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Starwood Property Trust (STWD) investor relations material

Starwood Property Trust Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Q2 2025 GAAP net income was $129.8M ($0.38/share) and distributable earnings were $151.1M ($0.43/share).

  • $3.2B invested in Q2 and $5.5B in the first half, surpassing 2024's full-year capital deployment.

  • Acquisition of Fundamental Income Properties for $2.2B expands into net lease real estate and diversifies the asset base.

  • Board declared a $0.48/share dividend for Q2 and Q3, marking the 47th consecutive quarter.

  • LNR's special servicer ratings reaffirmed at the highest levels by Fitch and Morningstar DBRS.

Financial highlights

  • Book value per share was $18.80; undepreciated book value per share was $19.65.

  • Adjusted debt-to-equity ratio was 2.5x; $1.1B in liquidity and $2B corporate debt capacity.

  • Total assets reached $27.5B; total capitalization was $27.6B.

  • $5B in unencumbered assets and $1.4B in unrealized property gains.

  • 82% of outstanding debt has no mark-to-market provisions.

Outlook and guidance

  • Management expects robust investment opportunities as property markets recover and interest rates are projected to decline.

  • Integration of Fundamental Income expected to drive stable recurring cash flows and future earnings growth.

  • Diversified business model and no near-term debt maturities position the company for disciplined growth.

  • CRE loan originations are expected to approach record $10B for 2025, matching 2021 levels.

  • Net lease business is expected to be accretive to earnings as it scales.

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Frequently asked questions

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT). The company acquires, finances, and manages commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities (CMBS), and other commercial real estate-related debt investments. It conducts its businesses through three segments: Commercial Real Estate Lending and Investment, Residential Securities and Loans Investing, and Corporate.

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