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Starwood Property
(NYSE:STWD)
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Rating:56Neutral
Price Target:
$13.00
▼(-19.35% Downside)
Action:Reiterated
Date:10/08/26
The score is held back primarily by very weak technicals (price below all major moving averages and depressed momentum indicators) and balance-sheet/leverage risk flagged in the financial statements. Support comes from improved TTM cash generation and a very high dividend yield, while the earnings call is mixed: progress on credit resolutions and liquidity is constructive, but the dividend is explicitly not covered and asset-resolution losses/reserves remain meaningful.
Positive Factors
Diversified platform and origination scale
A diversified platform across eight business lines reduces reliance on any single real estate segment and creates multiple income sources. Record investment deployment and robust pipelines indicate meaningful origination capacity, supporting future interest, fee, and servicing income over the coming quarters.
Negative Factors
Dividend is not currently covered
An uncovered dividend signals that current distributable earnings are insufficient to support the existing payout without relying on balance-sheet resources or future improvement. Continued coverage pressure could constrain capital available for reinvestment and increase the risk of a policy change if earnings recovery takes longer.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified platform and origination scale
A diversified platform across eight business lines reduces reliance on any single real estate segment and creates multiple income sources. Record investment deployment and robust pipelines indicate meaningful origination capacity, supporting future interest, fee, and servicing income over the coming quarters.
Read all positive factors
Starwood Property (STWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.51B
Dividend Yield15.83%
Average Volume (3M)5.89M
Price to Earnings (P/E)18.1
Beta (1Y)0.50
Revenue Growth10.66%
EPS Growth-45.26%
CountryUS
Employees324
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.67
Shares Outstanding370,168,950
10 Day Avg. Volume6,564,335
30 Day Avg. Volume5,890,990
Financial Highlights & Ratios
PEG Ratio1.85
Price to Book (P/B)0.89
Price to Sales (P/S)3.23
P/FCF Ratio8.56
Enterprise Value/Market Cap6.59
Enterprise Value/Revenue14.70
Enterprise Value/Gross Profit19.17
Enterprise Value/Ebitda16.78
Forecast
1Y Price Target
$18.60Price Target Upside15.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.49
Revenue Forecast (FY)$2.14B
Starwood Property Business Overview & Revenue Model
Company Description
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and internationally. It operates through four segments: Commercial and Residential Lending; Infrastructure Lending; Property; and Investing and Se...
How the Company Makes Money
STWD primarily makes money by investing in and financing real estate-related assets and earning spreads, fees, and other income associated with those activities.
1) Net interest income from lending and credit investments: A major revenue driver i...
Starwood Property Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call was broadly optimistic about Starwood Property Trust's diversified platform, liquidity, capital markets access, investment deployment, credit stabilization, and long-term earnings recovery. However, the company is not currently covering its dividend, holds a sizable nonaccrual and REO portfolio, expects a $47 million third-quarter realized loss from planned asset sales, recorded higher reserves, and faces multifamily, refinancing, construction, and valuation challenges. The positive operational and strategic developments significantly outweighed the stated challenges.Positive Updates
Second-Quarter Distributable Earnings
Distributable earnings were $152 million, or $0.40 per share, in the second quarter.
Negative Updates
Dividend Not Currently Covered
Barry Sternlicht stated that the company is not covering its dividend, is overpaying the dividend, and is slightly deteriorating book value while working to restore earnings power.
Read all updates
Q2-2026 Updates
Positive
Negative
Second-Quarter Distributable Earnings
Distributable earnings were $152 million, or $0.40 per share, in the second quarter.
