Starwood Property Trust Reports Results for Quarter Ended September 30, 2025

– Quarterly GAAP Earnings of $0.19 and Distributable Earnings (DE) of $0.40 per Diluted Share –

– Invested $4.6 Billion in the Quarter and $10.2 Billion in the 9 Months –

– Investments include $2.2 Billion of Triple Net Lease Investments, $1.4 Billion in Commercial Lending and a Record $0.8 Billion in Infrastructure Lending During the Quarter –

– Raised $2.3 Billion of Capital Across Equity, Term Loan B and High Yield Markets –

– Record Liquidity of $2.2 Billion –

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

MIAMI BEACH, Fla., Nov. 10, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended September 30, 2025. The Company's third quarter 2025 GAAP net income was $72.6 million, inclusive of a $28.4 million credit loss provision and $26.0 million of depreciation, and Distributable Earnings (a non-GAAP financial measure) was $148.6 million.

"At the time of our IPO in 2009, we committed to diversify our company. We once again delivered by acquiring Fundamental, a $2.2 billion portfolio of durable, long-term, high quality net lease assets and a best-in-class team. Leveraging the resources of our manager, Starwood Capital Group, we believe we can meaningfully grow this net lease portfolio accretively in the coming years," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "As interest rates move lower and transaction volumes ramp, our ample liquidity offers us a great opportunity to continue growing all of our cylinders."

"Starwood Property Trust's ability to access capital also remains a true differentiator," added Jeffrey DiModica, President of Starwood Property Trust. "Over the past year, we have been extremely active in the capital markets, raising nearly $3.0 billion across equity, term loans, and unsecured debt, all at record-tight levels. We repriced our existing term loans due 2027 and 2030 to record low spreads of +175 and +200 basis points, respectively, and issued a seven-year term loan at the tightest spread for a new issuance in our sector at +225 basis points. These transactions highlight both the market's confidence in our credit profile and our disciplined financial management."

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 Monday, November 10, 2025, 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: 13753256

The playback can be accessed through November 24, 2025.

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 September 30, 2025, the Company has successfully deployed $112 billion of capital since inception and manages a portfolio of $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, 2024 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 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: ztanenbaum@starwood.com

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the three months ended September 30, 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

$ 315,894

$ 76,724

$ 246

$ 2,582

$ —

$ 395,446

$ —

$ 395,446

Interest income from investment securities

18,405

150

—

23,329

—

41,884

(34,523)

7,361

Servicing fees

—

28,351

—

28,432

(5,220)

23,212

Rental income

6,233

—

45,603

5,692

—

57,528

—

57,528

Other revenues

2,513

844

347

934

693

5,331

—

5,331

Total revenues

343,126

77,718

46,196

60,888

693

528,621

(39,743)

488,878

Costs and expenses:

Management fees

172

—

32,071

32,243

—

32,243

Interest expense

181,639

41,402

24,302

6,788

80,925

335,056

(207)

334,849

General and administrative

14,224

4,941

6,100

21,850

4,408

51,523

—

51,523

Costs of rental operations

5,688

—

6,726

3,573

—

15,987

—

15,987

Depreciation and amortization

2,840

21,181

1,762

251

26,044

—

26,044

Credit loss provision, net

26,805

1,554

—

28,359

—

28,359

Other expense

430

—

(64)

—

439

—

439

Total costs and expenses

231,441

48,337

58,309

33,909

117,655

489,651

(207)

489,444

Other income (loss):

Change in net assets related to consolidated VIEs

—

43,735

Change in fair value of servicing rights

—

2,327

—

2,327

(311)

2,016

Change in fair value of investment securities, net

1,111

—

4,531

—

5,642

(3,848)

1,794

Change in fair value of mortgage loans, net

40,544

—

11,823

—

52,367

—

52,367

Income from affordable housing fund investments

—

324

—

324

—

324

(Loss) earnings from unconsolidated entities

—

(294)

—

2,797

—

2,503

(40)

2,463

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

1,048

—

(21)

