I last wrote about Starwood Property Trust, Inc. (NYSE:STWD) in January 2016 ("Is Starwood Property Trust Bottoming?"). This will update that article, which came during a brief but painful sell-off in the REIT space.
Run by
Starwood Property Trust Gives You Yield And Growth
Summary
- Starwood maintained its fat 7% dividend throughout the pandemic, and CEO Barry Sternlicht has stated that he's "pretty confident" that it will be paid for "quite some time"
- With multiple streams of income, Starwood has bounced back from the pandemic and continues to benefit as the economy returns to normal and workers return to the office.
- Starwood issues the vast majority of its loans with floating rates and thus has built-in inflation protection.
- Starwood is one of a group of durable hybrid REITs that showed their strength during the 2020 stress test and have performed better than less diversified companies.
James Bjorkman is currently a Senior Editor at Seeking Alpha after being a subscriber since 2012 and publishing his initial article in 2014. Educated at Brown University and NYU School of Law, James has a long history in real estate and investing, along with published articles in legal journals and other venues. He was intimately involved in online investing events during the dotcom era and has the scars to prove it. James lives in the Rockies and loves hiking and videography/photography. You may reach James at JamesB@seekingalpha.com.
Analyst’s Disclosure:I am/we are long STWD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.