Company Focus: Starwood Property Trust (STWD)

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.

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Starwood operates through seven verticals. They’re also affiliated with a number of other companies in the real estate industry.

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Starwood’s lending segment focuses on first mortgages and mezzanine loans.

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The company is well diversified by property type with an emphasis on Office, Hotels, Multi-family, and Mixed Use.

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Starwood also invests directly in commercial properties.

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Much of Starwood’s investments are tied to a floating rate, protecting it from a rising interest rate environment.

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As a REIT, Starwood distributes the majority of it’s earnings in dividends. As of this writing, the dividend rate is 8.8%.