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Blue Owl Capital Holdings LP acquired a new position in shares of Starwood Property Trust, Inc. (NYSE:STWD – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 196,355 shares of the real estate investment trust’s stock, valued at approximately $3,216,000. Starwood Property Trust makes up 0.5% of Blue Owl Capital Holdings LP’s portfolio, making the stock its 28th biggest position. Blue Owl Capital Holdings LP owned about 0.05% of Starwood Property Trust as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. CENTRAL TRUST Co grew its stake in shares of Starwood Property Trust by 154.4% during the fourth quarter. CENTRAL TRUST Co now owns 1,496 shares of the real estate investment trust’s stock worth $27,000 after acquiring an additional 908 shares during the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Starwood Property Trust in the 4th quarter valued at approximately $28,000. Versant Capital Management Inc raised its position in shares of Starwood Property Trust by 293.2% in the 2nd quarter. Versant Capital Management Inc now owns 1,954 shares of the real estate investment trust’s stock valued at $32,000 after purchasing an additional 1,457 shares during the last quarter. North Star Investment Management Corp. boosted its stake in Starwood Property Trust by 1,605.0% in the 1st quarter. North Star Investment Management Corp. now owns 3,410 shares of the real estate investment trust’s stock worth $59,000 after purchasing an additional 3,210 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in Starwood Property Trust by 169.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,266 shares of the real estate investment trust’s stock worth $59,000 after purchasing an additional 2,053 shares in the last quarter. Hedge funds and other institutional investors own 49.82% of the company’s stock.

Analyst Upgrades and Downgrades
A number of equities research analysts recently commented on the company. Wells Fargo & Company set a $20.00 target price on Starwood Property Trust in a report on Monday. Wall Street Zen lowered shares of Starwood Property Trust from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. reduced their price objective on Starwood Property Trust from $19.00 to $18.50 and set an “overweight” rating for the company in a research note on Tuesday. Keefe, Bruyette & Woods lowered their target price on Starwood Property Trust from $19.00 to $18.50 and set an “outperform” rating on the stock in a research note on Friday, August 7th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Starwood Property Trust in a research report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Starwood Property Trust has a consensus rating of “Moderate Buy” and an average target price of $19.20.

View Our Latest Analysis on Starwood Property Trust
Starwood Property Trust Price Performance
NYSE:STWD opened at $16.46 on Friday. The stock has a 50 day moving average of $16.54 and a two-hundred day moving average of $17.27. Starwood Property Trust, Inc. has a 12 month low of $15.51 and a 12 month high of $20.84. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 3.47. The firm has a market cap of $6.09 billion, a P/E ratio of 27.90, a price-to-earnings-growth ratio of 2.02 and a beta of 0.98.

Starwood Property Trust (NYSE:STWD – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.40. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%.The company had revenue of $201.42 million for the quarter, compared to analyst estimates of $521.67 million. During the same quarter last year, the firm posted $0.43 EPS. The firm’s revenue for the quarter was up 15.6% on a year-over-year basis. On average, analysts expect that Starwood Property Trust, Inc. will post 1.51 earnings per share for the current fiscal year.

Starwood Property Trust Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were issued a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 11.7%. The ex-dividend date was Tuesday, June 30th. Starwood Property Trust’s payout ratio is presently 325.42%.

(Free Report)

Starwood Property Trust (NYSE: STWD) is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company’s portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.

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Starwood Property Trust (NYSE:STWD) reported second-quarter distributable earnings of $152 million, or $0.40 per share, as the company continued to work through non-accrual loans and real estate-owned assets while increasing investment activity and extending its debt maturities.

Chief Financial Officer Rina Paniry said results continued to reflect the earnings impact of non-accrual and REO assets, as well as elevated cash balances. The company reported no new non-accrual loans, no new five-rated loans and no new REO assets during the quarter or year to date.

“As our new non-accrual and REO loans have slowed, we have gained momentum in resolutions,” Paniry said.

Asset Resolutions and Reserve Position Starwood Property Trust ended the quarter with approximately $1.9 billion of non-accrual and REO assets on a distributable-earnings basis, excluding $706 million of reserves already reflected in book value. The reserve total included $485 million of CECL reserves and $221 million of REO reserves.

