Starwood Property Trust Reports Results for Quarter Ended March 31, 2026

– Quarterly GAAP Earnings of $0.13 and Distributable Earnings (DE) of $0.39 per Diluted Share –

– Invested $2.5 Billion in the Quarter and $1.5 Billion After Quarter End –

– Dividend of $0.48 per Share for Over a Decade –

– Awarded 2025 Mortgage REIT of the Year by PERE Credit –

MIAMI BEACH, Fla., May 8, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended March 31, 2026. The Company delivered first quarter GAAP net income of $51.9 million, and Distributable Earnings (a non-GAAP financial measure) was $147.3 million.

"In a period of broad global volatility, we believe real estate and infrastructure credit is an attractive and relatively stable place to invest capital," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "To that point, we remain active with $4.0 billion invested across our diversified portfolio year to date. As we move through 2026, we are focused on growing our earnings through disciplined origination, continued balance sheet optimization, and the best returning resolution of what we refer to as legacy assets."

"Starwood Property Trust's access to capital across multiple markets remains a defining advantage of our platform," added Jeffrey DiModica, President of Starwood Property Trust. "During the quarter, we completed our seventh infrastructure CLO at a record tight credit spread, refinanced an existing ABS transaction at meaningfully lower cost, and, subsequent to quarter-end, closed a new net lease warehouse facility at attractive terms. Our proven ability to optimize the right side of our balance sheet has allowed us to continuously invest across cylinders regardless of market environment."

Supplemental Schedules

The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders. Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com.

Webcast and Conference Call Information

The Company will host a live webcast and conference call on Friday, May 8, 2026, at 10:00 a.m. Eastern Time. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website. The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in.

To Participate via Telephone Conference Call:

Dial in at least 15 minutes prior to start time.

Domestic: 1-877-407-9039

International: 1-201-689-8470

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Passcode: 13758022

The playback can be accessed through May 22, 2026.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of March 31, 2026, the Company has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.

Additional information can be found on the Company's website at www.starwoodpropertytrust.com.

Contact:

Zachary Tanenbaum

Starwood Property Trust

Phone: 203-422-7788

Email: [email protected]

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the three months ended March 31, 2026

(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Revenues:

Interest income from loans

$ 310,314

$ 61,438

$ —

$ 2,059

$ —

$ 373,811

$ —

$ 373,811

Interest income from investment securities

15,637

384

—

23,933

—

39,954

(34,516)

5,438

Servicing fees

112

—

51,619

—

51,731

(3,711)

48,020

Rental income

16,305

—

60,843

2,823

—

79,971

—

79,971

Other revenues

2,213

1,473

457

403

670

5,216

—

5,216

Total revenues

344,581

63,295

61,300

80,837

670

550,683

(38,227)

512,456

Costs and expenses:

Management fees

—

36,150

36,182

—

36,182

Interest expense

154,923

36,696

27,951

6,826

102,654

329,050

(144)

328,906

General and administrative

16,792

5,918

8,868

21,928

4,827

58,333

—

58,333

Costs of rental operations

13,216

—

7,260

2,658

—

23,134

—

23,134

Depreciation and amortization

4,237

28,078

1,150

251

33,726

—

33,726

Credit loss provision (reversal), net

586

(963)

—

(377)

—

(377)

Other expense

112

140

—

401

—

401

Total costs and expenses

189,863

41,773

72,229

32,702

143,882

480,449

(144)

480,305

Other income (loss):

Change in net assets related to consolidated VIEs

—

32,502

Change in fair value of servicing rights

—

1,004

—

1,004

(1,541)

(537)

Change in fair value of investment securities, net

451

—

(7,921)

—

(7,470)

7,559

Change in fair value of mortgage loans, net

(20,980)

—

8,312

—

(12,668)

—

(12,668)

Income from affordable housing fund investments

—

12,464

—

12,464

—

12,464

Earnings (loss) from unconsolidated entities

—

843

—

412

—

1,255

(437)

818

Gain on sale of investments and other assets, net

210

—

469

—

679

—

679

Gain (loss) on derivative financial instruments, net

16,363

2,276

242

(21,433)

(2,463)

—

(2,463)

Foreign currency (loss) gain, net

(6,115)

—

(6,090)

—

(6,090)

Loss on extinguishment of debt

—

(31)

(304)

—

(335)

—

(335)

Other (loss) income, net

(2,875)

(309)

—

(3,133)

—

(3,133)

Total other income (loss)

(12,946)

952

14,621

2,049

(21,433)

(16,757)

38,083

21,326

Income (loss) before income taxes

141,772

22,474

3,692

50,184

(164,645)

53,477

—

53,477

Income tax benefit (provision)

11,728

(50)

(7,750)

—

3,945

—

3,945

Net income (loss)

153,500

22,424

3,709

42,434

(164,645)

57,422

—

57,422

Net (income) loss attributable to non-controlling interests

(3)

—

(6,827)

1,286

—

(5,544)

—

(5,544)

Net income (loss) attributable to Starwood Property Trust, Inc.

$ 153,497

$ 22,424

$ (3,118)

$ 43,720

$ (164,645)

$ 51,878

$ —

$ 51,878

Definition of Distributable Earnings

Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors. Refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings

For the three months ended March 31, 2026

(Amounts in thousands except per share data)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Total

Net income (loss) attributable to Starwood Property Trust, Inc.

