The real estate investment trust earned $88 million or $0.65 per diluted common share in the third quarter, down from $90 million and $0.66 respectively in the previous fiscal period and $142 million and $1.02 during the same period a year earlier. The third quarter results exceeded EPS estimates by $0.24, according to Seeking Alpha.
The company, which closed two previously announced, groundbreaking securitizations during the quarter — one drawing on
“Suffice it to say it was a very strong quarter, several in-house records broken. I'm particularly proud of a series of strategic and innovative transactions across our firm that were both accretive to earnings and foundational for future operating progress,” said CEO Christopher Abate in a company earnings call.
In residential lending, the company locked a record $4.7 billion in jumbo loans. Business purpose lending, including single-family and bridge loans, was up 21% from the second quarter at $639 million. A year ago, its BPL origination for the quarter totaled just $261 million. Other BPL division accomplishments during the quarter included the launch of its first bridge loan securitization.
Redwood operates four divisions: an aggregator of consumer mortgages, business purpose lending established through its
The company originally established itself as one willing to be a first mover in the securitized market following the Great Recession, when it was one of the first to return to private-label mortgage-backed securities.
