STARWOOD PROPERTY TRUST, INC. (STWD) AI Stock Summary

Snapshot

Starwood is a commercial mortgage REIT with FY 2025 revenue of $1.88B, down 7.9% YoY, but still net income of $411.5M and healthy free cash flow of $708.8M. The catch: quarterly GAAP earnings recently came in at just $0.01/share, well below the $0.48 dividend, and distributable earnings have undershot the payout for several quarters running. Total debt is heavy at $22.09B, typical for this type of lender. The stock sits at its 52-week low.

What's Happening Right Now

• Wed 9th Sep '26 · Board change: On August 10, 2026, President Jeffrey DiModica joined the Board and Investment Committee while founding director Jeffrey Dishner resigned after 17 years, a change the company said involved no operational disagreement.
• Thu 13th Aug '26 · Downgrade: An August 13, 2026 analysis downgraded STWD, noting the dividend went uncovered for a sixth straight quarter (83% coverage in Q2) and trailed peers, arguing the $0.48 payout is at real risk of a cut.
• Thu 6th Aug '26 · Earnings: For Q2 2026, Starwood reported GAAP net income of $6.6M ($0.01/share) but distributable earnings of $151.5M ($0.40/share), record total assets of $31.8B, $2.5B invested in the quarter, a $0.48/share dividend, and $30M of share buybacks year-to-date.
• Wed 5th Aug '26 · Dividend concern: Heading into Q2 earnings, STWD faced pressure from rising interest costs and a lagging net-lease portfolio, with distributable earnings trailing the $0.48/share dividend after a prior $0.39 miss; management floated a possible spinoff of the net-lease assets.
• Thu 25th Jun '26 · Debt offering: On June 25, 2026, Starwood priced a $500M private offering of 5.875% notes due 2029, aimed at refinancing its 4.375% notes due 2027, a two-year maturity extension at a 150-basis-point higher coupon.

Ownership

Institutions hold 58.4%, insiders hold 4.6%.

Bottom Line

Starwood is a large, still-profitable mortgage REIT generating real cash, but the accounting profit used to fund its dividend has fallen well short of the $0.48/share payout for multiple quarters, and the stock is sitting at a 52-week low. That combination, a shrinking top line plus a dividend that isn't fully covered, is worth understanding before treating the yield as a settled number. A reader would want to watch whether distributable earnings recover before assuming the current payout holds.