Starwood Property Trust (STWD) continues to perform relatively well in a challenging real estate market, thanks to its diversified business model. The mortgage REIT has faced headwinds from rising interest rates, but its exposure to floating-rate loans, owned properties, and real estate services has provided some insulation.
STWD’s largest lending segment is multifamily, and the REIT also has exposure to office, RMBS, and infrastructure. The company’s portfolio is well-diversified across asset classes and geography, which provides some protection against downturns in any one sector or region.
While the outlook for the REIT sector remains cloudy, STWD is well-positioned to weather the storm. The company has a strong balance sheet, a conservative underwriting approach, and a proven track record of success. As a result, STWD is one of the best mREITs to consider investing in today.