StockNews.AI
STWD
StockNews.AI
102 days

Starwood Property Trust Reports Results for Quarter Ended March 31, 2025

1. STWD's Q1 2025 GAAP earnings were $0.33 per share. 2. The company invested $2.3 billion, focusing on lending and infrastructure. 3. STWD closed $1.3 billion in deals post-quarter, enhancing liquidity. 4. They extended debt maturity to 3.7 years, ensuring financial flexibility. 5. STWD has maintained a $0.48 dividend for over a decade.

Earnings
+0.68%Current Return
VS
-0.13%S&P 500
$19.0405/09 07:07 AM EDTEvent Start
$19.1705/12 07:21 AM EDTLatest Updated
30m saved
Insight
Article

FAQ

Why Bullish?

Solid earnings and investment indicate growth potential. Historical earnings spikes often follow substantial investment activities.

How important is it?

The article outlines strong financial performance and future growth, crucial for investor sentiment.

Why Long Term?

Investments and liquidity improvements promise sustained growth over the next few quarters, fostering investor confidence.

Related Companies

BXMTNRZHRZN
– Quarterly GAAP Earnings of $0.33 and Distributable Earnings (DE) of $0.45 per Diluted Share – – Invested $2.3 Billion, Including $1.4 Billion in Commercial Lending and Record $0.7 Billion in Infrastructure Lending – – Closed $1.3 Billion After Quarter End, Including $0.9 Billion in Commercial Lending – – Issued $500 Million of Corporate Debt, Extending Average Maturity to 3.7 Years – – Current Liquidity of $1.5 Billion – – Paid Quarterly Dividend of $0.48 per Share for Over a Decade – , /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended March 31, 2025. The Company's first quarter 2025 GAAP net income was $112.3 million, and Distributable Earnings (a non-GAAP financial measure) was $156.3 million. "We entered 2025 with significant financial flexibility, diversified business lines, and a solid investment portfolio that we expect to grow significantly this year, with commercial lending originations to date already surpassing all of last year. Our pipeline across businesses continues to be very active. Dislocation in securitized markets, as we are seeing today, always creates outsized opportunities for us," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "With $18 billion of capital raised since our IPO, we have a demonstrated ability to access capital markets across varied market conditions. We also continue to benefit from our diverse business model, high levels of liquidity, no corporate debt maturities for over a year, $4.9 billion of unencumbered assets and $1.5 billion of unrealized property gains which we can harvest to create incremental distributable earnings," added Jeffrey DiModica, President of Starwood Property Trust. Supplemental Schedules The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders.  Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com. Webcast and Conference Call Information  The Company will host a live webcast and conference call on Friday, May 9, 2025, at 10:00 a.m. Eastern Time.  To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website.  The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in.  To Participate via Telephone Conference Call:Dial in at least 15 minutes prior to start time.Domestic:  1-877-407-9039 International:  1-201-689-8470 Conference Call Playback:Domestic:  1-844-512-2921International:  1-412-317-6671Passcode:  13750625The playback can be accessed through May 23, 2025. About Starwood Property Trust, Inc. Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors.  As of March 31, 2025, the Company has successfully deployed over $104 billion of capital since inception and manages a portfolio of over $26 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com. Forward-Looking Statements Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions.  Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur.  Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise. Additional information can be found on the Company's website at www.starwoodpropertytrust.com. Contact:Zachary TanenbaumStarwood Property TrustPhone: 203-422-7788Email: [email protected] Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended March 31, 2025 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Revenues: Interest income from loans $                       290,299 $           60,456 $           — $           3,168 $             — $   353,923 $                 — $  353,923 Interest income from investment securities 23,889 154 — 28,174 — 52,217 (39,996) 12,221 Servicing fees 65 — — 21,829 — 21,894 (4,434) 17,460 Rental income 8,203 — 16,315 4,665 — 29,183 — 29,183 Other revenues 3,010 1,015 234 1,039 95 5,393 — 5,393 Total revenues 325,466 61,625 16,549 58,875 95 462,610 (44,430) 418,180 Costs and expenses: Management fees 180 — — — 40,583 40,763 — 40,763 Interest expense 165,551 35,154 8,977 8,133 74,538 292,353 (195) 292,158 General and administrative 14,606 5,018 1,414 22,501 4,608 48,147 — 48,147 Costs of rental operations 5,518 — 6,018 3,284 — 14,820 — 14,820 Depreciation and amortization 3,607 10 5,865 1,751 251 11,484 — 11,484 Credit loss (reversal) provision, net (25,759) 760 — — — (24,999) — (24,999) Other expense (25) 1,923 (82) 35 — 1,851 — 1,851 Total costs and expenses 163,678 42,865 22,192 35,704 119,980 384,419 (195) 384,224 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 28,691 28,691 Change in fair value of servicing rights — — — (114) — (114) 867 753 Change in fair value of investment securities, net 7,397 — — (22,629) — (15,232) 15,059 (173) Change in fair value of mortgage loans, net 42,574 — — 15,830 — 58,404 — 58,404 Income from affordable housing fund investments — — 3,910 — — 3,910 — 3,910 Earnings (loss) from unconsolidated entities 1,296 (622) — 245 — 919 (382) 537 (Loss) gain on derivative financial instruments, net (65,838) (19) (98) (1,073) 27,339 (39,689) — (39,689) Foreign currency gain (loss), net 34,616 236 (61) — — 34,791 — 34,791 Other (loss) income, net (489) — (828) 4 — (1,313) — (1,313) Total other income (loss) 19,556 (405) 2,923 (7,737) 27,339 41,676 44,235 85,911 Income (loss) before income taxes 181,344 18,355 (2,720) 15,434 (92,546) 119,867 — 119,867 Income tax provision (294) (133) — (3,339) — (3,766) — (3,766) Net income (loss) 181,050 18,222 (2,720) 12,095 (92,546) 116,101 — 116,101 Net (income) loss attributable to non-controlling interests (3) — (5,084) 1,241 — (3,846) — (3,846) Net income (loss) attributable to Starwood Property Trust, Inc. $                       181,047 $           18,222 $     (7,804) $          13,336 $     (92,546) $   112,255 $                 — $  112,255 Definition of Distributable Earnings Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT.  For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein.  The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors.  Refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 for additional information regarding Distributable Earnings. Reconciliation of Net Income to Distributable Earnings For the three months ended March 31, 2025 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $                            181,047 $                              18,222 $                            (7,804) $                              13,336 $                           (92,546) $                            112,255 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 4,659 — — 4,659 Non-controlling interests attributable to unrealized gains/losses — — (3,374) (4,503) — (7,877) Non-cash equity compensation expense 2,792 600 109 1,397 8,452 13,350 Management incentive fee — — — — 10,061 10,061 Depreciation and amortization 3,742 — 5,971 1,852 — 11,565 Interest income adjustment for loans and securities 6,216 — — 15,162 — 21,378 Consolidated income tax provision associated with fair value adjustments 294 133 — 3,339 — 3,766 Other non-cash items 3 — 295 (366) — (68) Reversal of GAAP unrealized and realized (gains) / losses on: Loans (42,574) — — (15,830) — (58,404) Credit loss (reversal) provision, net (25,759) 760 — — — (24,999) Securities (7,397) — — 22,629 — 15,232 Woodstar Fund investments — — (3,910) — — (3,910) Derivatives 65,838 19 98 1,073 (27,339) 39,689 Foreign currency (34,616) (236) 61 — — (34,791) (Earnings) loss from unconsolidated entities (1,296) 622 — (245) — (919) Recognition of Distributable realized gains / (losses) on: Loans (180) — — 