—

1,027

—

1,027

Gain (loss) on derivative financial instruments, net

14,276

(7,971)

1,295

(1,793)

5,814

—

5,814

Foreign currency loss, net

(11,995)

(210)

(10)

—

(12,215)

—

(12,215)

Other loss, net

(2,354)

—

(578)

(554)

—

(3,486)

—

(3,486)

Total other income (loss)

42,630

(497)

(8,256)

22,219

(1,793)

54,303

39,536

93,839

Income (loss) before income taxes

154,315

28,884

(20,369)

49,198

(118,755)

93,273

—

93,273

Income tax (provision) benefit

(7,432)

234

(6,151)

—

(13,343)

—

(13,343)

Net income (loss)

146,883

29,118

(20,363)

43,047

(118,755)

79,930

—

79,930

Net income attributable to non-controlling interests

(3)

—

(4,366)

(3,001)

—

(7,370)

—

(7,370)

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

$ 146,880

$ 29,118

$ (24,729)

$ 40,046

$ (118,755)

$ 72,560

$ —

$ 72,560

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 September 30, 2025 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings

For the three months ended September 30, 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.

$ 146,880

$ 29,118

$ (24,729)

$ 40,046

$ (118,755)

$ 72,560

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

4,629

—

4,629

Non-controlling interests attributable to unrealized gains/losses

—

(4,323)

824

—

(3,499)

Non-cash equity compensation expense

2,840

733

1,565

1,327

8,225

14,690

Depreciation and amortization

2,876

—

21,587

1,865

—

26,328

Straight-line rent adjustment

—

(467)

—

(429)

Interest income adjustment for loans and securities

5,795

—

9,261

—

15,056

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

7,432

(234)

(6)

6,151

—

13,343

Other non-cash items

—

(83)

(407)

—

(488)

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

Loans

(40,544)

—

(11,823)

—

(52,367)

Credit loss provision, net

26,805

1,554

—

28,359

Securities

(1,111)

—

(4,531)

—

(5,642)

Woodstar Fund investments

—

(324)

—

(324)

Derivatives

(14,276)

(7)

7,971

(1,295)

1,793

(5,814)

Foreign currency

11,995

210

—

12,215

Loss (earnings) from unconsolidated entities

—

294

—

(2,797)

—

(2,503)

Sales of properties

(1,095)

—

(1,074)

Recognition of Distributable realized gains / (losses) on:

Loans

(674)

—

14,115

—

13,441

Securities

(414)

—

(8,326)

—

(8,740)

Woodstar Fund investments

—

21,351

—

21,351

Derivatives

11,072

486

(1,111)

(7,499)

2,994

Foreign currency

290

(11)

—

306

(Loss) earnings from unconsolidated entities

—

(110)

—

3,252

—

3,142

Sales of properties

1,095

—

(25)

—

1,070

Distributable Earnings (Loss)

$ 158,968

$ 31,631

$ 27,652

$ 46,589

$ (116,236)

$ 148,604

Distributable Earnings (Loss) per Weighted Average Diluted Share

$ 0.43

$ 0.08

$ 0.12

$ (0.31)

$ 0.40

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the nine months ended September 30, 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

$ 919,788

$ 203,129

$ 246

$ 11,425

$ —

$ 1,134,588

$ —

$ 1,134,588

Interest income from investment securities

63,629

452

—

73,281

—

137,362

(107,467)

29,895

Servicing fees

257

—

68,807

—

69,064

(14,312)

54,752

Rental income

20,968

—

78,155

15,831

—

114,954

—

114,954

Other revenues

7,857

2,946

821

4,204

1,324

17,152

—

17,152

Total revenues

1,012,499

206,527

79,222

173,548

1,324

1,473,120

(121,779)

1,351,341

Costs and expenses:

Management fees

529

—

103,310

103,839

—

103,839

Interest expense

527,684

115,662

42,346

22,715

235,344

943,751

(612)

