STWD Earnings Prediction
The chart below shows how STWD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STWD sees a -1.02% change in stock price 10 days leading up to the earnings, and a -0.39% change 10 days following the report. On the earnings day itself, the stock moves by +1.80%. This data can give you a slight idea of what to expect for the next quarter's release.
STWD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
530.40M
-0.83%
7.27%
Gross Margin
--
--
--
Operating Margin
9.69%
105.73%
-690.85%
Net Margin
13.35%
-15.67%
-8.56%
EPS
0.15
-31.82%
-34.78%
No Data Available
STWD Earnings Analysis
Starwood Property Trust Inc Corporation (STWD.N) Earnings Conference Call
Positive
Distributable Earnings Performance: Distributable Earnings (DE) of $167 million or $0.48 per share for Q4 2024, and $675 million or $2.02 per share for the full year, indicating strong financial performance.
Diverse Investment Strategy: Committed $1.6 billion towards new investments in Q4 and $5.1 billion for the full year, with 67% of annual investments in businesses other than commercial lending, showcasing a diverse business model.
Lending Activity Highlights: Commercial and Residential Lending contributed DE of $193 million for the quarter, with $477 million of loans originated, bringing full-year originations to $1.7 billion, demonstrating robust lending activity.
Loan Portfolio Stability: The company’s loan portfolio ended the year at $13.7 billion with a consistent weighted average risk rating of 3.0, indicating stable asset quality.
Property Segment Performance: Recognized $14 million of DE in the Property segment driven by the Florida affordable multifamily portfolio, with a 9% increase in NOI for this portfolio, reflecting strong operational performance.
Securitization Milestone Achieved: Completed five securitizations totaling $595 million at profit margins at or above historic levels, bringing the year-to-date total to 17 securitizations for approximately $1.6 billion, the highest since 2016.
Strong Liquidity Position: Achieved a strong liquidity position of $1.8 billion, with significant credit capacity across business lines and low leverage at an adjusted debt to undepreciated equity ratio of just 2.1x, its lowest in over four years.
Corporate Debt Term Extension: Extended the average term on corporate debt from 2.2 to 3.5 years, raising almost $800 million in incremental proceeds, providing significant investable firepower for 2025.
Loan Growth Potential: Closed $1.5 billion of loans in Q1 2025, with plans to write the most loans in any year since inception, indicating a strong pipeline and growth potential.
Infrastructure Lending Performance: The Infrastructure Lending segment contributed DE of $22 million for the quarter, with $532 million of new loan commitments, bringing the total for the year to $1.4 billion, its highest annual level to date.
Competitive Lending Growth Potential: The company is positioned to take advantage of a competitive lending environment, with expectations of significant growth in 2025 across various business segments.
Negative
Distributable Earnings Decline: Distributable Earnings (DE) for Q4 2024 were $167 million or $0.48 per share, which may indicate a decline in profitability compared to previous quarters.
Multifamily Loan Foreclosure Issues: The company foreclosed on 3 multifamily loans totaling $190 million, indicating potential issues with asset quality and management.
CECL Reserve Increase: The CECL reserve increased by $36 million to $482 million, suggesting growing concerns about credit losses and asset impairments.
Sponsor Equity Loss: The company reported $61 million of lost sponsor equity from the foreclosed loans, highlighting financial losses associated with these assets.
Residential Loan Portfolio Decline: The residential loan portfolio saw a slight decrease in value, indicating potential challenges in this segment.
Multifamily Loan Vulnerability: The company acknowledged that late-cycle multifamily loans are particularly vulnerable to high interest rates, which could impact future earnings.
Economic Uncertainty Impact: The CEO mentioned uncertainty in the economy, which could affect the company's performance and investment strategies moving forward.
STWD FAQs
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STWD Earning Call Sentiment
Starwood Property Trust, Inc. (STWD) Q4 2024 Earnings Call Transcript
STWD.N
1.94%Positive
The earnings call presents a mixed picture: strong financial performance with significant investments and liquidity but also challenges like higher costs due to hurricanes and uncertain market conditions in sectors like life science and Washington, D.C. real estate. The Q&A reveals cautious management responses and lack of clarity on growth strategies. While there are positive elements like strong securitizations and a low leverage ratio, the uncertainties and lack of clear guidance offset these, leading to a neutral sentiment.
