Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2025

– GAAP EPS of $0.26 for the Quarter and $1.15 for the Year and Distributable EPS for the Quarter of $0.42 and $1.69 for the Year –

– Invested $12.7 Billion for the Year, Including $2.5 Billion in the Quarter; Second Largest Investment Year –

– Executed a Record $4.4 Billion of Capital Transactions in 2025 –

– Current Liquidity of $1.4 Billion –

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

MIAMI BEACH, Fla., Feb. 25, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2025. The Company delivered fourth quarter GAAP net income of $96.9 million, and Distributable Earnings (a non-GAAP financial measure) was $159.5 million. The Company's full year GAAP net income was $411.5 million, and Distributable Earnings was $615.5 million.

"2025 was a transition year for Starwood Property Trust. The good news is that the pieces remain in place to outperform for our shareholders in the long run. Our core businesses are positioned and are performing exceptionally well with notable progress across global commercial lending, infrastructure lending, conduit and special servicing, each delivering incredibly strong results for the year. Additionally, our residential lending portfolio increased in value over the year with the decline in rates," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

"As major STWD shareholders ourselves, we have chosen to take the long view of how best to earn stable and attractive long-term returns for our shareholders. In this vein, despite the dilution we knew we would experience when we acquired the Fundamental net lease business, we were excited to add an earnings generator with reliable cash flows, driven by more than 17 years of lease duration and 2.3% contractual rent increases each year, which will be accretive long-term. We also increased our securitization pace across businesses and completed takeout refinancings, which led to higher than normal cash levels during the year. As we deploy this cash across our business lines, invest the committed but unfunded loan capital, scale our net lease business, and bring back the earnings power embedded in the nonaccrual and REO assets, we are confident in our ability to raise earnings in the future. We are real estate investors first and have proven our ability to add value to assets once they are in our control. We therefore are confident we have substantial earnings power built into our diversified company that will move us forward into a bright future," Mr. Sternlicht continued.

"Starwood Property Trust's proven and consistent access to the capital markets continues to differentiate our platform," added Jeffrey DiModica, President of Starwood Property Trust. "We repositioned our balance sheet this year with extended duration and lower spreads, executing a record $4.4 billion of equity, unsecured debt and term loan debt, further strengthening our best-in-class balance sheet while maintaining our conservative leverage profile. We also completed or priced four securitizations, including our fourth commercial lending CLO, our sixth and seventh infrastructure CLOs, and our first Fundamental ABS transaction at record-tight spreads for that platform, positioning each of these businesses for further growth and positioning us to act quickly on compelling opportunities globally."

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 Wednesday, February 25, 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: 13758021

The playback can be accessed through March 11, 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 December 31, 2025, the Company has successfully deployed $115 billion of capital since inception and manages a portfolio of over $30 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.

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 December 31, 2025

(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

$ 311,500

$ 69,153

$ 43

$ 3,225

$ —

$ 383,921

$ —

$ 383,921

Interest income from investment securities

15,332

197

—

24,543

—

40,072

(35,506)

4,566

Servicing fees

112

—

37,726

—

37,838

(6,047)

31,791

Rental income

6,298

—

57,100

4,088

—

67,486

—

67,486

Other revenues

1,997

909

651

1,183

444

5,184

—

5,184

Total revenues

335,239

70,259

57,794

70,765

444

534,501

(41,553)

492,948

Costs and expenses:

Management fees

172

—

33,254

33,426

—

33,426

Interest expense

155,129

39,550

29,054

6,626

103,687

334,046

(198)

333,848

General and administrative

15,180

5,497

8,572

24,440

4,378

58,067

—

58,067

Costs of rental operations

4,861

—

7,551

3,070

—

15,482

—

15,482

Depreciation and amortization

2,841

26,558

1,422

251

31,082

—

31,082

Credit loss provision (reversal), net

11,142

(798)

—

10,344

—

10,344

Other expense

—

166

—

166

Total costs and expenses

189,380

44,317

71,750

35,596

141,570

482,613

(198)

482,415

Other income (loss):

Change in net assets related to consolidated VIEs

—

42,052

Change in fair value of servicing rights

—

1,617

—

1,617

(859)

758

Change in fair value of investment securities, net

1,972

—

(2,433)

