Redwood Trust: Investor Day Emphasizes The Longer-Term Growth Potential

Oct. 08, 2021 1:17 PM ETRedwood Trust, Inc. (RWT) StockRWT6 Comments

Summary

  • Redwood Trust outlined some impressive new growth targets at its latest Investor Day event.
  • A potential shift away from a REIT structure and the development of a venture capital arm could yield additional longer-term upside.
  • With shares trading at undemanding valuations and offering an attractive dividend yield, I see plenty of reasons to own the name.
Text REIT made of wood cubes on white textured putty background. Abbreviation from "Real estate investment trust". Business concept. Square wood blocks. Top view, flat lay.

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Redwood Trust (NYSE:RWT) recently laid out some promising guidance numbers at its Investor Day event, with ROE set to reach 15+% in fiscal 2022 and longer-term growth accelerating across the CoreVest, non-agency residential lending, and investment portfolio. The updated guidance, coupled with management's confidence in

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