Starwood Property Trust’s distributable earnings fall short of dividend

Starwood Property Trust reported GAAP net income of $6.6 million, or $0.01 per diluted share, for the quarter ended 30 June 2026, according to results summarised by Yahoo Finance.

The company’s Distributable Earnings, its preferred profitability measure, reached $151.5 million, or $0.40 per share. That was below the $0.48 per-share dividend paid for the quarter.

Starwood invested $2.5 billion during the quarter and $6.7 billion through July, lifting total assets to $31.8 billion. Commercial lending assets reached $17.3 billion.

The company completed $2.1 billion in corporate debt transactions during the quarter, which management said extended weighted average corporate debt maturity to 3.7 years and lowered its cost of funds. Starwood also recorded a $30.2 million credit loss provision.

Its Corporate segment reported a $175.7 million net loss attributable to Starwood, reducing consolidated Distributable Earnings by $137.9 million. Management said nearly $900 million in underperforming assets could be resolved by the end of the year or shortly afterwards, although the timing and outcome remain uncertain.

For the first half, net income attributable to Starwood was $58.4 million, compared with Distributable Earnings of $298.8 million, or $0.78 per share. The company repurchased $30 million of common shares during the first six months of 2026.