Louisiana State Employees Retirement System Invests $364000 in Redwood Trust,

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Defense World reported the news, adding that the investment was made via LSERS’ Global Defined Benefit Plan. Redwood Trust ($NYSE:RWT), Inc. is a publicly traded real estate investment trust (REIT) headquartered in Mill Valley, California. Redwood Trust primarily invests in residential mortgage-backed securities and related investments, focusing on delivering attractive risk-adjusted returns over the long-term. It also provides balance sheet financing to mortgage bankers and originators. Over the years, Redwood Trust has grown to become one of the leading providers of capital solutions to the residential mortgage market.

Share Price

Upon the news, shares in RWT opened at $6.7, but closed at $6.6, down by 0.9% from previous closing price of 6.7. This marked the second consecutive day RWT stock has closed lower, after it had marked a record high at the beginning of last week. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Redwood Trust. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Redwood Trust. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Redwood Trust. More…

Key Ratios Snapshot

Some of the financial key ratios for Redwood Trust are shown below. More…

Analysis

GoodWhale conducted an analysis of REDWOOD TRUST‘s wellbeing and the results indicated a low health score of 3 out of 10. This is primarily due to its weak cashflows and debt, which suggests that the company may not be able to sustain future operations in a time of crisis. REDWOOD TRUST was strong in dividend, medium in asset, and weak in growth and profitability. Based on our research, we classified REDWOOD TRUST as a ‘cow’, a type of company with a track record of paying out consistent and sustainable dividends. This type of company may appeal to investors looking for steady dividend income in the long-term. 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, Inc. is a publicly traded real estate investment trust that specializes in residential mortgage lending and investments. Analysts are bullish on the stock, citing its strong balance sheet and cash flow from residential mortgage lending operations. The company also has a diversified portfolio of investments in the residential mortgage-backed securities market, which provides additional income potential.

In addition, Redwood Trust recently announced a refinancing of its existing debt, which is expected to lower its cost of capital and provide additional liquidity. Overall, this investment could be a smart move for investors looking for a solid return.