The company expects to resolve roughly $800 million, or 40%, of its current non-accrual and REO balance by the end of 2026, subject to market conditions. It is under contract or in discussions to sell three REO properties and multiple units in a New York City residential project. Those transactions are expected to generate $148 million in cash proceeds and resolve $195 million of assets on a distributable-earnings basis during the third quarter.

Paniry said the anticipated sales are expected to produce an approximately $47 million realized loss in third-quarter distributable earnings. One asset was repriced following higher interest rates, creating a $12 million difference from its GAAP mark. Absent that adjustment, she said the company’s GAAP reserves aligned with expected sale prices.

President Jeff DiModica said three multifamily loans were downgraded to four-risk ratings during the quarter: a $73 million property in Phoenix, a $63 million property in Clearwater, Florida, and a $74 million property in Mesa, Arizona. He attributed the downgrades to higher forward rates and pressure on near-term cash flow in some Sun Belt multifamily markets following elevated supply.

Subsequent to quarter-end, two office loans repaid at par for a combined $171 million, reducing U.S. office exposure to 7.6% of assets and global office exposure to 8.9%, both company lows, according to DiModica.

Investment Activity and Segment Results The company deployed $2.5 billion across its businesses during the second quarter and another $1.7 billion in July, bringing year-to-date investment activity to $6.7 billion. DiModica said the company was on pace for a record year of investment activity and expected the third quarter to be its strongest commercial-lending origination quarter.

Commercial and residential lending generated distributable earnings of $186 million, or $0.49 per share. In commercial lending, Starwood originated $1.4 billion and funded more than $1 billion, including preexisting commitments. Following $447 million of repayments, the funded loan portfolio reached a record $17.3 billion.

Infrastructure lending committed $441 million during the quarter, with the portfolio ending at $3.1 billion after comparable repayment activity. DiModica said 92% of the infrastructure portfolio was internally rated one or two, while 97% of loans had public or private Moody’s ratings.

The property segment contributed $34 million, or $0.09 per share, of distributable earnings. At Woodstar, the company’s Florida affordable-multifamily portfolio, Starwood began implementing authorized 8.4% HUD rent increases on July 1. The company expects the earnings benefit to begin appearing in third-quarter results.

Starwood also expects to refinance $416 million of Woodstar debt maturing within six months. Paniry said the company anticipates an approximately $140 million financing upsize, of which Starwood’s share would be about $110 million for reinvestment.

In net lease, distributable earnings rose to $0.05 per share from $0.03 in the prior quarter. The company acquired $179 million of properties during the quarter at a blended 7.39% capitalization rate. The portfolio totaled $2.7 billion across 527 properties in 44 states, with 100% occupancy, zero defaults and a weighted average lease term of 16.8 years.

Capital Markets and Liquidity Starwood completed $2.1 billion of corporate debt transactions in the second quarter, including $1.1 billion of unsecured senior notes and a $275 million increase to its Term Loan B. It also repriced an existing $696 million term loan to SOFR plus 200 basis points.

After quarter-end, the company repaid $400 million of July 2026 notes and prepaid $500 million of January 2027 notes. DiModica said Starwood has no further corporate debt maturities until July 2027 and has extended weighted average corporate debt maturities to approximately three years.

The company had $1.2 billion of current liquidity at quarter-end and a debt-to-undepreciated-equity ratio of 2.74 times. Its unencumbered asset pool totaled $6.9 billion against $4.5 billion of unsecured debt.

Paniry said the early redemption of the January 2027 notes will produce a $6.3 million third-quarter loss on extinguishment of debt because of the termination of an associated interest-rate hedge. However, she said replacing the prior obligation with new 5.875% notes is expected to save more than $15 million over the next five years.

Dividend, Buybacks and Outlook Chairman and Chief Executive Officer Barry Sternlicht acknowledged that the company is not currently earning enough to cover its dividend, but said management remains confident that resolving underperforming assets and redeploying capital into new investments can restore earnings power.

