Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 135

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 135
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 Contingencies

Lease CommitmentsAt June 30, 2025, we were obligated under nine non-cancelable operating leases with expiration dates through 2031 for $14 million of cumulative lease payments. For both the six-months ended June 30, 2025 and 2024, our operating lease expense was $2 million. During the six months ended June 30, 2025, we entered into two new office leases with a lease term of greater than one year.At June 30, 2025, our operating lease liabilities were $12 million, which were a component of Accrued expenses and other liabilities, and our operating lease right-of-use assets were $10 million, which were a component of Other assets.Commitment to Fund Residential Investor Bridge LoansAs of June 30, 2025, we had commitments to fund up to $435 million of additional advances on existing residential investor bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before we fund the commitment. At June 30, 2025, we carried a $1 million contingent liability related to these commitments to fund construction advances. During the six months ended June 30, 2025, we recorded net market valuation income of $0.4 million, respectively, related to this liability through Investment of fair value changes, net and on our consolidated statements of income.As of June 30, 2025, we had commitments to purchase $3 million of residential investor bridge loans from a third-party originator.Commitment to Fund Joint VenturesIn the first quarter of 2024, we entered into a joint venture with an institutional investment manager pursuant to which we will offer to sell certain residential investor bridge and term loans we originate into joint venture entities that meet specified criteria at contractually pre-established prices. We have committed approximately $100 million of equity capital to be allocated to the joint venture entities and joint venture co-investments to be held in Redwood's investment portfolio. At June 30, 2025, we had contributed $25 million of capital to the joint venture.In the second quarter of 2023, we entered into a joint venture with another institutional investment manager to invest in residential investor bridge loans originated by our CoreVest subsidiary. We have a commitment to contribute up to approximately $19 million to the joint venture to fund the joint venture's purchase of residential investor bridge loans, under the updated terms