Starwood expects to boost offshore investing as US economy slows REIT reported a 10.5% drop in net income in 2018, to $359M
Barry Sternlicht Chairman of Starwood Capital Group (Credit: Wikipedia)
Starwood Property Trust’s Barry Sternlicht told analysts the real estate investment trust increased its offshore spending in 2018, particularly in the beer-drinking countries of Europe, and expects to continue investing internationally this year as the U.S. economy keeps slowing.
On Thursday, the REIT, an affiliate of Miami Beach-based Starwood Capital, reported a drop in profits in 2018, a year in which it invested a record $11.6 billion, up 58 percent compared to 2017.
In 2018, Starwood’s net income totaled $358.8 million, or $1.42 per share, down 10.5 percent year-over-year. Its fourth quarter earnings dipped only slightly, down 0.5 percent to $92.1 million or 33 cents per share.
Its core earnings in the fourth quarter tota上海龙凤论坛 led $155.4 million, or 54 cents per share, meeting analysts’爱上海 expectations. For the full year, Starwood’s core earnings totaled $608.1 million, or $2.19 per share.
The REIT has nearly $900 million in offshore investments, mostly in northern Europe, and committed to $450 million in February, said Sternlicht, chairman and CEO.
In 2018, the company lowered its borrowing costs, creating a larger cash cushion that will allow it to act quickly on deals without raising new debt or equity. Starwood expects to sell some of the more senior bonds we ve held onto, incre[……]
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