I hold STWD in both my taxable and tax-deferred accounts. Starwood Property Trust is a REIT that originates and services commercial mortgages and takes equity positions in properties. The company is one of the largest in the industry with a very experienced management team.
This is meant to be an introduction to the company, not an in-depth analysis. Do your own homework if you decide this could be a good investment for your portfolio.
Starwood operates through seven verticals. They’re also affiliated with a number of other companies in the real estate industry.
Starwood’s lending segment focuses on first mortgages and mezzanine loans.
The company is well diversified by property type with an emphasis on Office, Hotels, Multi-family, and Mixed Use.
Starwood also invests directly in commercial properties.
Much of Starwood’s investments are tied to a floating rate, protecting it from a rising interest rate environment.
As a REIT, Starwood distributes the majority of it’s earnings in dividends. As of this writing, the dividend rate is 8.8%.