STWD

Starwood Property Trust is a diversified commercial real estate finance platform externally managed by Starwood Capital Group (Barry Sternlicht). The investment case is income: STWD paid $669M of dividends in FY2025 (+7.9%), funded by $412M of net income (+14.3%) and, more importantly, $978M of operating cash flow (+51.2%). Earnings power is steady -- diluted EPS of $1.15 (+4.5%) puts the stock at a reasonable 14.5x P/E -- and the platform keeps deploying capital, originating or acquiring $1.7B of commercial loans in Q4 2025 alone across geographically and sector-diversified collateral (UK assisted living, Irish logistics, Texas/Wisconsin data centers, US light-industrial). Cash on hand rose 32.2% to $499M, giving some liquidity cushion.

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