“We’re pretty confident in our ability to get back to the earnings power that we’ll need to drive the dividend and restore our coverage of dividend,” Sternlicht said.

He said the company is not considering a dividend-policy change at present, though it would revisit that position if conditions materially changed. Starwood repurchased $30 million of stock year to date under its $400 million authorization, and management indicated it could become more active in repurchases.

Looking ahead, Sternlicht said Starwood plans to discuss a new business line during its next quarterly update and continues to evaluate acquisition and sector-consolidation opportunities.

About Starwood Property Trust (NYSE:STWD) Starwood Property Trust (NYSE: STWD) is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company’s portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.

MarketBeat Week in Review – 03/30 - 04/03Starwood Property Trust NYSE: STWD reported second-quarter distributable earnings of $152 million, or $0.40 per share, as the company continued to work through non-accrual loans and real estate-owned assets while increasing investment activity and extending its debt maturities.

Chief Financial Officer Rina Paniry said results continued to reflect the earnings impact of non-accrual and REO assets, as well as elevated cash balances. The company reported no new non-accrual loans, no new five-rated loans and no new REO assets during the quarter or year to date.

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Starwood Shares Have Struggled, but Catalysts Could Signal a Turn“As our new non-accrual and REO loans have slowed, we have gained momentum in resolutions,” Paniry said.

Asset Resolutions and Reserve Position Starwood Property Trust ended the quarter with approximately $1.9 billion of non-accrual and REO assets on a distributable-earnings basis, excluding $706 million of reserves already reflected in book value. The reserve total included $485 million of CECL reserves and $221 million of REO reserves.

Here's Who Wins If Trump's 50-Year Mortgages Come to MarketThe company expects to resolve roughly $800 million, or 40%, of its current non-accrual and REO balance by the end of 2026, subject to market conditions. It is under contract or in discussions to sell three REO properties and multiple units in a New York City residential project. Those transactions are expected to generate $148 million in cash proceeds and resolve $195 million of assets on a distributable-earnings basis during the third quarter.

Paniry said the anticipated sales are expected to produce an approximately $47 million realized loss in third-quarter distributable earnings. One asset was repriced following higher interest rates, creating a $12 million difference from its GAAP mark. Absent that adjustment, she said the company’s GAAP reserves aligned with expected sale prices.

President Jeff DiModica said three multifamily loans were downgraded to four-risk ratings during the quarter: a $73 million property in Phoenix, a $63 million property in Clearwater, Florida, and a $74 million property in Mesa, Arizona. He attributed the downgrades to higher forward rates and pressure on near-term cash flow in some Sun Belt multifamily markets following elevated supply.

Subsequent to quarter-end, two office loans repaid at par for a combined $171 million, reducing U.S. office exposure to 7.6% of assets and global office exposure to 8.9%, both company lows, according to DiModica.

Investment Activity and Segment Results The company deployed $2.5 billion across its businesses during the second quarter and another $1.7 billion in July, bringing year-to-date investment activity to $6.7 billion. DiModica said the company was on pace for a record year of investment activity and expected the third quarter to be its strongest commercial-lending origination quarter.

Commercial and residential lending generated distributable earnings of $186 million, or $0.49 per share. In commercial lending, Starwood originated $1.4 billion and funded more than $1 billion, including preexisting commitments. Following $447 million of repayments, the funded loan portfolio reached a record $17.3 billion.

Infrastructure lending committed $441 million during the quarter, with the portfolio ending at $3.1 billion after comparable repayment activity. DiModica said 92% of the infrastructure portfolio was internally rated one or two, while 97% of loans had public or private Moody’s ratings.

The property segment contributed $34 million, or $0.09 per share, of distributable earnings. At Woodstar, the company’s Florida affordable-multifamily portfolio, Starwood began implementing authorized 8.4% HUD rent increases on July 1. The company expects the earnings benefit to begin appearing in third-quarter results.

Starwood also expects to refinance $416 million of Woodstar debt maturing within six months. Paniry said the company anticipates an approximately $140 million financing upsize, of which Starwood’s share would be about $110 million for reinvestment.

