MILL VALLEY, Calif.--(BUSINESS WIRE)--March 5, 2004--Redwood
Trust, Inc. (NYSE:RWT), a financial institution that invests in real
estate loans, today announced that its Board of Directors declared a
regular cash dividend of $0.67 per share for the first quarter of
2004. This is a 3% increase in Redwood's regular dividend rate.
"We believe our new $0.67 per share regular quarterly dividend
rate is sustainable," said George Bull, Redwood's Chairman and CEO.
Redwood's Board of Directors also declared a special cash dividend
of $0.50 per share for the first quarter of 2004.
Bull added, "We paid a special dividend of $4.75 per share in
November 2003 based on our estimate of Redwood's 2003 taxable income.
Due to positive events during November and December 2003, actual
taxable income for 2003 exceeded our original estimate and Redwood has
a larger dividend distribution requirement under the REIT rules than
we originally anticipated. We are declaring a special dividend for the
first quarter of 2004 to help meet that requirement.
"We expect to complete our required distributions of 2003 taxable
income with our first three regular quarterly dividends of 2004 plus
this first quarter 2004 special dividend," Bull continued. "We expect
to commence distribution of 2004 taxable income with our fourth
quarter 2004 regular dividend. If we have strong taxable income
results during 2004, we may declare another special dividend during
the fourth quarter of 2004. We do not currently anticipate declaring
any additional special dividends prior to the fourth quarter."
The first quarter 2004 regular and special dividends are payable
on April 21, 2004 to shareholders of record on March 31, 2004. These
dividends are taxable to our shareholders in 2004.
Redwood also announced that the Board of Directors has set May 6,
2004 as the date for the annual meeting of shareholders. The meeting
will be held at 11:00 a.m. in Mill Valley, California. Shareholders of
record as of March 31, 2004 will be entitled to vote at that meeting.
For more information about Redwood Trust, Inc., please visit
http://www.redwoodtrust.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Certain matters discussed in this news release may
constitute forward-looking statements within the meaning of the
federal securities laws that inherently include certain risks and
uncertainties. Actual results and the timing of certain events could
differ materially from those projected in or contemplated by the
forward-looking statements due to a number of factors, including,
among other things, changes in interest rates on our mortgage assets
and borrowings, changes in prepayment rates on our mortgage assets,
general economic conditions, particularly as they affect the price of
mortgage assets and the credit status of borrowers, and the level of
liquidity in the capital markets, as it affects our ability to finance
our mortgage asset portfolio, and other risk factors outlined in the
Company's 2002 Annual Report on Form 10-K (available on the Company's
Web site or by request to the Contacts listed above). Other factors
not presently identified may also cause actual results to differ. No
one should assume that results or trends projected in or contemplated
by the forward-looking statements included above will prove to be
accurate in the future. We will revise our outlook from time to time
and frequently will not disclose such revisions publicly.
CONTACT: Redwood Trust, Inc.
Harold Zagunis/Nicole Klock, 415-389-7373
SOURCE: Redwood Trust, Inc.