third quarter 2026
Filed Nov 6, 2026Starwood Property Trust Reports Results for Quarter Ended September 30, 2026 – Quarterly GAAP Loss of $1.08, Distributable Earnings (DE) of $0.31 and DE Prior to Realized Commercial Lending Gains and Losses of $0.41 per Diluted Share
The company reported a quarterly GAAP net loss of $389.7 million, driven by a $336.6 million credit loss provision and $32.2 million of non-cash property impairments, while reporting $116.8 million of Distributable Earnings and deploying $3.2 billion during the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $545.9M | – | – |
| Total costs and expenses, three months ended September 30, 2026GAAP | $839.7M | – | – |
| Credit loss provision, net, three months ended September 30, 2026GAAP | $336.6M | – | – |
| Total other loss income, three months ended September 30, 2026GAAP | −$90.35M | – | – |
| Income tax benefit, three months ended September 30, 2026GAAP | $3.07M | – | – |
| Net loss attributable to Starwood Property Trust, Inc., three months ended September 30, 2026GAAP | −$389.7M | – | – |
| Quarterly GAAP LossGAAP | $1.08 | – | – |
| Distributable Earnings, three months ended September 30, 2026non-GAAP | $116.8M | – | – |
| Distributable Earnings per weighted average diluted share, three months ended September 30, 2026non-GAAP | $ 0.31 | – | – |
| Distributable Earnings prior to realized commercial lending gains and losses, three months ended September 30, 2026non-GAAP | $155.2M | – | – |
| Distributable Earnings prior to realized commercial lending gains and losses per weighted average diluted share, three months ended September 30, 2026non-GAAP | $ 0.41 | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $1.57B | – | – |
| Total costs and expenses, nine months ended September 30, 2026GAAP | $1.84B | – | – |
| Credit loss provision, net, nine months ended September 30, 2026GAAP | $366.4M | – | – |
| Net loss attributable to Starwood Property Trust, Inc., nine months ended September 30, 2026GAAP | −$331.3M | – | – |
| Distributable Earnings, nine months ended September 30, 2026non-GAAP | $415.5M | – | – |
| Distributable Earnings per weighted average diluted share, nine months ended September 30, 2026non-GAAP | $ 1.09 | – | – |
| Distributable Earnings prior to realized commercial lending gains and losses, nine months ended September 30, 2026non-GAAP | $458.7M | – | – |
| Distributable Earnings prior to realized commercial lending gains and losses per weighted average diluted share, nine months ended September 30, 2026non-GAAP | $ 1.21 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial and Residential Lending Segment, three months ended September 30, 2026Reported total revenues include interest income from loans of $ 341,142 (Amounts in thousands). | $377.5M | – | – |
| Infrastructure Lending Segment, three months ended September 30, 2026Reported total revenues include interest income from loans of $ 66,654 (Amounts in thousands). | $70.51M | – | – |
| Property Segment, three months ended September 30, 2026Reported total revenues include rental income of $ 68,340 (Amounts in thousands). | $68.46M | – | – |
| Investing and Servicing Segment, three months ended September 30, 2026Reported total revenues include servicing fees of $ 36,899 (Amounts in thousands) and interest income from investment securities of $ 22,206 (Amounts in thousands). | $66.41M | – | – |
| Commercial and Residential Lending Segment, nine months ended September 30, 2026Reported total revenues include interest income from loans of $ 978,607 (Amounts in thousands). | $1.09B | – | – |
| Infrastructure Lending Segment, nine months ended September 30, 2026Reported total revenues include interest income from loans of $ 195,083 (Amounts in thousands). | $202.8M | – | – |
| Property Segment, nine months ended September 30, 2026Reported total revenues include rental income of $ 193,010 (Amounts in thousands). | $193.9M | – | – |
| Investing and Servicing Segment, nine months ended September 30, 2026Reported total revenues include servicing fees of $ 108,994 (Amounts in thousands) and interest income from investment securities of $ 68,309 (Amounts in thousands). | $199.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased $108 million of common shares in the quarter.
- Dividend of $0.48 per share.
- Dividends payable: $ 177,717 (Amounts in thousands) as of September 30, 2026.
What drove it
- Investments included $2.4 billion in Commercial Lending, bringing the portfolio to a record $17.8 billion.
- The company stated that it has deployed $8.2 billion into its various business lines through the first 9 months of the year.
- Fitch reaffirmed their highest rating for LNR’s Commercial Special Servicer (CSS1).
- As of September 30, 2026, the company stated it had successfully deployed $123 billion of capital since inception and manages a portfolio of $32 billion across debt and equity investments.
Concerns
- Third-quarter GAAP net loss was inclusive of a $336.6 million credit loss provision and $32.2 million of non-cash property impairments.
- Change in fair value of mortgage loans, net was $ (121,638) (Amounts in thousands) for the three months ended September 30, 2026.
- Loss on sale of investments and other assets, net was $ (11,435) (Amounts in thousands) for the three months ended September 30, 2026.
- Corporate net loss was $ (234,862) (Amounts in thousands) for the three months ended September 30, 2026.
- The company stated that borrowers are feeling the pain of higher interest costs.
What to watch
- Resolution of underperforming assets and loans. The company stated that it still expects to resolve almost half of the underperforming assets it started the year with.
- Future credit loss provisions and changes in fair value of mortgage loans.
- Deployment of capital across the diversified businesses following $3.2 billion of quarterly investment activity.
