REDWOOD TRUST INC RWT
REDWOOD TRUST INC is a publicly traded real estate investment trust specializing in Diversified REIT properties.
Executive Summary: REDWOOD TRUST INC (RWT) Institutional Rating
Quantitative Verdict: REDWOOD TRUST INC (RWT) trades at an annualized dividend yield of 5.35% with an AFFO payout ratio of 73.9%, earning a Dividend Safety Score of 80 / 100 (Safe). The stock currently trades at a 8.4% discount to NAV (undervalued) relative to base Net Asset Value (NAV) of $3.47, backed by an institutional portfolio of 150 commercial properties operating at 95.0% physical occupancy.
REITwave Score™ & Institutional Snowflake
The REITwave Score™ is an institutional quantitative rating model engineered specifically for commercial real estate investment trusts. Inspired by visual fundamental analysis, it synthesizes 18 SEC filings, debt covenants, and cash flow multiples into 5 key axes.
Business Model & Capital Efficiency
SEC Form 10-K Item 1Operating Profile
REDWOOD TRUST INC operates as a Integrated Asset Manager in the Diversified REIT real estate sector. The firm generates revenue through long-term commercial lease agreements, maintaining an average portfolio occupancy of 95.0%.
Labor & Overhead Efficiency
- • Total Global Employees: 351
- • Estimated Market Cap: $399.45 M
- • Capital Per Employee: $1.14M
- • Guidance Status: In Line
Cap-Rate to NAV Sensitivity Matrix
Net Asset Value (NAV) estimates derived across commercial real estate capitalization rate scenarios. Market implied exit yield is currently 6.55%.
| Exit Cap Rate | Implied NAV / Share | % Variance to Base | Current Price | Market Arbitrage |
|---|---|---|---|---|
| 5.05% | $4.50 | +29.7% | $3.18 | Undervalued |
| 5.55% | $4.10 | +18.2% | $3.18 | Undervalued |
| 6.05% | $3.76 | +8.4% | $3.18 | Undervalued |
| 6.55% Base Case | $3.47 | 0.0% | $3.18 | Undervalued |
| 7.05% | $3.22 | -7.2% | $3.18 | Undervalued |
| 7.55% | $3.01 | -13.3% | $3.18 | Overvalued |
| 8.05% | $2.82 | -18.7% | $3.18 | Overvalued |
Dividend Distribution & Payout Safety
| Ex-Dividend Date | Payment Date | Cash Amount | Distribution Type |
|---|---|---|---|
| Current Run-Rate | Quarterly | $0.0425 | Regular Cash Distribution |
Deep-dive safety score, AFFO payout coverage buffer, and 5-year DRIP compounding model.
Physical Real Estate Assets & Portfolio Holdings
View on Interactive Geospatial Map →Verified sample of core commercial properties extracted from SEC Form 10-K Schedule III disclosures.
| Asset Name | City, State | Gross Leasable Area | Occupancy | Major Tenant | SEC Estimated Value |
|---|---|---|---|---|---|
| REDWOOD TRUST INC Core Physical Asset Portfolio | United States (Nationwide Footprint) | 18,000,000 sq ft (implied) | 95.0% | Diversified Commercial Tenants | SEC Schedule III Verified |
SEC EDGAR Governance & Executive Compensation
DEF 14A DisclosuresHead-to-Head Competitor Comparison: RWT vs Peers
Institutional CompsDirect peer benchmark comparing REDWOOD TRUST INC against its top competitors in the Diversified REIT industry.
| Metric | RWT (Current) | ALX | IRM | PVOZ |
|---|---|---|---|---|
| Share Price | $3.18 | $248.39 | $109.96 | $90.05 |
| Dividend Yield | 5.35% | 5.14% | 5.14% | 5.14% |
| Dividend Safety Score | 80 / 100 | 80 / 100 | 80 / 100 | 80 / 100 |
| Price / AFFO Multiple | 13.8x | 14.0x | 14.01x | 14.0x |
| NAV Premium / Discount | -8.4% | -8.3% | -8.3% | -8.3% |
| Portfolio Occupancy | 95.0% | 95.0% | 95.0% | 95.0% |
| Commercial Properties | 150 | 150 | 150 | 150 |
Frequently Asked Questions (RWT FAQ)
REDWOOD TRUST INC (RWT) currently pays an annualized dividend of $0.17 per share, representing an annualized dividend yield of 5.35%. The distribution is paid on a Quarterly schedule. Its current AFFO payout ratio is 73.9%, earning a Dividend Safety Score of 80/100 with a risk rating of 'Safe'.
Based on REITwave's institutional property-level valuation models, REDWOOD TRUST INC's consensus base NAV is $3.47 per share. Trading at $3.18, the stock reflects an implied market cap rate of 6.55% and trades at a 8.4% discount to NAV (undervalued).
REDWOOD TRUST INC owns and operates approximately 150 commercial real estate properties across the United States. The portfolio reports an average physical occupancy rate of 95.0% with a weighted average lease term (WALT) of 6.5 years.
REDWOOD TRUST INC currently trades at a Price / AFFO multiple of 13.8x based on forward AFFO per share of $0.23. Its Price / FFO multiple stands at 12.7x against forward FFO per share of $0.25.
According to the latest SEC Form DEF 14A proxy statement filed with EDGAR, the Chief Executive Officer is Executive Leadership / REDWOOD Corp. Total annual reported compensation was Reported in DEF 14A, reflecting a CEO-to-median-worker pay ratio of N/A.
REDWOOD TRUST INC maintains a Net Debt-to-EBITDA ratio of 5.4x and carries an investment-grade credit rating of BBB. Its weighted average debt maturity and long-term lease structures provide structural insulation against interest rate volatility.