Starwood Property Trust announces public offering of common stock

MIAMI BEACH - Starwood Property Trust, Inc. (NYSE:STWD), a $7.07 billion market cap real estate finance company trading near its 52-week high of $21.17, announced Wednesday it is offering 25.5 million shares of its common stock in an underwritten public offering, subject to market conditions.

The real estate finance company said underwriters will have a 30-day option to purchase up to an additional 3.825 million shares. All shares will be issued under the company’s current shelf registration statement filed with the Securities and Exchange Commission. According to InvestingPro data, the company maintains strong financial health with a current ratio of 27.37, indicating robust liquidity to meet short-term obligations.

Starwood intends to use the net proceeds primarily to fund a portion of its pending acquisition of Fundamental Income Properties, LLC. The company may also use proceeds to originate commercial mortgage loans, purchase other target assets, or for general corporate purposes including debt repayment.

BofA Securities and Wells Fargo Securities will serve as joint book-running managers for the offering.

Starwood Property Trust, an affiliate of global private investment firm Starwood Capital Group, focuses on real estate and infrastructure sectors. The company has deployed $108 billion of capital since inception and manages a portfolio of $27.5 billion across debt and equity investments, according to the press release statement. InvestingPro analysis reveals the company offers a substantial 9.31% dividend yield and has maintained dividend payments for 17 consecutive years - just two of several bullish indicators available in the full Pro Research Report.

The announcement comes the same day as the company’s preliminary unaudited results for the quarter ended June 30, 2025, though specific financial figures were not included in the statement.

The company noted that the offering may only be made through a prospectus and related prospectus supplement, which can be obtained by contacting the joint book-running managers.

In other recent news, Starwood Property Trust reported its first quarter 2025 earnings, meeting analyst expectations with an earnings per share (EPS) of $0.45, although revenue fell short at $325.47 million compared to the forecast of $493 million. The company committed $2.3 billion to new investments during the quarter, marking its highest quarterly commitment in nearly three years. JMP Securities reiterated its Market Outperform rating for Starwood Property Trust, maintaining a price target of $23.00, which suggests a potential 14.6% upside. Additionally, Starwood Capital Group, which oversees Starwood Property Trust, successfully closed $2.86 billion in new private credit-focused vehicles, emphasizing its growth in the global real estate credit sector. The firm’s strategy involves leveraging its comprehensive real estate lending platform and experienced team to offer tailored financing solutions. Barry Sternlicht, Chairman and CEO of Starwood Capital, highlighted the firm’s continued focus on expanding its data center investments and exploring opportunities in the residential credit market. These developments reflect Starwood’s strategic priorities and ongoing efforts to strengthen its position in the real estate credit market.

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