STWD Stock Recent News

Starwood Property Trust (NYSE: STWD) stock price has underperformed the broader market as concerns about its income and high interest rates continue. Its total return has dropped by 0.50% this year while the S&P 500 index has jumped by 11.30%.

Starwood Property Trust Inc. covered its dividend with distributable earnings in Q1 and saw strong origination activity. The trust's 10% yield is expected to be safe in 2024 with a payout ratio of 81%. The portfolio remained well-diversified with a combined value of $26.1 billion and the commercial lending segment performed well.

Starwood Property Trust (STWD) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, STWD crossed above the 200-day moving average, suggesting a long-term bullish trend.

From a technical perspective, Starwood Property Trust (STWD) is looking like an interesting pick, as it just reached a key level of support. STWD recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

Starwood Property Trust (STWD) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.49 per share a year ago.

Mortgage REITs continue to be negatively impacted by a difficult commercial real estate market. Starwood Property Trust is a diversified mREIT that has outperformed the sector at large with a multi-cylinder business model. STWD's added layers of diversification, including owned property and real estate services, provide additional cash flow and support during periods of stress, including the past two years.

I am closely monitoring Starwood Property Trust due to its role as a major commercial real estate mortgage company and a source of income for investors. Mounting headwinds, including higher interest rates and inflation, are causing concerns for the commercial real estate industry. STWD has a strong balance sheet and prudent financial management, which provides stability and income potential for investors.

Starwood Property reported better-than-expected Q4 earnings last week, supporting a buy recommendation. The REIT's C&R lending segment is performing well and continues to contribute the majority of distributable earnings. Starwood Property generated 1.21x dividend coverage in Q4 and 1.07x in FY 2023.

Starwood Property Trust (STWD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Investing in the S&P 500 for retirement may be risky due to its high PE ratio and low yield. Starwood Property Trust offers a high income opportunity with its 9.7% yield and diversified portfolio. STWD has a strong history of delivering shareholder returns and is well-positioned for growth in the infrastructure lending segment.