Starwood Property: I Am Concerned About The Dividend (Again)

Starwood Property Trust, Inc. continues to under-earn its dividend, with coverage dropping to 81% in Q1'26, raising concerns about dividend sustainability. Despite strong new loan originations, especially in commercial and infrastructure lending, STWD's earnings appear insufficient to support its $0.48 per-share quarterly dividend. STWD now exhibits the weakest dividend coverage trajectory among major CRE finance REIT peers, with three of the last four quarters showing worsening coverage.