Starwood Property Trust, Inc. (STWD) reported a decline in financial performance for the first quarter of 2025, with total revenues of $418.2 million, down from $523.1 million in the same period last year. The decrease was primarily driven by a significant drop in interest income from loans, which fell to $353.9 million from $463.5 million year-over-year. The company's net income attributable to common stockholders also decreased to $112.3 million, or $0.33 per diluted share, compared to $154.3 million, or $0.48 per diluted share, in the prior year.
The company's total costs and expenses for the quarter were $384.2 million, a reduction from $509.3 million in the previous year. This decline was largely attributed to a $70.6 million decrease in the credit loss provision, which turned into a reversal of $25 million in the first quarter of 2025, compared to a provision of $35.8 million in the same quarter of 2024. Interest expenses also decreased to $292.2 million from $356.2 million, reflecting lower average index rates and spreads.
In terms of strategic developments, Starwood Property Trust engaged in significant loan origination activities, with $1.4 billion in commercial loans originated or acquired during the quarter. Notable transactions included a $550 million first mortgage and mezzanine loan for a data center in Utah and a €220.5 million loan secured by a portfolio of apartment buildings in Germany. The company also amended its existing credit facilities, increasing the size of its January 2030 term loan facility to $900 million and extending its maturity.
Operationally, the company reported a total of $16.5 million in revenues from its Property Segment, which remained stable compared to the previous quarter. However, the Investing and Servicing Segment saw revenues increase to $58.9 million, up from $42.1 million year-over-year, primarily due to higher interest recoveries on CMBS investments. The company maintained a strong liquidity position, ending the quarter with $692.4 million in cash and cash equivalents, and expressed confidence in its ability to meet financial obligations in the near term. Looking ahead, Starwood Property Trust remains focused on adjusting its strategies in response to evolving market conditions, particularly in light of ongoing economic uncertainties.
About STARWOOD PROPERTY TRUST, INC.
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