Zinger Key Points
- Starwood Property Trust reports Q4 FY23 revenue at $522.3M, missing consensus, but beats with distributable EPS of $0.58.
- The company sees increased repayments and securitization of conduit loans, expanding active servicing portfolio to $6.6B.
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Starwood Property Trust, Inc. STWD reported fourth-quarter FY23 revenue of $522.3 million, missing the consensus of $534.7 million.
The company received repayments of $1.1 billion across business lines in the quarter. Distributable EPS of $0.58 beat the consensus of $0.48.
Starwood Property securitized $467 million of conduit loans in five transactions during the quarter. The company’s total active servicing portfolio increased from $6.1 billion to $6.6 billion in the fourth-quarter FY23.
Barry Sternlicht, Chairman and CEO said, “The commercial real estate industry faces a balance sheet issue that was not created by a lack of discipline per se. Rather, the issue arose from a rapid and unprecedented increase in interest rates meant to halt inflation that was largely caused by multiple COVID stimulus packages followed by the American Rescue Plan Act of 2021.”
“These well-intended programs hit a tattered supply chain which caused prices to increase. We will continue to face headwinds in real estate both in the U.S. and abroad until the central banks lower short-term rates to more accurately reflect spreading weakness in the private economy.”
As of December 31, 2023, cash and cash equivalents stood at around $312 million.
Price Action: STWD shares are trading higher by 2.49% at $19.93 on the last check Thursday.
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