- GAAP EPS of $0.26 for the Quarter and $1.15 for the Year and Distributable EPS for the Quarter of $0.42 and $1.69 for the Year -
- Invested $12.7 Billion for the Year, Including $2.5 Billion in the Quarter; Second Largest Investment Year -
- Executed a Record $4.4Billion of Capital Transactions in 2025 -
- Current Liquidity of $1.4 Billion -
- Consistent Dividend of $0.48 per Share for Over a Decade -
MIAMI BEACH, Fla., Feb. 25, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2025. The Company delivered fourth quarter GAAP net income of $96.9 million, and Distributable Earnings (a non-GAAP financial measure) was $159.5 million. The Company's full year GAAP net income was $411.5 million, and Distributable Earnings was $615.5 million.
"2025 was a transition year for Starwood Property Trust. The good news is that the pieces remain in place to outperform for our shareholders in the long run. Our core businesses are positioned and are performing exceptionally well with notable progress across global commercial lending, infrastructure lending, conduit and special servicing, each delivering incredibly strong results for the year. Additionally, our residential lending portfolio increased in value over the year with the decline in rates," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust.
"As major STWD shareholders ourselves, we have chosen to take the long view of how best to earn stable and attractive long-term returns for our shareholders. In this vein, despite the dilution we knew we would experience when we acquired the Fundamental net lease business, we were excited to add an earnings generator with reliable cash flows, driven by more than 17 years of lease duration and 2.3% contractual rent increases each year, which will be accretive long-term. We also increased our securitization pace across businesses and completed takeout refinancings, which led to higher than normal cash levels during the year. As we deploy this cash across our business lines, invest the committed but unfunded loan capital, scale our net lease business, and bring back the earnings power embedded in the nonaccrual and REO assets, we are confident in our ability to raise earnings in the future. We are real estate investors first and have proven our ability to add value to assets once they are in our control. We therefore are confident we have substantial earnings power built into our diversified company that will move us forward into a bright future," Mr. Sternlicht continued.
"Starwood Property Trust's proven and consistent access to the capital markets continues to differentiate our platform," added Jeffrey DiModica, President of Starwood Property Trust. "We repositioned our balance sheet this year with extended duration and lower spreads, executing a record $4.4 billion of equity, unsecured debt and term loan debt, further strengthening our best-in-class balance sheet while maintaining our conservative leverage profile. We also completed or priced four securitizations, including our fourth commercial lending CLO, our sixth and seventh infrastructure CLOs, and our first Fundamental ABS transaction at record-tight spreads for that platform, positioning each of these businesses for further growth and positioning us to act quickly on compelling opportunities globally."
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 Wednesday, February 25, 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: 13758021
The playback can be accessed through March 11, 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 December 31, 2025, the Company has successfully deployed $115 billion of capital since inception and manages a portfolio of over $30 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.
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.