—

(461)

682

221

Change in fair value of mortgage loans, net

30,574

—

13,228

—

43,802

—

43,802

Income from affordable housing fund investments

—

37,604

—

37,604

—

37,604

Earnings from unconsolidated entities

—

3,641

—

560

—

4,201

(520)

3,681

Gain (loss) on sale of investments and other assets, net

165

—

(1)

10,060

—

10,224

—

10,224

Gain (loss) on derivative financial instruments, net

12,688

3,886

(303)

(8,418)

7,903

—

7,903

Foreign currency gain (loss), net

6,900

(292)

(1)

—

6,607

—

6,607

Loss on extinguishment of debt

(326)

(1,893)

—

(90)

—

(2,309)

—

(2,309)

Other (loss) income, net

(29,009)

—

(763)

—

(29,771)

—

(29,771)

Total other income (loss)

22,964

1,506

40,725

22,640

(8,418)

79,417

41,355

120,772

Income (loss) before income taxes

168,823

27,448

26,769

57,809

(149,544)

131,305

—

131,305

Income tax provision

(10,066)

(299)

(1,850)

(6,724)

—

(18,939)

—

(18,939)

Net income (loss)

158,757

27,149

24,919

51,085

(149,544)

112,366

—

112,366

Net income attributable to non-controlling interests

(5)

—

(10,712)

(4,734)

—

(15,451)

—

(15,451)

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

$ 158,752

$ 27,149

$ 14,207

$ 46,351

$ (149,544)

$ 96,915

$ —

$ 96,915

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 Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings

For the three months ended December 31, 2025

(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.

$ 158,752

$ 27,149

$ 14,207

$ 46,351

$ (149,544)

$ 96,915

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

4,629

—

4,629

Non-controlling interests attributable to unrealized gains/losses

—

(1,986)

6,650

—

4,664

Non-cash equity compensation expense

2,842

738

1,999

1,491

5,554

12,624

Management incentive fee

—

3,502

Depreciation and amortization

2,877

—

27,071

1,523

—

31,471

Straight-line rent adjustment

—

(460)

—

(438)

Interest income adjustment for loans and securities

5,457

—

8,023

—

13,480

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

10,066

299

(34)

6,724

—

17,055

Other non-cash items

—

(82)

(542)

—

(619)

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

Loans

(30,574)

—

(13,228)

—

(43,802)

Credit loss provision (reversal), net

11,142

(798)

—

10,344

Securities

(1,972)

—

2,433

—

461

Woodstar Fund investments

—

(37,604)

—

(37,604)

Derivatives

(12,688)

(50)

(3,886)

303

8,418

(7,903)

Foreign currency

(6,900)

292

—

(6,607)

Earnings from unconsolidated entities

—

(3,641)

—

(560)

—

(4,201)

Sales of properties

—

(10,060)

—

(10,060)

Impairment of properties

26,766

—

26,766

Recognition of Distributable realized gains / (losses) on:

Loans

(879)

—

13,188

—

12,309

Securities

(594)

—

(19,930)

—

(20,524)

Woodstar Fund investments

—

47,297

—

47,297

Derivatives

12,336

(2,012)

(137)

(6,554)

3,670

Foreign currency

(793)

134

(2)

—

(661)

Earnings from unconsolidated entities

—

3,128

—

457

—

3,585

Sales of properties

—

3,192

—

3,192

Distributable Earnings (Loss)

$ 175,843

$ 27,288

$ 49,138

$ 45,900

$ (138,624)

$ 159,545

Distributable Earnings (Loss) per Weighted Average Diluted Share

$ 0.46

$ 0.07

$ 0.13

$ 0.12

$ (0.36)

$ 0.42

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the year ended December 31, 2025

(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

$ 1,231,288

$ 272,282

$ 289

$ 14,650

$ —

$ 1,518,509

$ —

$ 1,518,509

Interest income from investment securities

78,961

649

—

97,824

—

177,434

(142,973)

34,461

Servicing fees

369

—

106,533

—

106,902

(20,359)

86,543

Rental income

27,266

—

135,255

19,919

—

182,440

—

182,440

Other revenues

9,854

3,855

1,472

5,387

1,768

22,336

—

22,336

Total revenues

1,347,738

276,786

137,016

244,313

1,768

2,007,621

(163,332)

