10 Most Undervalued REIT Stocks to Invest In Now

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

Number of Hedge Fund Holders: 27

Forward P/E: 10.52

Starwood Property Trust, Inc. (NYSE:STWD) operates as a REIT focusing primarily on originating, acquiring, financing, and managing mortgage loans and other real estate investments in the United States, Australia, and Europe. It is organized into complementary business segments including Real estate commercial and residential lending, Real estate property, Infrastructure lending, as well as Real Estate investing and servicing.

Starwood Property Trust, Inc. (NYSE:STWD) is an affiliate of the global private investment firm, Starwood Capital Group. The firm differentiates from many of today’s market participants by leveraging the global reach and operating expertise of Starwood Capital Group. It is important to note that Starwood Capital Group is one of the largest institutional real estate investors globally with 32 years of experience and broad operating expertise across virtually every real estate asset class.

While other commercial real estate finance companies focus solely on specific sectors of the market, Starwood Property Trust’s multi-cylinder investment platform enables it to seek out investment opportunities across a broader universe. While the firm reported its results for the fourth quarter of 2024 for which it recorded a GAAP EPS of $0.15, the CEO Barry Sternlicht reiterated the strength of this low-leverage multi-cylinder platform which has allowed it to invest every quarter for 15 years despite volatile and disruptive market conditions, successfully deploying over $100 billion of capital. The REIT invested $1.6 billion in the quarter and $5.1 billion for the year 2024 and plans to raise its pace of investment in 2025.