Starwood Property Trust (STWD) saw its stock surge over 5% in pre-market trading on Monday, following the release of the company's third quarter 2024 earnings results. While STWD reported mixed financials, with adjusted earnings per share beating estimates but revenue coming in lighter than expected, the company's management provided an upbeat outlook that seems to be driving investor enthusiasm.

In the earnings release, Starwood highlighted several key developments that buoyed investor sentiment. First, the company raised $800 million of capital during the quarter, bringing its total liquidity to a record $1.8 billion. Additionally, the company originated or acquired $2.1 billion of assets in Q3, and $3.5 billion year-to-date, demonstrating a robust investment pipeline.

Starwood's Chairman and CEO, Barry Sternlicht, expressed confidence in the company's differentiated business model and ability to weather economic cycles. He noted that the company's diversified portfolio, with exposure to infrastructure lending, servicing, and other segments beyond traditional commercial lending, has contributed to its resilience. Furthermore, Sternlicht stated that with its strong liquidity position and access to additional capital, Starwood is well-positioned to increase its investment pace as transaction volumes return to the real estate markets.