14,707 — 14,527 Securities (31) — — (2,533) — (2,564) Woodstar Fund investments — — 20,321 — — 20,321 Derivatives 29,041 53 (97) (1,024) (7,034) 20,939 Foreign currency 386 (33) (61) — — 292 Earnings (loss) from unconsolidated entities 1,296 (108) — 606 — 1,794 Distributable Earnings (Loss) $                            178,802 $                              20,032 $                            16,268 $                              49,600 $                         (108,406) $                            156,296 Distributable Earnings (Loss) per Weighted Average Diluted Share $                                  0.51 $                                  0.06 $                                0.05 $                                  0.14 $                               (0.31) $                                  0.45 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of March 31, 2025 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Assets: Cash and cash equivalents $                   19,249 $              161,387 $                32,113 $                22,109 $             205,722 $             440,580 $                        — $             440,580 Restricted cash 96,106 19,306 1,158 349 134,852 251,771 — 251,771 Loans held-for-investment, net 13,813,048 2,708,931 — — — 16,521,979 — 16,521,979 Loans held-for-sale 2,375,642 — — 70,994 — 2,446,636 — 2,446,636 Investment securities 871,299 17,158 — 1,148,978 — 2,037,435 (1,539,976) 497,459 Properties, net 695,579 — 652,965 64,690 — 1,413,234 — 1,413,234 Investments of consolidated affordable housing fund — — 2,065,498 — — 2,065,498 — 2,065,498 Investments in unconsolidated entities 26,612 53,483 — 33,265 — 113,360 (14,898) 98,462 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 9,914 — 21,438 63,323 — 94,675 (34,878) 59,797 Derivative assets 82,602 — 17 4 2,349 84,972 — 84,972 Accrued interest receivable 128,296 14,029 — 338 28 142,691 — 142,691 Other assets 213,713 3,478 54,472 9,033 129,108 409,804 — 409,804 VIE assets, at fair value — — — — — — 37,470,618 37,470,618 Total Assets $            18,332,060 $           3,097,181 $           2,827,661 $           1,553,520 $             472,059 $        26,282,481 $          35,880,866 $        62,163,347 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $                 297,370 $                36,186 $                13,966 $                29,395 $             102,978 $             479,895 $                        — $             479,895 Related-party payable — — — — 36,538 36,538 — 36,538 Dividends payable — — — — 165,039 165,039 — 165,039 Derivative liabilities 52,248 — — — 20,727 72,975 — 72,975 Secured financing agreements, net 8,942,642 961,524 480,322 527,359 1,546,810 12,458,657 (20,219) 12,438,438 Collateralized loan obligations and single asset securitization, net 1,935,109 1,230,187 — — — 3,165,296 — 3,165,296 Unsecured senior notes, net — — — — 2,747,330 2,747,330 — 2,747,330 VIE liabilities, at fair value — — — — — — 35,901,085 35,901,085 Total Liabilities 11,227,369 2,227,897 494,288 556,754 4,619,422 19,125,730 35,880,866 55,006,596 Temporary Equity: Redeemable non-controlling interests — — 426,835 — — 426,835 — 426,835 Permanent Equity: Starwood Property Trust, Inc. Stockholders' Equity: Common stock — — — — 3,468 3,468 — 3,468 Additional paid-in capital 834,079 591,500 (395,292) (746,610) 6,060,216 6,343,893 — 6,343,893 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 6,257,767 277,784 2,094,585 1,626,488 (10,073,025) 183,599 — 183,599 Accumulated other comprehensive income 12,727 — — — — 12,727 — 12,727 Total Starwood Property Trust, Inc. Stockholders' Equity 7,104,573 869,284 1,699,293 879,878 (4,147,363) 6,405,665 — 6,405,665 Non-controlling interests in consolidated subsidiaries 118 — 207,245 116,888 — 324,251 — 324,251 Total Permanent Equity 7,104,691 869,284 1,906,538 996,766 (4,147,363) 6,729,916 — 6,729,916 Total Liabilities and Equity $            18,332,060 $           3,097,181 $           2,827,661 $           1,553,520 $             472,059 $        26,282,481 $          35,880,866 $        62,163,347 SOURCE Starwood Property Trust, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News