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Redwood Trust Reports Strong Q1 2025 Results

Redwood Trust Reports Strong Q1 2025 Results

Redwood Trust ( (RWT) ) has released its Q1 earnings. Here is a breakdown of the information Redwood Trust presented to its investors.

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Redwood Trust, Inc. is a specialty finance company operating in the housing credit sector, providing liquidity through securitization platforms and whole-loan distribution activities. The company focuses on segments not well served by government programs and operates as a real estate investment trust (REIT).

In its first quarter of 2025, Redwood Trust reported a GAAP net income of $14.4 million, translating to $0.10 per share, and non-GAAP earnings available for distribution of $19.8 million or $0.14 per share. The company maintained a stable dividend of $0.18 per share, reflecting its commitment to returning value to shareholders.

Key financial highlights include a slight decrease in book value per share to $8.39 from $8.46 in the previous quarter, while the economic return on book value improved to 1.3%. The company also reported a recourse leverage ratio of 2.5x and held $260 million in unrestricted cash. Notably, the Sequoia Mortgage Banking segment saw significant growth, with loan lock volumes increasing by 73% from the previous quarter.

Redwood Trust’s strategic focus remains on expanding its market share and enhancing its earnings profile. The company successfully distributed nearly $2.5 billion in loans during the quarter, driven by strong investor demand. Looking ahead, Redwood plans to leverage its solid capital position to continue supporting its origination and sponsor networks, aiming for further growth as the year progresses.

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