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0 0 0 0 -0.00267296371000807 1.63985503681092E-05 0.000311572456994804 0.000311572456994804
Stock impact report

Redwood Trust: 12% Dividend And Discount To Book [Seeking Alpha]

Redwood Trust, Inc. (RWT) 
Last redwood trust, inc. earnings: 2/27 04:16 pm Check Earnings Report
US:NYSE Investor Relations: redwoodtrust.com/corporateprofile
Company Research Source: Seeking Alpha
RWT is shifting from passive portfolio management to active mortgage banking, emphasizing loan origination and distribution via Sequoia, CoreVest, and Aspire platforms. The dividend yield is an attractive 12%, but coverage relies on distributable earnings, raising sustainability concerns amid negative net profit margin and sector headwinds. Share buybacks and cost reductions aim to close the price-to-book gap, yet high financing costs, leverage, and interest rate risks remain material to the RWT investment case. My Thesis Redwood Trust, Inc. ( RWT ), operates as a specialized real estate investment trust, or REIT, whose focus is on the housing lending market through platforms such as Sequoia and CoreVest. Their business model is based on income from mortgage loan purchases, securities securitization, and investment portfolio management. The current P/B rate is at 0.82, which is lower than the 13-year historical median of this company, which is 0.93. This valuation suggests th Show less Read more
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