Redwood Trust ( (RWT) ) has realeased its Q3 earnings. Here is a breakdown of the information Redwood Trust presented to its investors.
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Redwood Trust, Inc. (NYSE:RWT) is a specialty finance company that provides liquidity to segments of the U.S. housing market through customized housing credit investments. Operating as a real estate investment trust (REIT), Redwood focuses on residential consumer and investor mortgage banking and investment portfolios.
In its third-quarter 2024 financial report, Redwood Trust announced a GAAP net income of $13.1 million, translating to $0.09 per basic and diluted common share. The company also reported a non-GAAP Earnings Available for Distribution (EAD) of $25.2 million or $0.18 per share, alongside an economic return on book value of 2.1% for the quarter.
Key highlights from the report include a 30% annualized GAAP return on capital in residential consumer mortgage banking and a 45% return in residential investor mortgage banking. Redwood Trust also increased its quarterly dividend by 6.25% from the previous quarter, indicating confidence in consistent earnings growth.
Looking ahead, Redwood Trust’s management is optimistic about the future, citing favorable monetary policy and regulatory environments. The company plans to leverage its expertise and market position to meet increasing demand for its non-Agency market products, with a focus on growing earnings and deploying capital effectively.
