Redwood Trust (NYSE: RWT) saw its stock price surge 5.10% in after-hours trading on Wednesday, following a series of positive announcements that showcased the company's strong performance and strategic initiatives. The real estate investment trust reported better-than-expected third-quarter earnings and highlighted significant progress in its core business operations.
The company reported adjusted earnings per share of $0.20 for the third quarter, surpassing analyst estimates of $0.17 by 17.65%. This represents an 11.11% increase compared to the same period last year. While quarterly sales of $15 million fell short of expectations, investors seemed to focus on the company's strategic developments and operational achievements.
Redwood Trust announced several key initiatives that likely contributed to the positive market reaction. The company expanded its strategic partnership with Canada Pension Plan Investment Board, potentially opening up new opportunities for growth and investment. Additionally, Redwood reported record quarterly transaction volume of $6.8 billion and highlighted its position as a leading non-bank distributor of jumbo and non-QM loans. The company also upsized its revolving financing facility to $400 million from $250 million and extended the term until March 2027, enhancing its financial flexibility.
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