Starwood Property Trust sets dividends for late 2024 By Investing.com

GREENWICH, Conn. – Starwood Property Trust, Inc. (NYSE: NYSE:), a diversified finance company focusing on real estate and infrastructure, declared today that its Board of Directors has approved dividends of $0.48 per share for the upcoming third and fourth quarters of 2024. Shareholders of record by September 30, 2024, will receive the third quarter dividend on October 15, 2024, while the fourth quarter dividend will be paid on January 15, 2025, to shareholders on record as of December 31, 2024.

Chairman and CEO Barry Sternlicht expressed confidence in the company’s financial structure and its ability to sustain dividends amid market volatility. He highlighted the company’s “multi-cylinder” approach and low leverage balance sheet as key factors in its performance. Sternlicht also noted the potential to monetize over $4.00 per share of distributable earnings from owned property.

President Jeffrey DiModica pointed to $4.5 billion in unencumbered assets and the company’s robust liquidity position. He mentioned the expectation for an increased fixed charge coverage ratio and the capacity to issue more than $2.0 billion in incremental debt without altering covenants. Further details are anticipated to be discussed during the company’s earnings call on August 6.

Starwood Property Trust has deployed over $97 billion of capital since its inception and manages a portfolio exceeding $26 billion. The company aims to provide shareholders with stable and attractive returns, primarily through dividends.

The press release also contained forward-looking statements, cautioning that actual results could differ due to various factors, including market conditions and competition. Starwood Property Trust disclaims any obligation to update forward-looking statements except as required by law.

This announcement is based on a press release statement by Starwood Property Trust, Inc.

In other recent news, Starwood Property Trust has demonstrated robust performance in its recent Q1 earnings. The company reported distributable earnings of $191.6 million or $0.59 per share, surpassing both BofA’s and consensus estimates. Despite this, the undepreciated book value per share showed a slight quarter-over-quarter decrease of 1% to $20.69.

Analysts from BTIG have expressed a bullish stance on Starwood Property Trust’s lending business, rating the stock as a buy. They noted the company’s active loan origination activity and the diversification benefits as appealing factors for investors. However, BofA Securities maintained a neutral rating while reducing the price target from $21.50 to $21.00, reflecting a cautious but stable outlook on the company within the broader context of the commercial real estate sector’s current challenges.

In addition to its strong earnings, Starwood Property Trust has been exploring new business lines and growth opportunities, considering the potential entry into the data center lending sector, and contemplating acquisitions of weaker market players. These recent developments indicate the company’s strategic positioning and resilience amidst the complex macroeconomic environment.

InvestingPro Insights

As Starwood Property Trust (NYSE: STWD) reaffirms its commitment to shareholder returns with the announcement of dividends for the second half of 2024, a look at the company’s financial metrics can provide investors with a deeper understanding of its performance. Starwood’s market capitalization stands at approximately $6.18 billion, reflecting its position in the market. The company’s P/E ratio, a key indicator of valuation, is currently at 13.96, with a slight increase to 14.67 over the last twelve months as of Q1 2024.

Investors seeking income-generating assets may find Starwood’s dividend yield of 9.36% particularly attractive, especially considering the company’s track record of maintaining dividend payments for 16 consecutive years—an InvestingPro Tip that underscores its reliability in returning value to shareholders. Additionally, the company’s liquid assets surpassing short-term obligations is a reassuring sign of financial stability.

Despite a challenging revenue decline of 30.67% over the last twelve months as of Q1 2024, Starwood has experienced a quarterly revenue growth of 17.31% in Q1 2024, indicating potential recovery and adaptability in a volatile market. Moreover, with analysts predicting profitability for the year and the company having been profitable over the last twelve months, Starwood appears poised to continue its positive trajectory.

For a more comprehensive analysis and additional InvestingPro Tips, including insights on stock price volatility and net income growth expectations, investors can explore the dedicated page for Starwood Property Trust: https://www.investing.com/pro/STWD. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable investment tips—currently totaling 7 additional tips for STWD.

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