Property-level profitability is under pressure, with NOI margins compressing from a peak of 87.6% in 2024Q3 to 75.2% in 2026Q1.
| 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 |
|---|
| Revenue | 1.99B | 1.88B | 2.04B | 2.05B | 1.55B | 1.19B | 1.14B | 1.32B | 1.11B | 880.59M | 786.29M | 757.8M | 714.39M | 594.94M | 332.37M | 225.97M | 105.04M | 6.93M |
| Revenue Growth % | 7.65% | -7.88% | -0.53% | 32.12% | 30.7% | 4.49% | -13.75% | 18.43% | 26.42% | 11.99% | 3.76% | 6.08% | 20.08% | 79% | 47.09% | 115.13% | 1416.33% | - |
| Property Operating Expenses | 413.29M | 366.53M | 281.63M | 290.38M | 302.89M | 448.92M | 437.69M | 469.88M | 522.55M | 405.58M | 316.22M | 194.68M | 164.14M | 141.14M | 58.27M | 38.9M | 22.77M | 7.47M |
| Net Operating Income (NOI) | 1.57B | 1.51B | 1.76B | 1.76B | 1.25B | 739.34M | 699.49M | 848.56M | 590.7M | 475M | 470.06M | 563.12M | 550.25M | 453.8M | 274.1M | 187.07M | 82.26M | -544K |
| NOI Margin % | 79.18% | 80.51% | 86.2% | 85.85% | 80.5% | 62.22% | 61.51% | 64.36% | 53.06% | 53.94% | 59.78% | 74.31% | 77.02% | 76.28% | 82.47% | 82.79% | 78.32% | -7.85% |
| Operating Expenses | 128.31M | 80.87M | 115.71M | 347.32M | 188M | -58.17M | 55.95M | -18.82M | -28.38M | 67.68M | -144.65M | -122.84M | 69.6M | 128.44M | 84.13M | 52.75M | 30.5M | 3.72M |
| G&A Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA | 1.55B | 1.51B | 1.69B | 1.47B | 1.11B | 881.89M | 739.57M | 980.7M | 751.73M | 500.93M | 681.5M | 714.97M | 497.27M | 341.16M | 190.18M | 178.96M | 90.84M | 1.23M |
| EBITDA Margin % | 77.97% | 80.57% | 82.64% | 71.41% | 71.67% | 74.22% | 65.04% | 74.38% | 67.53% | 56.89% | 86.67% | 94.35% | 69.61% | 57.34% | 57.22% | 79.2% | 86.49% | 17.73% |
| Depreciation & Amortization | 104.3M | 82.06M | 43.09M | 51.09M | 50.96M | 84.39M | 96.03M | 113.32M | 132.65M | 93.6M | 66.79M | 29.01M | 16.63M | 15.81M | 213K | 0 | 0 | 0 |
| D&A / Revenue % | 5.25% | 4.36% | 2.11% | 2.49% | 3.28% | 7.1% | 8.44% | 8.6% | 11.92% | 10.63% | 8.49% | 3.83% | 2.33% | 2.66% | 0.06% | 0% | 0% | 0% |
| Operating Income | 1.44B | 1.43B | 1.64B | 1.41B | 1.06B | 797.51M | 643.54M | 867.38M | 619.08M | 407.33M | 614.71M | 685.96M | 480.64M | 325.35M | 189.97M | 134.31M | 51.76M | -4.26M |
| Operating Margin % | 72.72% | 76.2% | 80.53% | 68.92% | 68.39% | 67.12% | 56.59% | 65.79% | 55.61% | 46.26% | 78.18% | 90.52% | 67.28% | 54.69% | 57.16% | 59.44% | 49.28% | -61.54% |
| Interest Expense | 4M | 1.28B | 1.35B | 1.44B | 797.12M | 445.09M | 419.76M | 508.73M | 408.19M | 295.67M | 230.8M | 202.55M | 161.1M | 118.35M | 47.13M | 28.78M | 15.79M | 1.9M |
| Interest Coverage | - | 1.38x | 1.30x | 1.29x | 2.25x | 2.13x | 1.92x | 2.08x | 2.05x | 2.50x | 2.63x | 3.31x | 4.26x | 3.81x | 5.29x | 6.22x | 5.75x | 0.64x |
| Non-Operating Income | -283.53M | -324.02M | -110.99M | -439.3M | -732.46M | -148.68M | -162.5M | -191.52M | -215.67M | -332.63M | 8.24M | 14.76M | -205.27M | -125.75M | -59.4M | -44.65M | -39.09M | -5.49M |
| Pretax Income | 413.42M | 479.81M | 406.01M | 417.48M | 997.54M | 501.1M | 386.28M | 550.17M | 426.53M | 444.29M | 376M | 469.39M | 526.18M | 334.38M | 204.71M | 121.4M | 59.27M | -2.58M |
