- Starwood Property Trust reported Q3 2025 revenue of $488.9 million, up 1.95% year-over-year and 2.72% quarter-over-quarter, reflecting continued execution across its four segments of lending, infrastructure lending, property investments, and servicing. EBITDA totaled $420.1 million, delivering an EBITDA margin of approximately 86% (EBITDA/revenue). Net income was $72.6 million, or a net margin of 14.8%, with earnings per share (EPS) of $0.19 for the quarter.
- The quarterly results underline earnings quality driven by operating activities but are challenged by substantial financing costs. Interest expense was $334.8 million in Q3 2025, contributing to a pre-tax income of $93.3 million and a tax benefit of $13.3 million (negative tax expense), resulting in the reported net income of $72.6 million. The quarter exhibited a meaningful QoQ drop in net income and EPS (QoQ net income down ~43.2% and EPS down ~50%), despite EBITDA expansion. This points to a leverage-intensive model where financing costs and tax timing drive a large portion of reported profits.
- Management commentary (not provided in the input) would be critical to assess portfolio mix, rate sensitivity, debt maturity profiles, hedging strategies, and outlook for originations and securitizations. Given the data, investors should monitor debt service capacity (approx. 1.25x interest coverage via EBITDA/interest) and the trajectory of net income versus EBITDA. Overall, the quarter demonstrates resilience in revenue and EBITDA but highlights the ongoing margin pressure from high financing costs in a mortgage REIT construct.