activities. In its public materials, Redwood reports that Sequoia locks and distributes large volumes of residential loans and that Aspire loan volume is included within Sequoia’s segment results. The company highlights that loans identified for purchase from loan sellers ("lock volume") are subsequently distributed through a combination of securitizations and whole-loan sales.

CoreVest is presented as a mortgage banking platform focused on residential investor lending. Redwood reports that CoreVest funds and distributes residential investor loans through whole-loan sales, securitizations and sales to joint ventures. Segment information released by the company shows CoreVest as a separate mortgage banking segment with its own funding volumes, return on equity metrics and distribution activities.

The Redwood Investments segment consists of retained operating investments sourced through Sequoia securitizations and CoreVest term and bridge loan securitizations, as well as investments in joint ventures and other third-party investments, some of which are consolidated for GAAP purposes. Redwood reports segment-level net income and leverage metrics for this investment portfolio, and describes it as complementary to its mortgage banking platforms.

Legacy Investments and strategic transition

In its second quarter 2025 results, Redwood introduced a Legacy Investments reporting segment for assets that it identifies as not core to its long-term strategic objectives. The company explains that these assets, which include certain unsecuritized residential investor bridge loans, real estate owned (REO) investments and other third-party originated investments, are generally in the process of sale, run-off or other disposition.

Redwood has stated that it is reallocating capital from Legacy Investments toward its core mortgage banking platforms and related investments. Company communications describe this as part of a transition to a more scalable and simplified operating model, with an emphasis on mortgage banking activities, fee streams and joint venture co-investments as primary revenue drivers. Redwood also reports that it tracks non-GAAP measures such as Earnings Available for Distribution (EAD) and Core Segments Earnings Available for Distribution (Core Segments EAD) to analyze the performance of its core segments.

Capital markets activity and funding

Redwood’s filings and press releases show active use of the capital markets to support its operating platforms and investment portfolio. The company has issued senior unsecured notes, including 9.125% and 9.00% senior notes due 2029 and 9.125% and 9.500% senior notes due 2030, all listed on the New York Stock Exchange under separate symbols. In November 2025, Redwood completed an underwritten public offering of 9.500% senior notes due 2030 and indicated that net proceeds would be used for general corporate purposes, including funding its Sequoia, Aspire and CoreVest mortgage banking platforms, acquiring related assets for the Redwood Investments portfolio, and pursuing strategic acquisitions and investments.

The company has also issued 7.75% convertible senior notes due 2027 in a series of transactions, describing these as general unsecured obligations that are convertible into cash and, in certain circumstances, shares of common stock. Redwood’s disclosures outline the conversion terms, redemption rights and ranking of these notes relative to other indebtedness.

In addition, Redwood maintains an "at-the-market" equity offering program for its common stock under a shelf registration statement on Form S-3. An amended distribution agreement with several sales agents allows the company to sell shares of common stock up to an aggregate gross sales price specified in its prospectus supplement.

Joint ventures and strategic capital partnerships

Redwood reports that it uses joint ventures and strategic capital partnerships to support the growth of its platforms. In October 2025, the company announced an expansion of its partnership with Canada Pension Plan Investment Board (CPP Investments), including an extension of the joint venture commitment period, an increase and extension of a secured revolving financing facility, and amendments to warrants previously issued to CPP Investments. The secured facility was upsized and extended, and the warrant exercise period and strike price were adjusted, with the exercise price set at a premium to a trailing volume-weighted average price of Redwood common stock.

These arrangements illustrate how Redwood combines mortgage banking operations with third-party capital to finance loan pipelines and retained investments. The company also notes that it distributes loans through securitizations, whole-loan sales and sales to joint ventures across its Sequoia and CoreVest platforms.

Dividend practices and capital return

Redwood’s board of directors has authorized regular common stock dividends and dividends on its 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock, which trades on the New York Stock Exchange under a separate symbol. In multiple 2025 announcements, the company reported declaring quarterly common stock dividends of $0.18 per share and Series A preferred dividends of $0.625 per share, noting that the common dividend declarations represent a long-running sequence of quarterly payments.

Alongside dividends, Redwood has also authorized repurchases of its common stock, preferred stock and corporate debt securities. In July 2025, the board increased the common stock repurchase authorization to $150 million and continued existing authorizations for repurchases of preferred stock and corporate debt. The company states that the timing and amount of repurchases are at its discretion and depend on factors such as capital position, liquidity, financial performance, stock trading price, regulatory requirements and market conditions.

Corporate structure and listings

Redwood Trust, Inc. is incorporated in Maryland and is internally managed. The company states that it is structured as a real estate investment trust for U.S. federal income tax purposes. Its common stock trades on the New York Stock Exchange under the symbol RWT. In addition to common stock, the company has listed preferred stock and multiple series of senior notes on the New York Stock Exchange, each with its own trading symbol.

Redwood emphasizes a goal of providing what it describes as attractive returns to shareholders through a combination of earnings, dividends and capital appreciation, supported by what it characterizes as a commitment to technological innovation and risk-minded scale in its housing credit activities. Through its venture investing initiative, RWT Horizons®, the company invests in early-stage businesses that it says have a direct nexus to its operating platforms.

RWT Horizons and venture investing

RWT Horizons is presented by Redwood as a venture investing initiative focused on early-stage companies connected to its housing credit platforms. According to the company, these investments are intended to complement its core mortgage banking and investment activities by targeting businesses that intersect with its Sequoia, Aspire and CoreVest platforms or otherwise align with its operating model.

Redwood’s disclosures indicate that RWT Horizons is part of the broader strategy to support its platforms and explore opportunities that may enhance its ability to originate, distribute or invest in housing credit assets.

Regulatory reporting and financial communication

Redwood files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-Q, 10-K and 8-K. The company regularly issues press releases and shareholder letters discussing its financial results, segment performance and capital allocation decisions. It also publishes supplemental financial tables that provide additional detail on segment net income, leverage, loan production, distribution activities and non-GAAP performance measures.

Through these disclosures, Redwood provides investors with information on its mortgage banking platforms, investment portfolio, capital structure and ongoing transition from legacy assets to its identified core operating strategy.