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Starwood Property Trust

Starwood Property Trust (STWD) Q2 2026 Earnings

Reported Aug 6, 2026 at 6:56 AM ET · SEC Source

Q2 26 EPS Adjusted

$0.40

MISS 0.02%

Est. $0.40

Q2 26 Revenue

$513.7M

MISS 1.53%

Est. $521.7M

vs S&P Since Q2 26

+1.2%

BEATING MARKET

STWD +0.6% vs S&P -0.7%

Market Reaction

Did STWD Beat Earnings? Q2 2026 Results

Starwood Property Trust delivered a narrow miss on both top and bottom lines in the second quarter of 2026, with adjusted earnings of $0.40 per diluted share falling just short of the $0.40 consensus estimate, while revenue of $513.67 million trailed… Read more Starwood Property Trust delivered a narrow miss on both top and bottom lines in the second quarter of 2026, with adjusted earnings of $0.40 per diluted share falling just short of the $0.40 consensus estimate, while revenue of $513.67 million trailed expectations of $521.67 million by 1.53%, even as sales grew 7.9% year over year. The modest shortfall was framed by a stark divergence between GAAP and non-GAAP results; GAAP net income attributable to the company came in at just $6.56 million, weighed down by $107.56 million in corporate interest expense, $30.16 million in credit loss provisions, and $34.24 million in derivative losses. The Commercial and Residential Lending segment carried the quarter, generating $364.21 million in revenue and $133.94 million in GAAP net income, with the commercial loan portfolio reaching $17.30 billion. Looking ahead, management pointed to $6.70 billion deployed through July at double-digit returns on equity and expects to resolve nearly $900 million in underperforming assets by year-end, which would free trapped capital for redeployment across business lines.

Key Takeaways

  • • Commercial and Residential Lending segment was the largest revenue and earnings contributor with $364.2 million in revenue and $185.7 million in Distributable Earnings
  • • Invested $2.5 billion in Q2 2026 and $6.7 billion through July at double-digit return on equity
  • • $2.1 billion of corporate debt transactions extended weighted average corporate debt maturity to 3.7 years
  • • Record total assets of $31.8 billion and commercial lending assets of $17.3 billion
  • • Improving real estate fundamentals across nearly every asset class

STWD Forward Guidance & Outlook

Management expects to resolve nearly $900 million of underperforming assets by year-end or shortly thereafter, returning trapped equity to higher-use deployment across all business lines. The company has invested $6.7 billion through July at double-digit return on equity. Recent corporate debt transactions extending weighted average maturity to 3.7 years and lowering cost of funds position the company to continue deploying capital and driving growth. CEO Sternlicht noted improving real estate fundamentals across nearly every asset class, supported by declining construction and broad economic growth, providing a more constructive backdrop for capital deployment and improving credit in the loan portfolio.

24/7 Wall St

STWD YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

STWD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Real estate fundamentals are improving steadily in almost every asset class, supported by a drop in construction and broad and robust economic growth. This provides a more constructive backdrop to deploy capital and improving credit in our loan portfolio. For us importantly, it provides a solid foundation to support the values of our real estate owned and underperforming loan assets. We expect to resolve nearly $900 million of underperforming assets by year end or shortly thereafter, returning the trapped equity to higher use cases across all our business lines.”

— Barry Sternlicht, Q2 2026 Earnings Press Release

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