Starwood Property Trust

Starwood Property Trust (STWD) Q2 2025 Earnings

Reported Aug 7, 2025 at 6:55 AM ET · SEC Source

Q2 25 EPS

$0.38

MISS 0.47%

Est. $0.38

Q2 25 Revenue

$444.3M

MISS 4.61%

Est. $465.8M

vs S&P Since Q2 25

-27.4%

TRAILING MARKET

STWD -8.4% vs S&P +19.1%

Market Reaction

Did STWD Beat Earnings? Q2 2025 Results

Starwood Property Trust delivered a mixed second quarter, falling short on both the top and bottom lines as revenue slid 9.3% year over year to $444.28 million, missing the $465.77 million consensus by 4.61%, while earnings of $0.38 per diluted share… Read more Starwood Property Trust delivered a mixed second quarter, falling short on both the top and bottom lines as revenue slid 9.3% year over year to $444.28 million, missing the $465.77 million consensus by 4.61%, while earnings of $0.38 per diluted share came in just below the $0.38 estimate. The headline softness, however, was offset by a strategically consequential quarter defined by the $2.20 billion acquisition of Fundamental Income Properties, a fully integrated net lease platform that CEO Barry Sternlicht described as a pivotal diversification move, reducing commercial real estate lending from its historically dominant share to roughly half of the asset base. Capital deployment reached $3.20 billion in Q2 alone, bringing the first-half 2025 total to $5.50 billion, already ahead of the full-year 2024 figure. Looking ahead, management pointed to $5.00 billion in unencumbered assets, over $1.40 billion in unrealized property gains, and no near-term debt maturities as foundations for continued growth, with the net lease vertical expected to generate stable recurring cash flows and meaningful earnings contribution.

Key Takeaways

  • $3.2 billion in capital deployed during Q2 2025, $5.5 billion in the first half surpassing full-year 2024 levels
  • Commercial and Residential Lending segment generated $168.7 million net income, the largest segment contributor
  • Investing and Servicing segment contributed $46.3 million in net income
  • Distributable Earnings of $0.43 per diluted share exceeded GAAP EPS of $0.38
  • Interest income from loans of $385.2 million was the largest revenue component
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STWD YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

STWD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We have continued to demonstrate the strength and flexibility of our multi-cylinder platform. While commercial real estate lending remains a foundational part of our business, it now represents about half of our asset base—a reflection of how far we've diversified and evolved. Our capital deployment has already surpassed full-year 2024 levels, and we're seeing robust investment opportunities across sectors. We are exceptionally well-positioned to capitalize on today's environment.”

— Barry Sternlicht, Q2 2025 Earnings Press Release