In net lease, distributable earnings rose to $0.05 per share from $0.03 in the prior quarter. The company acquired $179 million of properties during the quarter at a blended 7.39% capitalization rate. The portfolio totaled $2.7 billion across 527 properties in 44 states, with 100% occupancy, zero defaults and a weighted average lease term of 16.8 years.

Capital Markets and Liquidity Starwood completed $2.1 billion of corporate debt transactions in the second quarter, including $1.1 billion of unsecured senior notes and a $275 million increase to its Term Loan B. It also repriced an existing $696 million term loan to SOFR plus 200 basis points.

After quarter-end, the company repaid $400 million of July 2026 notes and prepaid $500 million of January 2027 notes. DiModica said Starwood has no further corporate debt maturities until July 2027 and has extended weighted average corporate debt maturities to approximately three years.

The company had $1.2 billion of current liquidity at quarter-end and a debt-to-undepreciated-equity ratio of 2.74 times. Its unencumbered asset pool totaled $6.9 billion against $4.5 billion of unsecured debt.

Paniry said the early redemption of the January 2027 notes will produce a $6.3 million third-quarter loss on extinguishment of debt because of the termination of an associated interest-rate hedge. However, she said replacing the prior obligation with new 5.875% notes is expected to save more than $15 million over the next five years.

Dividend, Buybacks and Outlook Chairman and Chief Executive Officer Barry Sternlicht acknowledged that the company is not currently earning enough to cover its dividend, but said management remains confident that resolving underperforming assets and redeploying capital into new investments can restore earnings power.

“We’re pretty confident in our ability to get back to the earnings power that we’ll need to drive the dividend and restore our coverage of dividend,” Sternlicht said.

He said the company is not considering a dividend-policy change at present, though it would revisit that position if conditions materially changed. Starwood repurchased $30 million of stock year to date under its $400 million authorization, and management indicated it could become more active in repurchases.

Looking ahead, Sternlicht said Starwood plans to discuss a new business line during its next quarterly update and continues to evaluate acquisition and sector-consolidation opportunities.

About Starwood Property Trust (NYSE:STWD)Starwood Property Trust NYSE: STWD is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company's portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Starwood Property Trust, Inc. (STWD) Q2 2026 Earnings Call Transcript

– 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

SOURCE Starwood Property Trust, Inc.

Wall Street expects a year-over-year decline in earnings on higher revenues when Starwood Property Trust (STWD - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis commercial real estate investment trust is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -7%.

Revenues are expected to be $505.6 million, up 13.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.75% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Starwood Property Trust?For Starwood Property Trust, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.50%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Starwood Property Trust will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Starwood Property Trust would post earnings of $0.42 per share when it actually produced earnings of $0.39, delivering a surprise of -7.14%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Starwood Property Trust doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

, /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that the Company will release its second quarter 2026 financial results on Thursday, August 6, 2026, before the opening of trading on the New York Stock Exchange. A conference call will be held on Thursday, August 6, 2026, at 10:00 a.m. Eastern Time.

During the conference call, the Company's officers will review second quarter performance, discuss recent events and conduct a question-and-answer period.

Webcast
The conference call will also be available in the Investor Relations section of the Company's website at www.starwoodpropertytrust.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Company's website.

To Participate in the Telephone Conference Call:
Dial in at least five 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 Thursday, August 20, 2026.

Full Text of the Earnings Release

Internet -- The full text of the earnings release will be available on Thursday, August 6, 2026, at the Company's web site, www.starwoodpropertytrust.com. Mail -- For those without Internet access, the second quarter earnings release will be available by mail or fax, on request. To receive a copy, please call the Company's Investor Relations line at 203-422-7788. 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 $117 billion of capital since inception and manages a portfolio of over $31 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:
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected]

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust trades at a 13% discount to undepreciated book value, offering an 11.6% dividend yield amid market overreaction to temporary earnings noise. Q1 distributable earnings of $0.39 were impacted by transient factors; adjusted DE would have nearly covered the $0.48 dividend, with operational progress aligning with management's guidance. STWD deployed $2.5 billion in Q1 and another $1.5 billion post-quarter, grew undepreciated assets to $31.7 billion, improved credit quality, and executed buybacks below book value.

