Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2025

View all news Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2025 February 25, 2026 – GAAP EPS of $0.26 for the Quarter and $1.15 for the Year and Distributable EPS for the Quarter of $0.42 and $1.69 for the Year – – Invested $12.7 Billion for the Year, Including $2.5 Billion in the Quarter; Second Largest Investment Year – – Executed a Record $4.4 Billion of Capital Transactions in 2025 – – Current Liquidity of $1.4 Billion – – Consistent Dividend of $0.48 per Share for Over a Decade – , /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2025. The Company delivered fourth quarter GAAP net income of $96.9 million, and Distributable Earnings (a non-GAAP financial measure) was $159.5 million. The Company's full year GAAP net income was $411.5 million, and Distributable Earnings was $615.5 million. "2025 was a transition year for Starwood Property Trust. The good news is that the pieces remain in place to outperform for our shareholders in the long run. Our core businesses are positioned and are performing exceptionally well with notable progress across global commercial lending, infrastructure lending, conduit and special servicing, each delivering incredibly strong results for the year. Additionally, our residential lending portfolio increased in value over the year with the decline in rates," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "As major STWD shareholders ourselves, we have chosen to take the long view of how best to earn stable and attractive long-term returns for our shareholders. In this vein, despite the dilution we knew we would experience when we acquired the Fundamental net lease business, we were excited to add an earnings generator with reliable cash flows, driven by more than 17 years of lease duration and 2.3% contractual rent increases each year, which will be accretive long-term. We also increased our securitization pace across businesses and completed takeout refinancings, which led to higher than normal cash levels during the year. As we deploy this cash across our business lines, invest the committed but unfunded loan capital, scale our net lease business, and bring back the earnings power embedded in the nonaccrual and REO assets, we are confident in our ability to raise earnings in the future. We are real estate investors first and have proven our ability to add value to assets once they are in our control. We therefore are confident we have substantial earnings power built into our diversified company that will move us forward into a bright future," Mr. Sternlicht continued. "Starwood Property Trust's proven and consistent access to the capital markets continues to differentiate our platform," added Jeffrey DiModica, President of Starwood Property Trust. "We repositioned our balance sheet this year with extended duration and lower spreads, executing a record $4.4 billion of equity, unsecured debt and term loan debt, further strengthening our best-in-class balance sheet while maintaining our conservative leverage profile. We also completed or priced four securitizations, including our fourth commercial lending CLO, our sixth and seventh infrastructure CLOs, and our first Fundamental ABS transaction at record-tight spreads for that platform, positioning each of these businesses for further growth and positioning us to act quickly on compelling opportunities globally." 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 Wednesday, February 25, 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: 13758021 The playback can be accessed through March 11, 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 December 31, 2025, the Company has successfully deployed $115 billion of capital since inception and manages a portfolio of over $30 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. 