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Mar 31

Starwood Property Trust Q1 2025 Earnings Report

Starwood Property Trust reported solid first quarter results with strong earnings and continued investment activity.

Key Takeaways

The company achieved GAAP net income of $112.3 million and adjusted EPS of $0.45. It invested $2.3 billion during the quarter, primarily in commercial and infrastructure lending, and maintained strong liquidity of $1.5 billion.

Reported GAAP EPS of $0.33 and adjusted EPS of $0.45.

Recorded $112.3 million in GAAP net income and $156.3 million in Distributable Earnings.

Invested $2.3 billion, including $1.4 billion in commercial lending and $0.7 billion in infrastructure lending.

Maintained liquidity of $1.5 billion and paid a quarterly dividend of $0.48 per share.

Total Revenue
$463M
Previous year: $615M
-24.8%
EPS
$0.45
Previous year: $0.59
-23.7%
Liquidity
$1.5B
Previous year: $1.5B
+0.0%
Cash and Equivalents
$212M
Previous year: $327M
-35.3%
Total Assets
$24.2B
Previous year: $66.2B
-63.4%

Starwood Property Trust

Starwood Property Trust

Starwood Property Trust Revenue by Segment

Forward Guidance

Management expects continued growth driven by strong origination pipelines and access to capital markets, despite current market dislocations.

Positive Outlook

  • Active pipeline across all business lines.
  • Commercial originations YTD exceed total from previous year.
  • Record infrastructure lending activity during the quarter.
  • Strong capital market access with $18 billion raised since IPO.
  • High levels of liquidity and unencumbered assets for future flexibility.

Challenges Ahead

  • Dislocation in securitized markets poses near-term risk.
  • Continued market volatility could impact investment timing.
  • No corporate debt maturities for over a year may defer refinancing opportunities.
  • Reliance on external manager for certain adjustments to DE.
  • Exposure to foreign currency and derivatives introduces earnings variability.