Starwood Property Trust (NYSE:STWD) Posts Earnings Results, Beats Expectations By $0.04 EPS

Starwood Property Trust (NYSE:STWD) posted its quarterly earnings data on Friday. The real estate investment trust reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.04, FiscalAI reports. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%. The firm had revenue of $545.85 million during the quarter, compared to analysts’ expectations of $531.80 million. During the same quarter last year, the business posted $0.40 EPS. The firm’s quarterly revenue was down 22.8% compared to the same quarter last year.

Here are the key takeaways from Starwood Property Trust’s conference call:

• Distributable earnings were $0.31 per share, or $0.41 excluding realized resolution losses. CEO Barry Sternlicht said the board will review the dividend, which has exceeded recent earnings, and a cut is possible.
• Reserves for commercial lending non-accruals and REO reached about $1.0 billion after a $369 million quarterly increase, largely attributed to higher interest-rate assumptions in the company’s model. Undepreciated book value was $17.22 per share; management said there were no new non-accrual loans or foreclosures.
• The company resolved $254 million of non-accrual loans and REO, returned a $108 million Brooklyn office loan to accrual after leasing it to full occupancy, and said it remains on track for roughly $800–$850 million in 2026 resolutions.
• Commercial lending originations were $2.4 billion, helping lift that portfolio by $528 million to a record $17.8 billion. Starwood reported $1.1 billion in liquidity, 3.15x debt-to-undepreciated-equity leverage, and $108 million of share repurchases during the quarter.
• Management highlighted continued contributions from diversified businesses, including $37 million in quarterly special-servicing fees and net lease operations that became accretive to distributable earnings. Woodstar also implemented average 8.9% HUD rent increases, which added $1.7 million to quarterly earnings.

Starwood Property Trust Trading Down 6.5%

Starwood Property Trust stock traded down $0.84 during trading on Friday, hitting $12.04. The company’s stock had a trading volume of 11,538,286 shares, compared to its average volume of 5,973,494. The stock has a market capitalization of $4.46 billion, a price-to-earnings ratio of 20.41, a P/E/G ratio of 1.75 and a beta of 1.03. The stock’s fifty day moving average is $13.77 and its 200 day moving average is $16.41. Starwood Property Trust has a 1-year low of $11.84 and a 1-year high of $18.66. The company has a debt-to-equity ratio of 3.47, a quick ratio of 1.46 and a current ratio of 1.46.

Starwood Property Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a $0.48 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 15.9%. Starwood Property Trust’s payout ratio is currently 325.42%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on STWD. Citigroup reaffirmed a “market outperform” rating on shares of Starwood Property Trust in a research note on Monday, October 26th. JPMorgan Chase & Co. lowered their price target on shares of Starwood Property Trust from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Tuesday, August 18th. Wells Fargo & Company set a $20.00 price objective on shares of Starwood Property Trust in a research report on Monday, August 17th. Weiss Ratings downgraded shares of Starwood Property Trust from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, October 8th. Finally, Wall Street Zen raised shares of Starwood Property Trust from a “sell” rating to a “hold” rating in a research note on Saturday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $18.50.

Key Stories Impacting Starwood Property Trust

Here are the key news stories impacting Starwood Property Trust this week:

• Positive Sentiment: Distributable earnings were $0.31 per share, above the $0.27 consensus estimate. The company cited interest and rental income and servicing fees as contributors. Starwood Property’s Q3 earnings boosted by interest and rental income, servicing fees
• Positive Sentiment: Starwood invested $3.2 billion during the quarter, including $2.4 billion in commercial lending, and said its commercial lending portfolio reached a record $17.8 billion. It also repurchased $108 million of shares and reported a $0.48-per-share dividend. Starwood Property Trust Reports Results for Quarter Ended September 30, 2026
• Neutral Sentiment: Analysts’ average price target was reported at $18.50, though that consensus does not remove concerns raised by the quarter’s credit costs. Starwood Property Trust average analyst target
• Negative Sentiment: The company posted a $389.7 million GAAP net loss, including a $336.6 million credit-loss provision and $32.2 million in non-cash property impairments. Distributable earnings before realized commercial lending gains and losses were $0.41 per share, while distributable earnings were lower than the $0.40 reported a year earlier. Starwood Property Trust third-quarter results
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target on STWD, adding a potentially bearish analyst signal. Keefe, Bruyette & Woods cuts Starwood Property Trust price target

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust that focuses on commercial real estate finance and related investments. The company originates, acquires, and manages a range of real estate debt and equity investments, serving institutional borrowers, property owners, and developers.

Its portfolio and lending activities include senior mortgage loans, mezzanine debt, subordinated loans, preferred equity, commercial mortgage-backed securities, and other structured real estate investments.