Highlights

  • Second quarter 2026 GAAP net income attributable to Starwood fell to $6.6 million, or $0.01 per share, from $129.8 million.
  • Non-GAAP Distributable Earnings were $151.5 million, or $0.40 per diluted share, versus $0.43 per share a year earlier.
  • The credit loss provision rose to $30.2 million, and the report lists commercial and residential loans on nonaccrual.
  • Starwood originated or acquired $1.4 billion of commercial loans, declared a $0.48 dividend and kept $370.1 million of repurchase capacity.

Starwood Property Trust, Inc. (NYSE:STWD) shares were trading near their 52-week low at USD 12.20 on October 21, 2026, up 0.04%. The real estate finance company originated $1.4 billion of commercial loans in the second quarter of 2026, issued $500 million of senior notes in July, and filed its quarterly report on August 6.

Based in Miami Beach, Florida, Starwood is a Maryland corporation that commenced operations in August 2009 on completing its initial public offering. It focuses on originating, acquiring, financing and managing mortgage loans and other real estate investments in the United States, Europe and Australia. It reports four segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing, the last of which includes a U.S. special servicing business. It has elected to be taxed as a real estate investment trust. Its fiscal year ends December 31.

Earnings Fall Against the Prior-Year Quarter

Total revenues for the three months ended June 30, 2026 were $513.7 million, up from $444.3 million. Rental income rose to $87.9 million from $28.2 million, and interest income from loans was $398.4 million versus $385.2 million. Total costs and expenses were $524.8 million, including interest expense of $344.6 million and depreciation and amortization of $35.3 million, up from $10.4 million. Other income was $32.3 million, compared with $121.6 million a year earlier. Net income was $15.0 million, and after $8.4 million attributable to non-controlling interests, net income attributable to Starwood was $6.6 million, against $129.8 million in the second quarter of 2025. Six-month net income attributable to Starwood was $58.4 million, or $0.15 per share, versus $242.1 million, or $0.71.

Distributable Earnings were $151.5 million, or $0.40 per diluted share, up from $147.3 million and $0.39 in the first quarter of 2026 but below the $0.43 per share reported for the second quarter of 2025. The Commercial and Residential Lending segment contributed $185.7 million, Infrastructure Lending $27.1 million, Property $34.2 million and Investing and Servicing $42.4 million, partly offset by a corporate loss of $137.9 million.

Credit Quality, Lending Activity and Capital

The credit loss provision was $30.2 million, compared with $5.7 million a year earlier. At June 30, three commercial loans with an amortized cost of $649.5 million and $93.5 million of residential loans were 90 days or more past due. All were on nonaccrual except a $274.3 million commercial loan, where the company had bought the remaining senior interest to preserve its rights as mezzanine lender. Four more commercial loans totaling $438.2 million were on nonaccrual, and two loans totaling $40.4 million were deemed credit deteriorated. Loan credit loss allowances stood at $419.2 million, down from $440.8 million at year-end. In 2026 Starwood also foreclosed on multifamily properties in Phoenix and Dallas.

Lending continued. Infrastructure Lending committed $440.8 million of new loans and bonds. The Property segment bought 16 net lease properties for $179.0 million and opened a $1.0 billion warehouse facility, half of it committed. Starwood declared a dividend of $0.48 per share for the quarter and repurchased 581,795 shares for $10.0 million, leaving $370.1 million under a $400.0 million authorization covering shares and convertible notes.

Debt Refinancing After Quarter End

In July 2026 the company issued $500.0 million of 5.875% senior notes due August 15, 2029 and used the proceeds to redeem its $500.0 million of 2027 notes, recognizing a $6.3 million derivative loss. It also repaid $400.0 million of notes at maturity on July 15, refinanced net lease properties with $321.0 million of asset-backed financing at a weighted average 5.47%, redeemed two CLO financings of $279.9 million and $299.2 million, and increased a commercial credit facility by $1.2 billion to $3.0 billion. The report gives no earnings guidance. The company projects $4.9 billion of loan repayments through the second quarter of 2027 against $4.3 billion of financing repayments.