Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 106

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 106
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securities issued by a partnership that itself would satisfy the 75% income test if it were a REIT, any loan to an individual or an estate,
any obligation to pay rents from real property and any security issued by a REIT. In addition, solely for purposes of the 10% value test,
the determination of our interest in the assets of a partnership in which we own an interest will be based on our proportionate interest
in any securities issued by the partnership, excluding for this purpose certain securities described in the Code. From time to time we
may own securities (including debt securities) of issuers that do not qualify as a REIT, a qualified REIT subsidiary or a TRS. We intend
that our ownership of any such securities will be structured in a manner that allows us to comply with the asset tests described above.

Fourth, not more than 20%
(25% for taxable years beginning after July 30, 2008 and before January 1, 2018) of the value of our total assets may be represented
by the securities of one or more TRSs. We currently own, directly or indirectly, interests in companies that have elected, together with
us, to be treated as our TRSs, and we may acquire securities in additional TRSs in the future. So long as each of these companies qualifies
as a TRS of ours, we will not be subject to the 5% asset test, the 10% voting securities limitation or the 10% value limitation with
respect to our ownership of the securities of such companies. We believe that the aggregate value of our TRSs has not exceeded, and in
the future will not exceed, 20% (25% for taxable years beginning after July 30, 2008 and before January 1, 2018) of the aggregate
value of our gross assets. We generally do not obtain independent appraisals to support these conclusions. In addition, there can be
no assurance that the IRS will not disagree with our determinations of value.

Fifth, not more than 25%
of the value of our total assets may be represented by debt instruments of publicly offered REITs to the extent those debt instruments
would not be real estate assets but for the inclusion of debt instruments of publicly offered REITs in the meaning of real estate assets,
as described above (e.g., a debt instrument issued by a publicly offered REIT that is not secured by a mortgage on real