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Starwood Property Q1 Earnings Miss Estimates, Revenues Decline Y/Y
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Starwood Property Trust, Inc. (STWD - Free Report) reported first-quarter 2025 adjusted distributable earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 46 cents. Further, the reported figure compares unfavorably with 59 cents per share in the year-ago quarter.
Results were affected by a year-over-year decline in revenues and book value per share (BVPS). However, an increase in the cash balance and a decrease in expenses were positive.
STWD’s first-quarter 2025 net income (GAAP basis) was $112.3 million, which fell 27.2% year over year.
Inside Starwood Property’s Headlines
STWD’s total revenues were $418.2 million, down 20.1% year over year.
Total costs and expenses were $384.2 million, down 24.6% from the prior-year quarter. The decline was primarily due to a fall in interest expense, management fees and other expenses.
Starwood Property’s BVPS (GAAP basis) was $18.87 as of March 31, 2025, down 4.9% from $19.85 in the prior-year quarter.
The company recorded fundings of $2 billion, which increased from $564 million in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of March 31, 2025, cash and cash equivalents were $440.6 million, up 16.6% from the prior quarter.
Loans held for sale totaled $2.4 billion compared with $2.5 billion in the prior quarter.
Our Take on STWD
Starwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to generate stable income. Its active engagement in the acquisition and divestiture of properties will enhance its portfolio, optimizing its asset base and helping it adapt to changing market conditions. However, the year-over-year decline in revenues and BVPS remains a concern.
STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 72 cents, which beat the Zacks Consensus Estimate of 71 cents. The figure increased from 64 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in BVPS. (Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.)
AGNC Investment Corp.’s (AGNC - Free Report) first-quarter 2025 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 44 cents topped the Zacks Consensus Estimate of 41 cents. The bottom line declined from 58 cents in the year-ago quarter.
Adjusted net interest and dollar roll income of $477 million moved down 3.8% from the year-ago quarter. AGNC reported a first-quarter comprehensive income per common share of 12 cents compared with 48 cents in the year-ago quarter.
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Starwood Property Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Starwood Property Trust, Inc. (STWD - Free Report) reported first-quarter 2025 adjusted distributable earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 46 cents. Further, the reported figure compares unfavorably with 59 cents per share in the year-ago quarter.
Results were affected by a year-over-year decline in revenues and book value per share (BVPS). However, an increase in the cash balance and a decrease in expenses were positive.
STWD’s first-quarter 2025 net income (GAAP basis) was $112.3 million, which fell 27.2% year over year.
Inside Starwood Property’s Headlines
STWD’s total revenues were $418.2 million, down 20.1% year over year.
Total costs and expenses were $384.2 million, down 24.6% from the prior-year quarter. The decline was primarily due to a fall in interest expense, management fees and other expenses.
Starwood Property’s BVPS (GAAP basis) was $18.87 as of March 31, 2025, down 4.9% from $19.85 in the prior-year quarter.
The company recorded fundings of $2 billion, which increased from $564 million in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of March 31, 2025, cash and cash equivalents were $440.6 million, up 16.6% from the prior quarter.
Loans held for sale totaled $2.4 billion compared with $2.5 billion in the prior quarter.
Our Take on STWD
Starwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to generate stable income. Its active engagement in the acquisition and divestiture of properties will enhance its portfolio, optimizing its asset base and helping it adapt to changing market conditions. However, the year-over-year decline in revenues and BVPS remains a concern.
STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise
STARWOOD PROPERTY TRUST, INC. price-consensus-eps-surprise-chart | STARWOOD PROPERTY TRUST, INC. Quote
STWD currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 72 cents, which beat the Zacks Consensus Estimate of 71 cents. The figure increased from 64 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in BVPS. (Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.)
AGNC Investment Corp.’s (AGNC - Free Report) first-quarter 2025 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 44 cents topped the Zacks Consensus Estimate of 41 cents. The bottom line declined from 58 cents in the year-ago quarter.
Adjusted net interest and dollar roll income of $477 million moved down 3.8% from the year-ago quarter. AGNC reported a first-quarter comprehensive income per common share of 12 cents compared with 48 cents in the year-ago quarter.