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

Starwood Property Trust (NYSE:STWD) posted its earnings results on Friday. The real estate investment trust reported $0.39 earnings per share 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 firm had revenue of $205.55 million for the quarter, compared to analyst estimates of $496.25 million. During the same period in the prior year, the business posted $0.45 EPS. The firm’s quarterly 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 Price Performance

STWD stock traded down $0.31 during midday trading on Friday, reaching $17.75. The company had a trading volume of 5,470,735 shares, compared to its average volume of 2,449,423. The company has a market capitalization of $6.58 billion, a price-to-earnings ratio of 15.30, a price-to-earnings-growth ratio of 2.36 and a beta of 1.02. The stock has a 50 day moving average price of $17.79 and a 200-day moving average price of $18.08. Starwood Property Trust has a 1-year low of $16.90 and a 1-year high of $21.05. The company has a debt-to-equity ratio of 3.10, a current ratio of 1.68 and a quick ratio of 1.68.

Starwood Property Trust Announces Dividend

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

Starwood Property Trust declared that its board has approved a share buyback plan on Thursday, February 26th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the real estate investment trust to buy up to 6.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the business’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $17.13, for a total value of $120,132.69. Following the completion of the transaction, the director owned 168,152 shares of the company’s stock, valued at $2,880,443.76. The trade was a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 5.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Verition Fund Management LLC raised its stake in Starwood Property Trust by 312.9% during the fourth quarter. Verition Fund Management LLC now owns 11,667 shares of the real estate investment trust’s stock worth $210,000 after acquiring an additional 17,147 shares in the last quarter. CIBC Private Wealth Group LLC raised its stake in Starwood Property Trust by 11.5% during the third quarter. CIBC Private Wealth Group LLC now owns 5,943 shares of the real estate investment trust’s stock worth $115,000 after acquiring an additional 613 shares in the last quarter. GM Advisory Group LLC bought a new stake in shares of Starwood Property Trust during the third quarter worth about $201,000. Quarry LP grew its holdings in shares of Starwood Property Trust by 86.7% during the third quarter. Quarry LP now owns 7,061 shares of the real estate investment trust’s stock worth $137,000 after purchasing an additional 3,278 shares during the last quarter. Finally, NorthRock Partners LLC bought a new stake in shares of Starwood Property Trust during the third quarter worth about $212,000. Institutional investors and hedge funds own 49.82% of the company’s stock.

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

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on STWD. Bank of America reissued a “neutral” rating and set a $19.00 target price on shares of Starwood Property Trust in a report on Friday, March 6th. Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a report on Monday, January 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Starwood Property Trust in a report on Monday, April 20th. JPMorgan Chase & Co. dropped their target price on Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Finally, Keefe, Bruyette & Woods dropped their target price 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 research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Starwood Property Trust currently has a consensus rating of “Hold” and an average 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.