Starwood Property Trust (NYSE:STWD) Issues Earnings Results

Starwood Property Trust (NYSE:STWD) posted its earnings results on Thursday. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.40, FiscalAI reports. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%.The company had revenue of $201.42 million for the quarter, compared to analysts’ expectations of $521.67 million. During the same period last year, the business posted $0.43 earnings per share. The firm’s quarterly revenue was up 15.6% compared to the same quarter last year.

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

• Negative Sentiment: Second-quarter distributable earnings were $152 million, or $0.40 per share, below the dividend requirement. Management said it is maintaining the dividend for now and expects earnings to recover as underperforming assets are resolved and capital is redeployed.
• Positive Sentiment: Credit deterioration appeared to stabilize, with no new non-accrual, 5-rated loans, or REO during the quarter. The company expects to resolve roughly $800 million, or 40%, of its current non-accrual and REO portfolio by year-end, supported by $706 million of existing reserves.
• Positive Sentiment: Investment activity remained strong, with $6.7 billion deployed year to date and $1.7 billion in July; management expects the third quarter to be its strongest origination quarter. Commercial lending funded more than $1 billion in the quarter, lifting the loan portfolio to a record $17.3 billion.
• Positive Sentiment: Starwood strengthened liquidity and its debt maturity profile through $1.1 billion of unsecured note issuance, a $275 million Term Loan B upsizing, and other refinancing actions. Liquidity stood at $1.2 billion, leverage was 2.74 times debt to undepreciated equity, and no corporate debt maturities remain until July 2027.
• Neutral Sentiment: Three Sun Belt multifamily loans totaling $210 million were downgraded to a 4-risk rating because of higher forward rates and temporary market softness. Management characterized supply pressures as largely behind the sector, while highlighting improving occupancy and cash flow at assets taken into REO.

Starwood Property Trust Price Performance

Shares of STWD traded up $0.47 during midday trading on Friday, reaching $16.41. The stock had a trading volume of 7,125,161 shares, compared to its average volume of 4,218,582. The company has a debt-to-equity ratio of 3.47, a current ratio of 1.46 and a quick ratio of 1.57. The company has a market capitalization of $6.08 billion, a P/E ratio of 27.81, a P/E/G ratio of 2.15 and a beta of 0.98. The firm’s 50 day moving average price is $16.64 and its 200-day moving average price is $17.39. Starwood Property Trust has a 52 week low of $15.51 and a 52 week high of $20.84.

Starwood Property Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 11.7%. The ex-dividend date of this dividend was Tuesday, June 30th. Starwood Property Trust’s payout ratio is currently 200.00%.

Analyst Ratings Changes

A number of analysts recently weighed in on STWD shares. UBS Group assumed coverage on shares of Starwood Property Trust in a report on Tuesday, June 2nd. They issued a “buy” rating and a $20.00 price objective on the stock. Zacks Research upgraded shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 25th. Weiss Ratings downgraded Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. Wall Street Zen lowered Starwood Property Trust from a “hold” rating to a “sell” rating in a research report on Saturday. Finally, JPMorgan Chase & Co. lowered their price target on Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating on the stock in a report on Thursday, April 16th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $19.50.

Key Starwood Property Trust News

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

• Positive Sentiment: Starwood reported second-quarter distributable earnings of $0.40 per diluted share, matching consensus estimates. Revenue rose 15.6% year over year, supported by record assets and higher investment activity. STWD Stock Dips as Q2 Earnings Match Estimates, Revenues Rise Y/Y
• Positive Sentiment: The company invested $2.5 billion during the quarter and $6.7 billion through July, while total assets reached a record $31.8 billion and commercial lending assets climbed to $17.3 billion. These figures suggest continued platform growth and may support future earnings. Starwood Property Trust Reports Results for Quarter Ended June 30, 2026
• Positive Sentiment: Starwood maintained its quarterly dividend at $0.48 per share and repurchased $30 million of common stock during the first six months of the year, providing shareholder-return support. Starwood Property Trust Reports Results for Quarter Ended June 30, 2026
• Neutral Sentiment: Keefe, Bruyette & Woods lowered its price target from $19.00 to $18.50 but retained an “outperform” rating, implying meaningful upside from recent trading levels. The mixed action signals optimism about the shares but more cautious valuation expectations. Benzinga
• Negative Sentiment: GAAP net income was $6.6 million, or approximately $0.01 per share, while distributable earnings declined from $0.43 per share a year earlier. The earnings improvement story is therefore limited despite revenue growth. Starwood Property Trust Reports Results for Quarter Ended June 30, 2026

Institutional Trading of Starwood Property Trust

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. 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 valued at $720,000 after buying an additional 15,001 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of Starwood Property Trust by 23.9% during the 1st quarter. NewEdge Advisors LLC now owns 19,606 shares of the real estate investment trust’s stock valued at $388,000 after acquiring an additional 3,784 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in shares of 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 valued at $150,000 after purchasing an additional 3,721 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of 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 valued at $111,000 after purchasing an additional 1,657 shares during the period. Finally, Baird Financial Group Inc. increased its stake in Starwood Property Trust by 3.3% in the 2nd 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 in the last quarter. 49.82% of the stock is owned by institutional investors and hedge funds.

About Starwood Property Trust

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.