- 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 -
MIAMI BEACH, Fla., May 8, 2026 /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: ztanenbaum@starwood.com
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 Infrastructure Property Investing Corporate Subtotal Securitization Total
Residential Lending Segment and
Servicing VIEs
Lending Segment Segment
Segment
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 Infrastructure Property Investing Corporate Total
Residential Lending Segment and Servicing
Lending Segment Segment
Segment
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 Infrastructure Property Investing Corporate Subtotal Securitization Total
Residential Lending Segment and Servicing VIEs
Lending Segment Segment
Segment
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
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SOURCE Starwood Property Trust, Inc.