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 December 31, 2025
(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 $311,500 $69,153 $43 $3,225
$ - $383,921
$ - $383,921
Interest income from investment securities 15,332 197 24,543 40,072 (35,506) 4,566
Servicing fees 112 37,726 37,838 (6,047) 31,791
Rental income 6,298 57,100 4,088 67,486 67,486
Other revenues 1,997 909 651 1,183 444 5,184 5,184
Total revenues 335,239 70,259 57,794 70,765 444 534,501 (41,553) 492,948
Costs and expenses:
Management fees 172 33,254 33,426 33,426
Interest expense 155,129 39,550 29,054 6,626 103,687 334,046 (198) 333,848
General and administrative 15,180 5,497 8,572 24,440 4,378 58,067 58,067
Costs of rental operations 4,861 7,551 3,070 15,482 15,482
Depreciation and amortization 2,841 10 26,558 1,422 251 31,082 31,082
Credit loss provision (reversal), net 11,142 (798) 10,344 10,344
Other expense 55 58 15 38 166 166
Total costs and expenses 189,380 44,317 71,750 35,596 141,570 482,613 (198) 482,415
Other income (loss):
Change in net assets related to consolidated VIEs - 42,052 42,052
Change in fair value of servicing rights - 1,617 1,617 (859) 758
Change in fair value of investment securities, net 1,972 (2,433) (461) 682 221
Change in fair value of mortgage loans, net 30,574 13,228 43,802 43,802
Income from affordable housing fund investments - 37,604 37,604 37,604
Earnings from unconsolidated entities - 3,641 560 4,201 (520) 3,681
Gain (loss) on sale of investments and other assets, net 165 (1) 10,060 10,224 10,224
Gain (loss) on derivative financial instruments, net 12,688 50 3,886 (303) (8,418) 7,903 7,903
Foreign currency gain (loss), net 6,900 (292) (1) 6,607 6,607
Loss on extinguishment of debt (326) (1,893) (90) (2,309) (2,309)
Other (loss) income, net (29,009) (763) 1 (29,771) (29,771)
Total other income (loss) 22,964 1,506 40,725 22,640 (8,418) 79,417 41,355 120,772
Income (loss) before income taxes 168,823 27,448 26,769 57,809 (149,544) 131,305 131,305
Income tax provision (10,066) (299) (1,850) (6,724) (18,939) (18,939)
Net income (loss) 158,757 27,149 24,919 51,085 (149,544) 112,366 112,366
Net income attributable to non-controlling interests (5) (10,712) (4,734) (15,451) (15,451)
Net income (loss) attributable to Starwood Property Trust, Inc. $158,752 $27,149 $14,207 $46,351 $(149,544) $96,915
$ - $96,915
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 Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding Distributable Earnings.
Reconciliation of Net Income to Distributable Earnings
For the three months ended December 31, 2025
(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. $158,752 $27,149 $14,207 $46,351 $(149,544) $96,915
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units - 4,629 4,629
Non-controlling interests attributable to unrealized gains/losses - (1,986) 6,650 4,664
Non-cash equity compensation expense 2,842 738 1,999 1,491 5,554 12,624
Management incentive fee - 3,502 3,502
Depreciation and amortization 2,877 27,071 1,523 31,471
Straight-line rent adjustment - (460) 22 (438)
Interest income adjustment for loans and securities 5,457 8,023 13,480
Consolidated income tax provision (benefit) associated with fair value adjustments 10,066 299 (34) 6,724 17,055
Other non-cash items 5 (82) (542) (619)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans (30,574) (13,228) (43,802)
Credit loss provision (reversal), net 11,142 (798) 10,344
Securities (1,972) 2,433 461
Woodstar Fund investments - (37,604) (37,604)
Derivatives (12,688) (50) (3,886) 303 8,418 (7,903)
Foreign currency (6,900) 292 1 (6,607)
Earnings from unconsolidated entities - (3,641) (560) (4,201)
Sales of properties - (10,060) (10,060)
Impairment of properties 26,766 26,766
Recognition of Distributable realized gains / (losses) on:
Loans (879) 13,188 12,309
