Over the last several years, the higher interest rate environment has been a persistent headwind for commercial real estate, and Starwood Property Trust (NYSE: STWD) has been no exception. The real estate investment trust (REIT)—which specializes in originating, acquiring, and managing commercial mortgage loans and other real estate-related investments—has seen its stock trend meaningfully lower over the last five years.
The past year has been challenging for the company, driven by a combination of disappointing revenue, declines in book value per share (BVPS), and several quarters in which earnings failed to cover its dividend payout. However, the tide may be turning, as a mix of recent developments could signal near-term upside.
