Redwood REIT Q210 Earnings Nearly Half First Quarter Profit

Redwood Trust, Inc. (RWT), a real estate investment trust, reported its second quarter earnings Wednesday, stating the company earned a net income of $29m, or $0.35 per diluted share, down from $47m ($0.58 per diluted share) in the first quarter, yet up from $7m ($0.10 per diluted share) from a year ago. During Q210, the company structured $23m of residential securities and placed $116m of securities. Included was a jumbo residential mortgage-backed security (RMBS) deal in April, which marked the first private-label RMBS in the U.S. since 2008. The company said it is contemplating another securitization of residential mortgages in the fourth quarter once it gathers about $300 million of loans and depending on market conditions. Although Redwood reported an increased table loss of $3m up from $1m in the first quarter of 2010, the loss is a drastic decrease from $12m a year ago. As of June 30, 2010, the Generally Accepted Accounting Principles (GAAP) book value per share was $12.71, a decrease of $0.13 since March. Redwood ended the quarter with a total securities portfolio of $734m, down from $840m at the beginning of the quarter, and with $288 million of cash and cash equivalents. Write to Christine Ricciardi.

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