943,139

General and administrative

44,365

15,482

8,751

68,712

13,432

150,742

—

150,742

Costs of rental operations

16,156

—

18,674

10,489

—

45,319

—

45,319

Depreciation and amortization

8,938

32,921

5,257

754

47,899

—

47,899

Credit loss provision, net

4,709

4,317

—

9,026

—

9,026

Other expense

4,046

(76)

165

—

4,183

—

4,183

Total costs and expenses

602,429

139,536

102,616

107,338

352,840

1,304,759

(612)

1,304,147

Other income (loss):

Change in net assets related to consolidated VIEs

—

112,706

Change in fair value of servicing rights

—

5,781

—

5,781

(649)

5,132

Change in fair value of investment securities, net

6,450

—

(14,370)

—

(7,920)

9,886

1,966

Change in fair value of mortgage loans, net

91,543

—

49,095

—

140,638

—

140,638

Income from affordable housing fund investments

—

9,349

—

9,349

—

9,349

Earnings (loss) from unconsolidated entities

2,708

251

—

8,689

—

11,648

(776)

10,872

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

32,710

—

(21)

—

32,689

—

32,689

(Loss) gain on derivative financial instruments, net

(167,702)

(12)

(8,082)

(1,082)

41,707

(135,171)

—

(135,171)

Foreign currency gain (loss), net

105,878

656

(197)

—

106,337

—

106,337

Gain (loss) on extinguishment of debt

20,773

(783)

—

19,990

—

19,990

Other (loss) income, net

(3,580)

—

(2,042)

2,427

—

(3,195)

—

(3,195)

Total other income (loss)

88,780

112

(993)

50,540

41,707

180,146

121,167

301,313

Income (loss) before income taxes

498,850

67,103

(24,387)

116,750

(309,809)

348,507

—

348,507

Income tax (provision) benefit

(2,231)

189

(15,744)

—

(17,780)

—

(17,780)

Net income (loss)

496,619

67,292

(24,381)

101,006

(309,809)

330,727

—

330,727

Net income attributable to non-controlling interests

(10)

—

(14,776)

(1,312)

—

(16,098)

—

(16,098)

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

$ 496,609

$ 67,292

$ (39,157)

$ 99,694

$ (309,809)

$ 314,629

$ —

$ 314,629

Reconciliation of Net Income to Distributable Earnings

For the nine months ended September 30, 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.

$ 496,609

$ 67,292

$ (39,157)

$ 99,694

$ (309,809)

$ 314,629

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

13,917

—

13,917

Non-controlling interests attributable to unrealized gains/losses

—

(11,080)

(6,378)

—

(17,458)

Non-cash equity compensation expense

8,476

2,056

1,781

4,091

25,066

41,470

Management incentive fee

—

10,244

Depreciation and amortization

9,146

—

33,545

5,562

—

48,253

Straight-line rent adjustment

—

307

104

—

411

Interest income adjustment for loans and securities

17,843

—

31,727

—

49,570

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

2,231

(189)

(6)

15,744

—

17,780

Other non-cash items

—

(246)

(1,219)

—

(1,455)

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

Loans

(91,543)

—

(49,095)

—

(140,638)

Credit loss provision, net

4,709

4,317

—

9,026

Securities

(6,450)

—

14,370

—

7,920

Woodstar Fund investments

—

(9,349)

—

(9,349)

Derivatives

167,702

8,082

1,082

(41,707)

135,171

Foreign currency

(105,878)

(656)

197

—

(106,337)

Earnings from unconsolidated entities

(2,708)

(251)

—

(8,689)

—

(11,648)

Sales of properties

(5,223)

—

(5,202)

Recognition of Distributable realized gains / (losses) on:

Loans

(1,556)

—

47,987

—

46,431

Securities

(761)

—

(15,082)

—

(15,843)

Woodstar Fund investments

—

63,272

—

63,272

Derivatives

57,668

149

290

(1,788)

(21,401)

34,918

Foreign currency

2,347

(197)

—

2,235

Earnings (loss) from unconsolidated entities

2,708

(327)

