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

Key Points

• Starwood Property Trust missed earnings expectations, reporting $0.39 EPS versus the $0.42 consensus. Revenue also came in far below estimates at $205.55 million, though it was still up 22.5% year over year.
• Management highlighted active capital deployment and a larger asset base, saying the company invested $2.5 billion in the quarter and another $1.5 billion afterward. Undepreciated assets reached a record $31.7 billion, supported by a diversified mix of lending and owned property.
• Balance-sheet strength and shareholder returns remain a focus, with about $1 billion in liquidity, $9.4 billion in bank availability, and a $400 million share repurchase authorization. The company also continues paying a high dividend yield, though its payout ratio is elevated.

Starwood Property Trust (NYSE:STWD - Get Free Report) issued its quarterly earnings results on Friday. The real estate investment trust reported $0.39 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.03), FiscalAI reports. Starwood Property Trust had a return on equity of 8.16% and a net margin of 22.32%.The business had revenue of $205.55 million for the quarter, compared to the consensus estimate of $496.25 million. During the same period last year, the firm earned $0.45 earnings per share. The company's quarterly revenue was up 22.5% compared to the same quarter last year.

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

• Reported distributable earnings were $147 million ($0.39 per share), or $0.47 per share excluding certain items, with results pressured by elevated cash balances, resolution of non-performing assets, and dilution from the new net-lease platform.
• The company deployed $2.5 billion in Q1 (and another $1.5 billion post-quarter), bringing undepreciated assets to a record $31.7 billion, and emphasizes a diversified platform (commercial lending ~52%, owned property ~25%).
• Management highlighted continued progress resolving problem assets—foreclosures, sales and appraisals this quarter reduced non-accruals/REO and improved the portfolio risk rating to 2.9, with total reserves of $676 million (about $1.82 per share of book value protection).
• The net-lease (Fundamental Income) business remains temporarily dilutive (~$0.03 this quarter) but financing optimizations (a 5.06% ABS and a post-quarter $1B warehouse with ~40% lower spread) are expected to move the platform toward break-even and accretion in 2027.
• Balance-sheet strength and shareholder actions: ~$1 billion of reported liquidity plus $9.4 billion in bank availability, conservative leverage (2.59x), and a board-authorized $400 million buyback (first $20 million executed at a discount) support flexibility and shareholder returns.

Starwood Property Trust Stock Performance

Shares of STWD stock traded down $0.31 on Friday, reaching $17.75. The stock had a trading volume of 5,470,735 shares, compared to its average volume of 2,449,423. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 3.10. The firm's 50-day moving average is $17.79 and its two-hundred day moving average is $18.08. The firm has a market capitalization of $6.58 billion, a price-to-earnings ratio of 15.30, a P/E/G ratio of 2.36 and a beta of 1.02. Starwood Property Trust has a 12 month low of $16.90 and a 12 month high of $21.05.

Starwood Property Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.8%. The ex-dividend date of this dividend was Tuesday, March 31st. Starwood Property Trust's dividend payout ratio is presently 165.52%.

Starwood Property Trust announced that its Board of Directors has initiated a share buyback plan on Thursday, February 26th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to purchase up to 6.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director Jeffrey G. Dishner sold 7,013 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $17.13, for a total value of $120,132.69. Following the sale, the director directly owned 168,152 shares of the company's stock, valued at approximately $2,880,443.76. This represents a 4.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 5.80% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Verition Fund Management LLC raised its holdings in Starwood Property Trust by 312.9% in the 4th quarter. Verition Fund Management LLC now owns 11,667 shares of the real estate investment trust's stock valued at $210,000 after acquiring an additional 17,147 shares during the period. CIBC Private Wealth Group LLC raised its holdings in Starwood Property Trust by 11.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 5,943 shares of the real estate investment trust's stock valued at $115,000 after acquiring an additional 613 shares during the period. GM Advisory Group LLC bought a new position in Starwood Property Trust in the 3rd quarter valued at about $201,000. Quarry LP raised its holdings in Starwood Property Trust by 86.7% in the 3rd quarter. Quarry LP now owns 7,061 shares of the real estate investment trust's stock valued at $137,000 after acquiring an additional 3,278 shares during the period. Finally, NorthRock Partners LLC bought a new position in Starwood Property Trust in the 3rd quarter valued at about $212,000. 49.82% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on STWD shares. Keefe, Bruyette & Woods cut their price target on shares of Starwood Property Trust from $20.50 to $20.00 and set an "outperform" rating on the stock in a research report on Monday, March 2nd. JPMorgan Chase & Co. cut their price target on shares of Starwood Property Trust from $20.00 to $19.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Weiss Ratings reissued a "hold (c)" rating on shares of Starwood Property Trust in a research report on Monday, April 20th. Wells Fargo & Company cut their price target on shares of Starwood Property Trust from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Thursday, February 26th. Finally, 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. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $19.80.

Starwood Property Trust News Roundup

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

• Positive Sentiment: Starwood reported first-quarter GAAP net income of $51.9 million and Distributable Earnings of $147.3 million, with revenue rising 22.5% year over year, indicating the portfolio is still generating meaningful income. Starwood Property Trust Reports Results for Quarter Ended March 31, 2026
• Positive Sentiment: The company said it invested $2.5 billion during the quarter and another $1.5 billion after quarter-end, which suggests continued deployment opportunities and active capital generation. Starwood Property Trust Reports Results for Quarter Ended March 31, 2026
• Neutral Sentiment: Management emphasized “disciplined origination,” which may reassure investors that the company is prioritizing credit quality and risk control as it grows. Starwood Property Trust Q1 earnings miss, revenue beats; focus is on disciplined origination
• Negative Sentiment: Earnings missed estimates, with STWD posting $0.39 per share versus the $0.42 consensus, compared with $0.45 a year ago, which is likely weighing on the stock. Starwood Property Trust (STWD) Q1 Earnings Lag Estimates
• Negative Sentiment: Revenue of $205.55 million also fell well short of the $496.25 million consensus estimate, adding to concerns about the quarter’s headline results. Conference call and earnings report

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.

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