Starwood Property Trust (STWD) Misses Q4 EPS by 6c, Revenues Miss

Starwood Property Trust (NYSE: STWD) reported Q4 EPS of $0.47, $0.06 worse than the analyst estimate of $0.53. Revenue for the quarter came in at $286.43 million versus the consensus estimate of $305.22 million.

"Our fourth quarter results were highlighted by contributions throughout our multi-cylinder platform, which brought our investment portfolio to a record size of over $17 billion. In our primary business line, commercial lending, we originated $2.2 billion this quarter, bringing our on balance sheet portfolio to a record $9.1 billion. We also added over $600 million of new loans to our infrastructure portfolio. Our residential lending platform continues to perform well, with over $1.4 billion of assets and the completion of our fifth securitization. We continue to execute strategic joint ventures in our CMBS portfolio, the largest of which closed in the fourth quarter. This has allowed us to expand our named special servicing footprint.

We successfully completed the sale of our Ireland portfolio this quarter, realizing a Core gain of $83 million before a tax withholding adjustment. We believe we still have over $800 million in unrealized gains remaining in our book, over $700 million of which relates to the four portfolios remaining in our property segment. Following the successful refinancings of our medical office and first multifamily portfolios, we expect the yields on our stabilized property portfolio to be approximately 15%," commented Jeffrey DiModica, President of Starwood Property Trust.

"Our balance sheet activity continues to create a very strong liquidity position headed into 2020," added Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "We have a strong pipeline of investment opportunities across our business cylinders and will remain highly selective as to where we deploy capital. We intend to stay disciplined with the right side of our balance sheet but are in a prime position to take advantage of any future dislocations across our target asset classes."

For earnings history and earnings-related data on Starwood Property Trust (STWD) click here.

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