MILL VALLEY, Calif.--(BUSINESS WIRE)--
Redwood Trust, Inc. (NYSE:RWT) today announced the declaration of
a regular quarterly dividend and a special dividend.
Redwood's Board of Directors authorized the payment of a fourth
quarter regular cash dividend of $0.70 per share, payable on January
22, 2007 to stockholders of record at the close of business on
December 29, 2006.
Redwood's Board of Directors also authorized payment of a special
cash dividend of $3.00 per share, payable on December 8, 2006 to
stockholders of record on November 27, 2006.
George Bull, Chairman and CEO of Redwood, said: "I am very proud
of Redwood's performance in 2006, a year of uncertainty and rapidly
changing conditions in the real estate markets. Our real estate assets
are performing well, with low delinquency rates and negligible credit
losses. As a result, we declared total dividends for 2006 of $5.80 per
share."
"Our Board has indicated that it intends to raise Redwood's
regular dividend to a rate of $0.75 per share per quarter during
2007," continued Bull.
"We continue to manage Redwood with the goal of delivering
attractive and rising earnings per share over the long-term," said
Bull. "To this end, we believe we are well positioned in the
shorter-term to meet the challenges of the residential credit cycle
and in the longer-term to grow by maintaining an efficient balance
sheet, productive operations, and other competitive advantages in our
markets."
Redwood's 2006 special dividend represents the distribution of a
portion of the REIT taxable income we earned during 2006. As we did in
prior years, Redwood also intends to defer until 2007 the distribution
of a portion of REIT taxable income earned in 2006. We currently
expect that the amount we will defer will equal two to three quarters
of dividends at our regular dividend rate. Furthermore, we intend to
retain approximately 10% of the ordinary REIT taxable income we earn
during 2006, and we also intend to retain the income we earned at our
taxable subsidiaries. Retaining earnings helps to build book value per
share, which should help support long-term growth in earnings and
dividends per share. We currently expect that the $3.00 per share
special dividend will be the only special dividend we will need to
declare in order to meet our REIT dividend distribution requirements
with respect to 2006 income. We expect the tax character of Redwood's
2006 dividends will be primarily ordinary income, with lesser amounts
of capital gains income than the last few years. We will distribute
information on the tax composition of our 2006 dividends prior to
January 31, 2007.
Redwood Trust, Inc. invests in and manages residential and
commercial real estate assets. For tax purposes, we are structured as
a real estate investment trust (REIT).
For more information about Redwood Trust, Inc., please visit our
website (www.redwoodtrust.com).
CAUTIONARY STATEMENT: This press release contains forward-looking
statements within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are not historical in
nature, including the words "anticipated," "estimated," "should,"
"expect," "believe," "intend," and similar expressions, are intended
to identify forward-looking statements. These forward-looking
statements are subject to risks and uncertainties, including, among
other things, those described in our 2005 Annual Report on Form 10-K
under Item 1A "Risk Factors." Other risks, uncertainties, and factors
that could cause actual results to differ materially from those
projected are detailed from time to time in reports filed by us with
the Securities and Exchange Commission, including Forms 10-K, 10-Q,
and 8-K. Important factors that may impact our actual results include
changes in interest rates and market values; changes in prepayment
rates; general economic conditions, particularly as they affect the
price of earning assets and the credit status of borrowers; the level
of liquidity in the capital markets as it affects our ability to
finance our real estate asset portfolio; and other factors not
presently identified. In light of these risks, uncertainties, and
assumptions, the forward-looking events mentioned in, discussed in, or
incorporated by reference into this press release might not occur.
Accordingly, our actual results may differ from our current
expectations, estimates, and projections. We undertake no obligation
to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
Source: Redwood Trust, Inc.
Contact: Redwood Trust, Inc.
Nicole Klock, 415-389-7373