Starwood Property Trust, Inc. (NYSE:STWD) builds out an impressive loan book


Dallas, Texas 10/02/2013 (Financialstrend) – On September 13, 2013, Starwood Property Trust, Inc. (NYSE:STWD) announced the completion of issue of 25 million common shares of the Company at a par value $0.01 per. The firm raised close to $690 million as proceeds from the transaction after the underwriters exercised their option to purchase 3.75 million shares of common stock to account for over allotment.

On September 30 Starwood Property announced that it has used $520 million of the proceeds from the public offering into four different transactions which are expected to yield huge returns. The first transaction involves $145 million being loaned to refinance the mortgaged property called “Burbank Studios” which extends over 35-acres in Burbank, California.

The second investment was loan of $138 million to Cisco systems to acquire a 46 acre campus in California. The third was a $112 million mortgage loan to Seaport Square and the last loan was for pounds 95 million issued to SLK .

The company is hoping to in turn leverage these domestic loans by in turn issuing Senior A notes in order to build up a healthy lending portfolio.

The company stock is trading at $ 24.33 per share up by 1.5% as of close of business on October 1. The stock is trading 11% below its 52 week high valuation and is up 24% from its 52 week low valuation. It is up 2.06% in value over the last 1 week . The company has a market capitalization of close to $3.95 billion with a annual income of $229 million on a trailing 12 month basis. It had logged in close to $382 million in sales in the same period and has distributed $1.84 per share dividend over the past 12 months. Its dividend yield is a healthy 7.56% with a total of 162 million shares outstanding.