Starwood Property Trust (NYSE:STWD) Posts Earnings Results, Misses Expectations By $0.03 EPS

Starwood Property Trust (NYSE:STWD) issued its quarterly earnings data on Friday. The real estate investment trust reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.03), FiscalAI reports. The company had revenue of $205.55 million for the quarter, compared to analyst estimates of $496.25 million. Starwood Property Trust had a return on equity of 8.16% and a net margin of 22.32%.The company’s revenue was up 22.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.45 earnings per share.

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 Trading Down 1.7%

Shares of Starwood Property Trust stock opened at $17.75 on Friday. The firm has a market capitalization of $6.58 billion, a PE ratio of 18.48, a price-to-earnings-growth ratio of 2.32 and a beta of 1.02. The company has a current ratio of 1.68, a quick 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 200 day moving average is $18.08. Starwood Property Trust has a 1 year low of $16.90 and a 1 year high of $21.05.

Starwood Property Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.92 annualized dividend and a dividend yield of 10.8%. Starwood Property Trust’s payout ratio is 200.00%.

More Starwood Property Trust News

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 announced that its Board of Directors has initiated a stock repurchase plan on Thursday, February 26th that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the real estate investment trust to repurchase up to 6.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Starwood Property Trust news, Director Jeffrey G. Dishner sold 7,013 shares of the business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $17.13, for a total transaction of $120,132.69. Following the sale, the director directly owned 168,152 shares of the company’s stock, valued at $2,880,443.76. The trade was a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 5.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Starwood Property Trust

A number of institutional investors have recently added to or reduced their stakes in the business. Northern Trust Corp grew its holdings in Starwood Property Trust by 1.2% during the 3rd quarter. Northern Trust Corp now owns 5,387,358 shares of the real estate investment trust’s stock worth $104,353,000 after acquiring an additional 64,178 shares during the last quarter. Raymond James Financial Inc. boosted its stake in 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 in the last quarter. Charles Schwab Investment Management Inc. boosted its stake 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 acquiring an additional 37,528 shares in the last quarter. Van ECK Associates Corp raised its holdings in Starwood Property Trust by 25.7% during the fourth quarter. Van ECK Associates Corp now owns 1,425,184 shares of the real estate investment trust’s stock worth $25,668,000 after buying an additional 291,611 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Starwood Property Trust by 10.6% during the third 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 buying an additional 112,968 shares during the last quarter. 49.82% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

STWD has been the subject of a number of analyst reports. Bank of America reaffirmed a “neutral” rating and issued a $19.00 target price on shares of Starwood Property Trust in a research report on Friday, March 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Starwood Property Trust in a research report on Monday, April 20th. Wells Fargo & Company reduced their target price on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Thursday, February 26th. Keefe, Bruyette & Woods reduced their target price on shares of Starwood Property Trust from $20.50 to $20.00 and set an “outperform” rating for the company in a report on Monday, March 2nd. Finally, Zacks Research upgraded shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $19.80.

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.