AFFO collapsed to -$164.0M in 2026Q2, covering only 23% of the $178.8M dividend paid, while capital expenditures jumped to $205.8M, signaling reliance on external funding for distributions.
Starwood Property Trust, Inc. (STWD) cash flow statement — 17-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 878.31M | 977.85M | 646.59M | 528.6M | 213.74M | -989.98M | 1.05B | -13.2M | 585.47M | -246.84M | 556.63M | 612.51M | 220.71M | 326.31M | 265.58M | 79.4M | -99.67M | 5.59M |
| Operating CF Growth % | 147.17% | 51.23% | 22.32% | 147.31% | 121.59% | -194.68% | 8021.42% | -102.25% | 337.19% | -144.35% | -9.12% | 177.52% | -32.36% | 22.87% | 234.47% | 179.67% | -1882.07% | - |
| Operating CF / Revenue % | 42.25% | 52.01% | 31.68% | 25.76% | 13.76% | -83.31% | 91.94% | -1% | 52.59% | -28.03% | 70.79% | 80.83% | 30.89% | 54.85% | 79.91% | 35.14% | -94.89% | 80.74% |
| Net Income | -234.36M | 443.09M | 380.58M | 418.16M | 1.06B | 492.43M | 366.08M | 536.93M | 411.2M | 412.77M | 367.65M | 452.18M | 500.54M | 310.33M | 203.68M | 120.61M | 58.84M | -2.58M |
| Depreciation & Amortization | 143.5M | 84.83M | 46.26M | 54.3M | 53.94M | 84.59M | 94.15M | 113.39M | 130.84M | 90.9M | 61.57M | 27.23M | 16.62M | 14.93M | 213K | 3.78M | 646K | 0 |
| Stock-Based Compensation | 51.01M | 54.09M | 41.79M | 39.25M | 40.19M | 39.29M | 31.24M | 48.07M | 43.55M | 37.75M | 50.47M | 49.52M | 39.74M | 19.1M | 16.16M | 13.74M | 7.52M | 2.42M |
| Other Non-Cash Items | 1.02B | 533.98M | 225.51M | 252.87M | -918.25M | -1.42B | 692.24M | -501.62M | 94.03M | -729.49M | 208.03M | 260.62M | -208.97M | 42.72M | 40.13M | 5.53M | 55K | -645K |
| Working Capital Changes | -143.62M | -138.15M | -47.54M | -235.97M | -21.2M | -87.31M | -177.13M | -152.52M | -27.23M | -102.12M | -73.57M | -121.61M | -68.92M | 37.69M | 5.61M | -5.31M | -142.85M | 6.4M |
| Cash from Investing | -2.48B | -3.78B | 2.08B | 855.07M | -2.95B | -4.28B | -911.8M | -775.87M | -2.52B | -1.04B | -812.82M | -400.8M | -1.71B | -2.83B | -1.19B | -1B | -1.17B | -460.25M |
| Acquisitions (Net) | 0 | -807.94M | 4.4M | 824K | 617K | 26.27M | 25.16M | 30.86M | -2.16B | -17.64M | -849.95M | -555.05M | 0 | -586.38M | 0 | 0 | 0 | 0 |
| Purchase of Investments | -5.43B | -136.45M | -115.09M | -56.59M | -106.05M | -261.67M | -100.34M | -159.15M | -525.08M | -171.1M | -399.31M | -241.51M | -392.39M | -527.79M | -642.14M | -365.64M | -219.54M | -245.98M |
| Sale of Investments | 3.78B | 382.49M | 329.86M | 136.43M | 318.83M | 145.66M | 118.46M | 251.74M | 419.87M | 275.98M | 213.4M | 471.86M | 161.97M | 546.08M | 362.1M | 591.48M | 99.14M | 58K |
| Other Investing | -218.02M | -2.95B | 1.89B | 799.5M | -3.14B | -4.17B | -929.92M | -868.46M | -202.28M | -549.87M | -9.49M | 28.15M | -1.48B | -19.43M | -908.63M | -1.23B | -1.05B | -214.33M |
| Cash from Financing | 1.77B | 2.92B | -2.49B | -1.45B | 2.8B | 4.87B | 13.28M | 876.72M | 2B | 1.05B | 505.49M | -93.58M | 1.44B | 2.64B | 986.73M | 809.83M | 847.11M | 1.1B |
| Dividends Paid | -713.54M | -668.86M | -620M | -601.19M | -591.46M | -553.93M | -546.88M | -538.42M | -509.97M | -501.66M | -458.35M | -446.85M | -401.66M | -300.97M | -186.1M | -142.85M | -44.25M | 0 |
| Common Dividends | -713.54M | -668.86M | -620M | -601.19M | -591.46M | -553.93M | -546.88M | -538.42M | -509.97M | -501.66M | -458.35M | -446.85M | -401.66M | -300.97M | -186.1M | -142.85M | -44.25M | 0 |
| Debt Issuance (Net) | 4M | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -137.71M | 0 | 0 | 0 | 0 | 0 | -33.83M | 0 | -12.09M | 0 | -19.72M | -48.75M | -12.99M | 0 | 0 | -10.64M | 0 | 0 |
| Other Financing | -188.21M | 30.59M | -47.82M | 106.01M | -3.94M | 223.29M | -33.94M | 106.74M | -217.35M | -26.84M | 23.7M | 10.03M | -24.4M | -44.79M | 67.68M | -32.39M | 383.48M | -23.11M |
| Net Change in Cash | 173.64M | 120.65M | 242.02M | -70.16M | 60.22M | -400.25M | 148.13M | 86.17M | 69.59M | -232.48M | 246.71M | 113.63M | -62.44M | 139.96M | 63.64M | -112.83M | -418.27M | 645.13M |
| Exchange Rate Effect | 2.82M | -306K | -2.62M | 731K | -1.09M | -1.72M | 1.1M | -1.49M | 207K | 3.23M | -2.59M | -4.5M | -5.83M | 1.08M | 0 | 0 | 0 | 0 |
| Cash at Beginning | 640.36M | 554M | 311.97M | 382.13M | 321.91M | 722.16M | 574.03M | 487.87M | 418.27M | 650.75M | 368.81M | 255.19M | 317.63M | 177.67M | 114.03M | 226.85M | 645.13M | 1K |
| Cash at End | 712.75M | 674.65M | 554M | 311.97M | 382.13M | 321.91M | 722.16M | 574.03M | 487.87M | 418.27M | 615.52M | 368.81M | 255.19M | 317.63M | 177.67M | 114.03M | 226.85M | 645.13M |
| Free Cash Flow | 261.35M | 708.81M | 618.65M | 503.51M | 188.52M | -1.02B | 1.02B | -44.06M | 530.7M | -820.77M | 789.16M | 508.26M | 182.83M | -1.91B | 265.58M | 79.4M | -99.67M | 5.59M |
