1.79%
6.05%
0.74%
-1.54%
-0.24%
-11.74%
-12.94%
AI Spotlight on STWD
Company Description
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.The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.The Property segment engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.
The Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties acquired from CMBS trusts.The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders.Starwood Property Trust, Inc.
was incorporated in 2009 and is headquartered in Greenwich, Connecticut.
Market Data
| Last Price | 20.52 |
| Change Percentage | 1.79% |
| Open | 20.18 |
| Previous Close | 20.16 |
| Market Cap ( Millions) | 6919 |
| Volume | 2107222 |
| Year High | 21.17 |
| Year Low | 18.12 |
| M A 50 | 19.44 |
| M A 200 | 19.73 |
Financial Ratios
| FCF Yield | 9.24% |
| Dividend Yield | 9.36% |
| ROE | 5.65% |
| Debt / Equity | 139.91% |
| Net Debt / EBIDTA | 893.75% |
| Price To Book | 1.0 |
| Price Earnings Ratio | 17.96 |
| Price To FCF | 10.82 |
| Price To sales | 3.87 |
| EV / EBITDA | 16.1 |
News
- Feb -28 - Starwood Property Q4 Earnings Top Estimates, Book Value Declines Y/Y
- Feb -28 - I'm Buying Up To 9% Yield For Recurring Income
- Feb -27 - Starwood Property Trust, Inc. (STWD) Q4 2024 Earnings Call Transcript
- Feb -27 - Starwood Property Trust (STWD) Beats Q4 Earnings Estimates
- Feb -27 - Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2024
- Feb -21 - Why Dividends Matter, Even The Little Ones
- Feb -20 - Earnings Preview: Starwood Property Trust (STWD) Q4 Earnings Expected to Decline
- Feb -20 - Dividend Harvesting Portfolio Week 207: $20,700 Allocated, $2,010.09 In Projected Dividends
- Feb -13 - Dividend Harvesting Portfolio Week 206: $20,600 Allocated, $2,001.49 In Projected Dividends
- Feb -11 - Tariff Turmoil? 2 Cheap, High-Yielding Stocks To Help Battle Inflation
- Feb -03 - Starwood Property Trust: An Undervaluation Opportunity, Hoping For Lower Rates In The Future
- Jan -29 - Starwood Property Trust Announces Tax Reporting Information
- Jan -28 - Starwood Property Trust Announces Date for Fourth Quarter and Full Year 2024 Earnings Release and Conference Call
- Jan -25 - Wall Street Expects 5 High-Yield Dividend REITs to Explode Higher in 2025
- Jan -23 - Dividend Harvesting Portfolio Week 203: $20,300 Allocated, $1,954.13 In Projected Dividends
- Jan -21 - 3 High Yielding REITs (8%-10%)
- Jan -16 - Dividend Harvesting Portfolio Week 202: $20,200 Allocated, $1,944.48 In Projected Dividends
- Jan -06 - 2 High-Yielding Cash Cows For A Comfortable Retirement
- Jan -03 - Beat Inflation Like A Pro: Unstoppable Dividend Picks You Can't Miss
- Dec -31 - Starwood Property Remains One Of My Favorite Passive Income Streams Yielding Over 9.5%
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Commercial and Residential Lending
Expected Growth : 8.02 %
What the company do ?
Starwood Property Trust, Inc. offers commercial and residential lending services, providing financing solutions for commercial properties and residential mortgages, respectively, to borrowers and investors.
Why we expect these perspectives ?
Strong demand for commercial and residential properties, driven by low interest rates and economic growth, contributed to Starwood Property Trust's 8.02% growth. Additionally, the company's diversified portfolio, strategic acquisitions, and effective risk management practices also supported this growth.
Segment n°2 -> Infrastructure Lending
Expected Growth : 8.97 %
What the company do ?
Infrastructure Lending from Starwood Property Trust, Inc. provides customized financing solutions for infrastructure projects, focusing on energy, transportation, and social infrastructure.
Why we expect these perspectives ?
Starwood Property Trust's 8.97% growth in Infrastructure Lending is driven by increasing demand for renewable energy projects, government initiatives for infrastructure development, and a growing need for digital infrastructure. Additionally, the company's diversified portfolio, strong relationships with borrowers, and ability to provide customized financing solutions have contributed to its growth.
Segment n°3 -> Investing and Servicing
Expected Growth : 8.5 %
What the company do ?
Starwood Property Trust, Inc.'s Investing and Servicing segment originates, acquires, and services commercial mortgage loans, as well as invests in commercial mortgage-backed securities.
Why we expect these perspectives ?
Starwood Property Trust's 8.5% growth in Investing and Servicing is driven by increasing demand for commercial real estate debt, expansion of lending products, and strategic acquisitions. Additionally, the company's diversified portfolio, strong asset management capabilities, and efficient cost structure contribute to its growth momentum.
