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

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

Shares of NYSE STWD traded down $0.31 during trading hours on Friday, hitting $17.75. 5,470,735 shares of the stock were exchanged, compared to its average volume of 2,449,423. The company has a debt-to-equity ratio of 3.10, a quick ratio of 1.68 and a current ratio of 1.68. The company has a market cap of $6.58 billion, a PE ratio of 15.30, a price-to-earnings-growth ratio of 2.36 and a beta of 1.02. The company’s fifty day simple moving average is $17.79 and its two-hundred day simple 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 company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were given a dividend of $0.48 per share. The ex-dividend date was Tuesday, March 31st. This represents a $1.92 annualized dividend and a dividend yield of 10.8%. Starwood Property Trust’s dividend payout ratio (DPR) is currently 165.52%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on STWD. Keefe, Bruyette & Woods lowered their target price on shares of Starwood Property Trust from $20.50 to $20.00 and set an “outperform” rating on the stock in a report on Monday, March 2nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starwood Property Trust in a report on Monday, April 20th. Wells Fargo & Company lowered their target price on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, February 26th. JPMorgan Chase & Co. lowered their target price on shares of Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating on the stock in a report on Thursday, April 16th. Finally, Bank of America reaffirmed a “neutral” rating and set a $19.00 target price on shares of Starwood Property Trust in a report on Friday, March 6th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Starwood Property Trust currently has an average rating of “Hold” and an average target price of $19.80.

Insider Activity

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the 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 owned 168,152 shares in the company, valued at approximately $2,880,443.76. This trade represents a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 5.80% of the company’s stock.

Institutional Trading of Starwood Property Trust

Several large investors have recently made changes to their positions in the company. Empowered Funds LLC acquired a new stake in Starwood Property Trust in the fourth quarter valued at approximately $103,000. XTX Topco Ltd acquired a new stake in Starwood Property Trust in the fourth quarter valued at approximately $4,087,000. SummitTX Capital L.P. boosted its position in Starwood Property Trust by 439.5% in the fourth quarter. SummitTX Capital L.P. now owns 219,231 shares of the real estate investment trust’s stock valued at $3,948,000 after buying an additional 178,593 shares in the last quarter. Summit Securities Group LLC boosted its position in Starwood Property Trust by 127.5% in the fourth quarter. Summit Securities Group LLC now owns 9,100 shares of the real estate investment trust’s stock valued at $164,000 after buying an additional 5,100 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its position in Starwood Property Trust by 12.9% in the fourth quarter. Janus Henderson Group PLC now owns 157,748 shares of the real estate investment trust’s stock valued at $2,840,000 after buying an additional 18,000 shares in the last quarter. Institutional investors and hedge funds own 49.82% of the company’s stock.

Starwood Property Trust announced that its board has initiated a stock buyback program on Thursday, February 26th that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the real estate investment trust to reacquire up to 6.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Trending Headlines about Starwood Property Trust

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

About Starwood Property Trust

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.