Starwood Shares Have Struggled, but Catalysts Could Signal a Turn

Higher interest rates over the last several years have been a persistent headwind for commercial real estate and Starwood Property Trust (STWD). The REIT — which specializes in originating and acquiring commercial real estate loans and securities — is facing pressure from elevated financing costs that can compress margins and valuations.

Analysis

Higher interest rates over the last several years have been a persistent headwind for commercial real estate and Starwood Property Trust (STWD). The REIT — which specializes in originating and acquiring commercial real estate loans and securities — is facing pressure from elevated financing costs that can compress margins and valuations.