$ 153,497

$ 22,424

$ (3,118)

$ 43,720

$ (164,645)

$ 51,878

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

4,629

—

4,629

Non-controlling interests attributable to unrealized gains/losses

—

(1,307)

(4,745)

—

(6,052)

Non-cash equity compensation expense

3,084

752

1,995

1,425

6,738

13,994

Management incentive fee

—

5,567

Depreciation and amortization

4,273

—

28,574

1,192

—

34,039

Straight-line rent adjustment

—

(1,649)

114

—

(1,535)

Interest income adjustment for loans and securities

5,074

—

5,376

—

10,450

Consolidated income tax (benefit) provision associated with fair value adjustments

(11,728)

(17)

7,750

—

(3,945)

Other non-cash items

—

(82)

(406)

—

(486)

Reversal of GAAP unrealized and realized (gains) / losses on:

Loans

20,980

—

(8,312)

—

12,668

Credit loss provision (reversal), net

586

(963)

—

(377)

Securities

(451)

—

7,921

—

7,470

Woodstar Fund investments

—

(12,464)

—

(12,464)

Derivatives

(16,363)

(89)

(2,276)

(242)

21,433

2,463

Foreign currency

6,115

—

(25)

—

6,090

Earnings from unconsolidated entities

—

(843)

—

(412)

—

(1,255)

Sales of properties

(324)

—

(469)

—

(793)

Recognition of Distributable realized gains / (losses) on:

Loans

(368)

—

8,558

—

8,190

Securities

(86)

—

(5,254)

—

(5,340)

Woodstar Fund investments

—

18,821

—

18,821

Derivatives

12,635

(3,089)

276

(2,817)

7,036

Foreign currency

139

—

164

Earnings from unconsolidated entities

—

511

—

436

—

947

Sales of properties

(4,785)

—

(100)

—

(4,885)

Distributable Earnings (Loss)

$ 172,280

$ 21,873

$ 29,448

$ 57,397

$ (133,724)

$ 147,274

Distributable Earnings (Loss) per Weighted Average Diluted Share

$ 0.45

$ 0.06

$ 0.08

$ 0.15

$ (0.35)

$ 0.39

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of March 31, 2026

(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Assets:

Cash and cash equivalents

$ 44,239

$ 125,331

$ 33,521

$ 6,001

$ 81,193

$ 290,285

$ —

$ 290,285

Restricted cash

322,650

22,909

3,085

412

26,721

375,777

—

375,777

Loans held-for-investment, net

16,214,754

3,066,806

—

19,281,560

—

19,281,560

Loans held-for-sale

2,218,429

—

104,511

—

2,322,940

—

2,322,940

Investment securities

639,401

30,301

—

1,236,128

—

1,905,830

(1,597,627)

308,203

Properties, net

1,039,257

—

2,778,893

40,984

—

3,859,134

—

3,859,134

Investments of consolidated affordable housing fund

—

1,729,433

—

1,729,433

—

1,729,433

Investments in unconsolidated entities

8,514

58,840

—

33,316

—

100,670

(15,112)

85,558

Goodwill

—

119,409

—

140,437

—

259,846

—

259,846

Intangible assets, net

2,670

—

392,643

70,136

—

465,449

(38,794)

426,655

Derivative assets

24,074

—

219

7,958

32,251

—

32,251

Accrued interest receivable

168,183

8,160

—

218

847

177,408

—

177,408

Other assets

329,455

42,273

131,023

(15,547)

51,262

538,466

—

538,466

VIE assets, at fair value

—

32,399,812

Total Assets

$ 21,011,626

$ 3,474,029

$ 5,068,598

$ 1,616,815

$ 167,981

$ 31,339,049

$ 30,748,279

$ 62,087,328

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$ 207,080

$ 36,017

$ 117,476

$ 38,940

$ 137,872

$ 537,385

$ —

$ 537,385

Related-party payable

—

33,708

—

33,708

Dividends payable

—

180,900

—

180,900

Derivative liabilities

63,970

—

15,460

79,430

—

79,430

Secured financing agreements, net

9,846,525

587,374

533,953

596,988

2,224,516

13,789,356

(19,780)

13,769,576

Securitized financing, net

1,874,602

1,809,126

1,398,169

—

5,081,897

—

5,081,897

Unsecured senior notes, net

—

4,287,646

—

4,287,646

VIE liabilities, at fair value

—

30,768,059

Total Liabilities

11,992,177

2,432,517

2,049,598

635,928

6,880,102

23,990,322

30,748,279

54,738,601

Temporary Equity: Redeemable non-controlling interests

—

357,487

—

357,487

—

357,487

Permanent Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

—

3,793

—

3,793

Additional paid-in capital

2,122,871

665,085

381,367

(941,857)

4,747,155

6,974,621

—

6,974,621

Treasury stock

—

(157,958)

—

(157,958)

Retained earnings (accumulated deficit)

6,885,579

376,427

2,074,321

1,802,916

(11,305,111)

(165,868)

—

(165,868)

Accumulated other comprehensive income

10,881

—

10,881

—

10,881

Total Starwood Property Trust, Inc. Stockholders' Equity

9,019,331

1,041,512

2,455,688

861,059

(6,712,121)

6,665,469

—

6,665,469

Non-controlling interests in consolidated subsidiaries

118

—

205,825

119,828

—

325,771

—

325,771

Total Permanent Equity

9,019,449

1,041,512

2,661,513

980,887

(6,712,121)

6,991,240

—

6,991,240

Total Liabilities and Equity

$ 21,011,626

$ 3,474,029

$ 5,068,598

$ 1,616,815

$ 167,981

$ 31,339,049

$ 30,748,279

$ 62,087,328

SOURCE Starwood Property Trust, Inc.