Section 199A

Redwood Trust has provided 2025 dividend tax guidance for its common and preferred stock. For common stock, approximately 39% is expected to be ordinary income (eligible for Section 199A deduction), 2% qualified dividends, and 59% return of capital. Preferred stock dividends are projected to be 96% ordinary income and 4% qualified dividends. No portion is expected to be unrelated business taxable income. Investors should consult tax advisors.