Read all positive updates
Company Guidance
Management said it is on track to resolve approximately $800 million or 40% of its current nonaccrual and REO by year end, with $148 million of cash proceeds expected to resolve $195 million of assets on a DE basis and $160 million on a GAAP basis in the third quarter, comprising 10% of the current nonaccrual and OREO balance, with a realized loss of approximately $47 million and reinvestment adding approximately $0.03 to annual DE; the third quarter looks to be the strongest origination quarter, Woodstar’s authorized HUD rent increases of 8.4% will appear in results starting next quarter, $416 million of Woodstar debt is maturing over the next 6 months, and management anticipates an upside of approximately $140 million, its $110 million share of which can be reinvested to increase future earnings; management expects over $800 million of resolutions in the second half of 2020, expects the 1.2 thousand K Street conversion to complete in 2028, is confident in its ability to restore earnings power and coverage of the dividend, is not considering changing its dividend policy at the moment, and expects to discuss a new line of business next quarter.Starwood Property Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
52
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.02B | 1.88B | 2.04B | 2.05B | 1.55B | 1.19B |
| Gross Profit | 1.55B | 1.51B | 1.76B | 1.76B | 1.25B | 739.34M |
| EBITDA | 1.77B | 1.84B | 1.80B | 1.91B | 1.85B | 1.03B |
| Net Income | 227.91M | 411.54M | 359.93M | 339.21M | 871.48M | 447.74M |
Balance Sheet | ||||||
| Total Assets | 61.05B | 63.18B | 62.56B | 69.50B | 79.04B | 83.85B |
| Cash, Cash Equivalents and Short-Term Investments | 452.39M | 587.76M | 471.64M | 258.10M | 374.45M | 361.34M |
| Total Debt | 23.69B | 22.09B | 9.01B | 8.87B | 9.71B | 7.48B |
| Total Liabilities | 53.86B | 55.69B | 55.36B | 62.48B | 71.84B | 77.20B |
| Stockholders Equity | 6.50B | 6.80B | 6.44B | 6.25B | 6.46B | 6.07B |
Cash Flow | ||||||
| Free Cash Flow | 438.59M | 708.81M | 618.65M | 503.51M | 188.52M | -1.02B |
| Operating Cash Flow | 984.68M | 977.85M | 646.59M | 528.60M | 213.74M | -989.98M |
| Investing Cash Flow | -3.18B | -3.78B | 2.08B | 855.07M | -2.95B | -4.28B |
| Financing Cash Flow | 2.36B | 2.92B | -2.49B | -1.45B | 2.80B | 4.87B |
Starwood Property Technical Analysis
Negative
16.12
Price Trends
14.25
Negative
15.07
Negative
15.77
Negative
Market Momentum
-0.58
Negative
37.72
Neutral
42.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STWD, the sentiment is Negative. The current price of 16.12 is above the 20-day moving average (MA) of 12.83, above the 50-day MA of 14.25, and above the 200-day MA of 15.77, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STWD.
Starwood Property Risk Analysis
Starwood Property disclosed 107 risk factors in its most recent earnings report. Starwood Property reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Starwood Property Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $1.14B | 11.19 | 6.79% | 10.27% | 1.81% | 25.34% | |
56 Neutral | $4.51B | 18.07 | 3.40% | 15.83% | 10.66% | -45.26% | |
51 Neutral | $332.82M | -1.67 | -16.70% | 12.77% | -19.57% | -397.76% | |
50 Neutral | $458.02M | -15.59 | -2.91% | 17.68% | -0.14% | -10.71% | |
48 Neutral | $1.72B | 127.50 | 0.45% | 18.43% | -3.93% | ― | |
47 Neutral | $818.83M | 8.03 | 7.78% | 45.72% | -63.13% | ― |
* Real Estate Sector Average
STWD
Starwood Property
12.13
-4.38
-26.54%
ARI
Apollo Real Estate
6.34
0.06
0.89%
BXMT
Blackstone Mortgage
10.20
-6.19
-37.77%
LADR
Ladder Capital
8.96
-1.09
-10.86%
KREF
Kkr Real Estate Finance
5.48
-2.35
-30.01%
BRSP
BrightSpire Capital
3.62
-1.05
-22.57%
Starwood Property Corporate Events
Executive/Board Changes
Starwood Property Trust reshapes board with leadership changes
Neutral
Aug 13, 2026
Effective August 10, 2026, Starwood Property Trust appointed its long-standing president, Jeffrey F. DiModica, to the board of directors and its Investment Committee, bringing his direct oversight of approximately $31 billion in assets under manag...
Business Operations and StrategyPrivate Placements and Financing
Starwood Property Trust Prices $500 Million Senior Notes
Positive
Jul 10, 2026
On July 10, 2026, Starwood Property Trust closed a private offering of $500 million in 5.875% senior unsecured notes due August 15, 2029, sold to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The note...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.