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Starwood Property Trust (STWD) FY2025 results: revenue $1.8 billion, down 5.3% on the year

Starwood Property Trust, Inc. (STWD) reported revenue of $1.8 billion for fiscal 2025, the year ended 31 December 2025, down 5.3% on the year before. Net income was $412 million, up 14.3%, and diluted earnings per share $1.15. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$1.8 billion
-5.3% on the year
FY2018FY2025
Operating margin
3.1%
-1.8% a year earlier
FY2018FY2025
Net income
$412 million
+14.3% on the year
FY2018FY2025
Diluted EPS
$1.15
+4.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Fourth quarter GAAP and DE results: Fourth-quarter GAAP net income was $96.9 million, against $72.6 million in the third quarter. Distributable Earnings were $159.5 million, against $148.6 million.
  • Full-year GAAP and DE totals: Full-year GAAP net income was $411.5 million and Distributable Earnings $615.5 million. Full-year Distributable EPS was $1.69 and GAAP EPS $1.15.
  • Commercial lending earnings rose: Commercial and Residential Lending DE was $175.8 million, or $0.46 per share, against $159.0 million in the third quarter. Property DE rose to $49.1 million from $27.7 million.
  • Investments reached $12.7 billion: The company invested $12.7 billion in 2025, including $2.5 billion in the fourth quarter. Third-quarter investment was $4.6 billion.
  • Balance sheet repositioned with longer duration: DiModica said the company repositioned its balance sheet in 2025 with extended duration and lower spreads across equity, unsecured debt and term loan debt.
Read the Q4 FY2025 earnings call summary

From this 10-K

Starwood Property Trust is a real estate investment trust that originates, acquires, finances and manages mortgage loans and other real estate investments in the United States, Europe and Australia. It is a Maryland corporation that began operations in August 2009 on completing its initial public offering, and its corporate headquarters is in Miami Beach, Florida. It is externally managed by SPT Management, which is controlled by its Chairman and Chief Executive Officer, Barry Sternlicht, and is an affiliate of Starwood Capital Group, a private equity firm he founded.

Starwood Property Trust, Inc., the 10-K for 2025

Starwood Property Trust is a real estate investment trust that originates, acquires, finances and manages mortgage loans and other real estate investments in the United States, Europe and Australia. It is a Maryland corporation that began operations in August 2009 on completing its initial public offering, and its corporate headquarters is in Miami Beach, Florida. It is externally managed by SPT Management, which is controlled by its Chairman and Chief Executive Officer, Barry Sternlicht, and is an affiliate of Starwood Capital Group, a private equity firm he founded.

Segments

It reports four segments. Commercial and Residential Lending originates and buys commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity and commercial and residential mortgage-backed securities. Its residential loans are secured by a first mortgage lien and are mainly loans not guaranteed by any U.S. government agency or federally chartered corporation. Infrastructure Lending originates, buys, finances and manages infrastructure debt, a business it acquired in 2018. The Property segment owns multifamily properties, multi-tenant medical office net lease properties and single-tenant triple net lease properties, held for investment. Investing and Servicing, built on its 2013 acquisition of LNR Property, includes a U.S. servicing business that manages and works out problem assets, a business that buys commercial mortgage-backed securities, including subordinated interests, a conduit lending business that originates loans to sell into securitizations, and a business that buys commercial real estate, including properties acquired from CMBS trusts.

Fundamental acquisition

On July 23, 2025 it acquired Fundamental Income Properties by merger. At the acquisition Fundamental owned 468 retail, industrial and service properties with 12.3 million square feet across 44 states and 90 tenants, leased under 103 net lease agreements with a 17.1 year weighted-average lease base term, and it is part of the Property segment.

Competition

The filing states that it competes for investments with financial institutions, specialty finance companies, mortgage banks, pension funds, hedge funds, insurance companies, REITs, other institutional investors and individuals, many of them larger than it.

People

As of December 31, 2025 its operating subsidiaries had 324 full-time employees, most of them real estate professionals located across the U.S.

From Starwood Property Trust's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,8441,9472,050-5.3%
Operating income57.7-35.2-48.4
Operating margin3.1%-1.8%-2.4%
Interest expensen/an/a1,436
Pre-tax income480406417+18.2%
Income tax36.725.4-0.7+44.4%
Effective tax rate7.7%6.3%-0.2%
Net income412360339+14.3%
Net margin22.3%18.5%16.5%
Diluted EPS$1.15$1.10$1.07+4.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow978647529+51.2%
Capital expenditure8780.00.0
Free cash flow99.4647529-84.6%
Free cash flow margin5.4%33.2%25.8%
Cash from investing-3,7762,084855
Cash from financing2,920-2,486-1,455
Depreciation and amortisation79.041.349.1+91.2%
Share-based compensation61.059.452.9+2.6%
Dividends paid669620601+7.9%
Dividend per share$1.92$1.92$1.920.0%
Diluted shares, weighted350m321m311m+9.2%
Shares outstanding at period end371m337m313m+9.8%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity6,7966,4376,251+5.6%
Non-controlling interest330330358+0.1%
Redeemable equity364427414-14.7%
Debt16,96314,14616,221+19.9%
Other liabilities38,73141,21746,261-6.0%
Total liabilities and equity63,18362,55669,504+1.0%
Goodwill2602602600.0%
Intangible assets43660.765.0+618.3%
Securities held for sale or to maturity305525722-41.9%
Cash and equivalents499378195+32.2%
Other assets61,68361,33368,263+0.6%
Total assets63,18362,55669,504+1.0%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.