SHares of Starwood Property Trust, Inc. (NYSE: STWD) stock went down today on negative Q1 results. STWD reported these key financial takeaways from Q1 ending March 31, 2020.
-First quarter 2020 GAAP net loss of $66.8 million
-Loss of $(0.24) per diluted share, and
-Core Earnings of $162.1 million, or $0.55 per diluted share.
When it comes to liquidity Starwood reported that they have $870M of cash plus approved undrawn debt capacity as of May 1 and over $1.0B of additional liquidity from potential loan and property sales and/or refinancings.
In a statement issued today STWD said that “GAAP net loss includes the unrealized, non-cash impacts of mark-to-market adjustments and the recently implemented CECL accounting standard, totaling $148.6 million ($0.53 per diluted share) and $48.7 million ($0.17 per diluted share), respectively, both of which reflect the market volatility and dislocation caused by the COVID-19 pandemic. “
Barry Sternlicht, Chairman and CEO of Starwood Property Trust also commented:”Starwood Property Trust has one of the strongest balance sheets in the commercial mortgage REIT industry, with over $870 million in cash and approved undrawn capacity, and well over $1.0 billion of additional liquidity available to us if ever needed. Our powerful balance sheet is bolstered by our diversified platform, anchored by our real estate equity book and multiple business lines that create considerable stability in an uncertain time. We continue to benefit from our scale, relatively low leverage and $3.3 billion unencumbered asset base. STWD is well positioned to take advantage of dislocations in the market and to weather this economic storm with immense human and financial resources.”
Commercial Lending Q1 Highlights
1. Originated $853M of loans, including:
$220M first mortgage and mezzanine loan on a 41-property extended stay portfolio located across the U.S.
$197M first mortgage loan to refinance the existing leasehold debt and provide acquisition financing for the fee interest in an 878,843 square-foot, six building office park located in California
$150M first mortgage and mezzanine loan to refinance 13 newly constructed selfstorage facilities located across the U.S.
2. Q1 originations had a weighted average LTV of 59.7% and an average loan size of $120M, with 87% of domestic originations containing LIBOR floors
3. Funded $1.1B of loans
$745M related to Q1 originations
$350M under pre-existing loan commitments
4. Repayments of $703M
The Company will host a live webcast and conference call on Monday, May 4, 2020, at 8:30 a.m. Eastern Time
Starwood Property Trust, Inc. (NYSE:STWD) stock lost 50% of its value since February 20 and it closed at $12.77 on Friday.