Starwood Property Trust Reports Results for Quarter Ended March 31, 2026
Rhea-AI Summary
Starwood Property Trust (NYSE: STWD) reported Q1 2026 results on May 8, 2026: GAAP net income $51.9M (GAAP EPS $0.13) and Distributable Earnings $147.3M (DE per diluted share $0.39). The company invested $2.5B in the quarter and $1.5B post-quarter, with $4.0B invested year‑to‑date. Starwood manages a portfolio of over $31B and has deployed more than $117B since inception. The board maintained a long-standing dividend of $0.48 per share. The company completed its seventh infrastructure CLO, refinanced an ABS at lower cost, and closed a net-lease warehouse facility after quarter-end.
AI-generated analysis. Not financial advice.
Positive
- Distributable Earnings $147.3M (DE per diluted share $0.39)
- GAAP net income $51.9M (GAAP EPS $0.13)
- Invested $2.5B in Q1 2026 and $1.5B subsequent to quarter-end
- Portfolio AUM over $31B; $117B deployed since inception
- Completed seventh infrastructure CLO at record tight credit spread
Negative
- GAAP EPS $0.13 materially below DE $0.39 per share
- Distributable Earnings is a non-GAAP measure and may not be comparable
News Market Reaction – STWD
On the day this news was published, STWD declined 1.66%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
STWD fell 1.53% with peers also down: RITM -0.61%, AGNC -0.51%, BXMT -1.14%, ABR -1.27%, suggesting broader weakness across mortgage REITs.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 16 | Earnings call date | Neutral | +1.1% | Set timing for releasing 1Q26 results and hosting conference call. |
| Mar 13 | Dividend declaration | Positive | +0.4% | Declared quarterly $0.48 dividend for 1Q26 to shareholders of record. |
| Feb 26 | Share repurchase | Positive | +2.1% | Authorized $400 million program to repurchase stock and convertible notes. |
| Feb 25 | Earnings results | Positive | +0.2% | Reported 4Q25 and 2025 EPS, strong investment activity and steady dividend. |
| Feb 02 | Leadership change | Neutral | -0.6% | Appointed new Head of U.S. Asset Management at Starwood Capital affiliate. |
Recent corporate actions and earnings updates have generally seen modestly positive price reactions, especially around dividends and buybacks.
Over the last few months, Starwood Property Trust announced an earnings call date on Apr 16, 2026, a steady $0.48 dividend for 1Q26, and a $400 million share repurchase authorization. It also reported 4Q25 and full-year 2025 results with continued portfolio growth and liquidity, plus a senior management appointment at Starwood Capital. Today’s 1Q26 results follow this pattern of consistent capital returns and active balance sheet management.
Market Pulse Summary
This announcement reported 1Q26 GAAP EPS of $0.13 and Distributable Earnings of $0.39 per share, alongside revenue growth to $512.5 million. Starwood highlighted active deployment of $2.5 billion during the quarter and $1.5 billion after, plus a long‑standing $0.48 dividend and recognition as 2025 Mortgage REIT of the Year. Investors may watch future profitability, capital deployment pace, and balance sheet leverage in upcoming quarters.
Key Terms
GAAP financial
Distributable Earnings financial
mortgage REIT financial
CLO financial
ABS financial
AI-generated analysis. Not financial advice.
– Quarterly GAAP Earnings of
– Invested
– Dividend of
– Awarded 2025 Mortgage REIT of the Year by PERE Credit –
"In a period of broad global volatility, we believe real estate and infrastructure credit is an attractive and relatively stable place to invest capital," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "To that point, we remain active with
"Starwood Property Trust's access to capital across multiple markets remains a defining advantage of our platform," added Jeffrey DiModica, President of Starwood Property Trust. "During the quarter, we completed our seventh infrastructure CLO at a record tight credit spread, refinanced an existing ABS transaction at meaningfully lower cost, and, subsequent to quarter-end, closed a new net lease warehouse facility at attractive terms. Our proven ability to optimize the right side of our balance sheet has allowed us to continuously invest across cylinders regardless of market environment."
