Starwood Property Trust, Inc. (NYSE: STWD) is a diversified finance company focusing on real estate and infrastructure investments, managing a portfolio valued at over $26 billion. For the quarter ended March 31, 2025, the company reported distributable earnings of $156.3 million, translating to $0.45 per share, while GAAP net income was $112.3 million, or $0.33 per share.

The financial data indicates that Starwood is in a stable condition, with a strong performance across its business segments. For the quarter, Starwood committed $2.3 billion to new investments, marking the highest investment pace in nearly three years. This included $1.4 billion in commercial lending and a record $677 million in infrastructure lending.

Starwood’s overall portfolio in commercial lending grew by $859 million, reaching $14.5 billion, bolstered by $1.4 billion in loans originated, of which $886 million was funded immediately. The infrastructure lending segment also showed strength, closing the quarter with a record $2.8 billion portfolio after $436 million of repayments. Adjusted debt to undepreciated equity ratio remained at 2.25x.

In terms of margins, the company maintained a robust liquidity position of $1.5 billion, exclusive of liquidities from various refinancing sources and unencumbered assets valued at $4.9 billion. The weighted average corporate debt maturity extended to 3.7 years following the issuance of $500 million in senior unsecured sustainability notes.

The commercial and residential lending segments generated distributable earnings of $179 million ($0.51 per share) and $20 million ($0.06 per share) from the infrastructure segment. The property segment yielded $16 million ($0.05 per share) in distributable earnings, largely driven by the performance of the Florida affordable multifamily portfolio.

Starwood’s resolution efforts on troubled assets showed promise with $230 million resolved at or above GAAP basis value. The CECL reserve decreased by $26 million to $456 million, approximately 4.2% of total lending and REO portfolios. The company plans to leverage its financial flexibility to capitalize on favorable market conditions as it aims to continue its investment momentum.

The quarterly dividend remained consistent at $0.48 per share, marking over a decade of dividend payments, underscoring the company’s commitment to returning value to shareholders amidst robust operational metrics and a favorable investment environment.