Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 179

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 179
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As we continue to expand our focus on our operating platforms, we intend to allocate capital accordingly. In line with this strategy, during the second quarter we deployed approximately $100 million into retained operating investments, targeting returns in the range of 15% to 20%.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

The decrease in segment contribution in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024 is due to the decline in Investment fair value changes, net of $46 million driven by similar trends as mentioned above.

The following table presents details of our Redwood Investments Portfolio at June 30, 2025 and March 31, 2025 organized by investments in retained securities from Sequoia and CoreVest securitizations and those acquired from third-parties. Amounts presented in the table represent our retained economic interests in consolidated Sequoia, CAFL Term, Freddie Mac K-Series, and Servicing Investments as noted.

Table 10 – Redwood Investments - Detail of Economic Interests(In Thousands)June 30, 2025December 31, 2024Retained Operating InvestmentsResidential consumer securities$137,134 $139,683 Residential consumer securities at consolidated Sequoia entities (1)513,180 367,431 Residential investor securities at consolidated Securitization Term entities (2)330,340 326,074 Securitized residential investor bridge loans, restricted cash and REO1,053,228 840,457 Other investments (3)48,759 57,496 Total Retained Operating Investments$2,082,641 $1,731,141 Third-Party Portfolio InvestmentsResidential securities20,014 109,749 Multifamily securities— 11,749 Multifamily securities at consolidated Freddie Mac K-Series entities (4)35,977 35,163 HEI (5)8,216 2,156 Servicing investments (6)94,232 94,987 Other investments2,983 3,742 Total Third-Party Investments$161,422 $257,546 Total Segment Investments$2,244,063 $1,988,687 

(1)Represents our retained economic investment in securities issued by consolidated Sequoia securitization VIEs. For GAAP purposes