MILL VALLEY, Calif.,
March 27, 2020 /PRNewswire/
-- Redwood Trust, Inc. (NYSE: RWT), a leading
innovator in housing credit investing, today announced that it has
delayed the payment date for its previously declared $0.32 per share common stock dividend for the
first quarter of 2020.
The first quarter 2020 dividend is now
scheduled to be paid on June 12, 2020. As
previously announced on February 27,
2020, the first quarter 2020 dividend will continue to be
payable to stockholders of record on March 16,
2020.
Christopher J. Abate, Chief
Executive Officer of Redwood Trust, explained, "We remain focused
on paying the first quarter dividend. While the decision to
delay the payment of this dividend was difficult to make, we
believe it is in the best interests of Redwood during this period
of near-term uncertainty and volatility caused by the COVID-19
pandemic."
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is
a specialty finance company focused on making credit-sensitive
investments in single-family residential and multifamily mortgages
and related assets and engaging in mortgage banking activities. Our
goal is to provide attractive returns to shareholders through a
stable and growing stream of earnings and dividends, as well as
through capital appreciation. Redwood Trust was established in
1994, is internally managed, and structured as a real estate
investment trust ("REIT") for tax purposes. For more information
about Redwood, please visit our website at
www.redwoodtrust.com.
Forward-Looking Statements: This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements related to Redwood's payment of its first
quarter 2020 regular dividend. Forward-looking statements involve
numerous risks and uncertainties. Our actual results may differ
from our beliefs, expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking
statements as predictions of future events. Forward-looking
statements are not historical in nature and can be identified by
words such as "anticipate," "estimate," "will," "should," "expect,"
"believe," "intend," "seek," "plan" and similar expressions or
their negative forms, or by references to strategy, plans, or
intentions. These forward-looking statements are subject to risks
and uncertainties, including, among other things, those described
in our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly
Reports on Form 10-Q under the caption "Risk Factors." Other risks,
uncertainties, and factors that could cause actual results to
differ materially from those projected may be described from time
to time in reports we file with the Securities and Exchange
Commission, including reports on Forms 10-Q and 8-K. We undertake
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Many of the factors that could affect our actual results are
summarized below. One of the most significant factors,
however, is the ongoing impact of the Coronavirus (COVID-19)
pandemic on the United States
economy, homeowners, renters of housing, the housing market, the
mortgage finance markets and the broader financial markets.
It is difficult to fully assess the impact of the Coronavirus
pandemic at this time, including because of the uncertainty around
the severity and duration of the Coronavirus outbreak domestically
and internationally, as well as the uncertainty around the efficacy
of Federal, State and local governments' efforts to contain the
spread of the Coronavirus and respond to its direct and indirect
impacts on many aspects of Americans' lives and economic
activity. Moreover, each of the factors summarized below is
likely to also be impacted directly or indirectly by the ongoing
impact of the Coronavirus and investors are cautioned to interpret
substantially all of the risks identified in the Company's
previously published "Risk Factors" as being heightened as a result
of the ongoing impact of the Coronavirus.
Additional Important factors, among others, that may affect
our actual results include: the pace at which we redeploy our
available capital into new investments; interest rate volatility,
changes in credit spreads, and changes in liquidity in the market
for real estate securities and loans; changes in the demand from
investors for residential mortgages and investments, and our
ability to distribute residential mortgages through our whole-loan
distribution channel; our ability to finance our investments in
securities and our acquisition of residential mortgages with
short-term debt; changes in the values of assets we own; general
economic trends, the performance of the housing, real estate,
mortgage, credit, and broader financial markets, and their effects
on the prices of earning assets and the credit status of borrowers;
federal and state legislative and regulatory developments, and the
actions of governmental authorities, including the current U.S.
presidential administration, and in particular those affecting the
mortgage industry or our business; strategic business and capital
deployment decisions we make; developments related to the fixed
income and mortgage finance markets and the Federal Reserve's
statements regarding its future open market activity and monetary
policy; our exposure to credit risk and the timing of credit losses
within our portfolio; the concentration of the credit risks we are
exposed to, including due to the structure of assets we hold and
the geographical concentration of real estate underlying assets we
own; our exposure to adjustable-rate mortgage loans; the efficacy
and expense of our efforts to manage or hedge credit risk, interest
rate risk, and other financial and operational risks; changes in
credit ratings on assets we own and changes in the rating agencies'
credit rating methodologies; changes in interest rates; changes in
mortgage prepayment rates; changes in liquidity in the market for
real estate securities and loans; our ability to finance the
acquisition of real estate-related assets with short-term debt; the
ability of counterparties to satisfy their obligations to us; our
involvement in securitization transactions, the profitability of
those transactions, and the risks we are exposed to in engaging in
securitization transactions; exposure to claims and litigation,
including litigation arising from our involvement in securitization
transactions; whether we have sufficient liquid assets to meet
short-term needs; our ability to successfully compete and retain or
attract key personnel; our ability to adapt our business model and
strategies to changing circumstances; changes in our investment,
financing, and hedging strategies and new risks we may be exposed
to if we expand our business activities; our exposure to a
disruption or breach of the security of our technology
infrastructure and systems; exposure to environmental liabilities;
our failure to comply with applicable laws and regulations; our
failure to maintain appropriate internal controls over financial
reporting and disclosure controls and procedures; the impact on our
reputation that could result from our actions or omissions or from
those of others; changes in accounting principles and tax rules;
our ability to maintain our status as a REIT for tax purposes;
limitations imposed on our business due to our REIT status and our
status as exempt from registration under the Investment Company Act
of 1940; decisions about raising, managing, and distributing
capital; and other factors not presently identified.
CONTACT
Lisa Hartman –
SVP, Head of Investor Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com
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SOURCE Redwood Trust, Inc.