Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 9

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 9
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 per common share at December 31, 2024 is based on 132,519,579 common shares issued and outstanding as of such date. Shares
of common stock outstanding do not include a total of approximately 79 million shares of common stock (i) issuable in respect of vested
and unvested deferred stock units, and restricted stock units; (ii) issuable in respect of unvested performance stock units (assuming
maximum vesting under the performance-based vesting formula), (iii) reserved for issuance under our equity and incentive compensation
plans, (iv) reserved for issuance under our at-the-market offering program, (v) reserved for issuance under our direct stock purchase
and dividend reinvestment plans, (vi) issuable upon conversion or exchange of our outstanding convertible or exchangeable notes or preferred
stock, (vii) issuable in respect of our employee stock purchase plan, or (viii) issuable in respect of our deferred compensation plan
in each case as of December 31, 2024.

Recourse
leverage ratio is defined as our recourse debt divided by tangible stockholders’ equity. As of December 31, 2024, recourse debt
excludes an estimated $14.0 billion of consolidated securitization debt (ABS issued and servicer advance financing) and other debt that
is non-recourse to us, and tangible stockholders’ equity excludes an estimated $42 million of goodwill and intangible assets. On
a preliminary basis, we estimate our recourse debt was $2.8 billion and that our stockholders’ equity was $1.1 billion at December
31, 2024.

Our financial
statement closing and review procedures for the quarter and year ended December 31, 2024 are not yet complete and, as a result, the financial
results information set forth above reflects our preliminary estimate with respect to such information, based on information currently
available to management, and may vary from our actual financial results as of and for the quarter and year ended December 31, 2024. Further,
these preliminary estimates are not a comprehensive statement or estimate of our financial results or financial condition as of and for
the quarter and year ended December 31, 2024. These preliminary estimates should not be viewed as a substitute for full interim and annual
financial statements prepared in accordance with GAAP and they are not necessarily indicative of the results to be achieved in any future
period. Accordingly, you should not place undue reliance