REDWOOD TRUST INC

Cautionary Statement; Forward-Looking Statements

This shareholder letter may contain 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 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,” "could" and similar expressions or their negative forms, or by references to strategy, plans, goals, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K under the caption “Risk Factors.” Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected are described below and may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-K, 10-Q, and 8-K. We undertake no obligation to update or revise 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: statements we make regarding Redwood’s business strategy and strategic focus; statements related to our financial outlook and expectations for 2026, 2027, and future years; statements regarding Redwood’s plan to transition to a taxable C-corporation in 2027, the estimated $85 million to $90 million tax asset expected to be recognized in the fourth quarter of 2026 associated with such transition, representing an estimated $0.73 to $0.77 increase in GAAP book value per share (estimated benefit as of September 30, 2026), the likelihood of meaningfully reducing cash income taxes over a multi-year period, and the ability to lower our cost of capital over time, Redwood’s business priorities, including opportunistic repurchases of unsecured debt, a return to organic book value growth beginning in Q1 2027, expected resolutions in the Legacy Investment segment and associated improvements to Redwood’s consolidated earnings, our plan to conduct an exchange offer, and expected efficiency gains from AI and technology initiatives.