News & Events zu Redwood Trust Inc (RWT)RWTRedwood Trust Inc

Company Reports Q3 GAAP Book Value Decline to $6.56

Reports GAAP book value per common share declined 4.9% to $6.56 at September 30, compared to $6.90 per share at June 30. The company said, "The third quarter of 2026 was among the most challenging for our industry since the onset of the COVID-19 pandemic. We prioritized liquidity while maintaining strong returns in mortgage banking. e distributed $8.8 billion of mortgage loans during the quarter, while continuing to serve our seller network. In aligning our corporate structure with our business model going forward, we can leverage our competitive advantages and continue growing market share-a major strategic priority as housing inventory for sale hits multi-year highs and the need for purchase-money mortgages potentially rises."

Redwood Trust Board Approves Conversion to C-Corporation

Redwood Trust announced that its board has unanimously approved a plan to discontinue the company's election to be treated as a real estate investment trust for U.S. federal income tax purposes and convert to a taxable C-corporation, effective for the calendar year ending December 31, 2027. Redwood also announced plans for a preferred-for-common stock exchange offer "designed to provide existing common stockholders, particularly those who prioritize current income, with an alternative way to participate in the Company's future." The company said, "Over the past year, and in light of the Company's strategic transformation, the Board and management team have been actively reviewing Redwood's organizational structure, balance sheet, capital allocation priorities and long-term strategic objectives with the assistance of independent financial and legal advisors. Today's actions represent an important next step to enhance value and lower our cost of capital as part of the continued evolution of Redwood's business model."

Bradley Radoff Urges Redwood Trust Board to Initiate Sale Process

Bradley Radoff issued an open letter to the Board of Directors of Redwood Trust, which read, "I am a significant holder of the outstanding shares of Redwood Trust. Given the Company's recent refinancing, I believe the Board should immediately hire a qualified investment banker and commence a sale process. I believe there are multiple strategic parties who would be interested in acquiring Redwood Trust if it were officially on the market. Below are the key reasons underpinning my view that the Company is better off being sold than remaining a standalone publicly traded entity: Redwood Trust's recent refinancing. The Company's recent capital markets activity indicates either a blatant attempt at entrenchment by permanently diluting the Company's shareholders or complete incompetence - neither is acceptable. I believe it is impossible for this Board and management team to regain any credibility with investors. Enriching Company executives appears to be the main function of Redwood Trust's public structure. The named executive officers' total compensation was $21.3M for fiscal year 2025. On average over the past three years, total compensation for all current named executive officers was $24.3M. Highlighting the misalignment between management incentives and shareholder outcomes, the only open market purchase by an executive officer during the past four years was in 2024 by CFO Brooke Carillo. I strongly believe a sale is the only positive risk-adjusted outcome for shareholders given the Company's persistent trading discount to intrinsic value and absurd executive compensation. I urge the Board to do the right thing for shareholders. If the Board refuses to initiate a review of strategic alternatives, I intend to nominate an alternative slate of director candidates for election to the declassified Board at the 2027 annual meeting of shareholders on the platform of pursuing a value-maximizing sale for the benefit of all shareholders."