Redwood Trust, Inc. Announces Preliminary Fourth Quarter 2024 Financial Results

Redwood Trust, Inc. (NYSE: RWT) has disclosed certain preliminary results of operations for the quarter ended December 31, 2024, as per an 8-K filing with the Securities and Exchange Commission.

The company’s preliminary estimate, after factoring in the payment of the fourth quarter common stock dividend of $0.18 per share (a 5.9% increase from the previous quarter), indicates a range of $8.40 to $8.50 for book value per common share at December 31, 2024. This reflects a decline of approximately 2.75% to 4.00% compared to the figure of $8.74 reported at September 30, 2024.

Redwood Trust attributed the decrease in book value per common share to elevated benchmark interest rates impacting valuations in its securities portfolio and additional credit-related valuation declines on bridge loans. By December 31, 2024, the company’s recourse leverage ratio was estimated to be in the range of 2.4x to 2.5x, with an unrestricted cash balance of $248 million.

The impact of increased volume in its operating businesses during the quarter was offset by the negative effects mentioned above. The company is currently assessing the implications of the Los Angeles wildfires on its operations while closely monitoring the affected areas. As per current assessments, there are no identified circumstances expected to have a material adverse impact on Redwood Trust’s business.

The preliminary estimates are subject to finalization pending the completion of the financial statement closing and review procedures for the fourth quarter and year ended December 31, 2024. Redwood Trust emphasized that these preliminary figures should not be viewed as a substitute for a comprehensive statement of financial results prepared in accordance with GAAP.

The company alerted investors to the inherent uncertainties in preliminary estimates, noting that adjustments based on further information could result in material changes. Grant Thornton LLP, Redwood Trust’s independent registered public accounting firm, has not audited or reviewed these preliminary financial figures.

Redwood Trust reiterated that certain statements in the report are forward-looking and subject to risk factors outlined in its filings with the SEC. The company does not undertake any obligation to revise or update these forward-looking statements.

Investors are advised to refer to Redwood Trust’s SEC filings for a comprehensive understanding of the factors that could impact the company’s financial results and the forward-looking statements therein.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Redwood Trust’s 8K filing here.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.