Successful fundraising in challenging environment demonstrates enthusiasm for firm's core focus on real assets globally, extensive team experience and expertise across asset classes and geographies

, /PRNewswire/ -- Starwood Capital Group ("Starwood Capital"), a leading global private investment firm, today announced the successful final closing of its latest opportunistic real estate fund, Starwood Distressed Opportunity Fund XIII ("SOF XIII"), with capital commitments in excess of $10.2 billion. Together with existing commitments to Starwood Capital's other investment vehicles, the firm's assets under management now total approximately $130 billion.

SOF XIII will continue to focus on real assets globally, with the flexibility to shift between asset classes, geographies and positions in the capital stack. SOF XIII will primarily target transactions across the United States and Europe, with selective opportunities in Asia Pacific, and a focus on a strategic mix of residential, data center, industrial and hospitality assets.

SOF XIII was supported by more than 300 new and existing investors across approximately 20 countries, demonstrating broad enthusiasm for Starwood Capital's future and its extensive investment capabilities. This diverse and sophisticated investor base includes pensions, sovereign wealth funds, foundations, endowments, wealth managers, family offices and high net worth investors. In addition, Starwood Capital Group and related parties have committed $100 million to SOF XIII.

"We are very grateful for our investors' continued strong support. This is a testament to the strength of our team and the trust our LPs place in us," said Barry Sternlicht, Chairman and CEO of Starwood Capital. "We are excited about the opportunities we have already sourced for this fund and are proud of our track record of delivering results for our investors through market cycles. With our scale, resources and breadth of talent, we are well-positioned to execute on opportunities in this compelling environment for real estate."

"We could not be more proud of our brand, our strategy and our team's capabilities, and of the results we have consistently delivered for our investors," said Jonathan Pollack, President of Starwood Capital. "With a growing team of more than 350 investment professionals and an expanding global footprint, we have the talent, scale and conviction to continue delivering great performance. We are seeing strong tailwinds driven by slowing supply in traditional real estate asset classes and tremendous growth in technology and manufacturing – this is an exciting time to be investing in real estate."

Starwood Capital has already closed or committed to 20 transactions to date in SOF XIII, committing more than $3 billion of equity. This initial portfolio highlights the firm's breadth and global footprint, with significant investments in housing, industrial and data centers in each of the United States, Europe and Asia.

About Starwood Capital Group

Starwood Capital Group is a private investment firm with a core focus on real assets globally. Since its inception in 1991, Starwood Capital Group has raised over $95 billion of capital and currently has ~$130 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving.

Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Alongside Starwood Property Trust, Starwood Capital manages over $6 billion in several private debt funds investing across the globe.

Starwood Capital's other affiliates include: Highmark Residential, a property management company; Starwood Digital Ventures, a platform dedicated to the firm's data center investment strategy; Starwood Hotels, a hotel brand management team; Essex Title, a title agent for one or more underwriters in issuing title policies and/or providing support services; and Starwood Oil & Gas, which seeks to capitalize on conventional and unconventional North American assets.

Additional information can be found at www.starwoodcapital.com, www.starwoodnav.reit, www.starwoodpropertytrust.com and www.starwoodhotels.com.

Media Contacts:

Dana Gorman / Mallory Griffin
H/Advisors – U.S.
[email protected] / [email protected]
212.371.5999

SOURCE Starwood Capital Group

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that, subject to market and other conditions, it is offering $500 million aggregate principal amount of its unsecured senior notes due 2029 (the "Notes") in a private offering.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Net proceeds allocated to previously incurred costs associated with eligible green and/or social projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds, together with cash on hand, to fund its redemption of up to all of the Company's $500 million outstanding aggregate principal amount of 4.375% Senior Notes due 2027 or for general corporate purposes, including the repayment of outstanding indebtedness under the Company's repurchase facilities.

The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act or any state securities laws.

This press release does not constitute a notice of redemption for the 4.375% Senior Notes due 2027. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 $117 billion of capital since inception and manages a portfolio of over $31 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.

