Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 110

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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million and $8 million, respectively, Investment fair value changes, net of negative $3 million and positive $10 million, respectively, and Servicing income, net of $2 million and $4 million, respectively. For the six months ended June 30, 2025 and 2024, income from Servicing investments included Other interest income of $14 million and $16 million, respectively, Investment fair value changes, net of negative $6 million and positive $8 million, respectively, and Servicing income, net of $5 million and $8 million, respectively.

36

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) 

Note 12. Strategic Investments

Strategic Investments at June 30, 2025 and December 31, 2024 are summarized in the following table.Table 12.1 – Components of Strategic Investments(In Thousands)June 30, 2025December 31, 2024Strategic investments, equity method$37,138 $48,767 Strategic investments, measurement alternative26,594 25,896 Strategic investments, at fair value3,460 3,460 Other investments11,063 — Total Strategic Investments$78,255 $78,123 Income from Strategic Investments for the three and six months ended June 30, 2025 and 2024 are summarized in the following tables.Table 12.2 – Components of Income From Strategic Investments, netThree Months Ended June 30,(In Thousands)20252024Other (loss) income, net (1)$(210)$(1)Investment fair value changes, net (2)(132)(1,450)Total Strategic Investments Income, Net$(342)$(1,451)Six Months Ended June 30,(In Thousands)20252024Other income (loss), net (1)$969 $(945)Investment fair value changes, net (2)(212)(800)Total Strategic Investments Income, Net$757 $(1,745)(1)Represents net equity method earnings from our Strategic investments that are accounted for under the equity method.(2)Includes Investment fair value changes related to our Strategic investments that are accounted for under the measurement alternative for equity securities without readily determinable fair values. For the three and six months ended June 30, 2025,