| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
STWD Stock Overview
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.
Starwood Property Trust, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$23.91 |
| 52 Week High | US$26.36 |
| 52 Week Low | US$19.69 |
| Beta | 1.5 |
| 1 Month Change | 7.41% |
| 3 Month Change | 5.70% |
| 1 Year Change | -4.36% |
| 3 Year Change | 0.34% |
| 5 Year Change | 7.85% |
| Change since IPO | 19.55% |
Recent News & Updates
Starwood Property: This Dividend Titan Wins With An 8.2% Yield
Starwood Property Trust has a well-performing and growing loan portfolio. Strong balance sheet supports opportunistic capital investments during a recession. Valuation remains attractive. Inflationary pressures and an increasingly hawkish central bank point to higher interest rates, which, in the worst-case scenario, could send the economy into a prolonged slump. Starwood Property Trust Inc. (STWD) is well prepared to deal with higher inflation and interest rates, but it also has the financial foundation to deliver long-term growth during the next recession. In 2Q-22, the trust covered its dividend with distributable earnings, making it a true dividend titan. A Disciplined Real Estate Investor With An Opportunistic Bent Starwood Property is the largest commercial mortgage real estate investment trust in the United States, having funded billions of dollars in new loans for real estate projects nationwide. Starwood Property was founded in 2009, at the height of the real estate crash, and has since earned a reputation as a savvy and opportunistic real estate investor. Beginning in the difficult market of 2009, the trust has developed expertise in commercial real estate markets and invested more than $25 billion of investor capital in the trust's core strategies, which include Commercial and Residential Lending, Infrastructure Lending, Investing & Servicing, and Property. Starwood Property essentially invests in everything real estate. It originates commercial first mortgages and invests in commercial mortgage-backed securities as well as non-performing loans. While the trust initially focused solely on the United States, it has since expanded and increased its diversification by originating loans for properties in the United Kingdom, Ireland, Australia, and even the Bahamas. However, the trust's primary focus remains in the United States, which accounts for 72% of commercial lending values. The commercial lending portfolio, which has grown to a $16.5 billion loan juggernaut, is the foundation of Starwood Property. The trust's lending portfolio value increased by $1.7 billion in 1Q-22 due to new loan originations. Commercial Lending Portfolio (Starwood Property Trust) During Covid-19, the trust's collateral composition changed, causing Starwood Property's investment strategy to be reset. Starwood Property focused heavily on offices prior to the pandemic, but the trust has since reduced its exposure to the volatile office market, where vacancies can rise quickly and unpredictably during recessions. On the other hand, Starwood Property increased its exposure to the multi-family market, which also accounted for the majority (43%) of the trust's new loan originations. Post Covid Transformation (Starwood Property Trust) Strong Liquidity Access Supports Growth And Opportunistic Investments During A Recession The ability to seize once-in-a-decade investment opportunities as they arise in the market is primarily dependent on easy access to capital. And this is where Starwood Capital's extensive relationship network, long track record of commercial real estate investment, and large available financing facilities come into play. Looking back on a decade of successful investments in U.S. real estate assets, the company has not only aggressively grown its loan portfolio, but also improved its access to capital. Starwood Property has access to $9.3 billion in investment capital, which represents 57% of the trust's total commercial lending portfolio, which was valued at $16.4 billion as of June 30, 2022. When market conditions make it difficult to obtain cash, having access to large financing facilities creates a significant competitive advantage over other companies with more limited capital resources at their disposal. Financing Facilities (Starwood Property Trust) Distributable Earnings Outmatch Dividend The dividend paid by Starwood Property is secure and covered by distributable earnings. This has been the case for some time, and the second quarter did not change that. Starwood Property earned $0.51 per share in distributable earnings while paying out $0.48 per share, resulting in a 94% pay-out ratio. The trust has a slightly higher 12-month pay-out ratio of 96%. Distributable Earnings (Author Created Table Using Trust Information) Starwood Property Vs. Top Peer: Comparable Valuation Mortgage REITs have historically been valued using either a book value multiple or a multiple applied to the company's distributable earnings. Companies like Starwood Property and Blackstone Mortgage Trust Inc. (BXMT) can be compared based on dividend yields because they are structured as trusts and must pay out the majority of their earnings.
Starwood Property Trust Q2 2022 Earnings Preview
Starwood Property Trust (NYSE:STWD) is scheduled to announce Q2 earnings results on Thursday, August 4th, after market close. The consensus EPS Estimate is $0.50 (-2.0% Y/Y) and the consensus Revenue Estimate is $321.5M (+10.6% Y/Y). Over the last 2 years, STWD has beaten EPS estimates 88% of the time and has beaten revenue estimates 13% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 5 downward. Revenue estimates have seen 0 upward revisions and 1 downward.
Shareholder Returns
| STWD | US Mortgage REITs | US Market | |
|---|---|---|---|
| 7D | -0.3% | -0.4% | 1.4% |
| 1Y | -4.4% | -16.1% | -8.4% |
Return vs Industry: STWD exceeded the US Mortgage REITs industry which returned -17.3% over the past year.
Return vs Market: STWD exceeded the US Market which returned -9% over the past year.
Price Volatility
| STWD volatility | |
|---|---|
| STWD Average Weekly Movement | 4.1% |
| Mortgage REITs Industry Average Movement | 5.4% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: STWD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: STWD's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2009 | 277 | Barry Sternlicht | https://www.starwoodpropertytrust.com |
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States, Europe, and Australia. It operates through four segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing segments. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, including distressed or non-performing loans.
Starwood Property Trust, Inc. Fundamentals Summary
| STWD fundamental statistics | |
|---|---|
| Market Cap | US$7.39b |
| Earnings (TTM) | US$741.03m |
| Revenue (TTM) | US$675.88m |
10.0x
P/E Ratio10.9x
P/S RatioIs STWD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STWD income statement (TTM) | |
|---|---|
| Revenue | US$675.88m |
| Cost of Revenue | US$73.61m |
| Gross Profit | US$602.27m |
| Other Expenses | -US$138.77m |
| Earnings | US$741.03m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.40 |
| Gross Margin | 89.11% |
| Net Profit Margin | 109.64% |
| Debt/Equity Ratio | 271.8% |
How did STWD perform over the long term?
See historical performance and comparison