Segment n°4 -> Reconciling Items
Expected Growth : 7.4 %
What the company do ?
Reconciling items from Starwood Property Trust, Inc. refer to the adjustments made to reconcile the company's financial statements to comply with GAAP, ensuring accurate financial reporting.
Why we expect these perspectives ?
Starwood Property Trust's 7.4% growth is driven by increasing originations in its commercial mortgage lending business, expansion into new markets, and a growing portfolio of stabilized assets. Additionally, the company's diversified investment portfolio and strong balance sheet have enabled it to capitalize on market opportunities, further contributing to its growth.
Segment n°5 -> Property
Expected Growth : 4.83 %
What the company do ?
Starwood Property Trust, Inc.'s Property segment acquires and owns commercial mortgage loans, mezzanine loans, and other commercial real estate debt investments.
Why we expect these perspectives ?
Starwood Property Trust's 4.83% growth is driven by increasing demand for commercial real estate, particularly in the hospitality sector. Strong occupancy rates, rising room rates, and strategic acquisitions contribute to revenue growth. Additionally, the company's diversified portfolio and focus on high-quality assets mitigate risks, supporting sustainable growth.
Segment n°6 -> Corporate
Expected Growth : 8.32 %
What the company do ?
Starwood Property Trust, Inc.'s Corporate segment includes the company's corporate overhead and other miscellaneous items.
Why we expect these perspectives ?
Starwood Property Trust's corporate segment growth of 8.32% is driven by increasing demand for commercial real estate, expansion of its lending business, and strategic investments in high-yielding assets. Additionally, the company's diversified portfolio and strong balance sheet have enabled it to capitalize on market opportunities, contributing to its growth momentum.
Starwood Property Trust, Inc. Products
| Product Range | What is it ? |
|---|---|
| Commercial Mortgage Loans | Starwood Property Trust, Inc. originates, acquires, and manages a portfolio of commercial mortgage loans secured by income-producing properties, such as office buildings, apartments, and retail centers. |
| Commercial Real Estate Debt Investments | The company invests in commercial real estate debt, including mezzanine loans, B-notes, and other subordinate debt instruments, to generate income and capital appreciation. |
| Residential Mortgage Loans | Starwood Property Trust, Inc. originates and acquires residential mortgage loans, including single-family and multifamily mortgages, to generate income and capital appreciation. |
| Infrastructure Loans | The company originates and acquires infrastructure loans, including construction loans and term loans, to finance infrastructure projects, such as renewable energy facilities and transportation infrastructure. |
| Equity Investments | Starwood Property Trust, Inc. makes equity investments in commercial properties, including office buildings, apartments, and retail centers, to generate income and capital appreciation. |
Starwood Property Trust, Inc.'s Porter Forces
Threat Of Substitutes
Starwood Property Trust, Inc. operates in a niche market, providing commercial mortgage loans and other commercial real estate debt investments. While there are substitutes available, such as other mortgage REITs, the company's focus on commercial mortgage loans and debt investments provides a level of differentiation, reducing the threat of substitutes.
Bargaining Power Of Customers
Starwood Property Trust, Inc.'s customers are primarily institutional investors, such as pension funds and insurance companies. These customers have limited bargaining power due to the company's diversified investor base and the specialized nature of its products.
Bargaining Power Of Suppliers
Starwood Property Trust, Inc. has a diversified supplier base, including various financial institutions and brokers. The company's scale and diversified supplier base reduce the bargaining power of its suppliers.
Threat Of New Entrants
The commercial mortgage REIT industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, Starwood Property Trust, Inc.'s established brand and expertise in commercial mortgage lending create a high barrier to entry for new entrants.
Intensity Of Rivalry
The commercial mortgage REIT industry is competitive, with several established players. However, Starwood Property Trust, Inc.'s diversified portfolio and expertise in commercial mortgage lending help to mitigate the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 75.75% |
| Debt Cost | 7.97% |
| Equity Weight | 24.25% |
| Equity Cost | 12.30% |
| WACC | 9.02% |
| Leverage | 312.32% |
Starwood Property Trust, Inc. : Quality Control
Starwood Property Trust, Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| BXMT | Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company operates as a real estate investment … |
| AGNCN | AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the … |
| NLY | Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance and corporate middle market lending. The company invests in agency mortgage-backed securities, mortgage servicing rights, Agency commercial mortgage-backed … |
| RITM | Rithm Capital Corp. provides capital and services to the real estate and financial services sectors in the United States. Its investment portfolio comprises mortgage servicing related assets, residential securities and … |
| ABR | Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Rithm Capital
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AGNC Investment
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Arbor Realty Trust
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Annaly Capital Management
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5
Starwood Property Trust
A-Score
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6