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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated offering and the use of proceeds. Although the Company 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: (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions, including as a result of the impact of public health emergencies; (vii) the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states, including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations; (viii) general and local commercial and residential real estate property conditions; (ix) changes in federal government policies; (x) changes in federal, state and local governmental laws and regulations; (xi) increased competition from entities engaged in mortgage lending and securities investing activities; (xii) changes in interest rates; and (xiii) the availability of, and costs associated with, sources of liquidity.

Contact:

Starwood Property Trust
Phone: 203-422-7788
Email: [email protected]

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust (STWD) offers an 11.5% yield and trades below book value, creating a compelling income opportunity. STWD's diversified portfolio, limited office exposure, and recent net lease acquisition support distributable earnings and risk mitigation. Dividend coverage concerns are mitigated by management's clear path to improved earnings, asset resolutions, and capital deployment ramp.

Ladder Capital stands out as the top commercial mREIT pick, offering a compelling blend of yield, growth, and conservative management. LADR's diversified model, investment-grade ratings, and founder-led management drive resilience, with a covered 9.1% yield and consensus 20% growth for 2027. Starwood Property Trust is positioned as a stable, high-yield income vehicle, maintaining an 11.3% yield and conservative leverage but limited dividend growth.

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– Quarterly GAAP Earnings of $0.13 and Distributable Earnings (DE) of $0.39 per Diluted Share –

– Invested $2.5 Billion in the Quarter and $1.5 Billion After Quarter End –

–  Dividend of $0.48 per Share for Over a Decade –

– Awarded 2025 Mortgage REIT of the Year by PERE Credit –

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended March 31, 2026. The Company delivered first quarter GAAP net income of $51.9 million, and Distributable Earnings (a non-GAAP financial measure) was $147.3 million.

"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 $4.0 billion invested across our diversified portfolio year to date. As we move through 2026, we are focused on growing our earnings through disciplined origination, continued balance sheet optimization, and the best returning resolution of what we refer to as legacy assets."

"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 $117 billion of capital since inception and manages a portfolio of over $31 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 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: [email protected] 

Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the three months ended March 31, 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

$               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
For the three months ended March 31, 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.

$           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
Condensed Consolidated Balance Sheet by Segment
As of March 31, 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

$        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

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust, Inc. (STWD) Q1 2026 Earnings Call Transcript

Key Takeaways STWD shares fell about 1.7% after Q1 2026 distributable EPS of 39 cents missed the estimate of 42 cents.STWD revenue rose 22.5% year over year and topped estimates, but expenses climbed 25%.STWD reported BVPS down 4.7% and net income fell 53.7%, while fundings rose to $2.3B. Shares of Starwood Property Trust, Inc. (STWD - Free Report) lost nearly 1.7% in Friday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 distributable earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents. The reported figure also compares unfavorably with 45 cents per share in the year-ago quarter.

Results were primarily affected by a decrease in book value per share (BVPS) and an increase in expenses. Nevertheless, a year-over-year rise in revenues supported the results to some extent.

The company’s first-quarter 2026 net income (GAAP basis) was $51.9 million, which declined 53.7% year over year.

Inside Starwood Property’s HeadlinesSTWD’s total revenues were $512.4 million, up 22.5% year over year.  Also, the top line surpassed the Zacks Consensus Estimate by 6.6%.

Total costs and expenses were $480.3 million, up 25% from the prior-year quarter. The increase was primarily driven by higher interest expense, general and administrative costs, rental operations costs and depreciation and amortization.

Starwood Property’s BVPS (GAAP basis) was $17.98 as of March 31, 2026, down 4.7% from $18.87 in the prior-year quarter.

The company recorded fundings of $2.3 billion, which increased from $2 billion in the prior-year quarter.

Starwood Property’s Balance Sheet PositionAs of March 31, 2026, cash and cash equivalents were $290.3 million, down 41.9% from the prior quarter.

Loans held for sale totaled $2.3 billion, reflecting a marginal decline from the prior quarter.

Our Take on STWDStarwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should support portfolio diversification and long-term resilience. However, the decline in BVPS, despite higher revenues, indicates near-term pressure on profitability.

STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS SurpriseSTWD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITsAnnaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2026 earnings available for distribution per average share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents. The figure increased from 72 cents in the year-ago quarter.

NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, a lower economic capital ratio was concerning.

AGNC Investment Corp. (AGNC - Free Report) reported first-quarter of 2026 net spread and dollar roll income per common share of 42 cents, topping the Zacks Consensus Estimate by 16.7%. However, the metric declined 4.5% from the year-ago quarter’s 44 cents.

AGNC’s results benefited from rallies in average asset yield and NII. Also, a rise in tangible net book value per common share in the portfolio was positive. However, a reduced net interest spread and a higher weighted average cost of funds were concerning.

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has priced its private offering of $600 million aggregate principal amount of its 6.125% unsecured senior notes due 2031 (the "Notes"). The Notes priced at 100.0% of the principal amount and the settlement of the offering is expected to occur on May 26, 2026, subject to customary closing conditions.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Net proceeds allocated to previously incurred costs associated with eligible green and/or social projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds to redeem or repay the Company's $400 million outstanding aggregate principal amount of 3.625% Senior Notes due 2026 and for general corporate purposes, including the repayment of outstanding indebtedness under the Company's repurchase facilities.

The Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act or any state securities laws.

This press release does not constitute a notice of redemption for the 3.625% Senior Notes due 2026. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 $117 billion of capital since inception and manages a portfolio of over $31 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.

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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated settlement of the offering and the use of proceeds. Although the Company 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: (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions, including as a result of the impact of public health emergencies; (vii) the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states, including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations; (viii) general and local commercial and residential real estate property conditions; (ix) changes in federal government policies; (x) changes in federal, state and local governmental laws and regulations; (xi) increased competition from entities engaged in mortgage lending and securities investing activities; (xii) changes in interest rates; and (xiii) the availability of, and costs associated with, sources of liquidity.

Contact:

Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected]

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust, Inc. continues to under-earn its dividend, with coverage dropping to 81% in Q1'26, raising concerns about dividend sustainability. Despite strong new loan originations, especially in commercial and infrastructure lending, STWD's earnings appear insufficient to support its $0.48 per-share quarterly dividend. STWD now exhibits the weakest dividend coverage trajectory among major CRE finance REIT peers, with three of the last four quarters showing worsening coverage.

The Dividend Harvesting Portfolio surpassed $3,000 in forward dividend income, achieving a 7.82% yield and 41.58% return on invested capital. I am capitalizing on rate-sensitive opportunities, notably adding to Starwood Property Trust (STWD) at an 11.27% yield amid market overreaction to rate hike fears. Portfolio discipline remains: no position exceeds 5% or sector 20%, with a focus on diversifying beyond ETFs and REITs toward individual equities and energy.

Is STWD's 11.2% decline an opportunity or a warning amid rising expenses, weak liquidity and commercial real estate headwinds? Let us discuss.

The average dividend yield is pretty paltry these days. The S&P 500 recently hit its lowest yield on record at around 1%. That's making it harder for investors to find attractive stocks to buy for generating dividend income.

However, there are still some compelling income opportunities. Here are three dividend stocks with monster yields to buy this June.

Image source: Getty Images.

Ares Capital Ares Capital (ARCC +0.05%) is a business development company (BDC). As a result, it needs to distribute 90% of its taxable net income to investors via dividends to remain in compliance with IRS regulations. That required payout ratio is why the BDC currently offers a monster 10.2% yield.

A dividend yield in the double digits is often a sign of a higher risk profile. While Ares Capital is certainly a higher-risk dividend stock, its dividend has proven to be very durable over the years. Ares has delivered a stable-to-growing dividend for more than 16 consecutive years.

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Ares is currently generating more than enough income to cover its current dividend level of $0.48 per share each quarter. For example, it generated $0.47 per share of core earnings in the first quarter, along with $0.15 per share of net realized gains, bringing the combined total well above the dividend payment. Additionally, Ares estimated that it carried forward $1.38 per share of excess taxable income from last year for distribution in 2026, giving it a sizable buffer. Add in its strong financial profile, a more stable interest rate environment, and solid credit performance across its portfolio, and Ares believes the "current dividend approximates the long-run underlying earnings power of our business," stated CEO Kort Schnabel on the first-quarter conference call.

