Starwood Property Trust (STWD) Q2 2025 Earnings
Includes $31.7 million gain on sale of investments and other assets, $(101.3) million loss on derivative financial instruments, $83.8 million foreign currency gain, and $20.0 million gain on extinguishment of debt
How Did STWD Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +2.86%.
Did STWD Beat Earnings? Q2 2025 Results
No. Starwood Property Trust reported Q2 2025 earnings of $0.38 a share on Aug 7, 2025, missing the $0.38 consensus estimate by 0.5%. Revenue was $444.3M against a $465.8M estimate.
Starwood Property Trust fell just short of Wall Street's expectations in the second quarter of 2025, reporting GAAP diluted EPS of $0.38 on revenue of $444.28 million, missing the consensus EPS estimate of $0.38 by 0.47% and trailing the revenue forecast of $465.77 million by 4.61%. Revenue slipped 9.3% from a year ago, weighed down by $316.13 million in interest expense against total revenues, while GAAP results included a $101.30 million loss on derivative financial instruments, partly offset by an $83.80 million foreign currency gain, a $31.70 million gain on sales of investments, and a $20.00 million gain on debt extinguishment. The more consequential story of the quarter, however, was strategic: Starwood completed its acquisition of Fundamental Income Properties, a $2.20 billion net lease platform that management expects to generate stable recurring cash flows and serve as a meaningful new engine for capital deployment. The company also deployed $3.20 billion in capital during the quarter, and CEO Barry Sternlicht pointed to lower future supply and projected rate cuts as catalysts for a broader property market recovery ahead.
- Capital deployment of $3.2 billion in Q2 and $5.5 billion in first half of 2025, surpassing full-year 2024 levels
- Commercial and Residential Lending segment contributed $168.7 million in net income, the largest segment contributor
- Strong interest income from loans of $385.2 million
- Gain on sale of investments and other assets of $31.7 million
- Foreign currency gain of $83.8 million
“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.”
Starwood Property Trust CEO, on the earnings call
What Was Starwood Property Trust's Outlook in Q2 2025?
CEO Barry Sternlicht expressed optimism about property market recovery driven by lower future supply and projected lower interest rates. The company expects the acquisition of Fundamental Income to become a significant new vertical for capital deployment and earnings growth with stable recurring cash flows. The company highlighted $5.0 billion in unencumbered assets, over $1.4 billion in unrealized property gains, no near-term debt maturities, and a diversified business model as tools for disciplined growth.
STWD YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $444.3M | $489.8M | −9.3% |
| Net Income | $129.8M | $77.9M | +66.7% |
STWD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.