Starwood Property Trust Acquires $2.2 Billion in Assets, Achieving 10.3% Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
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Source: Fool
- High-Yield Leader: Starwood Property Trust boasts a 10.3% dividend yield, ensuring its leading position in the REIT sector through a diversified portfolio and over a decade of stable dividend payments.
- Strategic Acquisition: The company acquired Fundamental Income Properties for $2.2 billion, adding 467 properties with a 17-year average lease term and a 2.2% annual rent escalation, laying the groundwork for future stable income.
- Robust Cash Flow: Western Midstream Partners expects to generate between $1.3 billion and $1.5 billion in free cash flow this year, sufficient to cover its substantial distributions and capital expenditures, demonstrating strong financial flexibility.
- Sustained Growth Potential: Verizon anticipates generating even more free cash flow by 2026 and is enhancing its mobile and broadband service capabilities through a $20 billion acquisition of Frontier Communications, supporting future dividend growth.
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Analyst Views on STWD
Wall Street analysts forecast STWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STWD is 20.00 USD with a low forecast of 19.50 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 18.200
Low
19.50
Averages
20.00
High
21.00
Current: 18.200
Low
19.50
Averages
20.00
High
21.00
About STWD
Starwood Property Trust, Inc. is a real estate investment trust. The Company's segments include Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The Commercial and Residential Lending segment is engaged in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities, residential mortgage-backed securities and other real estate and real estate-related debt investments in the United States, Europe and Australia. The Infrastructure Lending Segment is engaged in originating, acquiring, financing and managing infrastructure debt investments. The Property Segment is engaged in acquiring and managing equity interests in stabilized commercial real estate properties. Investing and Servicing segment includes a servicing business in the United States, an investment business, and a mortgage loan business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Starwood Property Trust Announces Q4 and Full Year 2025 Earnings Release Date
- Earnings Release Schedule: Starwood Property Trust will release its Q4 and full year 2025 financial results on February 25, 2026, before the NYSE opens, which is expected to significantly impact investor sentiment.
- Conference Call Details: The company will hold a conference call at 10:00 AM ET on the same day, where executives will review performance and conduct a Q&A session, enhancing engagement with investors.
- Webcast Availability: The conference call will be available via a live webcast on the company's Investor Relations section, ensuring investors can access key information in real-time and participate in discussions.
- Portfolio Overview: As of September 30, 2025, Starwood Property Trust has successfully deployed over $112 billion in capital and manages a portfolio exceeding $30 billion, demonstrating its strong position in the real estate and infrastructure sectors.
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Starwood Property Trust Announces Tax Treatment for 2025 Distributions
- Tax Treatment Announcement: Starwood Property Trust disclosed that its 2025 cash dividend of $0.48 per share includes $0.1392 allocated to 2024 and $0.3408 to 2025, ensuring investors are informed about tax implications for better tax planning.
- Capital Deployment Success: As of September 30, 2025, the company has successfully deployed $112 billion in capital since inception, managing a portfolio worth $30 billion, demonstrating its strong investment capabilities and market position in real estate and infrastructure.
- Clear Investment Objective: Starwood Property Trust aims to generate attractive and stable returns for shareholders primarily through dividends, leveraging its global organizational strength to identify and execute on the best risk-adjusted return investments, further solidifying its market leadership.
- Enhanced Financial Transparency: The company provides detailed tax information, including qualified dividends and capital gain distributions, which enhances investors' understanding of its financial status, helping to boost investor confidence and attract new investments.
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