Starwood Property Trust Inc (NYSE:STWD)
$ 19.3 -0.25 (-1.28%) Market Cap: 6.51 Bil Enterprise Value: 15.64 Bil PE Ratio: 16.50 PB Ratio: 1.00 GF Score: 60/100
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Q3 2024 Starwood Property Trust Inc Earnings Call Transcript

Nov 06, 2024 / 03:00PM GMT
Release Date Price: $19.4 (-1.37%)

Key Points

Positve
  • Starwood Property Trust Inc (STWD) reported distributable earnings of $159 million or $0.48 per share, indicating strong financial performance.
  • The company committed $2.1 billion towards new investments, with a significant portion outside of commercial lending, showcasing diversification.
  • Starwood Property Trust Inc (STWD) completed four securitizations totaling $398 million at profit margins at or above historic levels, indicating robust market activity.
  • The company's liquidity position was significantly enhanced with the issuance of $392 million of common stock and $400 million of senior unsecured sustainability notes.
  • Starwood Property Trust Inc (STWD) maintained a low adjusted debt to undepreciated equity ratio of 2.14 times, the lowest in over two years, reflecting strong financial management.
Negative
  • The company's GAAP net income was $76 million or $0.23 per share, lower than distributable earnings due to a higher CECL reserve.
  • The CECL reserve increased by $65 million, with 71% related to office, indicating potential risk in the office sector.
  • Starwood Property Trust Inc (STWD) foreclosed on two multifamily properties in Texas, highlighting challenges in certain real estate segments.
  • The company's 5-rated loans increased significantly, indicating a rise in higher-risk assets.
  • The treasury market's impact on long-term rates poses a risk to refinancing prospects, potentially affecting future earnings.
Operator

Greetings, and welcome to the Starwood Property Trust third-quarter 2024 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.

At this time, I'd like to turn the conference over to your host, Zach Tanenbaum, Head of Investor Relations. Zach, you may begin.

Zachary Tanenbaum
Starwood Property Trust Inc - Investor Relations

Thank you, operator. Good morning, and welcome to Starwood Property Trust earnings call. This morning, the company released its financial results for the quarter ended September 30, 2024, filed its Form 10-Q with the Securities and Exchange Commission, and posted its earnings supplement to its website. These documents are available in the Investor Relations section of the company's website at www.starwoodpropertytrust.com.

Before the call begins, I would like to remind everyone that certain statements made in the course of this call are not based on historical information and may constitute forward

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