At a glance
Starwood Property Trust Inc is worth $4.53B, about 11 times its fiscal 2025 earnings. Revenue fell 5.3% to $1.84B in fiscal 2025, with 22.3% kept as profit; over 5 years it has grown 10.2% a year. It pays a 15.69% dividend yield, and returned $3.04B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −25.4% over the past year with dividends reinvested and −4.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 65.3% in the 2020 crash (S&P 500: 33.7%) and 23.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 15 months after the lows.
The business in plain English
Starwood Property Trust is a real estate investment trust (REIT), so it avoids federal corporate tax on income it distributes, provided it pays out at least 90% of its taxable income. Its main business is lending. It makes, acquires and manages commercial mortgages, residential loans with no government guarantee, mezzanine loans (riskier loans ranked behind first mortgages) and mortgage-backed securities in the US, Europe and Australia. On loans, it earns the gap between the interest it collects and what it pays to borrow.
It reports four segments. Commercial and Residential Lending holds those loans and securities. Infrastructure Lending makes infrastructure loans concentrated in the power industry. The Property segment owns apartments, medical offices and triple net lease properties, where tenants pay taxes, insurance and upkeep. Investing and Servicing works out troubled US loans, invests in commercial mortgage-backed securities and makes loans meant for securitizations (pools of loans sold as bonds).
On July 23, 2025, Starwood acquired Fundamental Income Properties for about $2.2 billion, including $1.3 billion of assumed debt, adding 468 net-leased retail, industrial and service properties in 44 states. Starwood is externally managed, meaning an outside firm runs it for fees: SPT Management, LLC, controlled by Chairman and CEO Barry Sternlicht and affiliated with his private equity firm, Starwood Capital Group. Revenue was $1.84 billion in fiscal 2025.
Price history
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STWD -25.4% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $513.7M, up 15.6% from a year earlier, and net income was $6.6M (-94.9%).
- For fiscal 2025, revenue was $1.84B (-5.3% year over year; +10.2% a year from FY2020 to FY2025) with a 22.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.2% good |
|---|---|
| Free cash flow margin | 5.4% watch |
| Return on equity (FY2025) | 6.1% weak |
| Return on assets (FY2025) | 0.7% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.14B | $331.7M | — |
| FY2021 | $1.17B | $447.7M | — |
| FY2022 | $1.46B | $871.5M | — |
| FY2023 | $2.05B | $339.2M | $528.6M |
| FY2024 | $1.95B | $359.9M | $646.6M |
| FY2025 | $1.84B | $411.5M | $99.4M |
Valuation snapshot
| Market value | $4.53B |
|---|---|
| P/E ratio | 10.6 |
| Dividend yield | 15.69% |
Rank among 1514 US companies
Market value at each year end
Starwood Property Trust’s market value went from $5.23B at the end of 2016 to $4.53B on Oct 28, 2026, down 13%; since the end of 2025 it is down 32%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.53B | -32.1% |
| 2025 | $6.67B | +4.4% |
| 2024 | $6.39B | -3.0% |
| 2023 | $6.58B | +16.0% |
| 2022 | $5.67B | -19.1% |
| 2021 | $7.01B | +27.6% |
| 2020 | $5.49B | -21.6% |
| 2019 | $7.01B | +29.1% |
| 2018 | $5.43B | -2.6% |
| 2017 | $5.57B | +6.5% |
| 2016 | $5.23B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| STWD price data to Oct 28, 2026 | -25.5% | -25.4% | -1.1% | -4.6% | +3.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -25.5% |
| 2025 | +4.9% |
| 2024 | -0.7% |
| 2023 | +26.6% |
| 2022 | -17.1% |
| 2021 | +35.8% |
| 2020 | -11.6% |
| 2019 | +36.8% |
| 2018 | +1.1% |
| 2017 | +6.0% |
| 2016 | +17.0% |
| 2015 | -3.4% |
| 2014 | +13.4% |
| 2013 | +29.5% |
| 2012 | +34.9% |
| 2011 | -5.8% |
| 2010 | +23.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 65% over that stretch · deepest drop along the way 65.3%, back to its old high 11.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.1% over that stretch · deepest drop along the way 23.3%, back to its old high 14.5 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 1 sales ($120K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Apr 1, 2026 | Jeffrey G. Dishner Director | sell | $120K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 5.01% | Sep 30, 2026 |
ETFs with the most weight in STWD
| REM iShares Mortgage Real Estate ETF | 10.72% |
| MORT VanEck Mortgage REIT Income ETF | 8.96% |
| RIET Hoya Capital High Dividend Yield ETF | 1.56% |
| HSMV First Trust Horizon Managed Volatility Small/Mid ETF | 1.29% |
| HOMZ Hoya Capital Housing ETF | 0.73% |
| PAMC Pacer Lunt MidCap Multi-Factor Alternator ETF | 0.63% |
| RFV Invesco S&P MidCap 400® Pure Value ETF | 0.59% |
| QDF FlexShares Quality Dividend Index Fund | 0.52% |
What could go wrong
- Depends on an outside manager. Starwood relies on SPT Management and Starwood Capital Group staff to run its investments. The manager can end the agreement annually on 180 days' notice, and a replacement may be hard to find.
