STWD - Starwood Property Trust: Why This mREIT Keeps Beating The Competition
2024-04-23 17:41:34 ET
Summary
- Mortgage REITs continue to be negatively impacted by a difficult commercial real estate market.
- Starwood Property Trust is a diversified mREIT that has outperformed the sector at large with a multi-cylinder business model.
- STWD's added layers of diversification, including owned property and real estate services, provide additional cash flow and support during periods of stress, including the past two years.
- We explore STWD and dive into their winning business model.
Elevated interest rates continue to wreak havoc across the real estate sector at large. Real estate values have declined and rising rates have pressured financing opportunities for large real estate investors, shrinking the amount of participants across the sector. REITs and real estate broadly have been impacted negatively over the past three years. The most accurate surrogate for real estate equity performance is the Vanguard Real Estate ETF (VNQ)....
Starwood Property Trust: Why This mREIT Keeps Beating The Competition