| FCF Growth % | -66.39% | 14.57% | 22.87% | 167.09% | 118.55% | -199.59% | 2415.69% | -108.3% | 164.66% | -204.01% | 55.27% | 177.99% | 109.55% | -820.59% | 234.47% | 179.67% | -1882.07% | - |
| FCF / Revenue % | 12.57% | 37.7% | 30.31% | 24.54% | 12.14% | -85.52% | 89.73% | -3.34% | 47.67% | -93.21% | 100.37% | 67.07% | 25.59% | -321.67% | 79.91% | 35.14% | -94.89% | 80.74% |
Quick answers to the most common questions about buying STWD stock.
Starwood Property Trust, Inc. (STWD) generated $977.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Starwood Property Trust, Inc. (STWD) generated $708.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Starwood Property Trust, Inc. (STWD) spent $269.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Starwood Property Trust, Inc. (STWD) returned $668.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative AFFO and dividend coverage
Metrics are mathematically derived from official filings.
AFFO Turns Negative, Dividend at Risk
STWD's AFFO collapsed to -$164.0M in 2026Q2, far below the $178.8M dividend paid, implying a payout ratio of 4.27x, per reported quarterly figures.
The negative AFFO in 2026Q2, despite positive FFO of $41.8M, suggests that recurring capital expenditures and non-cash adjustments are consuming cash beyond operating earnings. This marks a sharp reversal from 2024Q1 when AFFO of $158.6M covered the dividend with a 0.93x payout ratio. Investors should monitor whether this is a one-time reserve build or a structural shift in cash generation.
Capex Surge Signals Portfolio Expansion
Capital expenditures jumped to $205.8M in 2026Q2, up from $5.6M in 2024Q1, indicating significant investment in property acquisitions or improvements, as disclosed in STWD's cash flow statement.
The dramatic increase in capex, which turned FCF deeply negative at -$141.1M, appears tied to the strategic pivot toward infrastructure and residential lending, likely requiring property-level investments. This spending may be growth-oriented rather than maintenance, but it pressures near-term distributable cash. The sustainability of this capex level is critical, as it directly impacts AFFO and dividend coverage.
GAAP Net Income Masks Cash Reality
GAAP net income of $6.6M in 2026Q2 is far below FFO of $41.8M, highlighting depreciation and CECL provisions that distort reported earnings, per STWD's financial statements.
The FFO/NI ratio of 9.88x in 2026Q2 underscores the magnitude of non-cash charges, including credit loss reserves and depreciation on the Property segment. This distortion suggests that GAAP earnings understate the company's cash-generating ability, but the negative AFFO reveals that even FFO overstates true distributable cash. Analysts should rely on AFFO, not GAAP net income, to assess dividend sustainability.
Working Capital Swings Reflect Loan Activity
Operating cash flow swung from $488.8M in 2025Q4 to $64.8M in 2026Q2, indicating significant working capital volatility tied to loan origination and repayment cycles, as reported in STWD's cash flow data.
The wide fluctuations in OCF, including a negative -$87.4M in 2025Q2, suggest that changes in loan balances and receivables are driving cash flow variability rather than core earnings. This pattern is typical for mortgage REITs but warrants monitoring for any buildup in tenant receivables or straight-line rent adjustments that could signal collection issues. The recent stabilization at $64.8M may indicate a return to more normalized levels.
Dividend Exceeds Internal Cash Generation
Dividends paid of $178.8M in 2026Q2 exceeded AFFO by $342.8M, implying reliance on external funding or balance sheet cash to cover distributions, based on STWD's reported figures.
With AFFO deeply negative, STWD appears to be funding its dividend through debt issuance, asset sales, or cash reserves, which is unsustainable over the long term. The company's ability to access capital markets at favorable rates, given its diversified platform, may provide a temporary buffer, but investors should monitor the cost of funds and leverage levels. If AFFO does not recover, dividend cuts may become necessary.
What the Cash Flow Statement Hides
The negative AFFO despite positive FFO suggests that capitalized maintenance costs and joint-venture obligations may be understated, as per STWD's cash flow statement analysis.
The gap between FFO and AFFO, which widened to -$205.8M in 2026Q2, implies significant recurring capex that is not fully captured in FFO. This could include tenant improvements, leasing commissions, or property maintenance that are capitalized rather than expensed. Additionally, off-balance-sheet joint ventures may require cash contributions that are not visible in the consolidated statement. Investors should scrutinize these items to assess the true cash flow health.