Latest news with #44states
Yahoo
18-07-2025
- Business
- Yahoo
Starwood Property (STWD) Falls on $2.2-Billion Acquisition of Fundamental Income
We recently published . Starwood Property Trust, Inc. (NYSE:STWD) is one of the worst-performing companies on Thursday. 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.
Yahoo
16-07-2025
- Business
- Yahoo
Starwood Property to buy Fundamental Income Properties for about $2.2 billion
(Reuters) -Starwood Property Trust said on Wednesday it would acquire real estate operating platform Fundamental Income Properties for about $2.2 billion. The deal — which consists of 467 properties across 44 states — will be funded with cash on hand, alongside debt and equity capital, with Starwood assuming Fundamental's existing financing facilities totaling $1.3 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Can Fee-Based Contracts Continue to Boost ET Stock's Performance?
Energy Transfer LP ET, a U.S. midstream operator, benefits significantly from its reliance on fee-based contracts across the diversified asset portfolio. These contracts, which form the backbone of its revenue model, ensure consistent cash flows by charging customers fixed fees for transporting, storing and processing energy commodities. This approach effectively shields Energy Transfer from commodity price volatility, enabling it to deliver stable earnings even during market downturns. Energy Transfer generates nearly 90% of its earnings from fee-based contracts and 10% from commodity and spread exposure. The company has a well-balanced asset mix that provides strong earnings support. Energy Transfer has 130,000 miles of pipelines and associated energy infrastructure in 44 states to transport oil and gas products from basins like the Permian, Eagle Ford and Marcellus. Widespread assets enhance its ability to lock in long-term agreements with producers and refiners. ET's assets are located to serve high-demand regions, making it a preferred partner for energy logistics. Fee-based arrangements improve visibility into future revenues, supporting disciplined capital allocation and long-term planning. Stable cash flow from these contracts directly supports Energy Transfer's strong distribution policy and debt reduction efforts. By generating predictable earnings, Energy Transfer maintains a solid credit profile, which in turn lowers financing costs and enhances its ability to reinvest in growth projects. This financial stability acts as a tailwind for the firm's performance. Energy Transfer's fee-based business model provides a resilient foundation for growth, allowing it to navigate industry cycles while delivering consistent returns to investors. Midstream Operators Gain From Fee-Based Contracts Midstream firms, leverage fee-based contracts to generate stable, predictable revenues regardless of commodity price swings. The fee-based structure protects these firms from direct exposure to market volatility, allowing them to focus on operational efficiency and capital discipline. Enterprise Products Partners EPD, with one of the largest integrated NGL systems in the United States, relies heavily on fee-based income to maintain strong distributable cash flow and fund infrastructure expansions. Similarly, Kinder Morgan KMI derives the bulk of its earnings from take-or-pay and fixed-fee contracts, which support high dividend payouts and ongoing deleveraging efforts. ET's Earnings Estimates Moving Up The Zacks Consensus Estimate for Energy Transfer's 2025 and 2026 earnings per unit indicates an increase of 2.86% and 4.26%, respectively, in the past 60 days. ET's Price Performance Units of Energy Transfer have risen 10.2% in the past year compared with the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 6%. ET's Units Are Trading at a Discount Energy Transfer units are somewhat inexpensive relative to the industry. ET's current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) TTM is 10.17X compared with the industry average of 11.39X. This indicates that the firm is presently undervalued compared with its industry. ET's Zacks Rank Energy Transfer currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report
