Starwood Property Trust, Inc. (NYSE:STWD) to Issue $0.48 Quarterly Dividend

Key Points

• Starwood Property Trust declared a quarterly dividend of $0.48 per share, payable October 15 to shareholders of record on September 30. The dividend equates to $1.92 annually and a yield of approximately 12.7%.
• The dividend’s current payout ratio is 94.6%, but analysts expect next year’s earnings of $1.75 per share versus $1.92 in annual dividends, implying a potentially unsustainable 109.7% payout ratio.
• Starwood reported quarterly EPS of $0.40, matching analyst estimates, while revenue increased 15.6% year over year. The stock opened at $15.08, near its 52-week low of $14.89.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) declared a quarterly dividend on Thursday, September 17th. Shareholders of record on Wednesday, September 30th will be given a dividend of 0.48 per share by the real estate investment trust on Thursday, October 15th. This represents a c) dividend on an annualized basis and a yield of 12.7%. The ex-dividend date of this dividend is Wednesday, September 30th.

Starwood Property Trust has a payout ratio of 94.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Research analysts expect Starwood Property Trust to earn $1.75 per share next year, which means the company may not be able to cover its $1.92 annual dividend with an expected future payout ratio of 109.7%.

Starwood Property Trust Stock Performance

NYSE:STWD opened at $15.08 on Friday. The company has a market cap of $5.58 billion, a price-to-earnings ratio of 25.55, a PEG ratio of 1.97 and a beta of 0.98. Starwood Property Trust has a fifty-two week low of $14.89 and a fifty-two week high of $20.40. The company has a debt-to-equity ratio of 3.47, a quick ratio of 1.46 and a current ratio of 1.46. The stock has a fifty day moving average price of $16.18 and a 200-day moving average price of $16.95.

Starwood Property Trust (NYSE:STWD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.40. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The firm had revenue of $201.42 million for the quarter, compared to the consensus estimate of $521.67 million. During the same period in the prior year, the company posted $0.43 earnings per share. The business's revenue for the quarter was up 15.6% on a year-over-year basis. As a group, equities analysts anticipate that Starwood Property Trust will post 1.4 EPS for the current fiscal year.

Institutional Investors Weigh In On Starwood Property Trust

Several institutional investors and hedge funds have recently made changes to their positions in STWD. Quantum Portfolio Management LLC increased its stake in Starwood Property Trust by 882,760.9% in the 1st quarter. Quantum Portfolio Management LLC now owns 112,176,302 shares of the real estate investment trust's stock valued at $1,931,676,000 after buying an additional 112,163,596 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Starwood Property Trust during the second quarter valued at approximately $589,366,000. Geode Capital Management LLC lifted its holdings in Starwood Property Trust by 2.4% during the fourth quarter. Geode Capital Management LLC now owns 6,406,419 shares of the real estate investment trust's stock worth $115,453,000 after acquiring an additional 148,740 shares during the period. Advisors Capital Management LLC purchased a new position in Starwood Property Trust in the second quarter worth $70,121,000. Finally, Norges Bank bought a new position in Starwood Property Trust in the 4th quarter valued at $75,177,000. Institutional investors and hedge funds own 49.82% of the company's stock.

About Starwood Property Trust

Starwood Property Trust, Inc is a real estate investment trust focused primarily on commercial real estate finance. The company originates, acquires, finances and manages a range of commercial real estate debt investments, including first mortgage loans, mezzanine loans, subordinated debt and securities backed by commercial properties.

Its activities also include infrastructure lending, residential lending and the ownership or management of commercial real estate investments. Through these businesses, Starwood Property Trust provides financing to property owners, developers and investors across sectors such as office, multifamily, industrial, hospitality and other commercial real estate categories.

Founded in 2009, the company operates primarily in the United States and also pursues investment opportunities in international markets, including Europe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.