10 Cheap REITs with Huge Upside

6. Starwood Property Trust, Inc. (NYSE:STWD)

Average Upside Potential: 17.01%

Forward P/E: 10.20

Number of Hedge Funds: 25

Starwood Property Trust, Inc. (NYSE:STWD) is an affiliate of the global private investment firm Starwood Capital Group. The firm serves as one of the largest commercial mortgage REITs in the United States. It has been organized into complementary business segments including real estate lending, real estate investing and servicing, property, and infrastructure lending.

Starwood Property Trust has a distinct position in the global real estate finance market as one of the world’s leading diversified real estate finance companies. The REIT has navigated multiple real estate cycles and has deployed more than $98 billion of capital since its inception, as of June 30. With the average size of its loans being approximately $100 million since inception, the scale of the firm is clear. Since Starwood Capital Group is one of the largest institutional real estate investors globally, Starwood Property Trust takes advantage of its global reach.

Since the firm has been diversified into investment cylinders other than commercial lending, it has outperformed in a relatively challenging global property market. However, the management believes that the hard phase is behind them, with an easing US and Europe market to be seen in the future. The firm’s access to capital and liquidity has further allowed it to consistently invest across its businesses.

Starwood Property Trust, Inc. (NYSE:STWD) is a top diversified real estate finance company with a market capitalization of $6.74 billion. Since the firm’s founding 15 years back, it has delivered a consistent dividend and an over 10% annualized return. The REIT boasts a portfolio of $26 billion across the Commercial and Residential Lending, Infrastructure Lending, Investing & Servicing, and Property business segments.