Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 424B5
Source: 0001104659-25-108580
Chunk: 13

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 424B5
Chunk 13
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 turn could have the effect of reducing the volume of shares of our common stock traded in the marketplace, which could reduce the market price and liquidity of our common stock and, in turn, our ability to raise funds in a new securities offering.

Certain sales of shares of our common stock by our current directors and officers who beneficially own our common stock are required to be publicly reported and are tracked by many market participants as a factor in making their own investment decisions. As a result, future sales by these individuals could negatively affect the market price of our common stock and, in turn, our ability to raise funds in a new securities offering.

Holders of our common stock may not receive distributions, or distributions may decrease over time. Changes in the amount of distributions we make or in the tax characterization of distributions we make may adversely affect the market price of our common stock and our ability to raise funds in new securities offerings.

Our distributions are driven by a variety of factors, including our minimum distribution requirements under the REIT tax laws and our REIT taxable income as calculated pursuant to the Code. We generally

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intend to distribute to our stockholders at least 90% of our REIT taxable income, although our reported financial results for GAAP purposes may differ materially from our REIT taxable income.

Our ability to make a distribution at the same rate or similar rates at which we have in the past may be adversely affected by a number of factors, including the risk factors described herein and in our most recent Annual Report on Form 10-K filed with the SEC. These same factors may affect our ability to make other future distributions. In addition, to the extent we determine that future distributions would represent a return of capital to investors, rather than the distribution of income, we may determine to discontinue distributions until such time that distributions would again represent a distribution of income. Any reduction or elimination of our distributions would not only reduce the amount of distributions you would receive as a holder of our common stock, but could also have the effect of reducing the market price of our common stock and our ability to raise funds in new securities offerings.

In addition, the rate at which holders of our common stock are taxed on distributions we make and the characterization of our distribution — be it dividend income, capital gains, or a return of capital — could have an impact on the market price of our common stock and, in turn, our ability to raise funds in new stock offerings. After we announce the expected characterization