Starwood Property expects fixed charge coverage ratio to increase this quarter

Starwood Property Trust announced that the company’s board of directors has declared a dividend of 48c per share of common stock for the quarters ending September 30 and December 31. The third quarter dividend is payable on October 15 to stockholders of record as of September 30 and the fourth quarter dividend is payable on January 15, 2025 to stockholders of record as of December 31, 2024. “We created a differentiated multi-cylinder company and have maintained a low leverage balance sheet in order to enable us to outperform in times of volatility. We expect to maintain our dividend for the foreseeable future assuming macro and market conditions don’t materially change. As a result, our Board has declared our third and fourth quarter dividends of 48c per quarter, in-line with our current dividend. Beyond our current earnings power, we have the ability to monetize the over $4.00 per share of distributable earnings gains we have created in our owned property if we should choose to,” said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. “With $4.5B of unencumbered assets, our balance sheet and our access to liquidity remain strong. We expect our fixed charge coverage ratio to increase again this quarter, giving us capacity to issue over $2.0B of incremental debt today, if we elect to do so, without asking to amend our covenants. We look forward to discussing our second quarter results with you on our August 6th earnings call,” added Jeffrey DiModica, President of Starwood Property Trust.