Shareholders should check the tax statements they receive from brokerage firms to make sure the Redwood dividend information reported in those statements conforms to the information reported here. Furthermore, shareholders should consult their tax advisors to determine the amount of taxes that should be paid on Redwood's dividend distributions.
Under the tax rules applicable to real estate investment trusts (REITs)
such as Redwood, the
All of the other common stock dividends paid during 2008 are reportable on
shareholders' 2008 tax returns, including three
Thus, for 2008, Redwood shareholders that held stock for this entire
period should report a total of
Under the tax rules applicable to REITs, Redwood's 2008 dividend distributions are characterized for tax purposes as 91.7% ordinary income and 8.3% return of capital. None of Redwood's 2008 dividend distributions are characterized for tax purposes as long-term capital gain dividends.
As a REIT, the portion of Redwood's dividends that is characterized as ordinary income is generally taxed at full ordinary income rates. The portion of Redwood's dividends characterized as a return of capital is not taxable, and reduces shareholders' basis for shares held at each quarterly distribution date.
The table below provides more detailed information for each of Redwood's common stock dividends that are taxable in 2008.
Common Stock (CUSIPs 758075 40 2) Total Dividend Declaration Record Payable Distribution Ordinary Return of Type Dates Dates Dates Per Share Income Capital Regular 3/5/2008 3/31/2008 4/21/2008 $0.75 $0.6875 $0.0625 Regular 5/22/2008 6/30/2008 7/21/2008 $0.75 $0.6875 $0.0625 Regular 8/21/2008 9/30/2008 10/21/2008 $0.75 $0.6875 $0.0625 Regular 11/10/2008 12/31/2008 1/21/2009 $0.75 $0.6875 $0.0625 Total $3.00 $2.7500 $0.2500 Long Term Dividend Declaration Record Payable Capital # of Total $ Type Dates Dates Dates Gains Shares Paid Regular 3/5/2008 3/31/2008 4/21/2008 $0.00 32,709,963 $24,532,472 Regular 5/22/2008 6/30/2008 7/21/2008 $0.00 33,184,317 $24,888,238 Regular 8/21/2008 9/30/2008 10/21/2008 $0.00 33,237,676 $24,928,257 Regular 11/10/2008 12/31/2008 1/21/2009 $0.00 33,470,557 $25,102,918 Total $0.00 $99,451,885
For shareholders that are corporations, Redwood's dividends are not generally eligible for the corporate dividends-received deduction.
No portion of Redwood's 2008 dividends consisted of unrelated business taxable income (UBTI), which is subject to specialized tax reporting and other rules applicable for certain tax exempt investors.
For more information about Redwood Trust, Inc., please visit our website (http://www.redwoodtrust.com).
CAUTIONARY STATEMENT: This press release contains forward-looking
statements within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 including statements related to the
closing date of the offering and the use of the net proceeds. Forward-looking
statements involve numerous risks and uncertainties. Redwood's 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," and similar
expressions or their negative forms, or by references to strategy, plans, or
intentions. These forward-looking statements are subject to risks and
uncertainties, including, among other things, those described in Redwood's
Prospectus Supplement dated
SOURCE Redwood Trust, Inc.