Starwood Property Trust (NYSE:STWD) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Starwood Property Trust (NYSE:STWD) released its quarterly earnings data 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. Starwood Property Trust had a return on equity of 8.41% and a net margin of 20.28%.The company had revenue of $492.95 million for the quarter, compared to analysts’ expectations of $469.53 million. During the same period last year, the firm posted $0.48 earnings per share. Starwood Property Trust’s revenue was up 8.5% compared to the same quarter last year.

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 Stock Up 2.1%

Shares of NYSE STWD traded up $0.37 during midday trading on Thursday, hitting $18.09. 4,388,901 shares of the company’s stock were exchanged, compared to its average volume of 3,696,581. The firm’s fifty day simple moving average is $18.21 and its 200-day simple moving average is $18.78. Starwood Property Trust has a twelve month low of $16.59 and a twelve month high of $21.05. The company has a debt-to-equity ratio of 2.98, a current ratio of 1.33 and a quick ratio of 1.33. 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 Announces Dividend

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

Hedge Funds Weigh In On Starwood Property Trust

Several hedge funds have recently made changes to their positions in the company. Northern Trust Corp lifted its holdings in shares of Starwood Property Trust by 1.2% during the third quarter. Northern Trust Corp now owns 5,387,358 shares of the real estate investment trust’s stock worth $104,353,000 after purchasing an additional 64,178 shares during the period. Raymond James Financial Inc. increased its stake in shares of Starwood Property Trust by 0.5% during the third quarter. Raymond James Financial Inc. now owns 2,727,404 shares of the real estate investment trust’s stock worth $52,830,000 after acquiring an additional 12,262 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in Starwood Property Trust by 1.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,454,538 shares of the real estate investment trust’s stock worth $44,206,000 after purchasing an additional 37,528 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Starwood Property Trust by 25.7% in the 4th quarter. Van ECK Associates Corp now owns 1,425,184 shares of the real estate investment trust’s stock valued at $25,668,000 after purchasing an additional 291,611 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Starwood Property Trust by 10.6% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,179,113 shares of the real estate investment trust’s stock worth $22,839,000 after purchasing an additional 112,968 shares during the period. Hedge funds and other institutional investors own 49.82% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on STWD shares. Keefe, Bruyette & Woods dropped their target price 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 restated a “hold (c)” rating on shares of Starwood Property Trust in a research note on Wednesday, January 21st. Wells Fargo & Company reduced their price objective on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a report on Monday, January 12th. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $20.38.

Key Stories 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.