Starwood Property Trust(STWD) ZACKS·2025-02-28 19:00Core Viewpoint - Starwood Property Trust, Inc. (STWD) reported mixed financial results for the fourth quarter of 2024, with adjusted distributable earnings beating estimates but showing a decline compared to the previous year [1][3]. Financial Performance - Fourth-quarter 2024 adjusted distributable earnings were 48 cents per share, exceeding the Zacks Consensus Estimate of 46 cents, but down from 58 cents per share in the same quarter last year [1][2]. - The company's net income for the fourth quarter was $51.6 million, reflecting a 27.2% decrease year over year [2]. - Total revenues for the fourth quarter were $454.4 million, down 12.9% year over year, and missed the Zacks Consensus Estimate by 3.7% [4]. - For the full year 2024, adjusted distributable earnings were $2.02 per share, slightly above the Zacks Consensus Estimate of $2.00 per share, but down from $2.05 per share in 2023 [3]. - Total revenues for 2024 were $1.9 billion, a decrease of 5% year over year, also missing the Zacks Consensus Estimate by 3% [4]. Balance Sheet and Cash Position - As of December 31, 2024, cash and cash equivalents stood at $377.8 million, up 5.6% from the prior quarter [6]. - The book value per share (BVPS) was $19.08, down 4.4% from $19.95 in the prior-year quarter [5]. - The company recorded repayments and sales of $1.5 billion in the reported quarter, compared to $1.1 billion in the prior-year quarter [5]. Strategic Outlook - Starwood Property's focus on commercial mortgage-backed securities and commercial real estate debt investments is aimed at generating stable income while adapting to market conditions [7]. - The company anticipates increasing its investment pace significantly in 2025, despite concerns over declining book value [8].