JP Morgan maintains Starwood Property Trust at Overweight, lowers price target to $15.50 from $16

UBS kept its Buy rating on Starwood Property Trust but reduced its price target from $20 to $16, a 20% cut. The new target suggests a 35.7% upside from the Nov 11 closing price of $11.79, according to UBS.

Starwood Property Trust reported a Q3 loss of $389.7M, compared to a $72.6M profit a year earlier, due to a $336.6M credit loss provision and a $121.6M fair-value loss on loans. The company is resolving legacy loans, targeting $800M by 2026, while originating $2.4B in commercial loans. Shares are down 32% this year, and distributable earnings fell to $116.8M from $151.5M in Q2.

Starwood Property Trust (STWD) reported Q3 earnings, noting higher interest rates increased borrowers' costs and reserves. Loans rated four and five rose by $290M and $440M, respectively, with downgrades involving pre-2023 loans, mostly multifamily properties. The company resolved $254M in non-accrual loans and real estate, including property sales and loan restructurings. STWD invested $3.2B, with commercial lending reaching $17.8B.

Starwood Property Trust reported a $369M increase in reserves due to rising interest rates, not asset defaults. The company resolved $254M in non-accrual assets, targeting $800M for 2026. Management sees high rates as a long-term catalyst for real estate. The Woodstar portfolio achieved an 'infinite return' via refinancings. Over 2/3 of $2.8B in repayments came from pre-2023 loans. Management is discussing a dividend reduction and evaluating M&A or spin-offs to unlock value.

Starwood Property Trust (STWD) reported Q3 2026 earnings with distributable earnings of $0.31 per share (or $0.41 excluding commercial lending resolutions). GAAP net loss was $389.7M, including credit loss provisions. The company deployed $3.2B in investments and repurchased $108M in stock. Management discussed potential dividend adjustments and market challenges due to rising interest rates.

Starwood Property Trust reported a Q3 2026 net loss of $389.7M, down from $72.6M net income in Q3 2025. Distributable earnings fell to $116.8M. Stock dropped 3% to $12.36, down 32% YTD. Losses attributed to $336.6M credit loss provision and $121.6M net fair-value loss on mortgage loans. CEO Sternlicht remains optimistic about CRE fundamentals and the firm's $32.3B enterprise value.