Worth Watching News for Traders: Starwood Property Trust (NYSE:STWD)

On Friday Starwood Property Trust (NYSE:STWD) stock rose 0.21% and closed at 24.26. The stock opened the session at $24.21 and touched its highest price point at $24.33. Its recent trading capacity is 1187369 shares versus to its average trading volume of 1281748 shares. The company’s stock’s lowest price point for the session stood at $24.14. STWD traded as low as $ 19.16 in the past 52 weeks, and shares hit its peak level to $24.96.

On Nov. 8, 2019, Starwood Property Trust (NYSE:STWD) notified operating results for the fiscal quarter ended September 30, 2019.  The Company’s third quarter 2019 GAAP net income was $140.4 million, or $0.49 per diluted share, and Core Earnings (a non-GAAP financial measure) was $152.6 million, or $0.52 per diluted share.

We had another strong quarter, with over $2.5 billion of capital deployed across all our segments, including $1.2 billion in Commercial Lending.  Notably, our non-agency residential lending business continued to expand with purchases of over $600 million of loans and the completion of our fourth and largest securitization for $546 million. We also continue to experience growing, double-digit yields in our Property segment.  We expect that these yields will increase over 200 basis points as a result of the $180 million partial cash out refinance of our medical office portfolio and first multifamily portfolio, which have appreciated meaningfully since acquisition.  Our pipeline remains robust, and we expect to invest this capital accretively as we continue to utilize our global organization to find the best opportunities across our cylinders, commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

Added Jeffrey DiModica, President of Starwood Property Trust, During the quarter, we continued to reduce our reliance on warehouse financing, completing our first $1.1 billion CRE CLO.  The transaction was structurally superior, reducing balance sheet exposure, and with a higher advance rate and lower cost of funds than the repurchase facilities it replaced.  We also executed on a $400 million term loan, which allowed us to increase our unencumbered asset base, providing us with additional capacity to issue attractive corporate debt in the future.  We ended the quarter with a record high of over $8.0 billion of available capacity across our financing facilities, giving us tremendous flexibility as investment opportunities arise.

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