Starwood Property Trust

Starwood Property Trust (STWD) Q1 2025 Earnings

Reported May 9, 2025 at 6:50 AM ET · SEC Source

Q1 25 EPS

$0.45

BEAT +0.45%

Est. $0.45

Q1 25 Revenue

$418.2M

MISS 15.18%

Est. $493.0M

vs S&P Since Q1 25

-37.1%

TRAILING MARKET

STWD -3.7% vs S&P +33.4%

Market Reaction

Did STWD Beat Earnings? Q1 2025 Results

Starwood Property Trust delivered a narrow earnings beat in the first quarter of 2025, with distributable earnings of $0.45 per diluted share edging past the $0.45 consensus estimate, even as total revenues of $418.18 million fell short of the $493.0… Read more Starwood Property Trust delivered a narrow earnings beat in the first quarter of 2025, with distributable earnings of $0.45 per diluted share edging past the $0.45 consensus estimate, even as total revenues of $418.18 million fell short of the $493.00 million analysts had expected, declining 32.0% from the year-ago period. The revenue shortfall was largely overshadowed by the company's aggressive deployment activity, with $2.30 billion invested during the quarter, including a record $700.00 million in infrastructure lending and $1.40 billion in commercial lending; post-quarter, the company closed an additional $1.30 billion in investments, with commercial lending originations already exceeding all of last year. A net credit loss reversal of $25.00 million provided an additional earnings tailwind, reflecting improved credit conditions in the commercial lending portfolio. Management pointed to $4.90 billion of unencumbered assets and $1.50 billion in unrealized property gains as resources to fuel future distributable earnings, while the company's quarterly dividend of $0.48 per share remained intact, backed by current liquidity of $1.50 billion.

Key Takeaways

  • $2.3 billion invested during Q1, including $1.4 billion in commercial lending and record $0.7 billion in infrastructure lending
  • Commercial and Residential Lending segment was the largest revenue and earnings contributor
  • Net credit loss reversal of $25.0 million benefiting the quarter
  • Foreign currency gains of $34.8 million
  • Commercial lending originations to date already surpassing all of last year
24/7 Wall St

STWD YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

STWD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We entered 2025 with significant financial flexibility, diversified business lines, and a solid investment portfolio that we expect to grow significantly this year, with commercial lending originations to date already surpassing all of last year. Our pipeline across businesses continues to be very active. Dislocation in securitized markets, as we are seeing today, always creates outsized opportunities for us.”

— Barry Sternlicht, Q1 2025 Earnings Press Release