Energy Transfer Energy Transfer (ET 0.10%) is a master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form each year. MLPs are pass-through entities that typically distribute a meaningful percentage of their cash flow to investors each year. That's why the pipeline company currently yields 7%.

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The MLP generated $2.7 billion of distributable cash flow in the first quarter, easily covering the nearly $1.2 billion it distributed to investors. Energy Transfer retained the remaining cash to reinvest in the partnership. The pipeline company currently plans to invest between $5.5 billion and $5.9 billion in organic expansion projects this year, including pipeline expansions, gas processing plants, and other midstream energy infrastructure. The company currently has projects underway that should enter commercial service through 2030.

Those expansions should give Energy Transfer the fuel to continue growing its high-yielding distribution, which it has done every year since resetting its payout level in 2020 to strengthen its financial profile. The MLP is in the strongest financial position in its history, further supporting its plan to increase its payout by 3% to 5% each year.

Starwood Property Trust Starwood Property Trust (STWD 0.41%) is a real estate investment trust (REIT) primarily focused on commercial mortgage investments. REITs, like BDCs, must distribute at least 90% of their taxable net income to investors via dividends. That's why Starwood currently offers an 11.2% dividend yield.

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The REIT's focus is on providing investors with a secure dividend. Starwood has never cut its dividend and has maintained its current quarterly rate of $0.48 per share for over a decade. While Starwood's distributable earnings were below the dividend in the first quarter ($0.39 per share), it has $3.87 per share of unrealized distributable earnings from property gains to support the dividend.

Starwood has also steadily diversified its business over the years to enhance the sustainability of its dividend. In addition to investing in commercial mortgages, Starwood also invests in residential mortgages and infrastructure-backed loans and owns a growing real estate portfolio. Last year, Starwood bought Fundamental Income Properties for $2.2 billion, adding a net lease real estate investment platform to its portfolio. Net-leased real estate provides durable, growing rental income, which will help support Starwood's dividend (Fundamental's portfolio had a 17-year weighted-average lease term and 2.2% average annual rent escalations).

Boost your dividend income in June Ares Capital, Energy Transfer, and Starwood Property all currently offer monster dividend yields. They have done a solid job of sustaining their dividends over the years, which should continue. That makes them enticing dividends stocks for more risk-tolerant investors to buy this June to bolster their dividend income.

– Company Has Won Nareit's Gold Investor CARE Award in the Mortgage REIT Category 10 Times Since the Category's Introduction in 2014 –

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has received the 2026 Nareit Gold Investor CARE (Communications & Reporting Excellence) Award in the mortgage REIT category. The award, which recognizes excellence in shareholder communications and investor engagement, is presented annually to a single recipient in each category.

This marks the 10th time that Starwood Property Trust has received the award since Nareit introduced the mortgage REIT category in 2014.

"We are honored to again be recognized by Nareit for our commitment to transparency, accessibility and high-quality investor engagement," said Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust. "Providing shareholders with clear and thoughtful disclosure has always been central to our philosophy. We believe our disciplined approach, combined with direct engagement with investors and analysts, helps foster long-term trust and confidence in our platform."

Jeffrey DiModica, President of Starwood Property Trust, added, "The consistency with which we have earned this recognition reflects the strength of our investor relations efforts across market cycles. We remain committed to providing timely, transparent and thoughtful communication to all of our stakeholders as we continue to grow and evolve our diversified platform."

The Nareit Investor CARE Awards recognize listed REITs that demonstrate excellence in communicating and reporting to shareholders, with judging criteria spanning investor presentations, SEC filings, earnings calls, corporate websites and overall investor relations practices.

This recognition follows another recent industry honor, as Starwood Property Trust was also named Mortgage REIT of the Year by PERE Credit as part of the publication's 2025 PERE Credit Awards, which recognize leading firms and transactions across the real estate private credit industry.

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 $117 billion of capital since inception and manages a portfolio of over $31 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:
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected] 

SOURCE Starwood Property Trust, Inc.