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

Starwood Property Trust (NYSE:STWD) announced its quarterly earnings results 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. 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 during the quarter, compared to analysts’ expectations of $496.25 million. During the same period in the previous year, the business earned $0.45 EPS. The business’s 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 Down 1.7%

Shares of NYSE:STWD traded down $0.31 on Friday, hitting $17.75. 5,470,735 shares of the company traded hands, compared to its average volume of 2,449,423. Starwood Property Trust has a 52 week low of $16.90 and a 52 week high of $21.05. 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 stock has a 50 day simple moving average of $17.79 and a 200-day simple moving average of $18.08. The company has a market cap of $6.58 billion, a PE ratio of 15.30, a PEG ratio of 2.36 and a beta of 1.02.

Starwood Property Trust Announces Dividend

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

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Wells Fargo & Company dropped their price target on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starwood Property Trust in a research note on Monday, April 20th. JPMorgan Chase & Co. dropped their price target on Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating for the company in a research note on Thursday, April 16th. Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Keefe, Bruyette & Woods decreased their price objective on Starwood Property Trust from $20.50 to $20.00 and set an “outperform” rating for the company in a report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $19.80.

Key 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 declared that its Board of Directors has authorized a stock repurchase plan on Thursday, February 26th that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the real estate investment trust to repurchase up to 6.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Starwood Property Trust

In other news, Director Jeffrey G. Dishner sold 7,013 shares of the firm’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $17.13, for a total transaction of $120,132.69. Following the completion of the transaction, the director directly owned 168,152 shares in the company, valued at $2,880,443.76. This trade represents a 4.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 5.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Starwood Property Trust

Several institutional investors and hedge funds have recently modified their holdings of STWD. Marshall Wace LLP bought a new position in shares of Starwood Property Trust during the third quarter valued at $20,457,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Starwood Property Trust by 164,844.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 880,802 shares of the real estate investment trust’s stock valued at $15,863,000 after acquiring an additional 880,268 shares in the last quarter. HRT Financial LP increased its holdings in shares of Starwood Property Trust by 315.4% during the second quarter. HRT Financial LP now owns 713,415 shares of the real estate investment trust’s stock valued at $14,318,000 after acquiring an additional 541,672 shares in the last quarter. Zacks Investment Management bought a new position in shares of Starwood Property Trust during the third quarter valued at $8,490,000. Finally, First Trust Advisors LP increased its holdings in shares of Starwood Property Trust by 439.6% during the fourth quarter. First Trust Advisors LP now owns 421,059 shares of the real estate investment trust’s stock valued at $7,583,000 after acquiring an additional 343,021 shares in the last quarter. 49.82% of the stock is currently owned by institutional investors.

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.