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 Friday, May 8, 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: 13758022
The playback can be accessed through May 22, 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 March 31, 2026, the Company has successfully deployed over
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 March 31, 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 | |||||||||||||||
Commercial and Residential Lending Segment | Infrastructure Lending Segment | Property Segment | Investing and Servicing Segment | Corporate | Subtotal | Securitization VIEs | Total | ||||||||
Revenues: | |||||||||||||||
Interest income from loans | $ 310,314 | $ 61,438 | $ — | $ 2,059 | $ — | $ 373,811 | $ — | $ 373,811 | |||||||
Interest income from investment securities | 15,637 | 384 | — | 23,933 | — | 39,954 | (34,516) | 5,438 | |||||||
Servicing fees | 112 | — | — | 51,619 | — | 51,731 | (3,711) | 48,020 | |||||||
Rental income | 16,305 | — | 60,843 | 2,823 | — | 79,971 | — | 79,971 | |||||||
Other revenues | 2,213 | 1,473 | 457 | 403 | 670 | 5,216 | — | 5,216 | |||||||
Total revenues | 344,581 | 63,295 | 61,300 | 80,837 | 670 | 550,683 | (38,227) | 512,456 | |||||||
Costs and expenses: | |||||||||||||||
Management fees | 32 | — | — | — | 36,150 | 36,182 | — | 36,182 | |||||||
Interest expense | 154,923 | 36,696 | 27,951 | 6,826 | 102,654 | 329,050 | (144) | 328,906 | |||||||
General and administrative | 16,792 | 5,918 | 8,868 | 21,928 | 4,827 | 58,333 | — | 58,333 | |||||||
Costs of rental operations | 13,216 | — | 7,260 | 2,658 | — | 23,134 | — | 23,134 | |||||||
Depreciation and amortization | 4,237 | 10 | 28,078 | 1,150 | 251 | 33,726 | — | 33,726 | |||||||
Credit loss provision (reversal), net | 586 | (963) | — | — | — | (377) | — | (377) | |||||||
Other expense | 77 | 112 | 72 | 140 | — | 401 | — | 401 | |||||||
Total costs and expenses | 189,863 | 41,773 | 72,229 | 32,702 | 143,882 | 480,449 | (144) | 480,305 | |||||||
Other income (loss): | |||||||||||||||
Change in net assets related to consolidated VIEs | — | — | — | — | — | — | 32,502 | 32,502 | |||||||
Change in fair value of servicing rights | — | — | — | 1,004 | — | 1,004 | (1,541) | (537) | |||||||
Change in fair value of investment securities, net | 451 | — | — | (7,921) | — | (7,470) | 7,559 | 89 | |||||||
Change in fair value of mortgage loans, net | (20,980) | — | — | 8,312 | — | (12,668) | — | (12,668) | |||||||
Income from affordable housing fund investments | — | — | 12,464 | — | — | 12,464 | — | 12,464 | |||||||
Earnings (loss) from unconsolidated entities | — | 843 | — | 412 | — | 1,255 | (437) | 818 | |||||||
Gain on sale of investments and other assets, net | 210 | — | 469 | — | — | 679 | — | 679 | |||||||
Gain (loss) on derivative financial instruments, net | 16,363 | 89 | 2,276 | 242 | (21,433) | (2,463) | — | (2,463) | |||||||
Foreign currency (loss) gain, net | (6,115) | — | 25 | — | — | (6,090) | — | (6,090) | |||||||
Loss on extinguishment of debt | — | (31) | (304) | — | — | (335) | — | (335) | |||||||
Other (loss) income, net | (2,875) | 51 | (309) | — | — | (3,133) | — | (3,133) | |||||||
Total other income (loss) | (12,946) | 952 | 14,621 | 2,049 | (21,433) | (16,757) | 38,083 | 21,326 | |||||||
Income (loss) before income taxes | 141,772 | 22,474 | 3,692 | 50,184 | (164,645) | 53,477 | — | 53,477 | |||||||
Income tax benefit (provision) | 11,728 | (50) | 17 | (7,750) | — | 3,945 | — | 3,945 | |||||||
Net income (loss) | 153,500 | 22,424 | 3,709 | 42,434 | (164,645) | 57,422 | — | 57,422 | |||||||
Net (income) loss attributable to non-controlling interests | (3) | — | (6,827) | 1,286 | — | (5,544) | — | (5,544) | |||||||
Net income (loss) attributable to Starwood Property Trust, Inc. | $ 153,497 | $ 22,424 | $ (3,118) | $ 43,720 | $ (164,645) | $ 51,878 | $ — | $ 51,878 | |||||||
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 March 31, 2026 for additional information regarding Distributable Earnings.
