-- Quarterly GAAP Earnings of $0.01 and Distributable Earnings (DE) of $0.40 per Diluted Share --
-- Invested $2.5 Billion in the Quarter and $6.7 Billion through July --
-- Record Total Assets of $31.8 Billion and Commercial Lending Assets of $17.3 Billion --
-- Repurchased $30 Million of Common Shares in the Six Months --
-- Dividend of $0.48 per Share --
-- Awarded Nareit Gold Investor CARE Award for 10th Time in 12 Years --
MIAMI BEACH, Fla., Aug. 6, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2026. The Company delivered second quarter GAAP net income of $6.6 million, and Distributable Earnings (a non-GAAP financial measure) was $151.5 million. See reconciliation tables below.
"Real estate fundamentals are improving steadily in almost every asset class, supported by a drop in construction and broad and robust economic growth. This provides a more constructive backdrop to deploy capital and improving credit in our loan portfolio. For us importantly, it provides a solid foundation to support the values of our real estate owned and underperforming loan assets. We expect to resolve nearly $900 million of underperforming assets by year end or shortly thereafter, returning the trapped equity to higher use cases across all our business lines," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust.
"We have invested $6.7 billion through July, at double digit return on equity, and our $2.1 billion of corporate debt transactions in the quarter extends our weighted average corporate debt maturity to 3.7 years and lowers our cost of funds, solidifying an already strong balance sheet. This positions us well to continue deploying capital and driving growth across all our business lines," added Jeffrey DiModica, President of Starwood Property Trust.
Supplemental Schedules
The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders. Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com.
Webcast and Conference Call Information
The Company will host a live webcast and conference call on Thursday, August 6, 2026, at 10:00 a.m. Eastern Time. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website. The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in.
To Participate via Telephone Conference Call:
Dial in at least 15 minutes prior to start time.
Domestic: 1-877-407-9039
International: 1-201-689-8470
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Passcode: 13758023
The playback can be accessed through August 20, 2026.
About Starwood Property Trust, Inc.
Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of June 30, 2026, the Company has successfully deployed $120 billion of capital since inception and manages a portfolio of $32 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.
Forward-Looking Statements
Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.
Additional information can be found on the Company's website at www.starwoodpropertytrust.com.
Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the three months ended June 30, 2026
(Amounts in thousands)
Commercial and
Residential Infrastructure Investing
Lending Lending Property and Servicing Securitization
Segment Segment Segment Segment Corporate Subtotal VIEs Total
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Revenues:
Interest income
from loans $ 327,151 $ 66,991 $ -- $ 4,273 $ -- $ 398,415 $ -- $ 398,415
Interest income
from investment
securities 15,344 481 -- 22,170 -- 37,995 (33,245) 4,750
Servicing fees 111 -- -- 20,476 -- 20,587 (3,920) 16,667
Rental income 19,808 -- 63,827 4,219 -- 87,854 -- 87,854
Other revenues 1,800 1,474 362 1,524 822 5,982 -- 5,982
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Total revenues 364,214 68,946 64,189 52,662 822 550,833 (37,165) 513,668
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Costs and
expenses:
Management fees 165 -- -- -- 30,392 30,557 -- 30,557
Interest expense 160,750 38,625 28,775 9,117 107,564 344,831 (254) 344,577
General and
administrative 14,979 6,015 7,925 23,661 4,114 56,694 -- 56,694
Costs of rental
operations 16,161 -- 7,254 2,898 -- 26,313 -- 26,313
Depreciation and
amortization 4,780 9 29,137 1,082 252 35,260 -- 35,260
Credit loss
provision, net 29,816 348 -- -- -- 30,164 -- 30,164
Other expense 88 787 227 101 -- 1,203 -- 1,203
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Total costs
and expenses 226,739 45,784 73,318 36,859 142,322 525,022 (254) 524,768
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Other income