- Conflicts of interest with Starwood Capital Group. Barry Sternlicht and some other directors and officers are also Starwood Capital Group executives. Its private funds may have first claim on some deals, and the management agreement was not negotiated between unrelated parties.
- Manager's fee may reward riskier bets. The manager's incentive fee is paid quarterly and based on Distributable Earnings, a company-defined profit measure. The 10-K says this may push the manager toward riskier assets to raise its pay.
- Office and property loan losses. Starwood says it has been hurt by trends in the office sector. Its loans depend on borrowers earning enough from their buildings, and riskier mezzanine and construction loans carry greater risk of loss.
- Heavy debt and reliance on lenders. As of June 30, 2026, total debt was about $40.9 billion against $6.5 billion of equity. Breaking loan terms or losing access to financing could require extra collateral or debt paydowns, reducing cash for dividends.
- No guaranteed dividend level. The company has not set a minimum distribution and may not keep paying at the same level, or at all. Dividends paid in fiscal 2025 were 162.5% of net income.
Recent events
- Executive or board change
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Other company announcement
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Quarterly results released
For income and retirement investors
Starwood paid $1.92 per share in dividends in every fiscal year from 2020 through 2025, so the dividend has held steady but not grown. That payout runs ahead of profits: fiscal 2025 dividends paid equaled about 162.5% of net income and about 673% of free cash flow. The dividend yield was 15.69% as of October 28, 2026, a level that often reflects investor doubt about whether a payout can last. There were no buybacks from fiscal 2021 to 2025, and the share count grew 28.3% between November 5, 2021 and July 31, 2026, which raises the total cash needed for the same per-share dividend.
In past downturns the shares fell hard. They dropped 65.3% in the 2020 COVID crash and took about 11 months to recover, and fell 23.3% in the 2022 bear market, taking about 14.5 months to get back. A single stock like this carries more risk than a diversified fund.
Questions investors ask
How does Starwood Property Trust make money?
Mostly by lending. Starwood makes and acquires commercial mortgages, residential loans, mezzanine loans and mortgage-backed securities in the US, Europe and Australia, and earns interest on them. It also makes infrastructure loans, collects rent from apartments, medical offices and net-leased properties, and runs a US servicing business that works out troubled loans. Revenue was $1.84 billion and net income was $411.5 million in fiscal 2025, which ended December 31, 2025.
Does Starwood Property Trust raise its dividend every year?
No. Starwood paid $1.92 per share in dividends in each fiscal year from 2020 through 2025, with no increases. The 10-K says the company has not set a minimum distribution level and may not be able to keep paying at the same level, or at all. Dividends paid in fiscal 2025 were 162.5% of net income, and net income fell 94.9% from a year earlier to $6.6 million in the quarter ended June 30, 2026.
Why is the STWD dividend yield so high?
Mainly because the share price fell while the dividend held at $1.92 per share through fiscal 2025. The yield was 15.69% as of October 28, 2026, when the shares were down 25.5% year to date. A yield that high often means investors doubt the payout will last. Fiscal 2025 dividends paid exceeded net income, and the company has set no minimum distribution, so a high yield is not a promise of future income.
Who runs Starwood Property Trust?
An outside manager runs it. Starwood is externally managed by SPT Management, LLC, which is controlled by Barry Sternlicht, the company's Chairman and CEO, and is an affiliate of his private equity firm, Starwood Capital Group. The manager earns a quarterly incentive fee based on Distributable Earnings, which the 10-K says could encourage riskier investments. The agreement was not negotiated between unrelated parties and may be costly to end, and Starwood Capital Group's private funds may get first claim on some deals.
How much debt does Starwood Property Trust have?
A large amount, which is common for lenders that borrow to fund loans. As of June 30, 2026, total debt was about $40.9 billion, against about $6.5 billion of equity and $61 billion of total assets. Cash and investments were about $368 million. Starwood borrows through repurchase agreements (loans backed by assets it pledges), bank credit lines, securitizations and debt offerings. If it breaks loan terms or financing dries up, it may need to post more collateral or repay debt, leaving less cash for dividends.