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Sep 30, 2024

Starwood Property Trust Q3 2024 Earnings Report

Reported GAAP earnings of $0.23 and Distributable Earnings (DE) of $0.48 per diluted share.

Key Takeaways

Starwood Property Trust reported a net income of $76.1 million and Distributable Earnings of $159.0 million for Q3 2024. They originated or acquired $2.1 billion of assets and raised $800 million in capital, bringing liquidity to a record $1.8 billion.

GAAP Earnings were $0.23 per share and Distributable Earnings (DE) were $0.48 per diluted share.

Originated or acquired $2.1 Billion of assets in the quarter.

Received repayments of $1.6 Billion in the quarter.

Raised $800 Million of capital bringing liquidity to a record $1.8 Billion.

Total Revenue
$488M
Previous year: $532M
-8.3%
EPS
$0.48
Previous year: $0.49
-2.0%
Liquidity
$1.8B
Gross Profit
$467M
Previous year: $510M
-8.3%
Cash and Equivalents
$358M
Previous year: $431M
-17.0%
Free Cash Flow
$87.3M
Previous year: $299M
-70.8%
Total Assets
$64.2B
Previous year: $70.3B
-8.6%

Starwood Property Trust

Starwood Property Trust

Starwood Property Trust Revenue by Segment

Forward Guidance

Starwood Property Trust is well-positioned to increase its investment pace as transaction volumes return to the real estate markets, due to its record liquidity, robust pipeline, unencumbered assets, and unrealized gains in its property book.

Positive Outlook

  • Record liquidity of $1.8 billion.
  • Robust pipeline for investments.
  • Access to capital via $4.6 billion of unencumbered assets.
  • Over $4.00 per share of unrealized gains in property book.
  • Well positioned to increase investment pace.

Challenges Ahead

  • Likely to continue to have restructurings in loan book.
  • Cycle moves on.
  • Commercial lending book is roughly 60% of total assets.
  • Potential extended wait times to access the conference call via dial-in.
  • Competition within the finance and real estate industries.

Revenue & Expenses

Visualization of income flow from segment revenue to net income