Starwood Property Trust (STWD) Q1 2026 earnings summary

Executive summary

• Reported Q1 2026 GAAP net income of $51.9 million and distributable earnings of $147.3 million ($0.39/share), with a maintained $0.48 dividend per share and recognition as 2025 Mortgage REIT of the Year by PERE Credit.

• $2.5 billion of capital deployed in Q1 and $1.5 billion after quarter end, bringing year-to-date investment to $4.0 billion; undepreciated assets reached $31.7 billion.

• Revenues increased year-over-year to $512.5 million, up from $418.2 million in Q1 2025.

• Management remains focused on disciplined origination, balance sheet optimization, and resolving legacy assets for optimal returns.

Financial highlights

• GAAP EPS was $0.13; distributable EPS was $0.39; book value per share was $17.98 GAAP and $18.97 undepreciated.

• Commercial and Residential Lending contributed $172 million DE; infrastructure lending $22 million DE; property segment $29 million DE; investing and servicing $57 million DE.

• Commercial Lending funded $894 million in new loans, portfolio at $16.7 billion; $1.5 billion originations and $835 million repayments.

• Infrastructure Lending portfolio reached $3.2 billion after $597 million in new commitments; $600 million CLO issued at record low spread.

• Net lease portfolio at $2.5 billion, with zero defaults and weighted average lease term of 17.4 years.

• Current liquidity at $1 billion, with $10.4 billion available across bank lines.

• Debt-to-undepreciated equity ratio at 2.59x.

Outlook and guidance

• Net lease platform expected to become accretive in 2027 after initial dilution; financing optimizations underway.

• Management expects to resolve $900 million of non-accrual/REO assets in 2026 and another $500 million in 2027.

• Dividend coverage of $0.48/share targeted for late 2026 or early 2027, with recurring earnings expected to exceed the dividend next year.

• Continued elevated origination pace and robust investment pipeline expected for the remainder of 2026.

• Sufficient liquidity and access to capital expected for at least the next 12 months.