Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 271

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 271
---
 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, includes Investment fair value earnings of $0.1 million and $0.2 million, respectively, under the measurement alternative. For both the three and six months ended June 30, 2024, we recognized net equity method losses of $1 million and $0.8 million, respectively, under the measurement alternative.  Depending on the terms of the strategic investments, we may account for these investments under the fair value option, as non-marketable equity securities under the equity method of accounting or the measurement alternative for equity securities without readily determinable fair values. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding these components and related transactions.Joint VenturesIn the second quarter of 2023, we established a joint venture with an institutional investment manager to invest in residential investor bridge loans originated by