The in-line DE result and stable $0.48 dividend provide no immediate catalyst. Watch for resolution of the ~$900M in underperforming assets by year-end, which could release trapped equity and support future earnings growth. The elevated credit loss provision in Q2 warrants monitoring in the Q3 report.
Price Chart
Executive Summary
Starwood Property Trust reported Q2 2026 Distributable Earnings (DE) of $0.40 per diluted share, exactly in line with consensus estimates. GAAP net income was $6.6 million ($0.01 per share), a sharp decline from Q1 2026's $51.9 million ($0.13), driven by a $30.2 million credit loss provision and mark-to-market losses on derivatives. The company invested $2.5 billion in the quarter and $6.7 billion through July, and management guided for the resolution of nearly $900 million in underperforming assets by year-end. The in-line DE result is neutral for the common stock, as the GAAP earnings volatility is non-cash and the dividend remains stable at $0.48 per share.
Key Financial Metrics
Key Facts
- Distributable Earnings (DE) of $0.40 per diluted share, in line with consensus of $0.40.
- GAAP net income of $6.6 million ($0.01 per share), down from $51.9 million ($0.13) in Q1 2026.
- Total revenues of $513.7 million vs. consensus of $521.7 million.
- Invested $2.5 billion in Q2 and $6.7 billion through July.
- Repurchased $30 million of common shares in the first six months of 2026.
- Dividend maintained at $0.48 per share.
- Record total assets of $31.8 billion and commercial lending assets of $17.3 billion.
- Management expects to resolve nearly $900 million of underperforming assets by year-end.
- Credit loss provision of $30.2 million in Q2 vs. a net reversal of $0.4 million in Q1.
- Completed $2.1 billion of corporate debt transactions, extending weighted average maturity to 3.7 years and lowering cost of funds.
Financial Impact
Distributable Earnings of $151.5 million ($0.40/share) in line with consensus; GAAP net income fell sharply to $6.6 million due to a $30.2 million credit loss provision and derivative losses.
Risk Factors
- Credit loss provision increased sharply to $30.2 million from a net reversal in Q1, signaling potential deterioration in loan portfolio credit quality.
- GAAP net income remains highly volatile due to mark-to-market on derivatives and fair value adjustments, obscuring underlying cash earnings.
- Resolution of $900M in underperforming assets is contingent on market conditions and may not materialize as expected.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001465128-26-000028 |
| Document: stwd-20260806.htm | 0001465128-26-000028 |
| Document: 0001465128-26-000028-index-headers.html | 0001465128-26-000028 |
| Document: 0001465128-26-000028-index.html | 0001465128-26-000028 |
| Document: 0001465128-26-000028.txt | 0001465128-26-000028 |
| 8-K Data (Synthetic) | 0001465128-26-000028 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Institutional Cluster | $12.58 $12.58 | · 0.00% | ▲ +0.52% | $12.40 (−1.39%) |
Sep 17, 2026 5w ago | Press Release | $14.94 $15.00 | ▲ +0.40% | ▼ −1.15% | $12.40 (−16.97%) |
Aug 12, 2026 10w ago | 8-K | $16.35 $16.30 | ▼ −0.31% | ▼ −0.11% | $12.40 (−24.13%) |
Aug 6, 2026 11w ago | 8-K | $15.93 $16.45 | ▲ +3.26% | ▲ +2.65% | $12.40 (−22.13%) |
Jul 23, 2026 13w ago | Press Release | $16.33 $16.52 | ▲ +1.16% | ▲ +1.06% | $12.40 (−24.04%) |
May 26, 2026 21w ago | 8-K | $17.31 $17.09 | ▼ −1.27% | ▼ −1.82% | $12.40 (−28.34%) |
May 11, 2026 24w ago | 8-K | $17.23 $17.22 | ▼ −0.06% | ▲ +0.08% | $12.40 (−28.00%) |
May 8, 2026 24w ago | 8-K | $17.75 $17.23 | ▼ −2.93% | ▼ −3.16% | $12.40 (−30.11%) |
Mar 13, 2026 32w ago | DEFA14A | $17.05 $17.30 | ▲ +1.48% | ▲ +1.21% | $12.40 (−27.22%) |
Feb 25, 2026 34w ago | 8-K | $17.23 $17.60 | ▲ +2.14% | ▲ +2.69% | $12.40 (−28.00%) |
US Market Status
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