Starwood Posts $389.7M Q3 GAAP Loss on $336.6M Credit Provision; DE $0.31
STWD is trading near its 52-week low of $11.84 (8.0% above the low).
Summary
Starwood reported a Q3 GAAP net loss of $389.7 million, driven by a $336.6 million credit loss provision and $32.2 million of non-cash property impairments. Distributable Earnings came in at $0.31 per diluted share, or $0.41 excluding realized commercial lending losses, and the company kept its $0.48 quarterly dividend. The credit provision is the story: it dwarfs the $30.2 million provision taken last quarter, showing continued stress in the loan book even as Sternlicht says borrowers are feeling higher interest costs. Offsetting that, Starwood deployed $3.2 billion in the quarter and $8.2 billion year-to-date, including $2.4 billion of commercial lending — its highest in four years — lifting the portfolio to a record $17.8 billion, and it bought back $108 million of stock. Management also refinanced roughly $2.1 billion of corporate debt earlier in the year at rates below today's market. The earnings call is today at 10:00 a.m. ET.
At the time of this announcement, STWD was trading at $12.79 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $11.84 to $18.66. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.