Starwood Property Trust (NYSE:STWD) Posts Earnings Results

by · The Markets Daily

Starwood Property Trust (NYSE:STWD – Get Free Report) released its quarterly earnings results on Wednesday. The real estate investment trust reported $0.42 EPS for the quarter, beating the consensus estimate of $0.41 by $0.01, Briefing.com reports. The firm had revenue of $492.95 million during the quarter, compared to analyst estimates of $469.53 million. Starwood Property Trust had a net margin of 22.32% and a return on equity of 8.16%. The business’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.48 EPS.

Here are the key takeaways from Starwood Property Trust’s conference call:

  • The company reported Q4 distributable earnings of $160 million ($0.42/share) (adjusted to $0.49 for timing items) and full-year DE of $616 million ($1.69/share) (adjusted to $1.95), saying adjusted earnings exceed the $1.92 dividend and that dividend coverage should steadily improve through 2026.
  • Starwood materially strengthened its balance sheet in 2025, executing $4.4 billion of capital raises, ending the year with $1.4 billion liquidity, ~$11.9 billion of financing availability, and conservative leverage of 2.4x debt-to-undepreciated-equity.
  • The firm deployed a record-scale $12.7 billion in 2025 across cylinders (commercial lending, record infrastructure lending, and a new net-lease platform); the net-lease business was modestly dilutive in 2025 but management expects it to be accretive as securitizations and rent escalators ramp.
  • Credit remains a headline risk with roughly $1 billion of commercial loans on non‑accrual and $624 million of foreclosed assets, alongside total reserves of $680 million; management says these exposures are concentrated and under active asset-level remediation, but timing of resolutions is uncertain.
  • Infrastructure lending and securitization activity performed strongly (record infra originations, multiple CLOs priced at historically tight spreads and ~75% of infra debt on term non-mark-to-market financing), which management says should produce durable, high-ROE earnings tailwinds.

Starwood Property Trust Price Performance

Shares of NYSE:STWD traded down $0.12 during midday trading on Friday, reaching $17.99. 1,554,184 shares of the company were exchanged, compared to its average volume of 3,637,562. The stock has a market cap of $6.66 billion, a PE ratio of 15.49 and a beta of 1.13. The business’s fifty day moving average is $18.20 and its two-hundred day moving average is $18.78. Starwood Property Trust has a one year low of $16.59 and a one year high of $21.05. The company has a current ratio of 1.68, a quick ratio of 1.33 and a debt-to-equity ratio of 3.10.

Starwood Property Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were issued a $0.48 dividend. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $1.92 dividend on an annualized basis and a yield of 10.7%. Starwood Property Trust’s payout ratio is currently 165.52%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in STWD. AQR Capital Management LLC increased its holdings in shares of Starwood Property Trust by 70.1% in the first quarter. AQR Capital Management LLC now owns 36,396 shares of the real estate investment trust’s stock worth $720,000 after purchasing an additional 15,001 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Starwood Property Trust by 23.9% in the 1st quarter. NewEdge Advisors LLC now owns 19,606 shares of the real estate investment trust’s stock worth $388,000 after acquiring an additional 3,784 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Starwood Property Trust by 99.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 7,450 shares of the real estate investment trust’s stock worth $150,000 after purchasing an additional 3,721 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Starwood Property Trust by 42.7% in the second quarter. EverSource Wealth Advisors LLC now owns 5,535 shares of the real estate investment trust’s stock worth $111,000 after buying an additional 1,657 shares during the period. Finally, Baird Financial Group Inc. lifted its position in shares of Starwood Property Trust by 3.3% during the second quarter. Baird Financial Group Inc. now owns 113,306 shares of the real estate investment trust’s stock worth $2,274,000 after purchasing an additional 3,577 shares during the last quarter. Institutional investors own 49.82% of the company’s stock.

Starwood Property Trust declared that its board has approved a stock repurchase program on Thursday, February 26th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to buy up to 6.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Key Headlines Impacting Starwood Property Trust

Here are the key news stories impacting Starwood Property Trust this week:

  • Positive Sentiment: The Board authorized a sizable $400 million buyback (up to ~6.1% of shares), funded from cash, which supports shares and signals management views that stock is undervalued. PR Newswire
  • Neutral Sentiment: Q4 results: reported EPS of $0.42 beat the consensus $0.41 and revenue also topped estimates, which is supportive short term, but EPS is down from $0.48 a year ago and book value per share (BVPS) fell about 3.9% year‑over‑year — a mixed fundamental read. Yahoo Finance
  • Neutral Sentiment: There is some noise from earnings‑call coverage/transcripts that showed differing EPS figures in secondary reports; this could create short‑term confusion for investors assessing earnings quality. Earnings Call Transcript
  • Negative Sentiment: Wells Fargo cut its price target from $22 to $21 (still an outperform rating), trimming upside expectations and potentially capping near‑term investor enthusiasm. Benzinga

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on STWD shares. Zacks Research raised shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Starwood Property Trust in a report on Wednesday, January 21st. Wells Fargo & Company decreased their price objective on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday. Finally, Keefe, Bruyette & Woods lowered their price objective on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, November 12th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Starwood Property Trust has an average rating of “Moderate Buy” and a consensus target price of $20.38.

Read Our Latest Stock Report on STWD

About Starwood Property Trust

(Get Free Report)

Starwood Property Trust (NYSE: STWD) is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company’s portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.

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