Starwood Property Trust: 9.5% Yield That Needs Monitoring

  • Starwood Property Trust offers a high, consistent 9.5% yield, appealing for income investors but not an extreme outlier in the sector. The company is primarily a commercial real estate lender with significant office exposure, which brings elevated risk in the current market environment. Dividend coverage is tight, with Q1 distributable earnings not fully covering the payout, and rising non-accruals warrant close monitoring.