1,844,289

Costs and expenses:

Management fees

701

—

136,564

137,265

—

137,265

Interest expense

682,813

155,212

71,400

29,341

339,031

1,277,797

(810)

1,276,987

General and administrative

59,545

20,979

17,323

93,152

17,810

208,809

—

208,809

Costs of rental operations

21,017

—

26,225

13,559

—

60,801

—

60,801

Depreciation and amortization

11,779

59,479

6,679

1,005

78,981

—

78,981

Credit loss provision, net

15,851

3,519

—

19,370

—

19,370

Other expense

103

4,104

(61)

203

—

4,349

—

4,349

Total costs and expenses

791,809

183,853

174,366

142,934

494,410

1,787,372

(810)

1,786,562

Other income (loss):

Change in net assets related to consolidated VIEs

—

154,758

Change in fair value of servicing rights

—

7,398

—

7,398

(1,508)

5,890

Change in fair value of investment securities, net

8,422

—

(16,803)

—

(8,381)

10,568

2,187

Change in fair value of mortgage loans, net

122,117

—

62,323

—

184,440

—

184,440

Income from affordable housing fund investments

—

46,953

—

46,953

—

46,953

Earnings from unconsolidated entities

2,708

3,892

—

9,249

—

15,849

(1,296)

14,553

Gain (loss) on sale of investments and other assets, net

32,875

—

(22)

10,060

—

42,913

—

42,913

(Loss) gain on derivative financial instruments, net

(155,014)

(4,196)

(1,385)

33,289

(127,268)

—

(127,268)

Foreign currency gain (loss), net

112,778

364

(198)

—

112,944

—

112,944

Gain (loss) on extinguishment of debt, net

20,447

(2,676)

—

(90)

—

17,681

—

17,681

Other (loss) income, net

(32,589)

—

(2,805)

2,428

—

(32,966)

—

(32,966)

Total other income

111,744

1,618

39,732

73,180

33,289

259,563

162,522

422,085

Income (loss) before income taxes

667,673

94,551

2,382

174,559

(459,353)

479,812

—

479,812

Income tax provision

(12,297)

(110)

(1,844)

(22,468)

—

(36,719)

—

(36,719)

Net income (loss)

655,376

94,441

538

152,091

(459,353)

443,093

—

443,093

Net income attributable to non-controlling interests

(15)

—

(25,488)

(6,046)

—

(31,549)

—

(31,549)

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

$ 655,361

$ 94,441

$ (24,950)

$ 146,045

$ (459,353)

$ 411,544

$ —

$ 411,544

Reconciliation of Net Income to Distributable Earnings

For the year ended December 31, 2025

(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.

$ 655,361

$ 94,441

$ (24,950)

$ 146,045

$ (459,353)

$ 411,544

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

18,546

—

18,546

Non-controlling interests attributable to unrealized gains/losses

—

(13,066)

272

—

(12,794)

Non-cash equity compensation expense

11,318

2,794

3,780

5,582

30,620

54,094

Management incentive fee

—

13,746

Depreciation and amortization

12,023

—

60,616

7,085

—

79,724

Straight-line rent adjustment

—

(153)

126

—

(27)

Interest income adjustment for loans and securities

23,300

—

39,750

—

63,050

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

12,297

110

(40)

22,468

—

34,835

Other non-cash items

—

(328)

(1,761)

—

(2,074)

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

Loans

(122,117)

—

(62,323)

—

(184,440)

Credit loss provision, net

15,851

3,519

—

19,370

Securities

(8,422)

—

16,803

—

8,381

Woodstar Fund investments

—

(46,953)

—

(46,953)

Derivatives

155,014

(38)

4,196

1,385

(33,289)

127,268

Foreign currency

(112,778)

(364)

198

—

(112,944)

Earnings from unconsolidated entities

(2,708)

(3,892)

—

(9,249)

—

(15,849)

Sales of properties

(5,223)

—

(10,060)

—

(15,262)

Impairment of properties

26,766

—

26,766

Recognition of Distributable realized gains / (losses) on:

Loans

(2,435)

—

61,175

—

58,740

Securities

(1,355)

—

(35,012)

—

(36,367)

