2023-05-04 09:40:58 ET
Starwood Property Trust ( STWD ) stock fell 4.5% in early Thursday trading after the real estate finance firm posted lower-than-expected earnings and revenue amid volatile market conditions.
"During the quarter, in light of the market conditions, our new investing was concentrated in infrastructure lending, which comprised 73% of our new origination activity," said President Jeffrey DiModica.
He pointed to the strength of its balance sheet as a competitive advantage. "In addition to $4.2B of unencumbered collateral and $3.4B of owned property, we also have $25.6B of financing capacity diversified across 25 lenders and over 40 facilities, of which $8.3B is undrawn," DiModica said.
Starwood Property ( STWD ) posted Q1 distributable EPS of $0.49, missing the $0.50 consensus, fell from $0.50 in the prior quarter.
Q1 total revenue of $490.4M, trailing the average analyst estimate of $519.0M, vs. $454.6M in Q4 2022.
Undepreciated book value per share of $21.37 at March 31, 2023 slipped from $21.70 at Dec. 31, 2022.
During the quarter, Starwood Property ( STWD ) originated or acquired $292M of assets across business lines, including $160M in Infrastructure Lending and $59M in Commercial Lending.
The company received repayments of $517M across business lines.
Commercial portfolio carrying value was $16.9B at March 31, 2023, vs. $16.8B at Dec. 31, 2022.
Residental portfolio carrying value of $3.16B at March 31 vs. $3.19B at Dec. 31, 2022 and $2.67B at March 31, 2022.
Q1 total costs and expenses of $485.3M increased from $430.2M in Q4.
Conference call at 10:00 AM ET.
Earlier, Starwood Property Trust ( STWD ) non-GAAP EPS of $0.49, revenue of $490.4M
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Starwood Property Trust Q1 earnings slip from prior quarter, stock drops