2:00 PM New York – Starwood Property Trust declines on the first day of trading.

Starwood Property Trust (STWD) increased its initial public offer size to 40.5 million from 25 million that may be priced at $20 a share. The company focuses on investing debt related to commercial real estate debt and residential mortgages.

The fifth domestic real estate investment trust to be listed this year after four other REITs raised $800 million. PennyMac Mortgage raised $320 million, Invesco Mortgage Capital raised $170 million, Cypress Sharpridge raised $100 million and Government Properties Income Trust raised $200 million.

The public offerings are lagging significantly compared to the calendar last year. For the year, 14 companies have raised $3.6 billion compared to 33 offerings that raised nearly $30 billion in the same period last year. According to the 123jump.com data, no offerings were priced last year between September 7 and December last year.

The Connecticut based REIT will focus on originating, financing and managing commercial and residential mortgages and loans.

The publicly listed company will have management agreement with SPT Management LLC which in turn has investment advisory agreement with Starwood Capital Group Management.

Barry Sternlicht is the chairman and chief executive of the public company and president and chief executive of Starwood Capital and president of STP Management.

Bank Of America Merrill Lynch, Deutsche Bank and Citi managed the offering and collected $43.3 million in fees.