Starwood Property (STWD) Falls on $2.2-Billion Acquisition of Fundamental Income
Starwood Property declined by 5.47 percent on Thursday to end at $19.71 apiece as investors shunned news that it was acquiring a net-lease firm for $2.2 billion.
In a statement, Starwood Property Trust, Inc. (NYSE:STWD) said it entered into a definitive agreement to acquire Fundamental Income Properties, LLC from Brookfield Asset Management.
Fundamental Income operates a vertically integrated net lease real estate investment business, with 467 properties across its portfolio spanning 12 million square feet across 44 states, 56 industries, and 92 tenants.
'When we went public in 2009, we said we would create a diversified company around the areas of expertise of our Manager, Starwood Capital. With the addition of another business cylinder, we are expanding into another proven, scalable segment with strong synergies with our platform. Our core commercial real estate lending business is now approximately half of our asset base as we have strategically expanded into complementary lending and investing verticals,' said Barry Sternlicht, Chairman and CEO of Starwood Property Trust, Inc. (NYSE:STWD).
A sky high view of the corporate headquarters indicating the large scale of the company.
Following the acquisition, the company announced the distribution of dividends worth $0.48 per share for shareholders as of September 30 record date. The dividends will be payable on October 15, 2025.
While we acknowledge the potential of STWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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