Starwood Property Trust (STWD) Tops Q2 EPS by 1c, Revenues Miss

Starwood Property Trust (NYSE: STWD) reported Q2 EPS of $0.43, $0.01 better than the analyst estimate of $0.42. Revenue for the quarter came in at $265.61 million versus the consensus estimate of $289.87 million.

"It is a difficult time to figure out the right balance between playing offense and defense as this Category 5 hurricane that we call the Coronavirus sweeps through the U.S. and the global economies. Since March, we have erred on the side of caution and are only making occasional investments that we find decidedly compelling. From the outset of this pandemic, our strategy has been to solidify our fortress balance sheet. We now sit with over $800 million of cash and approved, undrawn debt capacity, after paying our full dividend the past two quarters, deleveraging our balance sheet by more than $350 million and dramatically lowering our future funding obligations by over $700 million.

All this caution has and will probably continue to reduce our earnings until our capital deployment returns to more normalized levels. Nonetheless, the breadth of our enterprise provides numerous opportunities for us to realize the significant embedded gains in our portfolio if and when we choose to do so. Our complex, but diversified, business lines have performed in line with our expectations. We are very well-positioned to carefully comb through investments in each of our business segments, work with our borrowers, and return to investing globally where the opportunity set is clearly better today than in years past," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

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

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• Southside Bancshares (SBSI) Tops Q1 EPS by 1c
• Whirlpool (WHR) to cut 1,000 jobs - CFO Jim Peters