| Pretax Margin % | 20.82% | 25.52% | 19.89% | 20.34% | 64.23% | 42.17% | 33.97% | 41.73% | 38.31% | 50.45% | 47.82% | 61.94% | 73.66% | 56.2% | 61.59% | 53.72% | 56.43% | -37.25% |
| Income Tax | 29.01M | 36.72M | 25.43M | -682K | -61.52M | 8.67M | 20.2M | 13.23M | 15.33M | 31.52M | 8.34M | 17.21M | 24.1M | 24.05M | 1.02M | 790K | 426K | 0 |
| Effective Tax Rate % | 7.02% | 7.65% | 6.26% | -0.16% | -6.17% | 1.73% | 5.23% | 2.41% | 3.59% | 7.09% | 2.22% | 3.67% | 4.58% | 7.19% | 0.5% | 0.65% | 0.72% | 0% |
| Net Income | 351.17M | 411.54M | 359.93M | 339.21M | 871.48M | 447.74M | 331.69M | 509.66M | 385.83M | 400.77M | 365.19M | 450.7M | 495.02M | 305.03M | 201.19M | 119.38M | 57.05M | -3.02M |
| Net Margin % | 17.69% | 21.89% | 17.63% | 16.53% | 56.11% | 37.68% | 29.17% | 38.66% | 34.66% | 45.51% | 46.44% | 59.47% | 69.29% | 51.27% | 60.53% | 52.83% | 54.31% | -43.55% |
| Net Income Growth % | 10.48% | 14.34% | 6.11% | -61.08% | 94.64% | 34.99% | -34.92% | 32.1% | -3.73% | 9.74% | -18.97% | -8.95% | 62.29% | 51.61% | 68.54% | 109.26% | 1990.82% | - |
| Funds From Operations (FFO) | 455.46M | 493.6M | 403.03M | 390.3M | 922.43M | 532.13M | 427.71M | 622.99M | 518.48M | 494.37M | 431.97M | 479.71M | 511.65M | 320.84M | 201.41M | 123.16M | 57.69M | -3.02M |
| FFO Margin % | 22.94% | 26.25% | 19.75% | 19.02% | 59.39% | 44.78% | 37.61% | 47.25% | 46.57% | 56.14% | 54.94% | 63.3% | 71.62% | 53.93% | 60.6% | 54.5% | 54.93% | -43.55% |
| FFO Growth % | 145.65% | 22.47% | 3.26% | -57.69% | 73.35% | 24.41% | -31.34% | 20.16% | 4.88% | 14.45% | -9.95% | -6.24% | 59.47% | 59.3% | 63.54% | 113.47% | - | - |
| FFO per Share | 1.35 | 1.46 | 1.26 | 1.26 | 3.27 | 1.79 | 1.51 | 2.19 | 1.88 | 1.89 | 1.79 | 2.05 | 2.34 | 1.93 | 1.77 | 1.43 | 1.15 | -0.06 |
| FFO Payout Ratio % | 185.79% | 135.51% | 153.83% | 154.03% | 64.12% | 104.1% | 127.86% | 86.43% | 98.36% | 101.47% | 106.11% | 93.15% | 78.5% | 93.81% | 92.4% | 115.99% | 76.7% | 0% |
| EPS (Diluted) | 1.04 | 1.22 | 1.12 | 1.07 | 3.09 | 1.52 | 1.16 | 1.79 | 1.40 | 1.52 | 1.50 | 1.91 | 2.24 | 1.82 | 1.76 | 1.38 | 1.14 | -0.06 |
| EPS Growth % | 11.7% | 8.93% | 4.67% | -65.37% | 103.29% | 31.03% | -35.2% | 27.86% | -7.89% | 1.33% | -21.47% | -14.73% | 23.08% | 3.41% | 27.54% | 21.05% | 1898.11% | - |
| EPS (Basic) | - | 1.22 | 1.13 | 1.07 | 3.09 | 1.54 | 1.16 | 1.81 | 1.45 | 1.53 | 1.52 | 1.92 | 2.28 | 1.82 | 1.76 | 1.38 | 1.16 | -0.06 |
| Diluted Shares Outstanding | 337.14M | 337.14M | 320.57M | 310.51M | 282.48M | 296.83M | 282.48M | 284.73M | 275.66M | 262.08M | 241.79M | 234.14M | 218.78M | 166.36M | 113.73M | 86.41M | 50.02M | 47.58M |
Credit impairment and dividend coverage
As reported in recent financial filings, Starwood Property Trust experienced significant revenue fluctuations, with a 22.7% year-over-year growth in 2026Q1 following a 32.0% contraction in 2025Q1, suggesting that the company's reliance on transactional lending and servicing fees creates a highly inconsistent top-line performance profile for investors.
