Starwood Property Trust Reports Results for Quarter Ended June 30, 2026

View all news Starwood Property Trust Reports Results for Quarter Ended June 30, 2026 August 06, 2026 – 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 – , /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: [email protected] 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 Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization 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 Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $ 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 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the six months ended June 30, 2026 (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 $ 637,465 $ 128,429 $ — $ 6,332 $ — $ 772,226 $ — $ 772,226 Interest income from investment securities 30,981 865 — 46,103 — 77,949 (67,761) 10,188 Servicing fees 223 — — 72,095 — 72,318 (7,631) 64,687 Rental income 36,113 — 124,670 7,042 — 167,825 — 167,825 Other revenues 4,013 2,947 819 1,927 1,492 11,198 — 11,198 Total revenues 708,795 132,241 125,489 133,499 1,492 1,101,516 (75,392) 1,026,124 Costs and expenses: Management fees 197 — — — 66,542 66,739 — 66,739 Interest expense 315,673 75,321 56,726 15,943 210,218 673,881 (398) 673,483 General and administrative 31,771 11,933 16,793 45,589 8,941 115,027 — 115,027 Costs of rental operations 29,377 — 14,514 5,556 — 49,447 — 49,447 Depreciation and amortization 9,017 19 57,215 2,232 503 68,986 — 68,986 Credit loss provision (reversal), net 30,402 (615) — — — 29,787 — 29,787 Other expense 165 899 299 241 — 1,604 — 1,604 Total costs and expenses 416,602 87,557 145,547 69,561 286,204 1,005,471 (398) 1,005,073 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 65,589 65,589 Change in fair value of servicing rights — — — 2,022 — 2,022 (815) 1,207 Change in fair value of investment securities, net (1,136) — — (9,638) — (10,774) 10,811 37 Change in fair value of mortgage loans, net (33,691) — — 20,962 — (12,729) — (12,729) Income from affordable housing fund investments — — 17,393 — — 17,393 — 17,393 Earnings from unconsolidated entities — 3,520 — 605 — 4,125 (591) 3,534 Gain on sale of investments and other assets, net 298 — 496 2,264 — 3,058 — 3,058 Gain (loss) on derivative financial instruments, net 37,892 439 10,630 1,225 (55,673) (5,487) — (5,487) Foreign currency (loss) gain, net (11,834) — 38 — — (11,796) — (11,796) Loss on extinguishment of debt — (31) (304) — — (335) — (335) Other (loss) income, net (5,472) 51 (1,401) 6 — (6,816) — (6,816) Total other (loss) income (13,943) 3,979 26,852 17,446 (55,673) (21,339) 74,994 53,655 Income (loss) before income taxes 278,250 48,663 6,794 81,384 (340,385) 74,706 — 74,706 Income tax benefit (provision) 9,192 (145) 25 (11,351) — (2,279) — (2,279) Net income (loss) 287,442 48,518 6,819 70,033 (340,385) 72,427 — 72,427 Net income attributable to non-controlling interests (7) — (12,152) (1,833) — (13,992) — (13,992) Net income (loss) attributable to Starwood Property Trust, Inc. $ 287,435 $ 48,518 $ (5,333) $ 68,200 $ (340,385) $ 58,435 $ — $ 58,435 Reconciliation of Net Income to Distributable Earnings For the six months ended June 30, 2026 (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. $ 287,435 $ 48,518 $ (5,333) $ 68,200 $ (340,385) $ 58,435 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 9,258 — — 9,258 Non-controlling interests attributable to unrealized gains/losses — — (4,031) (6,971) — (11,002) Non-cash equity compensation expense 5,669 1,540 4,009 2,874 13,215 27,307 Management incentive fee — — — — 5,567 5,567 Depreciation and amortization 9,090 — 58,206 2,313 — 69,609 Straight-line rent adjustment — — (3,346) 171 — (3,175) Interest income adjustment for loans and securities 9,749 — — 18,062 — 27,811 Consolidated income tax (benefit) provision associated with fair value adjustments (9,192) 145 (25) 11,351 — 2,279 Other non-cash items 7 447 (164) (813) — (523) Reversal of GAAP unrealized and realized (gains) / losses on: Loans 33,691 — — (20,962) — 12,729 Credit loss provision (reversal), net 30,402 (615) — — — 29,787 Securities 1,136 — — 9,638 — 10,774 Woodstar Fund investments — — (17,393) — — (17,393) Derivatives (37,892) (439) (10,630) (1,225) 55,673 5,487 Foreign currency 11,834 — (38) — — 11,796 Earnings from unconsolidated entities — (3,520) — (605) — (4,125) Sales of properties (356) — (496) (2,264) — (3,116) Recognition of Distributable realized gains / (losses) on: Loans (822) — — 21,194 — 20,372 Securities (137) — — (5,936) — (6,073) Woodstar Fund investments — — 37,029 — — 37,029 Derivatives 21,205 279 (3,324) 1,926 (5,724) 14,362 Foreign currency 942 — 38 — — 980 Earnings from unconsolidated entities — 2,657 — 905 — 3,562 Sales of properties (4,753) — (135) 1,928 — (2,960) Distributable Earnings (Loss) $ 358,008 $ 49,012 $ 63,625 $ 99,786 $ (271,654) $ 298,777 Distributable Earnings (Loss) per Weighted Average Diluted Share $ 0.94 $ 0.13 $ 0.16 $ 0.26 $ (0.71) $ 0.78 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of June 30, 2026 (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 $ 22,616 $ 206,331 $ 30,912 $ 9,281 $ 98,452 $ 367,592 $ — $ 367,592 Restricted cash 177,912 46,173 2,802 189 45,688 272,764 — 272,764 Loans held-for-investment, net 16,965,888 2,851,080 — — — 19,816,968 — 19,816,968 Loans held-for-sale 2,154,653 — — 62,828 — 2,217,481 — 2,217,481 Investment securities 556,876 123,934 — 1,262,903 — 1,943,713 (1,540,884) 402,829 Properties, net 1,028,671 — 2,938,255 31,743 — 3,998,669 — 3,998,669 Investments of consolidated affordable housing fund — — 1,725,368 — — 1,725,368 — 1,725,368 Investments in unconsolidated entities 8,514 61,517 — 33,200 — 103,231 (15,030) 88,201 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets, net 2,522 — 405,459 71,062 — 479,043 (38,069) 440,974 Derivative assets 23,233 — 931 242 — 24,406 — 24,406 Accrued interest receivable 195,044 3,611 4 493 1,664 200,816 — 200,816 Other assets 195,215 20,947 111,988 (16,670) 50,735 362,215 — 362,215 VIE assets, at fair value — — — — — — 30,868,147 30,868,147 Total Assets $ 21,331,144 $ 3,433,002 $ 5,215,719 $ 1,595,708 $ 196,539 $ 31,772,112 $ 29,274,164 $ 61,046,276 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 232,135 $ 38,666 $ 123,067 $ 37,521 $ 144,167 $ 575,556 $ — $ 575,556 Related-party payable — — — — 27,033 27,033 — 27,033 Dividends payable — — — — 180,744 180,744 — 180,744 Derivative liabilities 64,972 — — — 26,601 91,573 — 91,573 Secured financing agreements, net 9,496,528 716,722 731,638 583,078 2,491,581 14,019,547 (19,656) 13,999,891 Securitized financing, net 1,603,874 1,810,038 1,397,599 — — 4,811,511 — 4,811,511 Unsecured senior notes, net — — — — 4,882,722 4,882,722 — 4,882,722 VIE liabilities, at fair value — — — — — — 29,293,820 29,293,820 Total Liabilities 11,397,509 2,565,426 2,252,304 620,599 7,752,848 24,588,686 29,274,164 53,862,850 Temporary Equity: Redeemable non-controlling interests — — 356,377 — — 356,377 — 356,377 Permanent Equity: Starwood Property Trust, Inc. Stockholders' Equity: Common stock — — — — 3,798 3,798 — 3,798 Additional paid-in capital 2,904,306 465,056 329,107 (974,433) 4,267,303 6,991,339 — 6,991,339 Treasury stock — — — — (167,962) (167,962) — (167,962) Retained earnings (accumulated deficit) 7,019,517 402,520 2,072,106 1,827,396 (11,659,448) (337,909) — (337,909) Accumulated other comprehensive income 9,697 — — — — 9,697 — 9,697 Total Starwood Property Trust, Inc. Stockholders' Equity 9,933,520 867,576 2,401,213 852,963 (7,556,309) 6,498,963 — 6,498,963 Non-controlling interests in consolidated subsidiaries 115 — 205,825 122,146 — 328,086 — 328,086 Total Permanent Equity 9,933,635 867,576 2,607,038 975,109 (7,556,309) 6,827,049 — 6,827,049 Total Liabilities and Equity $ 21,331,144 $ 3,433,002 $ 5,215,719 $ 1,595,708 $ 196,539 $ 31,772,112 $ 29,274,164 $ 61,046,276 View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-quarter-ended-june-30-2026-302844646.html SOURCE Starwood Property Trust, Inc. Categories: Press Releases View all news