Aug 6, 2026, 6:56 AM ETReal Estate

Starwood Property Trust — Q2 2026 Earnings Summary

STWDSTARWOOD PROPERTY TRUST INC

Financial Performance

Reported GAAP net income of $6.6 million ($0.01 per diluted share) for the quarter ended June 30, 2026.
Distributable Earnings (DE) were $151.5 million ($0.40 per diluted share) for the quarter.
Total revenues for the quarter were $513.7 million, with interest income from loans at $398.4 million and rental income at $87.9 million.
Total costs and expenses for the quarter were $524.8 million, including interest expense of $344.6 million and management fees of $30.6 million.
Credit loss provision, net, was $30.2 million for the quarter.
For the six months ended June 30, 2026, Distributable Earnings were $298.8 million ($0.78 per diluted share).
Total assets reached a record $31.8 billion, with commercial lending assets totaling $17.3 billion.
Cash and cash equivalents were $367.6 million, and restricted cash was $272.8 million as of June 30, 2026.
Secured financing agreements, net, stood at $14.0 billion, and securitized financing, net, was $4.8 billion.
Unsecured senior notes, net, were $4.9 billion.

Management expects to resolve nearly $900 million of underperforming assets by year-end or shortly thereafter, returning trapped equity to higher use cases.
The company anticipates a constructive backdrop to deploy capital and improve credit in its loan portfolio due to improving real estate fundamentals and robust economic growth.
The weighted average corporate debt maturity was extended to 3.7 years following $2.1 billion of corporate debt transactions in the quarter.
The company has invested $6.7 billion through July at double-digit return on equity.

Commercial and Residential Lending Segment: Generated $185.7 million in Distributable Earnings for the quarter.
Infrastructure Lending Segment: Generated $27.1 million in Distributable Earnings for the quarter.
Property Segment: Generated $34.2 million in Distributable Earnings for the quarter.
Investing and Servicing Segment: Generated $42.4 million in Distributable Earnings for the quarter.
Corporate: Reported a Distributable Loss of $137.9 million for the quarter.
The company manages a portfolio of $32 billion across debt and equity investments.

Real estate fundamentals are improving steadily in almost every asset class, supported by a drop in construction activity.
The company is a leading diversified finance company with a core focus on the real estate and infrastructure sectors.
Starwood Property Trust has successfully deployed $120 billion of capital since inception.

The press release notes risks related to the completion of pending investments and financings, the ability to acquire additional investments, competition within the finance and real estate industries, and the availability of financing.
Risks are further detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Barry Sternlicht, Chairman and CEO, stated that real estate fundamentals are improving, providing a solid foundation to support asset values and resolve underperforming assets.
Jeffrey DiModica, President, highlighted the strong balance sheet, noting that corporate debt transactions lowered the cost of funds and positioned the company to continue deploying capital.
The tone reflects confidence in the company's ability to drive growth across all business lines.

The company repurchased $30 million of common shares in the six months ended June 30, 2026.
A dividend of $0.48 per share was declared.
Starwood Property Trust was awarded the Nareit Gold Investor CARE Award for the 10th time in 12 years.
The company hosts a live webcast and conference call for investors to discuss results.