Summary
- Starwood is among the largest mortgage REITs and, against all odds, has maintained its distribution throughout 2020.
- Like most of its peers, Starwood's commercial loan book entered this crisis with exposure to hotels and other coronavirus-sensitive industries.
- The portfolio and balance sheet have been battle tested this year, and there's damage to the hull as a result. But the ship continues to sail toward calmer waters nonetheless.
- I do much more than just articles at iREIT on Alpha: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »
- This article was coproduced by Williams Equity Research ("WER").
At iREIT on Alpha, we cover a broad range of real estate investment trusts. This includes more than 150 U.S. equity REITs and 14 commercial mortgage ones.
Excluding Hannon Armstrong (HASI), the mREITs below have returned an average of -39.5% year-to-date:
(Source: Wide Moat Research)
Though here's a snapshot of the sector's performance during the last 30 days:
(Source: Wide Moat Research)
That’s part of the reason why we decided to take a closer look today at Starwood Property Trust (STWD). It’s a popular name that now commands one of the highest dividend yields in its history, at 13.7%.
