Redwood Trust Inc Announces Q3 Dividends; Proposed Loan Sales and Convertible Note Offering

What Happened

• Redwood Trust, Inc. filed an 8‑K on September 10, 2026 announcing that its Board declared a regular third‑quarter common stock dividend of $0.18 per share (payable Sept. 30, 2026; record date Sept. 23, 2026) and a third‑quarter dividend on its 10.00% Series A preferred of $0.625 per share (payable Oct. 15, 2026; record date Oct. 1, 2026).
• The company also disclosed preliminary agreements to sell certain legacy bridge loans with an aggregate unpaid principal balance of up to approximately $190 million, targeted to close late Q3 or early Q4 2026, and announced a proposed private offering of Convertible Senior Notes due 2030 to qualified institutional buyers.

Key Details

• Common dividend: $0.18 per share, payable Sept. 30, 2026; record date Sept. 23, 2026.
• Series A preferred dividend: $0.625 per share, payable Oct. 15, 2026; record date Oct. 1, 2026.
• Proposed dispositions: legacy bridge loans with up to $190 million unpaid principal balance; estimated to reduce book value per share by about 2% from the June 30, 2026 book value.
• Convertible notes: proposed private offering of Convertible Senior Notes due 2030 to persons believed to be qualified institutional buyers under Rule 144A.

Why It Matters

• Dividends: current quarterly payouts continue returning cash to common and preferred shareholders and confirm the Board’s stated distributions for Q3 2026.
• Asset sales: the proposed disposals of legacy bridge loans could modestly lower reported book value per share (management’s preliminary estimate ≈2%), and are subject to definitive documentation and closing conditions—so timing, assets sold, and final proceeds may change.
• Financing: the planned convertible note offering would raise capital and could affect capital structure and future dilution depending on final terms if completed. Investors should watch for definitive deal documents, closing updates, and subsequent interim or quarter‑end GAAP financial statements for the final impact.