Securities (594) (19,930) (20,524)
Woodstar Fund investments - 47,297 47,297
Derivatives 12,336 37 (2,012) (137) (6,554) 3,670
Foreign currency (793) 134 (2) (661)
Earnings from unconsolidated entities - 3,128 457 3,585
Sales of properties - 3,192 3,192
Distributable Earnings (Loss) $175,843 $27,288 $49,138 $45,900 $(138,624) $159,545
Distributable Earnings (Loss) per Weighted Average Diluted Share $0.46 $0.07 $0.13 $0.12 $(0.36) $0.42
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the year ended December 31, 2025
(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 $1,231,288 $272,282 $289 $14,650
$ - $1,518,509
$ - $1,518,509
Interest income from investment securities 78,961 649 97,824 177,434 (142,973) 34,461
Servicing fees 369 106,533 106,902 (20,359) 86,543
Rental income 27,266 135,255 19,919 182,440 182,440
Other revenues 9,854 3,855 1,472 5,387 1,768 22,336 22,336
Total revenues 1,347,738 276,786 137,016 244,313 1,768 2,007,621 (163,332) 1,844,289
Costs and expenses:
Management fees 701 136,564 137,265 137,265
Interest expense 682,813 155,212 71,400 29,341 339,031 1,277,797 (810) 1,276,987
General and administrative 59,545 20,979 17,323 93,152 17,810 208,809 208,809
Costs of rental operations 21,017 26,225 13,559 60,801 60,801
Depreciation and amortization 11,779 39 59,479 6,679 1,005 78,981 78,981
Credit loss provision, net 15,851 3,519 19,370 19,370
Other expense 103 4,104 (61) 203 4,349 4,349
Total costs and expenses 791,809 183,853 174,366 142,934 494,410 1,787,372 (810) 1,786,562
Other income (loss):
Change in net assets related to consolidated VIEs - 154,758 154,758
Change in fair value of servicing rights - 7,398 7,398 (1,508) 5,890
Change in fair value of investment securities, net 8,422 (16,803) (8,381) 10,568 2,187
Change in fair value of mortgage loans, net 122,117 62,323 184,440 184,440
Income from affordable housing fund investments - 46,953 46,953 46,953
Earnings from unconsolidated entities 2,708 3,892 9,249 15,849 (1,296) 14,553
Gain (loss) on sale of investments and other assets, net 32,875 (22) 10,060 42,913 42,913
(Loss) gain on derivative financial instruments, net (155,014) 38 (4,196) (1,385) 33,289 (127,268) (127,268)
Foreign currency gain (loss), net 112,778 364 (198) 112,944 112,944
Gain (loss) on extinguishment of debt, net 20,447 (2,676) (90) 17,681 17,681
Other (loss) income, net (32,589) (2,805) 2,428 (32,966) (32,966)
Total other income 111,744 1,618 39,732 73,180 33,289 259,563 162,522 422,085
Income (loss) before income taxes 667,673 94,551 2,382 174,559 (459,353) 479,812 479,812
Income tax provision (12,297) (110) (1,844) (22,468) (36,719) (36,719)
Net income (loss) 655,376 94,441 538 152,091 (459,353) 443,093 443,093
Net income attributable to non-controlling interests (15) (25,488) (6,046) (31,549) (31,549)
Net income (loss) attributable to Starwood Property Trust,
Inc. $655,361 $94,441 $(24,950) $146,045 $(459,353) $411,544
$ - $411,544
Reconciliation of Net Income to Distributable Earnings
For the year ended December 31, 2025
(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. $655,361 $94,441 $(24,950) $146,045 $(459,353) $411,544
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units - 18,546 18,546
Non-controlling interests attributable to unrealized gains/losses - (13,066) 272 (12,794)
Non-cash equity compensation expense 11,318 2,794 3,780 5,582 30,620 54,094
Management incentive fee - 13,746 13,746
Depreciation and amortization 12,023 60,616 7,085 79,724
Straight-line rent adjustment - (153) 126 (27)
Interest income adjustment for loans and securities 23,300 39,750 63,050
Consolidated income tax provision (benefit) associated with fair value adjustments 12,297 110 (40) 22,468 34,835
Other non-cash items 15 (328) (1,761) (2,074)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans (122,117) (62,323) (184,440)
