STWD - Starwood Property: Don't Miss This Drop And Lock In A 10% Yield
2024-05-29 01:26:37 ET
Summary
- Starwood Property Trust is a strong choice for dividend investors in the commercial real estate market.
- The REIT has a well-performing loan portfolio and high dividend yield. However, STWD took a valuation hit last week as another Starwood (non-traded) REIT announced redemption limitations.
- STWD has access to liquidity and could be a net buyer of commercial mortgage assets in the future.
- Shares are trading at a 5% discount to book value again and have significant revaluation potential.
Starwood Property Trust ( STWD ) is a strong choice for dividend investors in the commercial real estate market: Starwood Property supported its dividend with distributable earnings in the first fiscal quarter and the company has considerable access to liquidity which could make the REIT a net buyer of commercial mortgage assets in the future. Starwood Property has suffered a valuation decline last week as redemption issues affecting the non-traded Starwood Real Estate Income Trust were reported last week, which reinserted fears and concerns about the state of commercial real estate into the market. I believe redemption limitations are an isolated problem that doesn't affect Starwood Property's publicly traded shares. The REIT also has relatively little exposure to challenged U.S. office loans, which makes Starwood Property one of the safest choices in the CRE market, in my opinion....
Starwood Property: Don't Miss This Drop And Lock In A 10% Yield