Key Highlights

  • Distributable Earnings were $0.31 per share in the third quarter of 2026, or $0.41 excluding realized gains and losses from commercial lending resolutions.
  • Total revenues were $545.9 million, against $488.9 million in the third quarter of 2025.
  • Diluted loss per share was $1.08, against earnings of $0.19 a year earlier.
  • The company resolved $254 million of nonaccrual loans and real estate owned Assets in the quarter.
  • Undepreciated Book Value was $17.22 per share.

Starwood Property Trust (NYSE:STWD) reported third-quarter 2026 results on Friday before the market opened. Distributable earnings (DE) were $0.31 per share, or $0.41 excluding realized gains and losses from commercial lending resolutions, a measure the company added to its supplement and 10-Q this quarter. Market data listed earnings of $0.41 per share against an estimate of $0.27 and Revenue of $545.85 million against an estimate of $531.80 million.

Total revenues were $545.9 million, against $488.9 million. Diluted loss per share on a GAAP basis was $1.08, against earnings of $0.19 in the third quarter of 2025.

Reserves, Resolutions and Book Value

The company resolved $254 million of nonaccrual loans and real estate owned (REO), including the sale of two multifamily REO assets and two units in a New York City residential project, all in cash. It returned the final $108 million portion of a formerly 4-rated Brooklyn office Loan to accrual.

Starwood holds $1 billion of reserves against nonaccrual and REO assets after recording an increase of $369 million in the quarter, which it attributed to third-party modeled macroeconomic conditions that worsened as rates rose. The reserves, $822 million of CECL and $217 million of REO reserves, equal $2.85 per share and are reflected in the undepreciated book value of $17.22. Book value also reflects a $0.24 reduction from the effect of higher rates on the Fair Value of fixed-to-floating swaps on corporate debt.

Investment Activity and Segments

The company invested $3.2 billion across its platform in the quarter, including $2.4 billion in commercial lending, and $8.2 billion year to date. The commercial lending portfolio reached $17.8 billion, and total undepreciated assets reached $32.3 billion. Residential lending loans were $2.2 billion, and the infrastructure lending portfolio ended at $3.1 billion.

In the Woodstar affordable multifamily portfolio of about 15,000 units, HUD rent increases averaging 8.9% took effect July 1. The net Lease portfolio stands at $2.8 billion across 34 properties in 44 states. LNR generated $37 million of special servicing fees.

Liquidity and Capital Return

Liquidity was $1.1 billion, and the Debt to undepreciated Equity ratio was 3.15x. In July, Starwood repaid $500 million of corporate debt at its first par call date. It repurchased $108 million of common stock in the quarter and $138 million year to date.