STWD Stock Recent News

David Alton Clark, The Winter Warrior Investor, thinks the market is a little bit toppy with stretched valuations. Focusing on high-conviction positions, trimming the number of holdings, and reallocating gains from growth into income-producing assets for capital preservation.

Fed Chair Powell's Jackson Hole remarks signal a likely September rate cut, boosting my bullish outlook for equities and income-generating assets. My Dividend Harvesting Portfolio hit all-time highs, delivering a 32.66% return on invested capital and an 8.03% forward yield. Weekly capital allocation and reinvestment of dividends are compounding income, with forward dividend income projected to surpass $2,650 by year-end.

AGNC Investment offers higher yield and defensive hedging, but does Starwood Property's diversified portfolio and growth outlook make it the sturdier REIT pick? Let us find out.

STWD has allocated more than $5 billion toward capital investments in an unfavorable real estate market. As the Fed takes rates lower, all of the assets STWD has added could increase in value and drive its book value higher. STWD has the ability to increase its loan originations in a lower rate environment and drive earnings higher.

High yield stocks can be dangerous. But well-selected high-yield stocks can also be highly rewarding. I highlight three solid high-yield stocks worth considering.

Starwood Property's Q2 distributable earnings fell short of covering its $0.48 dividend for the second consecutive quarter, highlighting deteriorating dividend coverage. Earnings from commercial and residential lending declined 16% year-over-year, and dividend coverage dropped to 90%, raising concerns over sustainability. High non-accruals in Starwood Property's core commercial and residential lending segment are a drag on the REIT's financial performance.

STWD stock rises 1.9% as Q2 earnings beat estimates, due to lower expenses despite revenue and BVPS declines.

Starwood Property Trust, Inc. (NYSE:STWD ) Q2 2025 Earnings Conference Call August 7, 2025 10:00 AM ET Company Participants Barry Stuart Sternlicht - CEO & Non-Independent Executive Chairman of the Board Jeffrey F. DiModica - President Rina Paniry - CFO, Treasurer, Principal Financial Officer & Chief Accounting Officer Sean Murdock - President of Starwood Infrastructure Finance—Starwood Property Trust Zachary H.

– Quarterly GAAP Earnings of $0.38 and Distributable Earnings (DE) of $0.43 per Diluted Share – – Invested $3.2 Billion in the Quarter and $5.5 Billion in the 6 Months, Surpassing 2024 CapitalDeployment – – LNR's Commercial Special Servicer Ratings of CSS1 and CS1 (Highest Ratings Possible) Reaffirmed by Fitch and Morningstar DBRS – – Awarded Nareit Gold Investor CARE Award for 9th Time in 11 Years – – Paid Dividend of $0.48 per Share for Q2 and Declared $0.48 Dividend for Q3 – – Acquired Fundamental Income Properties, a $2.2 Billion Fully Integrated Net Lease Real EstateOperating Platform and Owned Portfolio – MIAMI BEACH, Fla. , Aug. 7, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2025.

I avoid highly leveraged, high-yield mREITs due to unsustainable dividends and elevated risk of cuts, especially in volatile markets. Most commercial mortgage REITs with yields above 10% are red flags; I recommend steering clear of 'sucker yields' like SACH and KREF. Starwood Property Trust and Ladder Capital stand out for strong balance sheets, prudent management, and compelling growth prospects.