Starwood Property Trust, Inc. STWD reported third-quarter 2024 adjusted distributable earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The reported figure compares unfavorably to 49 cents per share reported in the year-ago quarter.

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Results benefited from a rise in revenues and a decline in expenses. Also, a strong balance sheet position was another positive. However, STWD recorded a year-over-year decline in book value per share (BVPS).

Inside Starwood Property’s Headlines

Starwood Property’s total revenues were $479.5 million, down 8.1% year over year. Also, the top line missed the Zacks Consensus Estimate of $498 million.

Total costs and expenses were $294.5 million, down 3.3% from the prior-year quarter. The decline was primarily due to a fall in interest expense, depreciation and amortization and other expense. 

Starwood Property’s BVPS (GAAP basis) was $19.39 as of Sept. 30, 2024, down 3.9% from $20.18 reported in the prior-year quarter.

In the reported quarter, STWD recorded repayments and sales of $1.6 billion, while it received repayments of $1.1 billion in the prior-year quarter. 

The company recorded Fundings of $2 billion, which increased significantly from $743 million in the prior-year quarter.

STWD’s Strong Balance Sheet Position

As of Sept. 30, 2024, cash and cash equivalents were $357.9 million, up 38% from the prior quarter.

STWD’s originated or acquired assets were $2.1 billion, significantly up from $925 million in the prior quarter.

Loans held-for-sale was $2.8 billion, which remained flat from the prior quarter.

Starwood Property’s Dividend Update

In the third quarter, Starwood Property announced a dividend of 48 cents per share. Since its inception, the company has paid $7.7 billion in total dividends.

STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise

STARWOOD PROPERTY TRUST, INC. price-consensus-eps-surprise-chart | STARWOOD PROPERTY TRUST, INC. Quote

Currently, Starwood Property carries a Zacks Rank #4 (Sell).
 
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Performance of Other REITs

Annaly Capital Management, Inc. NLY reported third-quarter 2024 adjusted earnings available for distribution per average share of 66 cents, which missed the Zacks Consensus Estimate of 67 cents. The reported figure remained unchanged from the year-ago quarter.

NLY recorded a year-over-year decline in BVPS. Nonetheless, the company’s average yield on interest-earning assets improved in the reported quarter.

AGNC Investment Corp.’s AGNC third-quarter 2024 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 43 cents missed the Zacks Consensus Estimate of 47 cents. Also, the bottom line declined from the 65 cents reported in the previous quarter.

Adjusted net interest and dollar roll income of $420 million moved down 12.9% from the previous quarter. AGNC reported a third-quarter comprehensive income per common share of 64 cents against a comprehensive loss of 13 cents in the prior quarter.