Redwood Trust Intrinsic Value Calculation – Redwood Trust and Oaktree Funds Join Forces to Invest in Bridge Loans
June 27, 2023
☀️Trending News
Redwood Trust ($NYSE:RWT), Inc. is a publicly traded real estate investment trust (REIT) and a leading innovator in housing finance. Recently, Redwood Trust has joined forces with Oaktree Funds to invest in bridge loans. Bridge loans are short-term financing instruments used to provide funding for business operations between two financing rounds. This allows companies to bridge the gap between their current capital structure and the capital needed to fund their next round of financing.
The venture between Redwood Trust and Oaktree Funds is expected to provide companies with access to the capital they need to grow their businesses without sacrificing long-term financial stability. This joint venture is an important step forward for both parties and will help them to better meet the changing needs of their customers. With this new venture, Redwood Trust and Oaktree Funds are taking a significant step towards bridging the gap between today’s capital structure and tomorrow’s growth prospects.
Price History
This news saw a surge in the company’s stock prices, which opened at $6.4 and closed at $6.5, up by 2.2% from the last closing price of $6.4. It is understood that the bridge loans presented by the two companies will provide refinancing solutions to borrowers who are seeking short-term preservation of capital. This new partnership will enable both REDWOOD TRUST and Oaktree Funds to take advantage of the current market situation, while mitigating risk.
The two firms have not released any further details regarding the bridge loan investments, but it is clear that both companies are looking to capitalize on the opportunities presented by the current market conditions. It will be interesting to see how this new venture will affect REDWOOD TRUST’s stock prices in the coming weeks. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Redwood Trust. More…
| Total Revenues | Net Income | Net Margin |
| -51.34 | -194.56 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Redwood Trust. More…
| Operations | Investing | Financing |
| -139.14 | 213.89 | -276.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Redwood Trust. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.12k | 11.98k | 9.99 |
Key Ratios Snapshot
Some of the financial key ratios for Redwood Trust are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Redwood Trust Intrinsic Value Calculation
At Goodwhale, we have been analyzing the financials of REDWOOD TRUST to understand its value. After carefully considering the company’s performance, we have determined that the intrinsic value of REDWOOD TRUST share is around $7.2, as calculated by our proprietary Valuation Line. We have also noticed that the stock is currently trading at $6.5, which we believe is a fair price, albeit slightly undervalued by 10.2%. More…
Peers
In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.
– Cherry Hill Mortgage Investment Corp ($NYSE:CHMI)
Cherry Hill Mortgage Investment Corporation, a real estate investment trust, acquires, invests in, and manages residential mortgage assets in the United States. It operates through servicing related revenue and investment portfolio income sources. The company services residential mortgage loans; and invests in, finances, and manages a portfolio of residential mortgage loans, including non-performing loans. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is headquartered in Horsham, Pennsylvania.
– Granite Point Mortgage Trust Inc ($NYSE:GPMT)
Granite Point Mortgage Trust Inc is a real estate investment trust that focuses on originating, financing, and managing senior floating rate commercial mortgage loans. The company has a market cap of 350.75M as of 2022. It is a publicly traded company on the New York Stock Exchange and is headquartered in New York City.
– MFA Financial Inc ($NYSE:MFA)
MFA Financial Inc is a real estate investment trust that focuses on investing in residential mortgage assets. As of December 31, 2020, the company had a market capitalization of $925.3 million. The company invests in a variety of residential mortgage assets, including whole loans, mortgage-backed securities, and other mortgage-related investments. MFA Financial is headquartered in New York, New York.
Summary
Redwood Trust, a publicly traded real estate investment trust (REIT), and Oaktree Funds, one of the world’s largest alternative asset managers, have teamed up to create a joint venture focused on investing in bridge loans. The venture will provide investors with access to bridge loans backed by real estate, providing a new source of capital to borrowers looking to bridge the gap between short-term liquidity needs and long-term financing. The venture will be managed by Oaktree and will look to capitalize on Redwood’s expertise in the bridge loan space. The venture is expected to provide attractive risk-adjusted returns to investors through a diverse portfolio of bridge loans across the United States.