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: [email protected] Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended December 31, 2025 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Revenues: Interest income from loans $ 311,500 $ 69,153 $ 43 $ 3,225 $ — $ 383,921 $ — $ 383,921 Interest income from investment securities 15,332 197 — 24,543 — 40,072 (35,506) 4,566 Servicing fees 112 — — 37,726 — 37,838 (6,047) 31,791 Rental income 6,298 — 57,100 4,088 — 67,486 — 67,486 Other revenues 1,997 909 651 1,183 444 5,184 — 5,184 Total revenues 335,239 70,259 57,794 70,765 444 534,501 (41,553) 492,948 Costs and expenses: Management fees 172 — — — 33,254 33,426 — 33,426 Interest expense 155,129 39,550 29,054 6,626 103,687 334,046 (198) 333,848 General and administrative 15,180 5,497 8,572 24,440 4,378 58,067 — 58,067 Costs of rental operations 4,861 — 7,551 3,070 — 15,482 — 15,482 Depreciation and amortization 2,841 10 26,558 1,422 251 31,082 — 31,082 Credit loss provision (reversal), net 11,142 (798) — — — 10,344 — 10,344 Other expense 55 58 15 38 — 166 — 166 Total costs and expenses 189,380 44,317 71,750 35,596 141,570 482,613 (198) 482,415 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 42,052 42,052 Change in fair value of servicing rights — — — 1,617 — 1,617 (859) 758 Change in fair value of investment securities, net 1,972 — — (2,433) — (461) 682 221 Change in fair value of mortgage loans, net 30,574 — — 13,228 — 43,802 — 43,802 Income from affordable housing fund investments — — 37,604 — — 37,604 — 37,604 Earnings from unconsolidated entities — 3,641 — 560 — 4,201 (520) 3,681 Gain (loss) on sale of investments and other assets, net 165 — (1) 10,060 — 10,224 — 10,224 Gain (loss) on derivative financial instruments, net 12,688 50 3,886 (303) (8,418) 7,903 — 7,903 Foreign currency gain (loss), net 6,900 (292) (1) — — 6,607 — 6,607 Loss on extinguishment of debt (326) (1,893) — (90) — (2,309) — (2,309) Other (loss) income, net (29,009) — (763) 1 — (29,771) — (29,771) Total other income (loss) 22,964 1,506 40,725 22,640 (8,418) 79,417 41,355 120,772 Income (loss) before income taxes 168,823 27,448 26,769 57,809 (149,544) 131,305 — 131,305 Income tax provision (10,066) (299) (1,850) (6,724) — (18,939) — (18,939) Net income (loss) 158,757 27,149 24,919 51,085 (149,544) 112,366 — 112,366 Net income attributable to non-controlling interests (5) — (10,712) (4,734) — (15,451) — (15,451) Net income (loss) attributable to Starwood Property Trust, Inc. $ 158,752 $ 27,149 $ 14,207 $ 46,351 $ (149,544) $ 96,915 $ — $ 96,915 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 Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding Distributable Earnings. Reconciliation of Net Income to Distributable Earnings For the three months ended December 31, 2025 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $ 158,752 $ 27,149 $ 14,207 $ 46,351 $ (149,544) $ 96,915 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 4,629 — — 4,629 Non-controlling interests attributable to unrealized gains/losses — — (1,986) 6,650 — 4,664 Non-cash equity compensation expense 2,842 738 1,999 1,491 5,554 12,624 Management incentive fee — — — — 3,502 3,502 Depreciation and amortization 2,877 — 27,071 1,523 — 31,471 Straight-line rent adjustment — — (460) 22 — (438) Interest income adjustment for loans and securities 5,457 — — 8,023 — 13,480 Consolidated income tax provision (benefit) associated with fair value adjustments 10,066 299 (34) 6,724 — 17,055 Other non-cash items 5 — (82) (542) — (619) Reversal of GAAP unrealized and realized (gains) / losses on: Loans (30,574) — — (13,228) — (43,802) Credit loss provision (reversal), net 11,142 (798) — — — 10,344 Securities (1,972) — — 2,433 — 461 Woodstar Fund investments — — (37,604) — — (37,604) Derivatives (12,688) (50) (3,886) 303 8,418 (7,903) Foreign currency (6,900) 292 1 — — (6,607) Earnings from unconsolidated entities — (3,641) — (560) — (4,201) Sales of properties — — — (10,060) — (10,060) Impairment of properties 26,766 — — — — 26,766 Recognition of Distributable realized gains / (losses) on: Loans (879) — — 13,188 — 12,309 Securities (594) — — (19,930) — (20,524) Woodstar Fund investments — — 47,297 — — 47,297 Derivatives 