Reconciliation of Net Income to Distributable Earnings | |||||||||||
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. | $ 153,497 | $ 22,424 | $ (3,118) | $ 43,720 | $ (164,645) | $ 51,878 | |||||
Add / (Deduct): | |||||||||||
Non-controlling interests attributable to Woodstar II Class A Units | — | — | 4,629 | — | — | 4,629 | |||||
Non-controlling interests attributable to unrealized gains/losses | — | — | (1,307) | (4,745) | — | (6,052) | |||||
Non-cash equity compensation expense | 3,084 | 752 | 1,995 | 1,425 | 6,738 | 13,994 | |||||
Management incentive fee | — | — | — | — | 5,567 | 5,567 | |||||
Depreciation and amortization | 4,273 | — | 28,574 | 1,192 | — | 34,039 | |||||
Straight-line rent adjustment | — | — | (1,649) | 114 | — | (1,535) | |||||
Interest income adjustment for loans and securities | 5,074 | — | — | 5,376 | — | 10,450 | |||||
Consolidated income tax (benefit) provision associated with fair value adjustments | (11,728) | 50 | (17) | 7,750 | — | (3,945) | |||||
Other non-cash items | 2 | — | (82) | (406) | — | (486) | |||||
Reversal of GAAP unrealized and realized (gains) / losses on: | |||||||||||
Loans | 20,980 | — | — | (8,312) | — | 12,668 | |||||
Credit loss provision (reversal), net | 586 | (963) | — | — | — | (377) | |||||
Securities | (451) | — | — | 7,921 | — | 7,470 | |||||
Woodstar Fund investments | — | — | (12,464) | — | — | (12,464) | |||||
Derivatives | (16,363) | (89) | (2,276) | (242) | 21,433 | 2,463 | |||||
Foreign currency | 6,115 | — | (25) | — | — | 6,090 | |||||
Earnings from unconsolidated entities | — | (843) | — | (412) | — | (1,255) | |||||
Sales of properties | (324) | — | (469) | — | — | (793) | |||||
Recognition of Distributable realized gains / (losses) on: | |||||||||||
Loans | (368) | — | — | 8,558 | — | 8,190 | |||||
Securities | (86) | — | — | (5,254) | — | (5,340) | |||||
Woodstar Fund investments | — | — | 18,821 | — | — | 18,821 | |||||
Derivatives | 12,635 | 31 | (3,089) | 276 | (2,817) | 7,036 | |||||
Foreign currency | 139 | — | 25 | — | — | 164 | |||||
Earnings from unconsolidated entities | — | 511 | — | 436 | — | 947 | |||||
Sales of properties | (4,785) | — | (100) | — | — | (4,885) | |||||
Distributable Earnings (Loss) | $ 172,280 | $ 21,873 | $ 29,448 | $ 57,397 | $ (133,724) | $ 147,274 | |||||
Distributable Earnings (Loss) per Weighted Average Diluted Share | $ 0.45 | $ 0.06 | $ 0.08 | $ 0.15 | $ (0.35) | $ 0.39 | |||||
Starwood Property Trust, Inc. and Subsidiaries | |||||||||||||||
Commercial and Residential Lending Segment | Infrastructure Lending Segment | Property Segment | Investing and Servicing Segment | Corporate | Subtotal | Securitization VIEs | Total | ||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ 44,239 | $ 125,331 | $ 33,521 | $ 6,001 | $ 81,193 | $ 290,285 | $ — | $ 290,285 | |||||||
Restricted cash | 322,650 | 22,909 | 3,085 | 412 | 26,721 | 375,777 | — | 375,777 | |||||||
Loans held-for-investment, net | 16,214,754 | 3,066,806 | — | — | — | 19,281,560 | — | 19,281,560 | |||||||
Loans held-for-sale | 2,218,429 | — | — | 104,511 | — | 2,322,940 | — | 2,322,940 | |||||||
Investment securities | 639,401 | 30,301 | — | 1,236,128 | — | 1,905,830 | (1,597,627) | 308,203 | |||||||
Properties, net | 1,039,257 | — | 2,778,893 | 40,984 | — | 3,859,134 | — | 3,859,134 | |||||||
