Starwood Property Trust: The Market Is Handing You An 11% Yield At A Deep Discount

Starwood Property Trust trades at a >10% discount to undepreciated book value, with a dividend yield exceeding 11%. STWD's floating-rate loan portfolio benefits from higher rates, while its residential book hedges rate declines, providing earnings resilience. 2025 was a transition year; 2026 is expected to be an inflection point as cash is redeployed and net lease acquisitions become accretive.