Sternlicht's Starwood Property inches up after KBW upgrades to 'outperform'

Starwood Property Trust (Maryland)

05/09/2024 15:05

** Shares of billionaire Barry Sternlicht-led Starwood
Property Trust  STWD.N  rise as much as ~1%; last up 0.7% at
$19.83
    ** KBW upgrades commercial mortgage REIT STWD to
"outperform" from "market perform"; raises PT to $22.50 from
$20.50, which represents a 14.3% upside to stock's last close
    ** Brokerage says the commercial real estate (CRE) market is
nearing a bottom on key indicators such as prices, volumes and
loss reserves
    ** CRE market has had to grapple with lower demand for
commercial properties due to the post-pandemic shift to hybrid
working model
    ** KBW says, with the U.S. Federal Reserve signaling rate
cuts, the CRE backdrop will improve in Q4 and flow into 2025
    ** STWD late Tuesday raised ~$345.1 mln by selling 17.5 mln
shares, which it plans to use to purchase additional commercial
mortgage loans and for other purposes, including debt repayment
    ** As of last close, STWD shares were down 6.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))