Starwood Property initiated with a Peer Perform at Wolfe Research

Wolfe Research initiated coverage of Starwood Property with a Peer Perform rating. Starwood’s dividend yield is attractive, particularly if investors believe that it is well-covered via distributable earnings in the near-term, but the firm recomments to proceed with caution, preferring for the broader commercial real estate space to work through further periods of refinancing and operational challenges, the analyst tells investors in a research note. Among the key risks is the continuation of a challenging macroeconomic backdrop that will likely drive repayments to outpace originations, putting pressure on earnings as well as existing credit, the firm added.