12,336 37 (2,012) (137) (6,554) 3,670 Foreign currency (793) 134 (2) — — (661) Earnings from unconsolidated entities — 3,128 — 457 — 3,585 Sales of properties — — — 3,192 — 3,192 Distributable Earnings (Loss) $ 175,843 $ 27,288 $ 49,138 $ 45,900 $ (138,624) $ 159,545 Distributable Earnings (Loss) per Weighted Average Diluted Share $ 0.46 $ 0.07 $ 0.13 $ 0.12 $ (0.36) $ 0.42 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the year ended December 31, 2025 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Revenues: Interest income from loans $ 1,231,288 $ 272,282 $ 289 $ 14,650 $ — $ 1,518,509 $ — $ 1,518,509 Interest income from investment securities 78,961 649 — 97,824 — 177,434 (142,973) 34,461 Servicing fees 369 — — 106,533 — 106,902 (20,359) 86,543 Rental income 27,266 — 135,255 19,919 — 182,440 — 182,440 Other revenues 9,854 3,855 1,472 5,387 1,768 22,336 — 22,336 Total revenues 1,347,738 276,786 137,016 244,313 1,768 2,007,621 (163,332) 1,844,289 Costs and expenses: Management fees 701 — — — 136,564 137,265 — 137,265 Interest expense 682,813 155,212 71,400 29,341 339,031 1,277,797 (810) 1,276,987 General and administrative 59,545 20,979 17,323 93,152 17,810 208,809 — 208,809 Costs of rental operations 21,017 — 26,225 13,559 — 60,801 — 60,801 Depreciation and amortization 11,779 39 59,479 6,679 1,005 78,981 — 78,981 Credit loss provision, net 15,851 3,519 — — — 19,370 — 19,370 Other expense 103 4,104 (61) 203 — 4,349 — 4,349 Total costs and expenses 791,809 183,853 174,366 142,934 494,410 1,787,372 (810) 1,786,562 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 154,758 154,758 Change in fair value of servicing rights — — — 7,398 — 7,398 (1,508) 5,890 Change in fair value of investment securities, net 8,422 — — (16,803) — (8,381) 10,568 2,187 Change in fair value of mortgage loans, net 122,117 — — 62,323 — 184,440 — 184,440 Income from affordable housing fund investments — — 46,953 — — 46,953 — 46,953 Earnings from unconsolidated entities 2,708 3,892 — 9,249 — 15,849 (1,296) 14,553 Gain (loss) on sale of investments and other assets, net 32,875 — (22) 10,060 — 42,913 — 42,913 (Loss) gain on derivative financial instruments, net (155,014) 38 (4,196) (1,385) 33,289 (127,268) — (127,268) Foreign currency gain (loss), net 112,778 364 (198) — — 112,944 — 112,944 Gain (loss) on extinguishment of debt, net 20,447 (2,676) — (90) — 17,681 — 17,681 Other (loss) income, net (32,589) — (2,805) 2,428 — (32,966) — (32,966) Total other income 111,744 1,618 39,732 73,180 33,289 259,563 162,522 422,085 Income (loss) before income taxes 667,673 94,551 2,382 174,559 (459,353) 479,812 — 479,812 Income tax provision (12,297) (110) (1,844) (22,468) — (36,719) — (36,719) Net income (loss) 655,376 94,441 538 152,091 (459,353) 443,093 — 443,093 Net income attributable to non-controlling interests (15) — (25,488) (6,046) — (31,549) — (31,549) Net income (loss) attributable to Starwood Property Trust, Inc. $ 655,361 $ 94,441 $ (24,950) $ 146,045 $ (459,353) $ 411,544 $ — $ 411,544 Reconciliation of Net Income to Distributable Earnings For the year ended December 31, 2025 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $ 655,361 $ 94,441 $ (24,950) $ 146,045 $ (459,353) $ 411,544 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 18,546 — — 18,546 Non-controlling interests attributable to unrealized gains/losses — — (13,066) 272 — (12,794) Non-cash equity compensation expense 11,318 2,794 3,780 5,582 30,620 54,094 Management incentive fee — — — — 13,746 13,746 Depreciation and amortization 12,023 — 60,616 7,085 — 79,724 Straight-line rent adjustment — — (153) 126 — (27) Interest income adjustment for loans and securities 23,300 — — 39,750 — 63,050 Consolidated income tax provision (benefit) associated with fair value adjustments 12,297 110 (40) 22,468 — 34,835 Other non-cash items 15 — (328) (1,761) — (2,074) Reversal of GAAP unrealized and realized (gains) / losses on: Loans (122,117) — — (62,323) — (184,440) Credit loss provision, net 15,851 3,519 — — — 19,370 Securities (8,422) — — 16,803 — 8,381 Woodstar Fund investments — — (46,953) — — (46,953) Derivatives 155,014 (38) 4,196 1,385 (33,289) 127,268 Foreign currency (112,778) (364) 198 — — (112,944) Earnings from unconsolidated entities (2,708) (3,892) — (9,249) — (15,849) Sales of properties (5,223) — 21 (10,060) — (15,262) Impairment of properties 26,766 — — — — 26,766 Recognition of Distributable realized gains / (losses) on: Loans (2,435) — — 61,175 — 58,740 Securities (1,355) — — (35,012) — (36,367) Woodstar Fund investments — — 110,569 — — 110,569 Derivatives 70,004 186 (1,722) (1,925) (27,955) 38,588 Foreign currency 1,554 219 (199) — — 1,574 Earnings from unconsolidated entities 2,708 2,801 — 10,116 — 15,625 Sales of properties (43,343) — (25) 3,192 — (40,176) Distributable Earnings (Loss) $ 687,830 $ 99,776 $ 110,490 $ 193,669 $ (476,231) $ 615,534 Distributable Earnings (Loss) per Weighted Average Diluted Share $ 1.89 $ 0.27 $ 0.30 $ 0.53 $ (1.30) $ 1.69 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of December 31, 2025 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Assets: Cash and cash equivalents $ 74,534 $ 198,031 $ 70,900 $ 25,149 $ 130,866 $ 499,480 $ — $ 499,480 Restricted cash 123,215 33,794 3,236 454 14,468 175,167 — 175,167 Loans held-for-investment, net 16,038,333 2,824,379 — — — 18,862,712 — 18,862,712 Loans held-for-sale 2,278,067 — — 45,476 — 2,323,543 — 2,323,543 Investment securities 641,893 31,273 — 1,284,863 — 1,958,029 (1,657,029) 301,000 Properties, net 732,714 — 2,674,276 41,662 — 3,448,652 — 3,448,652 Investments of consolidated affordable housing fund — — 1,727,499 — — 1,727,499 — 1,727,499 Investments in unconsolidated entities 8,514 57,997 — 33,203 — 99,714 (14,962) 84,752 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets, net 2,817 — 401,268 69,227 — 473,312 (37,253) 436,059 Derivative assets 27,157 — — 201 18,455 45,813 — 45,813 Accrued interest receivable 157,116 4,424 442 562 135 162,679 — 162,679 Other assets 193,525 4,623 107,468 5,454 51,921 362,991 — 362,991 VIE assets, at fair value — — — — — — 34,493,164 34,493,164 Total Assets $ 20,277,885 $ 3,273,930 $ 4,985,089 $ 1,646,688 $ 215,845 $ 30,399,437 $ 32,783,920 $ 63,183,357 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 165,317 $ 32,732 $ 113,707 $ 60,423 $ 127,571 $ 499,750 $ — $ 499,750 Related-party payable — — — — 31,662 31,662 — 31,662 Dividends payable — — — — 180,413 180,413 — 180,413 Derivative liabilities 72,351 — — — 11,632 83,983 — 83,983 Secured financing agreements, net 8,637,246 719,942 596,906 517,897 2,226,843 12,698,834 (19,886) 12,678,948 Securitized financing, net 2,224,239 1,645,536 1,261,678 — — 5,131,453 — 5,131,453 Unsecured senior notes, net — — — — 4,283,836 4,283,836 — 4,283,836 VIE liabilities, at fair value — — — — — — 32,803,806 32,803,806 Total Liabilities 11,099,153 2,398,210 1,972,291 578,320 6,861,957 22,909,931 32,783,920 55,693,851 Temporary Equity: Redeemable non-controlling interests — — 364,118 — — 364,118 — 364,118 Permanent Equity: Starwood Property Trust, Inc. Stockholders' Equity: Common stock — — — — 3,780 3,780 — 3,780 Additional paid-in capital 2,434,975 521,717 365,416 (814,760) 4,449,868 6,957,216 — 6,957,216 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 6,732,082 354,003 2,077,439 1,759,196 (10,961,738) (39,018) — (39,018) Accumulated other comprehensive income 11,560 — — — — 11,560 — 11,560 Total Starwood Property Trust, Inc. Stockholders' Equity 9,178,617 875,720 2,442,855 944,436 (6,646,112) 6,795,516 — 6,795,516 Non-controlling interests in consolidated subsidiaries 115 — 205,825 123,932 — 329,872 — 329,872 Total Permanent Equity 9,178,732 875,720 2,648,680 1,068,368 (6,646,112) 7,125,388 — 7,125,388 Total Liabilities and Equity $ 20,277,885 $ 3,273,930 $ 4,985,089 $ 1,646,688 $ 215,845 $ 30,399,437 $ 32,783,920 $ 63,183,357 View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-the-quarter-and-year-ended-december-31-2025-302696765.html SOURCE Starwood Property Trust, Inc. Categories: Press Releases View all news