—

9,659

—

12,040

Sales of properties

(43,343)

—

(25)

—

(43,368)

Distributable Earnings (Loss)

$ 511,987

$ 72,488

$ 61,352

$ 147,769

$ (337,607)

$ 455,989

Distributable Earnings (Loss) per Weighted Average Diluted Share

$ 1.43

$ 0.20

$ 0.17

$ 0.41

$ (0.94)

$ 1.27

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of September 30, 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

$ 21,189

$ 135,689

$ 36,478

$ 6,288

$ 101,491

$ 301,135

$ —

$ 301,135

Restricted cash

164,241

49,872

10,499

347

13,013

237,972

—

237,972

Loans held-for-investment, net

15,254,794

3,063,963

—

18,318,757

—

18,318,757

Loans held-for-sale

2,308,388

—

252,767

—

2,561,155

—

2,561,155

Investment securities

622,469

16,416

—

1,197,170

—

1,836,055

(1,577,220)

258,835

Properties, net

764,063

—

2,505,635

64,785

—

3,334,483

—

3,334,483

Investments of consolidated affordable housing fund

—

1,861,931

—

1,861,931

—

1,861,931

Investments in unconsolidated entities

8,514

54,356

—

32,964

—

95,834

(14,744)

81,090

Goodwill

—

119,409

—

140,437

—

259,846

—

259,846

Intangible assets, net

2,965

—

394,574

68,673

—

466,212

(36,394)

429,818

Derivative assets

28,478

—

304

8,532

37,314

—

37,314

Accrued interest receivable

156,005

10,242

504

635

186

167,572

—

167,572

Other assets

205,970

9,937

108,722

(9,333)

62,959

378,255

—

378,255

VIE assets, at fair value

—

34,205,812

Total Assets

$ 19,537,076

$ 3,459,884

$ 4,918,343

$ 1,755,037

$ 186,181

$ 29,856,521

$ 32,577,454

$ 62,433,975

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$ 219,001

$ 39,187

$ 105,907

$ 44,584

$ 123,351

$ 532,030

$ —

$ 532,030

Related-party payable

—

27,939

—

27,939

Dividends payable

—

180,113

—

180,113

Derivative liabilities

79,121

—

14,450

93,571

—

93,571

Secured financing agreements, net

9,958,349

1,100,722

896,034

498,660

2,229,453

14,683,218

(20,000)

14,663,218

Securitized financing, net

1,412,126

1,232,420

877,942

—

3,522,488

—

3,522,488

Unsecured senior notes, net

—

3,245,122

—

3,245,122

VIE liabilities, at fair value

—

32,597,454

Total Liabilities

11,668,597

2,372,329

1,879,883

543,244

5,820,428

22,284,481

32,577,454

54,861,935

Temporary Equity: Redeemable non-controlling interests

—

385,853

—

385,853

—

385,853

Permanent Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

—

3,778

—

3,778

Additional paid-in capital

1,283,096

760,702

383,549

(616,981)

5,133,680

6,944,046

—

6,944,046

Treasury stock

—

(138,022)

—

(138,022)

Retained earnings (accumulated deficit)

6,573,329

326,853

2,063,233

1,712,845

(10,633,683)

42,577

—

42,577

Accumulated other comprehensive income

11,935

—

11,935

—

11,935

Total Starwood Property Trust, Inc. Stockholders' Equity

7,868,360

1,087,555

2,446,782

1,095,864

(5,634,247)

6,864,314

—

6,864,314

Non-controlling interests in consolidated subsidiaries

119

—

205,825

115,929

—

321,873

—

321,873

Total Permanent Equity

7,868,479

1,087,555

2,652,607

1,211,793

(5,634,247)

7,186,187

—

7,186,187

Total Liabilities and Equity

$ 19,537,076

$ 3,459,884

$ 4,918,343

$ 1,755,037

$ 186,181

$ 29,856,521

$ 32,577,454

$ 62,433,975

SOURCE Starwood Property Trust, Inc.