Credit loss provision, net 15,851 3,519 19,370
Securities (8,422) 16,803 8,381
Woodstar Fund investments - (46,953) (46,953)
Derivatives 155,014 (38) 4,196 1,385 (33,289) 127,268
Foreign currency (112,778) (364) 198 (112,944)
Earnings from unconsolidated entities (2,708) (3,892) (9,249) (15,849)
Sales of properties (5,223) 21 (10,060) (15,262)
Impairment of properties 26,766 26,766
Recognition of Distributable realized gains / (losses) on:
Loans (2,435) 61,175 58,740
Securities (1,355) (35,012) (36,367)
Woodstar Fund investments - 110,569 110,569
Derivatives 70,004 186 (1,722) (1,925) (27,955) 38,588
Foreign currency 1,554 219 (199) 1,574
Earnings from unconsolidated entities 2,708 2,801 10,116 15,625
Sales of properties (43,343) (25) 3,192 (40,176)
Distributable Earnings (Loss) $687,830 $99,776 $110,490 $193,669 $(476,231) $615,534
Distributable Earnings (Loss) per Weighted Average Diluted Share $1.89 $0.27 $0.30 $0.53 $(1.30) $1.69
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet by Segment
As of December 31, 2025
(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 $74,534 $198,031 $70,900 $25,149 $130,866 $499,480
$ - $499,480
Restricted cash 123,215 33,794 3,236 454 14,468 175,167 175,167
Loans held-for-investment, net 16,038,333 2,824,379 18,862,712 18,862,712
Loans held-for-sale 2,278,067 45,476 2,323,543 2,323,543
Investment securities 641,893 31,273 1,284,863 1,958,029 (1,657,029) 301,000
Properties, net 732,714 2,674,276 41,662 3,448,652 3,448,652
Investments of consolidated affordable housing fund - 1,727,499 1,727,499 1,727,499
Investments in unconsolidated entities 8,514 57,997 33,203 99,714 (14,962) 84,752
Goodwill - 119,409 140,437 259,846 259,846
Intangible assets, net 2,817 401,268 69,227 473,312 (37,253) 436,059
Derivative assets 27,157 201 18,455 45,813 45,813
Accrued interest receivable 157,116 4,424 442 562 135 162,679 162,679
Other assets 193,525 4,623 107,468 5,454 51,921 362,991 362,991
VIE assets, at fair value - 34,493,164 34,493,164
Total Assets $20,277,885 $3,273,930 $4,985,089 $1,646,688 $215,845 $30,399,437 $32,783,920 $63,183,357
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities $165,317 $32,732 $113,707 $60,423 $127,571 $499,750
$ - $499,750
Related-party payable - 31,662 31,662 31,662
Dividends payable - 180,413 180,413 180,413
Derivative liabilities 72,351 11,632 83,983 83,983
Secured financing agreements, net 8,637,246 719,942 596,906 517,897 2,226,843 12,698,834 (19,886) 12,678,948
Securitized financing, net 2,224,239 1,645,536 1,261,678 5,131,453 5,131,453
Unsecured senior notes, net - 4,283,836 4,283,836 4,283,836
VIE liabilities, at fair value - 32,803,806 32,803,806
Total Liabilities 11,099,153 2,398,210 1,972,291 578,320 6,861,957 22,909,931 32,783,920 55,693,851
Temporary Equity: Redeemable non-controlling interests - 364,118 364,118 364,118
Permanent Equity:
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock - 3,780 3,780 3,780
Additional paid-in capital 2,434,975 521,717 365,416 (814,760) 4,449,868 6,957,216 6,957,216
Treasury stock - (138,022) (138,022) (138,022)
Retained earnings (accumulated deficit) 6,732,082 354,003 2,077,439 1,759,196 (10,961,738) (39,018) (39,018)
Accumulated other comprehensive income 11,560 11,560 11,560
Total Starwood Property Trust, Inc. Stockholders' Equity 9,178,617 875,720 2,442,855 944,436 (6,646,112) 6,795,516 6,795,516
Non-controlling interests in consolidated subsidiaries 115 205,825 123,932 329,872 329,872
Total Permanent Equity 9,178,732 875,720 2,648,680 1,068,368 (6,646,112) 7,125,388 7,125,388
Total Liabilities and Equity $20,277,885 $3,273,930 $4,985,089 $1,646,688 $215,845 $30,399,437 $32,783,920 $63,183,357
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SOURCE Starwood Property Trust, Inc.
