Starwood Property Trust Announces Tax Reporting Information

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) provided federal tax-reporting details for common-stock distributions for the 2025 calendar year. The company reported total dividends per share of $1.7808 for 2025, with $1.0166 as ordinary taxable dividends and as nondividend return of capital.

The table breaks per-quarter allocations, qualified dividends, capital gain components, Section 199A amounts, and split-year allocation rules for dividends paid near year-end.

News Market Reaction – STWD

-1.38%

-1.38% Session close to close

In the Jan 30 session, STWD declined 1.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement outlines how STWD’s 2025 common stock distributions are characterized for U.S. fed...

Analysis

This announcement outlines how STWD’s 2025 common stock distributions are characterized for U.S. federal income tax reporting, breaking the year’s $1.92 per-share cash payments into ordinary dividends, capital gains, and return-of-capital components. The split-year treatment of the December $0.48 dividend and the reporting of Section 199A and Section 897 amounts may matter for investor tax planning. Going forward, investors may watch whether dividend levels and classifications remain consistent with past years.

Key Figures

Q1 2025 cash dividend: $0.48 per share Total 2025 cash distributions: $1.92 per share Total 2025 dividend per share: $1.7808 per share +5 more

8 metrics

Q1 2025 cash dividend $0.48 per share Cash distribution with 3/31/2025 record date and 4/15/2025 payable date

Total 2025 cash distributions $1.92 per share Sum of 2025 common stock cash distributions before adjustments

Total 2025 dividend per share $1.7808 per share Total dividend per share for 2025 after allocation and adjustments

2025 ordinary taxable dividends $1.0166 per share Total Box 1a Ordinary Taxable Dividends for calendar year 2025

2025 total capital gain distribution $0.2467 per share Total Box 2a capital gain distribution reported for 2025

2025 nondividend distributions $0.4986 per share Total Box 3 Nondividend Distributions (return of capital) for 2025

Split-year 2024/2025 allocation $0.3408 per share Portion of 12/31/2024 dividend allocable to 2025 for tax purposes

Section 199A dividends 2025 $0.7699 per share Total Box 5 Section 199A Dividends for 2025 on common stock

Historical Context

5 past events · Latest: Dec 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 12	Dividend declaration	Positive	+0.4%	Announced $0.48 per share dividend for Q4 2025 with Jan 15, 2026 payable date.
Nov 18	Debt financing	Neutral	+0.2%	Private offering of $500 million unsecured senior notes due 2028 for green and social projects.
Nov 10	Earnings release	Neutral	-2.9%	Reported Q3 2025 GAAP net income of $72.6M and distributable earnings of $148.6M.
Nov 05	Acquisition impact	Neutral	+0.5%	ETF sponsor rebrand following STWD’s $2.2B purchase of Fundamental Income Properties.
Oct 17	Earnings call timing	Neutral	+0.7%	Set date and time for Q3 2025 earnings release and conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has generally seen modest price reactions, with a larger negative move on quarterly results despite otherwise routine or constructive announcements.

Recent Company History

Over the past few months, STWD has reported steady activity, including a Q3 2025 earnings release showing $0.19 GAAP EPS and $0.40 distributable earnings per share, alongside continued $0.48 quarterly dividends. The company also issued senior notes to fund green and social projects and completed a large Fundamental Income acquisition. Today’s tax-reporting disclosure relates to how these prior cash distributions for 2025 are characterized for shareholders’ federal income tax purposes.

Key Terms

form 1099-div, unrecaptured 1250 gain, section 897 capital gain, nondividend distributions, +2 more

6 terms

form 1099-div financial

"Form 1099-DIV Reference: | | (Boxes 1a + 2a + 3) | Box 1a | Box 1b"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

unrecaptured 1250 gain financial

"Box 2b Unrecaptured 1250 Gain and Box 2f Section 897 Capital Gain are included"

Unrecaptured 1250 gain is the portion of profit from selling depreciable real estate that is taxed at a special higher rate because the seller previously claimed depreciation deductions. Think of it as part of the sale proceeds that the tax code says must be taxed more like ordinary income than as the lower long-term capital gain — reducing the seller’s after-tax return. Investors watch it because it changes the true net profit and affects tax planning and valuation of property investments.

section 897 capital gain financial

"Box 2b Unrecaptured 1250 Gain and Box 2f Section 897 Capital Gain are included"

A Section 897 capital gain is the profit a non-U.S. person realizes when selling an interest in U.S. real estate that U.S. tax law treats like U.S.-source income. Think of it as a home sale for a foreign seller: the U.S. requires tax be collected on the gain and may require the buyer to withhold part of the sale price, so investors need to plan for potential tax bills, withholding cash needs, and impacts on net proceeds and deal value.

nondividend distributions financial

"Box 3 Nondividend Distributions are a Return of Capital."

