Mon, Jun. 1, 1:25 PM
- In what should boost the flow of mortgages to Redwood Trust (RWT), the company and the FHLB of Chicago boosted the jumbo limit for the MPF Direct program to $1.5M from $729.75K, reports Inside Mortgage Finance.
- The higher limit will go into effect early in Q3.
- The boost is intended to help those members operating in areas where home prices are greater than the national average, says the FHLB's John Stocchetti.
- Alongside this announcement, the FHLB's of Atlanta, Boston, and San Francisco are now eligible to offer the MPF Direct product, and Redwood says there are about 750 members of the FHLB system now able to participate.
Tue, May 19, 4:21 PM
Mon, May 4, 4:19 PM
Tue, Feb. 24, 2:23 PM
- One issue for Redwood Trust (RWT -2.5%) are mark-to-market items associated with interest rate volatility that flow through to the income statement, but in some cases the economic offsets in place only show up on the balance sheet.
- One example in Q4 was the company's MSR portfolio which was marked down by $15M thanks to declining interest rates. While MSRs are a nice natural hedge against rising rates, that benefit only shows up on the balance sheet, and not the bottom line (GAAP income in Q4 was $27M vs. $45M in Q3).
- "We are currently looking for ways to better align the accounting between our MSR investments and other interest rate sensitive securities over the coming quarters," says CFO Chris Abate, speaking on the earnings call (transcript).
- As for the 2015 outlook, the company expects to acquire $8B of conforming loans and $7B of jumbo loans - a total of $15B, or 67% higher than 2014. In commercial, the expectation is for $1.5B in originations vs. $1B in 2014 at margins averaging 150 basis points.
- Previously: Redwood Trust slips slightly after Q4 results (Feb. 23)
Mon, Feb. 23, 5:11 PM
- Q4 GAAP income per share of $0.31 vs. $0.50 in Q3, $0.29 one year ago. Q4 REIT taxable income per share of $0.19 vs. $0.21 in Q3, $0.20 one year ago. Annualized GAAP ROE of 9% compares to 14% in Q3.
- GAAP book value per share of $15.05 vs. $15.21 in Q3, $15.10 one year ago. Today's close was $19.98.
- Redwood Review
- Previously: Redwood Trust misses by $0.04, beats on revenue (Feb. 23)
- Earnings call is underway.
- RWT -0.4% after hours
Mon, Feb. 23, 4:40 PM
Mon, Feb. 23, 4:15 PM
Sun, Feb. 22, 5:35 PM
Nov. 24, 2014, 7:56 AM| Comment!
Nov. 7, 2014, 10:56 AM
- Q3 GAAP income of $45M or $0.50 per share compared to $16M and $0.18 in Q2. REIT taxable income of $0.21 per share vs. $0.17 in Q2. The dividend is $0.28.
- GAAP book value per share rises to $15.21 from $15.03 as GAAP income was well in excess of the quarterly payout. The current price of $19.36 is 1.27x book.
- Loan acquisitions of $3.4B were up 89% Q/Q, with the new initiative of acquiring conforming loans generating 46% of that total. Of note were gross margins on conforming loan sales turning positive in Q3 as the company moves past an initial focus of establishing itself and building market share.
- The Redwood Review
- Previously: Redwood Trust beats by $0.19, beats on revenue
- RWT +4.1%
Nov. 6, 2014, 6:18 PM
Nov. 6, 2014, 4:26 PM
Aug. 20, 2014, 3:35 PM
- UBS O'Connor LLC is a $5.6B hedge fund unit within the Swiss bank, and it has cut REIT holdings across the board by more than $900M after racking up big gains in the stocks this year.
- The biggest reductions were in Mid-America Apartment Communities (MAA +0.3%), AvalonBay (AVB +0.8%), and Equity Lifestyle Properties (ELS +0.2%), and other holdings include Redwood Trust (RWT -0.8%) and American Realty Capital (ARCP +1.1%).
- ETFs: IYR, VNQ, DRN, URE, REZ, SRS, ICF, RWR, SCHH, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, FNIO, WREI, GQRE
- SEC Form 13F
Aug. 8, 2014, 7:52 AM
- Q2 estimated REIT taxable income of $14M or $0.17 per share vs. $15M and $0.19 in Q1, $20M and $0.25 a year ago. Dividend is $0.28.
- Book value per share of $15.03 vs. $15.14 at end of Q1 and $14.69 a year ago. Last night's RWT close of $19.43 is nearly 1.3x book.
- From the must-read Redwood Review: "Our near-term quarterly earnings remain under pressure and are lagging the progress we see in our operations. This fact is not lost on us."
- The management team is confident margin pressure impacting the entire residential mortgage industry will subside as capacity and pricing move back in line with origination volume.
- Previously: Redwood Trust misses by $0.16, misses on revenue
Aug. 7, 2014, 7:35 PM
Aug. 7, 2014, 4:42 PM
RWT vs. ETF Alternatives
Redwood Trust Inc operates as a real estate investment trust. The Company together with its subsidiaries is engaged in investing in mortgage- and other real estate-related assets and engaging in residential and commercial mortgage banking activities.
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