- The effect of higher interest rates and the sharply higher forward yield curve on borrowers and rate-sensitive sectors.
- Dividend coverage, as management and the Board consider Distributable Earnings and Distributable Earnings prior to realized commercial lending gains and losses when evaluating performance and determining the dividend.
Balance sheet and cash flow
- Cash and cash equivalents: $ 391,935 (Amounts in thousands) as of September 30, 2026.
- Restricted cash: $ 320,814 (Amounts in thousands) as of September 30, 2026.
- Loans held-for-investment, net: $ 19,969,078 (Amounts in thousands) as of September 30, 2026.
- Loans held-for-sale: $ 2,055,638 (Amounts in thousands) as of September 30, 2026.
- Total Assets: $ 57,955,110 (Amounts in thousands) as of September 30, 2026.
- Secured financing agreements, net: $ 15,348,812 (Amounts in thousands) as of September 30, 2026.
- Securitized financing, net: $ 4,500,786 (Amounts in thousands) as of September 30, 2026.
- Unsecured senior notes, net: $ 4,481,280 (Amounts in thousands) as of September 30, 2026.
- Total Liabilities: $ 51,434,456 (Amounts in thousands) as of September 30, 2026.
- Total Starwood Property Trust, Inc. Stockholders’ Equity: $ 5,835,660 (Amounts in thousands) as of September 30, 2026.
- Invested $3.2 billion in the quarter and $8.2 billion in the 9 months.
- Completed approximately $2.1 billion of financing transactions at rates and spreads below those available today.
Analysis
Starwood Property Trust reported a third-quarter GAAP net loss attributable to Starwood Property Trust, Inc. of $ (389,708) (Amounts in thousands), despite total revenues of $ 545,853 (Amounts in thousands). The release attributes the quarterly GAAP net loss to a $336.6 million credit loss provision and $32.2 million of non-cash property impairments. The quarterly statement also reported a $ (121,638) (Amounts in thousands) change in fair value of mortgage loans, net, and total other loss income of $ (90,351) (Amounts in thousands).
Non-GAAP earnings remained positive. Distributable Earnings were $ 116,770 (Amounts in thousands), or $ 0.31 per weighted average diluted share, while Distributable Earnings prior to realized commercial lending gains and losses were $ 155,167 (Amounts in thousands), or $ 0.41 per weighted average diluted share. The difference reflects $ 38,397 (Amounts in thousands) of realized losses on foreclosed property sales in the reconciliation.
Commercial and Residential Lending was the largest revenue contributor, reporting $ 377,533 (Amounts in thousands) of total revenues in the quarter, including $ 341,142 (Amounts in thousands) of interest income from loans. Infrastructure Lending reported $ 70,512 (Amounts in thousands), Property reported $ 68,457 (Amounts in thousands), and Investing and Servicing reported $ 66,410 (Amounts in thousands). The company invested $3.2 billion during the quarter, including $2.4 billion in Commercial Lending, and said this brought the portfolio to a record $17.8 billion.
Capital allocation included repurchases of $108 million of common shares during the quarter and a dividend of $0.48 per share. As of September 30, 2026, cash and cash equivalents were $ 391,935 (Amounts in thousands), while secured financing agreements, net were $ 15,348,812 (Amounts in thousands), securitized financing, net were $ 4,500,786 (Amounts in thousands), and unsecured senior notes, net were $ 4,481,280 (Amounts in thousands). Management also stated it completed approximately $2.1 billion of financing transactions earlier in the year.
For the nine months ended September 30, 2026, total revenues were $ 1,571,977 (Amounts in thousands), net loss attributable to Starwood Property Trust, Inc. was $ (331,273) (Amounts in thousands), and Distributable Earnings were $ 415,547 (Amounts in thousands), or $ 1.09 per weighted average diluted share. No quantitative forward guidance was provided. The central reported issues are the pace of resolutions in underperforming assets and loans, borrower pressure from higher interest costs, and the evolution of credit losses and mortgage-loan fair values.
Management, verbatim
Through the first 9 months of the year, we have deployed $8.2 billion into our various business lines at very attractive risk adjusted returns. In addition, we still expect to resolve almost half of the underperforming assets we started the year with. Although our borrowers are feeling the pain of higher interest costs, our balance sheet and liquidity remain very strong.
Barry Sternlicht, Chairman and CEO of Starwood Property Trust
We took advantage of favorable market conditions earlier this year, before the significant rate rise, to proactively refinance and extend our corporate debt. We completed approximately $2.1 billion of financing transactions at rates and spreads below those available today.
Jeffrey DiModica, President of Starwood Property Trust
Not in the filing
stated, not guessed- Prior-year comparative figures for all reported quarterly and nine-month metrics.
- Prior-quarter comparative figures for all reported quarterly metrics.
- Year-over-year and sequential percentage changes for revenues, segments, earnings, margins, cash flow and balance-sheet metrics.
- GAAP diluted EPS row in the financial statements beyond the headline’s Quarterly GAAP Loss of $1.08.
- Gross margin.
- Operating income or loss.
- Operating cash flow.
- Free cash flow.
- Quantitative forward guidance for revenue, expenses, tax rate, earnings, investments, dividend or any other metric.
- Previous outlook section or prior guidance for comparison.
- Cash flow statement and financing cash-flow details.
- Share count or weighted average diluted share count.
- Debt maturities, interest rates and liquidity availability.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.