MILL VALLEY, Calif.,
Jan. 28, 2020 /PRNewswire/
-- Redwood Trust, Inc. (NYSE: RWT), a leading
innovator in housing credit investing, today announced
tax information regarding its dividend distributions for 2019.
Shareholders should check the tax statements they receive from
their brokerage firms to confirm the Redwood dividend distribution
information reported in those statements conforms to the
information reported here. Set forth in this press release
are Redwood's expectations with respect to the treatment of our
2019 dividend distributions for federal income tax purposes.
Shareholders should consult their tax advisors to determine the
amount of taxes that should be paid on Redwood's dividend
distributions for federal, state, and other income tax
purposes.
All of the common stock dividend distributions paid during 2019
are reportable on shareholders' 2019 federal income tax returns,
including four $0.30 per share
quarterly regular dividend distributions. Thus, for 2019,
Redwood shareholders that held stock for this entire period should
report a total of $1.20 per share of
common stock dividend distributions for federal income tax
purposes.
Under the federal income tax rules applicable to real estate
investment trusts ("REITs"), Redwood's 2019 dividend distributions
are expected to be characterized for income tax purposes as 73%
ordinary income and 27% long-term capital gains. None of
Redwood's 2019 dividend distributions are expected to be
characterized for federal income tax purposes as a return of
capital or qualified dividends.
As a REIT, the portion of Redwood's 2019 dividend distributions
that can be characterized as long-term capital gain is limited to
Redwood's net long-term capital gain income for the year. Any
remaining amount is classified as ordinary REIT dividends under the
applicable federal income tax rules. Beginning in 2018 under
the Tax Cuts and Jobs Act, individual taxpayers may generally take
a deduction from taxable income of 20% of their ordinary REIT
dividends. This deduction does not apply to REIT dividends
classified as qualified or long-term capital gain dividends.
For shareholders that are corporations, Redwood's dividend
distributions are not generally eligible for the corporate
dividends-received deduction or the 20% ordinary REIT dividend
deduction.
The table below provides more detailed information on the
expected federal income tax characterization for each of Redwood's
common stock dividend distributions that were paid for 2019.
Common Stock
(CUSIP 758075 40 2)
|
Dividend
Distribution
Type
|
Record
Dates
|
Payable
Dates
|
Total $
Paid
|
Total
Distribution Per
Share
|
Ordinary Income Per Share
|
Qualified Dividend Per Share
|
Return of
Capital Per
Share
|
Long-Term Capital
Gains Per Share
|
|
Regular
|
3/15/2019
|
3/29/2019
|
$28,997,775
|
$0.3000
|
$0.2198
|
$0.0000
|
$0.0000
|
$0.0802
|
|
Regular
|
6/14/2019
|
6/28/2019
|
$29,306,512
|
$0.3000
|
$0.2198
|
$0.0000
|
$0.0000
|
$0.0802
|
|
Regular
|
9/16/2019
|
9/30/2019
|
$33,627,006
|
$0.3000
|
$0.2198
|
$0.0000
|
$0.0000
|
$0.0802
|
|
Regular
|
12/16/2019
|
12/30/2019
|
$34,207,623
|
$0.3000
|
$0.2198
|
$0.0000
|
$0.0000
|
$0.0802
|
|
|
|
Total
|
$126,138,916
|
$1.2000
|
$0.8792
|
$0.0000
|
$0.0000
|
$0.3208
|
|
No portion of Redwood's 2019 dividend distributions is expected
to consist of unrelated business taxable income ("UBTI"), which is
subject to specialized tax reporting and other rules applicable for
certain tax-exempt investors.
If you have questions, please consult your tax advisor for
further guidance.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT)
is a specialty finance company focused on making credit-sensitive
investments in single-family and multifamily residential mortgages
and related assets and engaging in mortgage banking activities. Our
goal is to provide attractive returns to shareholders through a
stable and growing stream of earnings and dividends, as well as
through capital appreciation. Redwood Trust was established in
1994, is internally managed, and structured as a real estate
investment trust ("REIT") for tax purposes. For more information
about Redwood, please visit our website at
www.redwoodtrust.com.
CONTACT
Lisa Hartman – SVP, Head of Investor
Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com
Cautionary Statement: This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve numerous risks and
uncertainties. Our actual results may differ from our beliefs,
expectations, estimates, and projections and, consequently, you
should not rely on these forward-looking statements as predictions
of future events. Forward-looking statements are not historical in
nature and can be identified by words such as "anticipate,"
"estimate," "will," "should," "expect," "believe," "intend,"
"seek," "plan" and similar expressions or their negative forms, or
by references to strategy, plans, or intentions. These
forward-looking statements are subject to risks and uncertainties,
including, among other things, (i) that the expectations described
herein may change when Redwood's 2019 federal income tax return is
completed and filed in 2020 and (ii) the other risks and
uncertainties described in our Annual Report on Form 10-K for the
year ended December 31, 2018 under
the caption "Risk Factors." Other risks, uncertainties, and factors
that could cause actual results to differ materially from those
projected may be described from time to time in reports we file
with the Securities and Exchange Commission (SEC), including
reports on Forms 10-Q and 8-K. We undertake no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events, or otherwise.
Statements regarding the following subjects, among others, are
forward-looking by their nature: the expected characterization for
federal income tax purposes of Redwood's 2019 dividend
distributions.
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SOURCE Redwood Trust, Inc.