MILL VALLEY, Calif.--(BUSINESS WIRE)--
Redwood Trust, Inc. (NYSE:RWT) today announced tax information
regarding its dividend distributions for 2006.
Shareholders should check the tax statements they receive from
brokerage firms to make sure the Redwood dividend information reported
in those statements conforms to the information reported here.
Furthermore, shareholders should consult their tax advisors to
determine the amount of taxes that should be paid on Redwood's
dividend income.
Under the tax rules applicable to real estate investment trusts
(REITs) such as Redwood, the $0.70 per share fourth quarter 2005
regular common stock dividend that had a record date of December 30,
2005 and a payment date of January 23, 2006 was reportable on
shareholders' 2005 tax returns.
All of the other common stock dividends paid during 2006 are
reportable on shareholders' 2006 tax returns, including three $0.70
per share quarterly regular dividends and the fourth quarter special
dividend of $3.00 per share. In addition, the $0.70 per share fourth
quarter 2006 common stock dividend with a record date of December 29,
2006 that will be paid on January 22, 2007 is also reportable on
shareholders' 2006 tax returns.
Thus, for 2006, Redwood shareholders that held stock for this
entire period should report a total of $5.80 per share of common stock
dividends for tax purposes.
Under the tax rules applicable to REITs, each of Redwood's 2006
dividend distributions are characterized for tax purposes as 100%
ordinary income. None of Redwood's 2006 dividend distributions are
characterized for tax purposes as long-term capital gain dividends.
The distributions made in 2006 do not include any return of
capital.
As a REIT, the portion of Redwood's dividends that is
characterized as ordinary income is generally taxed at full ordinary
income rates.
The table below provides more detailed information for each of
Redwood's common stock dividends that are taxable in 2006.
Common Stock (CUSIPs 758075 40 2)
Total
Dividend Declaration Record Payable Distribution Ordinary
Type Dates Dates Dates Per Share Income
-------------------------------------------------------------------
Regular 3/10/2006 3/31/2006 4/21/2006 $0.70 $0.70
Regular 5/12/2006 6/30/2006 7/21/2006 $0.70 $0.70
Regular 8/24/2006 9/29/2006 10/23/2006 $0.70 $0.70
Special 11/13/2006 11/27/2006 12/8/2006 $3.00 $3.00
Regular 11/13/2006 12/29/2006 1/22/2007 $0.70 $0.70
----------------------
Total $5.80 $5.80
-------------------------------------------------------------------
Long
Return Term
of Capital
Capital Gains #Of Shares Total $ Paid
-------------------------------------------
$0.00 $0.00 25,381,858 $17,767,301
$0.00 $0.00 25,667,553 $17,967,287
$0.00 $0.00 26,053,016 $18,237,111
$0.00 $0.00 26,317,065 $78,951,195
$0.00 $0.00 26,733,460 $18,713,422
----------------- -------------
$0.00 $0.00 $151,636,316
-------------------------------------------
For shareholders that are corporations, Redwood's dividends are
not generally eligible for the corporate dividends-received deduction.
No portion of Redwood's 2006 dividends consisted of unrelated
business taxable income (UBTI), which is subject to specialized tax
reporting and other rules applicable for certain tax exempt investors.
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: For Redwood Trust, Inc.
Martin S. Hughes, 415-380-3455
Nicole Klock, 415-380-2321