-- 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
=================== =================== =================== =================== ==================== ===================
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 Infrastructure Investing
Lending Lending Property and Servicing Securitization
Segment Segment Segment Segment Corporate Subtotal 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 Infrastructure Investing
Lending Lending Property and Servicing
Segment Segment Segment Segment Corporate Total
-------------- -------------- --------------- -------------- --------------- --------------
Net income (loss)
attributable to
Starwood
Property Trust, I
nc. $ 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 Infrastructure Investing
Lending Lending Property and Servicing Securitization
Segment Segment Segment Segment Corporate Subtotal 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
--------------- -------------- -------------- -------------- ------------- -------------- -------------- --------------
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