Starwood Property Trust Announces Authorization of $400 Million Share Repurchase Program

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) authorized a $400 million share repurchase program to buy outstanding common stock and convertible notes over one year, funded from existing cash. Purchases may occur in the open market or via privately negotiated transactions, subject to market, legal and economic conditions.

The program can be suspended or discontinued at the company’s discretion and is intended to return capital to shareholders while remaining flexible on timing and execution.

Positive

• $400 million authorized share repurchase
• Repurchases funded from existing cash, no new financing announced
• Buybacks may include convertible notes as well as common stock

Negative

• Repurchases reduce cash reserves available for other uses
• Program execution subject to market and legal conditions and may be suspended

Key Figures

Share repurchase authorization: $400 million Buyback duration: One year Capital deployed since inception: $115 billion +5 more

8 metrics

Share repurchase authorization $400 million Maximum aggregate amount for buyback over one year

Buyback duration One year Authorization period for repurchases of stock and convertible notes

Capital deployed since inception $115 billion Total capital deployed as of December 31, 2025

Investment portfolio size Over $30 billion Portfolio across debt and equity investments

Liquidity (prior earnings release) $1.4 billion Liquidity referenced in recent results context

Quarterly dividend $0.48 per share Long-standing quarterly dividend level referenced in context

Current share price $17.72 Price before buyback news, about 15.82% below 52-week high

Market capitalization $6,547,457,897 Equity value prior to buyback authorization

Market Reality Check

Price: $17.72 Vol: Volume 5,229,558 vs 20-da...

normal vol

$17.72 Last Close

Volume Volume 5,229,558 vs 20-day avg 3,563,325 (relative volume 1.47) suggests elevated interest ahead of the buyback news. normal

Technical Shares at $17.72 are trading below the $19.18 200-day MA and about 15.82% under the 52-week high.

Peers on Argus

STWD was up 0.23% while key peers were mixed: RITM +0.69%, BXMT +1.03%, AGNCN +0...

STWD was up 0.23% while key peers were mixed: RITM +0.69%, BXMT +1.03%, AGNCN +0.16%, AGNC -0.40%, ABR -1.92%. The mixed moves point to a stock-specific story rather than a sector-wide REIT shift.

Historical Context

5 past events · Latest: Feb 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 25	Earnings results	Positive	+0.2%	Reported 4Q25 and full-year 2025 EPS and strong capital activity.
Feb 02	Leadership change	Positive	-0.6%	Appointed new Head of U.S. Asset Management with deep experience.
Jan 29	Tax reporting	Neutral	-1.4%	Released detailed 2025 dividend tax character information for investors.
Jan 27	Earnings date set	Neutral	-0.3%	Announced timing for 4Q and full-year 2025 release and call.
Dec 12	Dividend declaration	Positive	+0.4%	Declared $0.48 per share dividend for 4Q25 with set record date.

Pattern Detected

Recent fundamentally positive announcements (earnings, dividends) often saw modest positive or slightly negative next-day moves, indicating generally muted but mixed reactions to news.

Recent Company History

Over the last few months, Starwood Property Trust has focused on consistent capital returns and steady operating performance. Earnings for 4Q25 and full-year 2025 highlighted GAAP EPS of $0.26 and $1.15, with distributable EPS of $0.42 and $1.69, and liquidity of $1.4 billion. The company maintained a long-standing quarterly dividend of $0.48 per share and provided detailed 2025 tax reporting. Governance and communication events, such as leadership appointments and earnings call scheduling, rounded out the news flow. Today’s buyback authorization adds another capital allocation lever to this backdrop.

Market Pulse Summary

This announcement adds a new capital allocation tool: authorization to repurchase up to $400 million...

Analysis

This announcement adds a new capital allocation tool: authorization to repurchase up to $400 million of common stock and convertible notes over one year, funded by existing cash. It comes after a period of steady dividends and sizeable capital deployment, with a portfolio over $30 billion. Investors may track actual buyback execution versus the authorization and monitor how this interacts with leverage, recent debt issuance, earnings trends and real estate credit conditions.

Key Terms

convertible notes, forward-looking statements, risk factors

3 terms

convertible notes financial

"repurchase of up to $400 million of its outstanding shares of common stock and convertible notes over a period of one year"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

forward-looking statements regulatory

"Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

risk factors regulatory

"and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K"

Risk factors are elements or conditions that could cause an investment's value to decrease or lead to potential losses. They are like warning signs or obstacles that can affect the success of an investment, making it uncertain or more unpredictable. Recognizing risk factors helps investors understand the possible challenges and make more informed decisions.

AI-generated analysis. Not financial advice.

MIAMI BEACH, Fla., Feb. 26, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced that its Board of Directors has authorized the repurchase of up to $400 million of its outstanding shares of common stock and convertible notes over a period of one year.  The share repurchase program will be funded through the Company's existing cash.

Purchases made pursuant to the program will be made either in the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of December 31, 2025, the Company has successfully deployed $115 billion of capital since inception and manages a portfolio of over $30 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com. 

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC.

In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.

Additional information can be found on the Company's website at www.starwoodpropertytrust.com.

Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-announces-authorization-of-400-million-share-repurchase-program-302698940.html

SOURCE Starwood Property Trust, Inc.

FAQ

What did Starwood Property Trust (STWD) announce on February 26, 2026 regarding share repurchases?

Starwood Property Trust authorized a $400 million repurchase program over one year. According to the company, purchases will be funded from existing cash and may target common stock and convertible notes depending on market and legal conditions.

How will the STWD $400 million buyback be funded and executed?

The repurchase program will be funded using the company's existing cash. According to the company, repurchases may occur in the open market or in privately negotiated transactions as permitted by law.

What is the timeline and flexibility for STWD's February 2026 repurchase program?

The program is authorized for a one-year period and may be suspended or discontinued at any time. According to the company, timing, manner, price and amount of repurchases will be at its discretion.

Does the STWD buyback include convertible securities as of February 26, 2026?

Yes, the authorization covers purchases of common stock and convertible notes. According to the company, both security types may be repurchased under the program subject to applicable legal requirements.

What are the potential investor implications of STWD's $400 million repurchase authorization?

The buyback could support per-share metrics by reducing shares outstanding if executed. According to the company, actual impact will depend on repurchase timing, amounts purchased, and market conditions.