Woodstar Fund investments

—

110,569

—

110,569

Derivatives

70,004

186

(1,722)

(1,925)

(27,955)

38,588

Foreign currency

1,554

219

(199)

—

1,574

Earnings from unconsolidated entities

2,708

2,801

—

10,116

—

15,625

Sales of properties

(43,343)

—

(25)

3,192

—

(40,176)

Distributable Earnings (Loss)

$ 687,830

$ 99,776

$ 110,490

$ 193,669

$ (476,231)

$ 615,534

Distributable Earnings (Loss) per Weighted Average Diluted Share

$ 1.89

$ 0.27

$ 0.30

$ 0.53

$ (1.30)

$ 1.69

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of December 31, 2025

(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

$ 74,534

$ 198,031

$ 70,900

$ 25,149

$ 130,866

$ 499,480

$ —

$ 499,480

Restricted cash

123,215

33,794

3,236

454

14,468

175,167

—

175,167

Loans held-for-investment, net

16,038,333

2,824,379

—

18,862,712

—

18,862,712

Loans held-for-sale

2,278,067

—

45,476

—

2,323,543

—

2,323,543

Investment securities

641,893

31,273

—

1,284,863

—

1,958,029

(1,657,029)

301,000

Properties, net

732,714

—

2,674,276

41,662

—

3,448,652

—

3,448,652

Investments of consolidated affordable housing fund

—

1,727,499

—

1,727,499

—

1,727,499

Investments in unconsolidated entities

8,514

57,997

—

33,203

—

99,714

(14,962)

84,752

Goodwill

—

119,409

—

140,437

—

259,846

—

259,846

Intangible assets, net

2,817

—

401,268

69,227

—

473,312

(37,253)

436,059

Derivative assets

27,157

—

201

18,455

45,813

—

45,813

Accrued interest receivable

157,116

4,424

442

562

135

162,679

—

162,679

Other assets

193,525

4,623

107,468

5,454

51,921

362,991

—

362,991

VIE assets, at fair value

—

34,493,164

Total Assets

$ 20,277,885

$ 3,273,930

$ 4,985,089

$ 1,646,688

$ 215,845

$ 30,399,437

$ 32,783,920

$ 63,183,357

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$ 165,317

$ 32,732

$ 113,707

$ 60,423

$ 127,571

$ 499,750

$ —

$ 499,750

Related-party payable

—

31,662

—

31,662

Dividends payable

—

180,413

—

180,413

Derivative liabilities

72,351

—

11,632

83,983

—

83,983

Secured financing agreements, net

8,637,246

719,942

596,906

517,897

2,226,843

12,698,834

(19,886)

12,678,948

Securitized financing, net

2,224,239

1,645,536

1,261,678

—

5,131,453

—

5,131,453

Unsecured senior notes, net

—

4,283,836

—

4,283,836

VIE liabilities, at fair value

—

32,803,806

Total Liabilities

11,099,153

2,398,210

1,972,291

578,320

6,861,957

22,909,931

32,783,920

55,693,851

Temporary Equity: Redeemable non-controlling interests

—

364,118

—

364,118

—

364,118

Permanent Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

—

3,780

—

3,780

Additional paid-in capital

2,434,975

521,717

365,416

(814,760)

4,449,868

6,957,216

—

6,957,216

Treasury stock

—

(138,022)

—

(138,022)

Retained earnings (accumulated deficit)

6,732,082

354,003

2,077,439

1,759,196

(10,961,738)

(39,018)

—

(39,018)

Accumulated other comprehensive income

11,560

—

11,560

—

11,560

Total Starwood Property Trust, Inc. Stockholders' Equity

9,178,617

875,720

2,442,855

944,436

(6,646,112)

6,795,516

—

6,795,516

Non-controlling interests in consolidated subsidiaries

115

—

205,825

123,932

—

329,872

—

329,872

Total Permanent Equity

9,178,732

875,720

2,648,680

1,068,368

(6,646,112)

7,125,388

—

7,125,388

Total Liabilities and Equity

$ 20,277,885

$ 3,273,930

$ 4,985,089

$ 1,646,688

$ 215,845

$ 30,399,437

$ 32,783,920

$ 63,183,357

SOURCE Starwood Property Trust, Inc.