Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 8

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 8
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 year ended December 31, 1994. We generally
refer, collectively, to Redwood Trust, Inc. and those of its subsidiaries that are generally not subject to subsidiary-level corporate
income tax as “the REIT” or “our REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are
subject to subsidiary-level corporate income tax as “our taxable REIT subsidiaries” or “our TRSs.” Our mortgage
banking activities and investments in mortgage servicing rights, or “MSRs,” are generally carried out through our taxable
REIT subsidiaries, while our portfolio of mortgage- and other real estate-related investments is primarily held at our REIT. We generally
intend to retain profits generated and taxed at our taxable REIT subsidiaries, and to distribute as dividends at least 90% of the taxable
income we generate at our REIT.

<div align='center'>S-1

RECENT DEVELOPMENTS</div>

Preliminary Estimate of Book Value Per Common Share at December 31, 2024

Although
our financial results for the fourth quarter of 2024 are not yet finalized, on a preliminary basis we estimate, after giving effect to
the payment of our fourth quarter common stock dividend of $0.18 per share (which was a 5.9% increase relative to the third quarter 2024),
book value per common share to be in the range of $8.40 to $8.50 at December 31, 2024, down approximately 2.75% to 4.00% compared
to $8.74 at September 30, 2024. During the fourth quarter of 2024, the positive impact of increased volume in our operating businesses
was more than offset by the net negative impact of higher benchmark interest rates which negatively impacted valuations in our securities
portfolio and additional credit-related valuation declines on our bridge loans. We estimate that at December 31, 2024 our recourse
leverage ratio was in the range of 2.4x to 2.5x and our unrestricted cash balance was $248 million. In response to the Los Angeles wildfires, we continue to assess the impact to our business and we are currently monitoring the affected
areas. While the fires are ongoing and the full extent of their total impact is yet to be determined, based on our assessments to date,
we have not identified circumstances that we believe would have a material adverse impact on our business.

Estimated
book value