Starwood Property Trust: authorization of $400M share repurchase program

Starwood Property Trust: authorization of $400M share repurchase program

Starwood Property Trust Announces $400 Million Share Repurchase Program
February 26, 2026

Starwood Property Trust, Inc. (NYSE: STWD) has announced the authorization of a $400 million share repurchase program, reflecting the company's confidence in its capital structure and long-term value [Starwood Property Trust investor relations disclosure, February 25, 2026]. The program, approved by the board of directors, allows the company to repurchase up to 400 million shares of its common stock through open-market transactions or negotiated deals, subject to market conditions and regulatory requirements [Starwood Property Trust investor relations disclosure, February 25, 2026].

The repurchase initiative follows Starwood's Q4 2025 earnings report, which showed net income of $125 million, or $0.38 per share, driven by growth in its commercial mortgage-backed securities portfolio and improved loan origination volumes [Starwood Property Trust investor relations disclosure, February 25, 2026]. As of February 25, 2026, the company's shares traded at $22.55, representing a 7.2% year-to-date increase. With a current market capitalization of approximately $5.1 billion, the repurchase program represents roughly 7.8% of the company's market value [Starwood Property Trust investor relations disclosure, February 25, 2026].

Share repurchases are often employed to enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share and optimizing capital allocation. Starwood's decision aligns with its previously stated strategy to balance dividends, debt reduction, and strategic acquisitions while maintaining a strong liquidity position [Starwood Property Trust investor relations disclosure, February 25, 2026]. The company reported $1.8 billion in available liquidity as of December 31, 2025, including cash and undrawn borrowing facilities [Starwood Property Trust investor relations disclosure, February 25, 2026].

The board emphasized that the program will be executed at management's discretion, with no obligation to repurchase shares under specific price targets or timeframes. Investors are advised that the program does not preclude future equity issuances for growth opportunities or debt refinancing [Starwood Property Trust investor relations disclosure, February 25, 2026].

This move comes amid broader market optimism for commercial real estate finance firms, as interest rate stabilization and improved loan demand have bolstered sector valuations in early 2026.

[Starwood Property Trust investor relations disclosure, February 25, 2026]: Starwood Property Trust investor relations disclosure, February 25, 2026.

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