The erratic revenue trajectory appears to be driven by the interplay between its lending originations and the counter-cyclical nature of its LNR servicing business. While the diversification into infrastructure and property provides a theoretical hedge, the lack of consistent organic growth suggests that the company remains highly sensitive to broader capital market liquidity and commercial real estate transaction volumes.
Based on the provided income statement data, NOI margins have exhibited a downward trend, compressing from a peak of 87.6% in 2024Q3 to 75.2% in 2026Q1, which indicates that rising operating expenses or shifts in asset mix are increasingly eroding the profitability of the underlying property portfolio.
The contraction in NOI margins warrants further investigation into whether this reflects higher property-level maintenance costs or a strategic shift toward lower-margin assets. Investors should monitor whether this margin compression is a temporary byproduct of portfolio repositioning or a more permanent deterioration in the efficiency of the company's physical real estate holdings.
According to the company's quarterly reports, FFO per share has shown extreme volatility, swinging from $0.50 in 2024Q1 to $0.25 in 2026Q1, while negative AFFO figures in recent quarters suggest that recurring maintenance capital expenditures may be significantly outpacing the cash generated by the core business operations.
The divergence between FFO and AFFO is particularly concerning, as it implies that the dividend may not be fully supported by cash flow after accounting for necessary capital reinvestment. This trend suggests that the company's ability to maintain its current dividend payout could be constrained if the gap between FFO and AFFO continues to widen.
Based on an analysis of the reported figures, the frequent reliance on non-cash adjustments and the lumpy nature of realized gains suggest that GAAP net income is a poor proxy for economic performance, potentially masking underlying credit deterioration within the commercial lending segment that may not yet be fully realized.
The presence of significant CECL provisions and the impact of VIE consolidations make it difficult to ascertain the true run-rate profitability of the firm. Analysts should be wary of the potential for future earnings surprises if current credit loss estimates prove insufficient to cover actual defaults in the office and retail loan books.
Quick answers to the most common questions about buying STWD stock.
For fiscal year 2025, Starwood Property Trust, Inc. (STWD) reported total revenue of $1.88B. This represents a 27042.7% increase compared to $6.9M in 2009.
Starwood Property Trust, Inc. (STWD) is profitable, generating $411.5M in net income for the fiscal year ending 2025 with a net profit margin of 21.9%.
Starwood Property Trust, Inc. (STWD) reported an operating income of $1.43B, resulting in an operating profit margin of 76.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Starwood Property Trust, Inc. (STWD) generated $1.51B in gross profit for the year, representing a gross profit margin of 80.5%. This demonstrates the company's core pricing power and production efficiency.