Nondividend distributions are cash or property payments to shareholders that are not paid from a company’s reported profits and therefore are not treated as regular taxable dividends. They matter to investors because these payments effectively return part of your original investment (reducing the amount you paid for the shares), are typically tax‑free until that original amount is recovered and then taxed as a capital gain, and they also reveal how the company is using its cash, which can affect future income and share value.

section 199a dividends financial

"Section 897 Capital Gain | Nondividend Distributions | Section 199A Dividends"

Section 199A dividends are certain dividend payments from real estate investment trusts (REITs) and publicly traded partnerships that qualify for a special U.S. tax deduction allowing up to a 20% reduction of the income they create. For investors, that means these payouts are taxed differently than regular dividend income—they don’t get the lower capital gains rate but can lower taxable income through the deduction, similar to getting a partial tax rebate on that income.

ordinary taxable dividends financial

"Box 1a Ordinary Taxable Dividends | Taxable Qualified Dividends"

Ordinary taxable dividends are distributions of a company’s earnings paid to shareholders that are taxed at a recipient’s regular income tax rates rather than at lower capital-gains rates. They matter to investors because the tax treatment affects the true return you keep — like getting a regular paycheck that is taxed at your normal rate versus a one-time sale that might be taxed more lightly — and therefore influences portfolio after‑tax income, yield comparisons and investment choices.

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GREENWICH, Conn., Jan. 29, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) ("the Company") today announced the tax treatment for the Company's distributions on its common stock (CUSIP: 85571B105) paid with respect to the calendar year ended December 31, 2025:

Form 1099-DIV Reference:				(Boxes 1a + 2a + 3)	Box 1a	Box 1b	Box 2a	Box 2b	Box 2e	Box 2f	Box 3	Box 5
Record Date	Payable Date	Cash Distribution	Adjustment	Total Dividend Per Share	Ordinary Taxable Dividends	Taxable Qualified Dividends	Total Capital Gain Distribution	Unrecaptured 1250 Gain	Section 897 Ordinary Dividends	Section 897 Capital Gain	Nondividend Distributions	Section 199A Dividends
						(i)	(ii)	(iii)	(v)	(iii)	(iv)	(v)
12/31/2024	1/15/2025	0.0000	0.3408	0.3408 (vi)	0.1946	0.0472	0.0508	0.0071	0.0000	0.0424	0.0954	0.1474
3/31/2025	4/15/2025	0.4800	0.0000	0.4800	0.2740	0.0665	0.0716	0.0101	0.0000	0.0597	0.1344	0.2075
6/30/2025	7/15/2025	0.4800	0.0000	0.4800	0.2740	0.0665	0.0716	0.0101	0.0000	0.0597	0.1344	0.2075
9/30/2025	10/15/2025	0.4800	0.0000	0.4800	0.2740	0.0665	0.0716	0.0101	0.0000	0.0597	0.1344	0.2075
12/31/2025	1/15/2026	0.4800	-0.4800	0.0000 (vii)	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
	Totals	1.9200	-0.1392	1.7808	1.0166	0.2467	0.2656	0.0374	0.0000	0.2215	0.4986	0.7699
	(i)	Box 1b Taxable Qualified Dividends shows the portion of the amount of Box 1a Ordinary Taxable Dividends that may be eligible for capital gains tax rates pursuant to IRC Section 857(c).
	(ii)	For purposes of the disclosure required by Treas. Reg. Sec. 1.1061-6(c), the Company reports to direct or indirect holders of an 'applicable partnership interest' that the portion of the total amount shown on Box 2a relating to the 'One Year Amounts Disclosure' is equal to $0.1154 and the portion relating to the 'Three Year Amounts Disclosure' is equal to $0.1059.
	(iii)	Box 2b Unrecaptured 1250 Gain and Box 2f Section 897 Capital Gain are included in Box 2a Total Capital Gain Distribution.
	(iv)	Box 3 Nondividend Distributions are a Return of Capital.
	(v)	Box 2e Section 897 Ordinary Dividends and Box 5 Section 199A Dividends are included in Box 1a Ordinary Taxable Dividends.
	(vi)	The cash dividend of $0.48 per share of common stock with a record date of December 31, 2024, that was paid on January 15, 2025, is a split-year dividend, of which $0.1392 was allocable to 2024 and the remaining $0.3408 is allocable to 2025 for federal income tax purposes.
	(vii)	The cash dividend of $0.48 per share of common stock with a record date of December 31, 2025, that was paid on January 15, 2026, is fully allocable to 2026 for federal income tax purposes.

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 September 30, 2025, the Company has successfully deployed $112 billion of capital since inception and manages a portfolio of $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. 

Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com

 

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-announces-tax-reporting-information-302674482.html

SOURCE Starwood Property Trust, Inc.

FAQ

What total dividend per share did STWD report for the 2025 tax year?

The total dividend per share for 2025 was $1.7808. According to the company, that total combines quarterly cash distributions and year-end split allocations reported on Form 1099-DIV.

How much of STWD's 2025 distribution is reported as ordinary taxable dividends (Box 1a)?

$1.0166 of the 2025 distributions is reported as ordinary taxable dividends. According to the company, Box 1a aggregates ordinary income portions across quarterly payments and split-year allocations.

What portion of STWD's 2025 dividends is return of capital (nondividend distributions)?

$0.4986 per share is reported as nondividend distributions (return of capital). According to the company, these amounts reduce cost basis and are disclosed in Box 3 on Form 1099-DIV.

Did STWD report qualified dividends or capital gain distributions for 2025, and how much?

Yes. STWD reported $0.2467 in qualified dividends and $0.2656 in total capital gain distributions for 2025. According to the company, those figures appear in Boxes 1b and 2a respectively on Form 1099-DIV.

How are dividends paid near year-end allocated for STWD tax reporting (split-year rule)?

Dividends with record dates near year-end were split when applicable; $0.3408 was allocable to 2025 from the Jan 15, 2025 payment. According to the company, the Dec 31, 2025 payment is fully allocable to 2026.