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STWD's Q4 distributable earnings rose to 42 cents per share, beating estimates but down from last year.
Total revenues rose 8.5% to $492.9M, supported by higher cash balances.
BVPS dropped 3.9% to $18.34, with costs and expenses increasing nearly 1%.
Starwood Property Trust, Inc. (STWD - Free Report) reported fourth-quarter 2025 distributable earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. However, the reported figure compares unfavorably with 48 cents per share in the year-ago quarter.
Results were supported by a year-over-year increase in revenues and a higher cash balance. However, a decrease in book value per share (BVPS) and higher expenses remained headwinds.
STWD’s fourth-quarter 2025 net income (GAAP basis) was $96.9 million, which jumped 87.7% year over year.
For 2025, the company reported distributable earnings of $1.69 per share, which beat the Zacks Consensus Estimate of $1.68 per share. However, the reported figure compares unfavorably with $2.02 per share in the year-ago period. Net income was $411.5 million, up from $359.9 million in 2024.
Inside Starwood Property’s Headlines
STWD’s total revenues were $492.9 million, up 8.5% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 2.8%.
For 2025, total revenues were $1.8 billion, down 5.2% year over year. Nevertheless, the top line surpassed the Zacks Consensus Estimate by nearly 1%.
Total costs and expenses were $482.4 million, up nearly 1% from the prior-year quarter. The rise was primarily due to an increase in interest expense, general and administrative cost, rental operations cost, depreciation and amortization cost and other expenses.
Starwood Property’s BVPS (GAAP basis) was $18.34 as of Dec. 31, 2025, down 3.9% from $19.08 in the prior-year quarter.
The company recorded fundings of $2.2 billion, which increased from $1.6 billion in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of Dec. 31, 2025, cash and cash equivalents were $499.5 million, up 65.8% from the prior quarter.
Loans held for sale totaled $2.3 billion compared with $2.6 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 provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should help diversify its portfolio and enhance long-term resilience. However, the decline in BVPS, despite higher revenues, signals pressure on profitability in the near term.
STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise
Annaly Capital Management, Inc. (NLY - Free Report) reported fourth-quarter 2025 earnings available for distribution per average share of 74 cents, which beat the Zacks Consensus Estimate of 72 cents. The figure increased from 72 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. Notably, the year-over-year increase in book value per share was also encouraging.
Redwood Trust, Inc. (RWT - Free Report) reported fourth-quarter 2025 earnings available for distribution per share of 33 cents, which beat the Zacks Consensus Estimate of 23 cents. The figure increased from 13 cents in the year-ago quarter.
RWT’s results were supported by a rise in non-interest income. However, a year-over-year decline in book value per share and elevated operating expenses remained headwinds.
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Starwood Property Q4 Earnings Beat Estimates, BVPS Declines Y/Y
Key Takeaways
Starwood Property Trust, Inc. (STWD - Free Report) reported fourth-quarter 2025 distributable earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. However, the reported figure compares unfavorably with 48 cents per share in the year-ago quarter.
Results were supported by a year-over-year increase in revenues and a higher cash balance. However, a decrease in book value per share (BVPS) and higher expenses remained headwinds.
STWD’s fourth-quarter 2025 net income (GAAP basis) was $96.9 million, which jumped 87.7% year over year.
For 2025, the company reported distributable earnings of $1.69 per share, which beat the Zacks Consensus Estimate of $1.68 per share. However, the reported figure compares unfavorably with $2.02 per share in the year-ago period. Net income was $411.5 million, up from $359.9 million in 2024.
Inside Starwood Property’s Headlines
STWD’s total revenues were $492.9 million, up 8.5% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 2.8%.
For 2025, total revenues were $1.8 billion, down 5.2% year over year. Nevertheless, the top line surpassed the Zacks Consensus Estimate by nearly 1%.
Total costs and expenses were $482.4 million, up nearly 1% from the prior-year quarter. The rise was primarily due to an increase in interest expense, general and administrative cost, rental operations cost, depreciation and amortization cost and other expenses.
Starwood Property’s BVPS (GAAP basis) was $18.34 as of Dec. 31, 2025, down 3.9% from $19.08 in the prior-year quarter.
The company recorded fundings of $2.2 billion, which increased from $1.6 billion in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of Dec. 31, 2025, cash and cash equivalents were $499.5 million, up 65.8% from the prior quarter.
Loans held for sale totaled $2.3 billion compared with $2.6 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 provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should help diversify its portfolio and enhance long-term resilience. However, the decline in BVPS, despite higher revenues, signals pressure on profitability in the near term.
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 #4 (Sell).
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 fourth-quarter 2025 earnings available for distribution per average share of 74 cents, which beat the Zacks Consensus Estimate of 72 cents. The figure increased from 72 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. Notably, the year-over-year increase in book value per share was also encouraging.
Redwood Trust, Inc. (RWT - Free Report) reported fourth-quarter 2025 earnings available for distribution per share of 33 cents, which beat the Zacks Consensus Estimate of 23 cents. The figure increased from 13 cents in the year-ago quarter.
RWT’s results were supported by a rise in non-interest income. However, a year-over-year decline in book value per share and elevated operating expenses remained headwinds.