Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 100

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 100
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 voting 
 power of all classes of stock entitled to vote or 10% or more of the total value of all classes of stock of the tenant. Rents we     
 receive from such a tenant that is a TRS of ours, however, will not be excluded from the definition of “rents from real property”    
 as a result of this condition if at least 90% of the space at the property to which the rents relate is leased to third parties,     
 and the rents paid by the TRS are substantially comparable to rents paid by our other tenants for comparable space;                  |

| · | Rent attributable                                                                                                                  
 to personal property leased in connection with a lease of real property is not greater than 15% of the total rent received under   
 the lease. If this condition is not met, then the portion of the rent attributable to personal property will not qualify as “rents 
 from real property.” To the extent that rent attributable to personal property leased in connection with a lease of real property  
 exceeds 15% of the total rent received under the lease, we may transfer a portion of such personal property to a TRS; and          |

| · | We generally                                                                                                                             
 may not operate or manage the property or furnish or render services to our tenants, subject to a 1% de minimis exception                
 and except as provided below. We may, however, perform services that are “usually or customarily rendered” in connection                 
 with the rental of space for occupancy only and are not otherwise considered “rendered to the occupant” of the property.                 
 Examples of these services include the provision of light, heat, or other utilities, trash removal and general maintenance of common     
 areas. In addition, we may employ an independent contractor from whom we derive no revenue to provide customary services to our tenants, 
 or a TRS (which may be wholly or partially owned by us) to provide both customary and non-customary services to our tenants, without     
 causing the rent we receive from those tenants to fail to qualify as “rents from real property.”                                         |

<div align='center'>34</div>

We intend to structure any
leases so that the rent payable thereunder will qualify as “rents from real property,” but there can be no assurance we will
be successful in this regard.

Phantom Income

Due to the nature of the
assets in which we may invest, from time to time we may be required to recognize taxable income from those assets in advance of our receipt
of cash flow