Believes Redwood Trust Should Not Remain Public Considering its Strategic Value and the Destruction of any Credibility by the Board and Management

Intends to Nominate an Alternative Slate at the 2027 Annual Meeting if the Board Refuses to Run a Sale Process

Bradley L. Radoff today issued the following open letter to the Board of Directors of Redwood Trust, Inc. (NYSE: RWT).

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September 14, 2026

Redwood Trust, Inc.
One Belvedere Place, Suite 300
Mill Valley, California 94941
Attn: The Board of Directors

Members of the Board of Directors (the “Board”),

I am a significant holder of the outstanding shares of Redwood Trust, Inc. (“Redwood Trust” or the “Company”). Given the Company’s recent refinancing, I believe the Board should immediately hire a qualified investment banker and commence a sale process. I believe there are multiple strategic parties who would be interested in acquiring Redwood Trust if it were officially on the market.

Below are the key reasons underpinning my view that the Company is better off being sold than remaining a standalone publicly traded entity:

1. Redwood Trust’s recent refinancing. The Company’s recent capital markets activity indicates either a blatant attempt at entrenchment by permanently diluting the Company’s shareholders or complete incompetence – neither is acceptable. I believe it is impossible for this Board and management team to regain any credibility with investors.
2. Enriching Company executives appears to be the main function of Redwood Trust’s public structure. The named executive officers’ total compensation was $21.3 million for fiscal year 2025.¹ On average over the past three years, total compensation for all current named executive officers was $24.3 million.² Highlighting the misalignment between management incentives and shareholder outcomes, the only open market purchase by an executive officer during the past four years was in 2024 by CFO Brooke Carillo.³

I strongly believe a sale is the only positive risk-adjusted outcome for shareholders given the Company’s persistent trading discount to intrinsic value and absurd executive compensation. I urge the Board to do the right thing for shareholders.

If the Board refuses to initiate a review of strategic alternatives, I intend to nominate an alternative slate of director candidates for election to the declassified Board at the 2027 annual meeting of shareholders on the platform of pursuing a value-maximizing sale for the benefit of all shareholders.

Sincerely,

Bradley L. Radoff

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¹ Company DEF 14A dated March 31, 2026.
² Ibid.
³ Company Form 4 filings.

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