Investments of consolidated affordable housing fund | — | — | 1,729,433 | — | — | 1,729,433 | — | 1,729,433 | |||||||
Investments in unconsolidated entities | 8,514 | 58,840 | — | 33,316 | — | 100,670 | (15,112) | 85,558 | |||||||
Goodwill | — | 119,409 | — | 140,437 | — | 259,846 | — | 259,846 | |||||||
Intangible assets, net | 2,670 | — | 392,643 | 70,136 | — | 465,449 | (38,794) | 426,655 | |||||||
Derivative assets | 24,074 | — | — | 219 | 7,958 | 32,251 | — | 32,251 | |||||||
Accrued interest receivable | 168,183 | 8,160 | — | 218 | 847 | 177,408 | — | 177,408 | |||||||
Other assets | 329,455 | 42,273 | 131,023 | (15,547) | 51,262 | 538,466 | — | 538,466 | |||||||
VIE assets, at fair value | — | — | — | — | — | — | 32,399,812 | 32,399,812 | |||||||
Total Assets | $ 21,011,626 | $ 3,474,029 | $ 5,068,598 | $ 1,616,815 | $ 167,981 | $ 31,339,049 | $ 30,748,279 | $ 62,087,328 | |||||||
Liabilities and Equity | |||||||||||||||
Liabilities: | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ 207,080 | $ 36,017 | $ 117,476 | $ 38,940 | $ 137,872 | $ 537,385 | $ — | $ 537,385 | |||||||
Related-party payable | — | — | — | — | 33,708 | 33,708 | — | 33,708 | |||||||
Dividends payable | — | — | — | — | 180,900 | 180,900 | — | 180,900 | |||||||
Derivative liabilities | 63,970 | — | — | — | 15,460 | 79,430 | — | 79,430 | |||||||
Secured financing agreements, net | 9,846,525 | 587,374 | 533,953 | 596,988 | 2,224,516 | 13,789,356 | (19,780) | 13,769,576 | |||||||
Securitized financing, net | 1,874,602 | 1,809,126 | 1,398,169 | — | — | 5,081,897 | — | 5,081,897 | |||||||
Unsecured senior notes, net | — | — | — | — | 4,287,646 | 4,287,646 | — | 4,287,646 | |||||||
VIE liabilities, at fair value | — | — | — | — | — | — | 30,768,059 | 30,768,059 | |||||||
Total Liabilities | 11,992,177 | 2,432,517 | 2,049,598 | 635,928 | 6,880,102 | 23,990,322 | 30,748,279 | 54,738,601 | |||||||
Temporary Equity: Redeemable non-controlling interests | — | — | 357,487 | — | — | 357,487 | — | 357,487 | |||||||
Permanent Equity: | |||||||||||||||
Starwood Property Trust, Inc. Stockholders' Equity: | |||||||||||||||
Common stock | — | — | — | — | 3,793 | 3,793 | — | 3,793 | |||||||
Additional paid-in capital | 2,122,871 | 665,085 | 381,367 | (941,857) | 4,747,155 | 6,974,621 | — | 6,974,621 | |||||||
Treasury stock | — | — | — | — | (157,958) | (157,958) | — | (157,958) | |||||||
Retained earnings (accumulated deficit) | 6,885,579 | 376,427 | 2,074,321 | 1,802,916 | (11,305,111) | (165,868) | — | (165,868) | |||||||
Accumulated other comprehensive income | 10,881 | — | — | — | — | 10,881 | — | 10,881 | |||||||
Total Starwood Property Trust, Inc. Stockholders' Equity | 9,019,331 | 1,041,512 | 2,455,688 | 861,059 | (6,712,121) | 6,665,469 | — | 6,665,469 | |||||||
Non-controlling interests in consolidated subsidiaries | 118 | — | 205,825 | 119,828 | — | 325,771 | — | 325,771 | |||||||
Total Permanent Equity | 9,019,449 | 1,041,512 | 2,661,513 | 980,887 | (6,712,121) | 6,991,240 | — | 6,991,240 | |||||||
Total Liabilities and Equity | $ 21,011,626 | $ 3,474,029 | $ 5,068,598 | $ 1,616,815 | $ 167,981 | $ 31,339,049 | $ 30,748,279 | $ 62,087,328 | |||||||
View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-quarter-ended-march-31-2026-302766619.html
SOURCE Starwood Property Trust, Inc.