(loss):
Change in net
assets related
to consolidated
VIEs -- -- -- -- -- -- 33,087 33,087
Change in fair
value of
servicing
rights -- -- -- 1,018 -- 1,018 726 1,744
Change in fair
value of
investment
securities, net (1,587) -- -- (1,717) -- (3,304) 3,252 (52)
Change in fair
value of
mortgage loans,
net (12,711) -- -- 12,650 -- (61) -- (61)
Income from
affordable
housing fund
investments -- -- 4,929 -- -- 4,929 -- 4,929
Earnings from
unconsolidated
entities -- 2,677 -- 193 -- 2,870 (154) 2,716
Gain on sale of
investments and
other assets,
net 88 -- 27 2,264 -- 2,379 -- 2,379
Gain (loss) on
derivative
financial
instruments,
net 21,529 350 8,354 983 (34,240) (3,024) -- (3,024)
Foreign currency
(loss) gain,
net (5,719) -- 13 -- -- (5,706) -- (5,706)
Other (loss)
income, net (2,597) -- (1,092) 6 -- (3,683) -- (3,683)
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Total other
(loss)
income (997) 3,027 12,231 15,397 (34,240) (4,582) 36,911 32,329
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Income (loss)
before income
taxes 136,478 26,189 3,102 31,200 (175,740) 21,229 -- 21,229
Income tax
(provision)
benefit (2,536) (95) 8 (3,601) -- (6,224) -- (6,224)
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Net income (loss) 133,942 26,094 3,110 27,599 (175,740) 15,005 -- 15,005
Net income
attributable to
non-controlling
interests (4) -- (5,325) (3,119) -- (8,448) -- (8,448)
----------------------- -------------- ----------- ------------- ------------ ---------- -------------- ---------
Net income
(loss)
attributable to
Starwood
Property
Trust, Inc. $ 133,938 $ 26,094 $ (2,215) $ 24,480 $ (175,740) $ 6,557 $ -- $ 6,557
======================= ============== =========== ============= ============ ========== ============== =========
Definition of Distributable Earnings
Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors. Refer to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for additional information regarding Distributable Earnings.
Reconciliation of Net Income to Distributable Earnings
For the three months ended June 30, 2026
(Amounts in thousands except per share data)
Commercial and
Residential Infrastructure Investing
Lending Lending Property and Servicing
Segment Segment Segment Segment Corporate Total
------------------- ------------------- ------------------- ------------------- -------------------- -------------------
Net income (loss)
attributable to
Starwood
Property Trust, I
nc. $ 133,938 $ 26,094 $ (2,215) $ 24,480 $ (175,740) $ 6,557
Add / (Deduct):
Non-controlling
interests
attributable to
Woodstar II Class
A Units -- -- 4,629 -- -- 4,629
Non-controlling
interests
attributable to
unrealized
gains/losses -- -- (2,724) (2,226) -- (4,950)
Non-cash equity
compensation
expense 2,585 788 2,014 1,449 6,477 13,313
Depreciation and
amortization 4,817 -- 29,632 1,121 -- 35,570
Straight-line rent
adjustment -- -- (1,697) 57 -- (1,640)
Interest income
adjustment for
loans and
securities 4,675 -- -- 12,686 -- 17,361
Consolidated
income tax
provision
(benefit)
associated with
fair
value adjustments 2,536 95 (8) 3,601 -- 6,224
Other non-cash
items 5 447 (82) (407) -- (37)
Reversal of GAAP
unrealized and
realized (gains) /
losses on:
Loans 12,711 -- -- (12,650) -- 61
Credit loss
provision, net 29,816 348 -- -- -- 30,164
Securities 1,587 -- -- 1,717 -- 3,304
Woodstar Fund
investments -- -- (4,929) -- -- (4,929)
Derivatives (21,529) (350) (8,354) (983) 34,240 3,024
Foreign currency 5,719 -- (13) -- -- 5,706
Earnings from
unconsolidated
entities -- (2,677) -- (193) -- (2,870)
Sales of
properties (32) -- (27) (2,264) -- (2,323)
Recognition of
Distributable
realized gains /
(losses) on:
Loans (454) -- -- 12,636 -- 12,182
Securities (51) -- -- (682) -- (733)
Woodstar Fund
investments -- -- 18,208 -- -- 18,208
Derivatives 8,570 248 (235) 1,650 (2,907) 7,326
Foreign currency 803 -- 13 -- -- 816
Earnings from
unconsolidated
entities -- 2,146 -- 469 -- 2,615
Sales of
properties 32 -- (35) 1,928 -- 1,925
------------------- ------------------- ------------------- ------------------- -------------------- -------------------
Distributable
Earnings (Loss) $ 185,728 $ 27,139 $ 34,177 $ 42,389 $ (137,930) $ 151,503
=================== =================== =================== =================== ==================== ===================
Distributable
Earnings (Loss)
per Weighted
Average Diluted
Share $ 0.49 $ 0.07 $ 0.09 $ 0.11 $ (0.36) $ 0.40
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