STWD earnings analysis
What we found in STWD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Starwood Property Trust reported Q1 2026 results, with revenue reaching $512.5 million, above the expected $493.1 million. However, it missed EPS expectations of $0.40, reporting only $0.13. The company is facing challenges within its segments due to variations in loan interest income and operational costs, resulting in notable discrepancies in earnings and cash flow management.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Estimates
- Total revenue reached $512.5 million, surpassing the $493.1 million forecast.
- Substantial Investment Activity
- The company invested $2.5 billion during the quarter, indicating ongoing capital deployment.
- Dividend Maintained
- Starwood declared a dividend of $0.48 per share, consistent with its historical payout.
- Operational Revenue Growth in Key Segments
- The Commercial and Residential Lending Segment saw an increase in revenues of $19.1 million year-over-year to $344.6 million.
- Inventory and Asset Optimization
- Significant acquisition of $129.6 million in net lease properties, enhancing portfolio quality.
- Diverse Funding Sources Maintained
- Liquidity remains robust, with $666 million in cash and equivalents available.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- EPS Significantly Below Expectations
- Reported EPS of $0.13 missed the analyst estimate of $0.40 by over 67%.
- High Debt Levels
- Total borrowings reached $23.5 billion, with significant refinancing obligations due in the next few years.
- Fluctuating Cash Flows
- Quarterly cash flows from operations amounted to $93.6 million, down from expected levels, indicating volatility in operational liquidity.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.13
- Segment
- Commercial and Residential Lending: $344.6M
- Segment
- Infrastructure Lending: $63.3M
- Segment
- Property: $61.3M
- Segment
- Investing and Servicing: $80.8M
What they said about what is next.
No specific forward guidance was provided in the earnings release.
The filing reads worse than the one before it.
What came before.
- 10-Q · August 4, 2022
- Starwood Property Trust reported Q2 2022 total revenues of $325.586M, up from $290.867M in Q2 2021, driven by higher interest income and a large gain from affordable housing fund investments. Diluted EPS rose to $0.67…
- 10-Q · May 4, 2022
- Starwood Property Trust reported Q1 revenue of $293,992,000 (up $6,762,000 from $287,230,000 a year earlier) and delivered a strong earnings beat driven by non-operating gains — diluted EPS was $1.02 and net income…
- 10-Q · August 5, 2021
- Starwood Property Trust reported Q2 revenue of $290,867,000, up from $265,606,000 a year ago, with operating income improving to $64,928,000 (operating margin ~22.3%). Despite revenue and mortgage fair-value gains…
- 10-K · February 25, 2021
- Starwood Property Trust is a REIT focused on originating, acquiring and managing diversified real estate debt and equity assets across four reportable segments. As of December 31, 2020 the Commercial & Residential…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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