Starwood Property Trust (NYSE:STWD) Announces Quarterly Earnings Results

Starwood Property Trust (NYSE:STWD) released its earnings results on Wednesday. The real estate investment trust reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.01, Briefing.com reports. The company had revenue of $492.95 million during the quarter, compared to the consensus estimate of $469.53 million. Starwood Property Trust had a return on equity of 8.41% and a net margin of 20.28%.Starwood Property Trust’s quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.48 earnings per share.

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 up $0.37 on Thursday, hitting $18.09. The company had a trading volume of 4,388,901 shares, compared to its average volume of 3,696,581. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 2.98. The company has a market cap of $6.70 billion, a PE ratio of 17.23 and a beta of 1.13. Starwood Property Trust has a 52-week low of $16.59 and a 52-week high of $21.05. The business has a 50 day moving average of $18.21 and a 200 day moving average of $18.78.

Starwood Property Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.6%. The ex-dividend date was Wednesday, December 31st. Starwood Property Trust’s dividend payout ratio is currently 165.52%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC acquired a new stake in shares of Starwood Property Trust during the 4th quarter worth about $28,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Starwood Property Trust by 169.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,266 shares of the real estate investment trust’s stock valued at $59,000 after buying an additional 2,053 shares during the period. Smartleaf Asset Management LLC boosted its position in Starwood Property Trust by 75.5% during the second quarter. Smartleaf Asset Management LLC now owns 4,443 shares of the real estate investment trust’s stock worth $91,000 after acquiring an additional 1,912 shares during the last quarter. Empowered Funds LLC acquired a new stake in Starwood Property Trust during the fourth quarter worth approximately $103,000. Finally, EverSource Wealth Advisors LLC grew its stake in Starwood Property Trust by 42.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,535 shares of the real estate investment trust’s stock worth $111,000 after acquiring an additional 1,657 shares during the period. 49.82% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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

Key Headlines Impacting Starwood Property Trust

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

• Positive Sentiment: Board authorizes up to $400 million buyback over one year — share repurchases reduce float and directly support EPS and share price if executed. Starwood buyback announcement
• Positive Sentiment: Q4 results beat consensus: distributable EPS of $0.42 topped the $0.41 estimate, revenue rose ~8.5% y/y to ~$493M, and distributable earnings and full‑year operating metrics were solid — providing near‑term income support for the dividend. Earnings beat article
• Positive Sentiment: Operational/financial highlights: $615.5M distributable earnings for the year, $1.4B liquidity, $12.7B invested in 2025 and a record $4.4B of capital transactions — suggests continued deployment and balance sheet capacity. Full results press release
• Neutral Sentiment: Mixed/duplicate coverage and transcript nuance — some call transcripts and summaries report different EPS presentations (GAAP vs. distributable), creating short‑term noise but not changing the underlying beat on distributable EPS. Earnings call transcript
• Neutral Sentiment: Featured in dividend/high‑yield roundups — may attract income‑oriented investors but is background rather than a catalyst. High‑yield stocks article
• Negative Sentiment: Book value per share declined ~3.9% y/y per coverage — a weak on‑balance‑sheet metric that can weigh on valuation for REIT investors focused on NAV. BVPS decline article
• Negative Sentiment: Wells Fargo trimmed its price target from $22 to $21 (still an outperform) — a modest analyst mark‑down that may cap near‑term upside until clearer guidance or buyback execution. Price target note

Starwood Property Trust Company Profile

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.