StocksMedium•4 November 2026•
1 min read
Redwood Trust Slashes Dividend by 90% Amid Shift to C-Corp Structure
Key Facts
1Redwood Trust slashed its dividend by 90% as part of its structural transformation.
2The shift to a C-Corp structure will unlock $304 million in net operating losses and increase GAAP book value by $0.75 per share.
3The company's legacy portfolio remains a risk with $682 million in non-core assets and high leverage at 9:1.
Redwood Trust slashed its dividend by 90% as part of its structural transformation from a REIT to a taxable C-Corporation. Seeking Alpha reported that the shift is designed to utilize $304 million in federal net operating losses and is expected to increase the GAAP book value per share by $0.75.
RWT closed at $3.11 on November 3, 2026, as the company continues to manage risks within its legacy portfolio. According to Seeking Alpha, the firm maintains $682 million in non-core assets and faces high leverage currently standing at a 9:1 ratio.