New: Introducing the Finviz Crypto Map

Learn More

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

By PR Newswire | August 07, 2025, 7:00 AM

– Quarterly GAAP Earnings of $0.38 and Distributable Earnings (DE) of $0.43 per Diluted Share –

– Invested $3.2 Billion in the Quarter and $5.5 Billion in the 6 Months, Surpassing 2024 Capital

Deployment –

– LNR's Commercial Special Servicer Ratings of CSS1 and CS1 (Highest Ratings Possible) Reaffirmed

by Fitch and Morningstar DBRS –

– Awarded Nareit Gold Investor CARE Award for 9th Time in 11 Years –

– Paid Dividend of $0.48 per Share for Q2 and Declared $0.48 Dividend for Q3 –

– Acquired Fundamental Income Properties, a $2.2 Billion Fully Integrated Net Lease Real Estate

Operating Platform and Owned Portfolio –

MIAMI BEACH, Fla., Aug. 7, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2025. The Company's second quarter 2025 GAAP net income was $129.8 million, and Distributable Earnings (a non-GAAP financial measure) was $151.1 million.

"We have continued to demonstrate the strength and flexibility of our multi-cylinder platform," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "While commercial real estate lending remains a foundational part of our business, it now represents about half of our asset base—a reflection of how far we've diversified and evolved. Our capital deployment has already surpassed full-year 2024 levels, and we're seeing robust investment opportunities across sectors. We are exceptionally well-positioned to capitalize on today's environment."

"As the property markets recover, led by much lower future supply and the imminent projection of lower interest rates, the integration of Fundamental Income marks a significant step in our ongoing evolution and diversification," Sternlicht continued. "Their scalable business, disciplined credit focus, and structuring expertise are highly aligned with our platform. This acquisition adds a powerful new important vertical where we hope to deploy significant capital and grow our earnings going forward with stable recurring cash flows."

"Since our IPO, we've raised over $20 billion in capital, proving our ability to access liquidity through all market conditions," added Jeffrey DiModica, President of Starwood Property Trust. "The recent repricing of our term loans to best-in-class levels reflects the market's confidence in our strategy and credit profile. With $5.0 billion in unencumbered assets, over $1.4 billion in unrealized property gains, no near-term debt maturities, and a diversified business model, we have the tools and financial strength to drive disciplined growth and capture the compelling opportunities ahead."

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 Thursday, August 7, 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:  13754310

The playback can be accessed through August 21, 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 June 30, 2025, the Company has successfully deployed $108 billion of capital since inception and manages a portfolio of over $27 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, 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 June 30, 2025.

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 June 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

$                       313,595



$           65,949



$           —



$           5,675



$             —



$   385,219



$                 —



$  385,219

Interest income from investment securities

21,335



148





21,778





43,261



(32,948)



10,313

Servicing fees

111







18,627





18,738



(4,658)



14,080

Rental income

6,532





16,237



5,474





28,243





28,243

Other revenues

2,334



1,087



240



2,231



536



6,428





6,428

Total revenues

343,907



67,184



16,477



53,785



536



481,889



(37,606)



444,283

Costs and expenses:































Management fees

177









30,656



30,833





30,833

Interest expense

180,494



39,106



9,067



7,794



79,881



316,342



(210)



316,132

General and administrative

15,535



5,523



1,237



24,361



4,416



51,072





51,072

Costs of rental operations

4,950





5,930



3,632





14,512





14,512

Depreciation and amortization

2,491



9



5,875



1,744



252



10,371





10,371

Credit loss provision, net

3,663



2,003









5,666





5,666

Other expense



1,693



6



194





1,893





1,893

Total costs and expenses

207,310



48,334



22,115



37,725



115,205



430,689



(210)



430,479

Other income (loss):































Change in net assets related to consolidated VIEs













40,280



40,280

Change in fair value of servicing rights







3,568





3,568



(1,205)



2,363

Change in fair value of investment securities, net

(2,058)







3,728





1,670



(1,325)



345

Change in fair value of mortgage loans, net

8,425







21,442





29,867





29,867

Income from affordable housing fund investments





5,115







5,115





5,115

Earnings from unconsolidated entities

1,412



1,167





5,647





8,226



(354)



7,872

Gain on sale of investments and other assets, net

31,662











31,662





31,662

(Loss) gain on derivative financial instruments, net

(116,140)





(13)



(1,304)



16,161



(101,296)





(101,296)

Foreign currency gain (loss), net

83,257



630



(126)







83,761





83,761

Gain (loss) on extinguishment of debt

20,773



(783)









19,990





19,990

Other (loss) income, net

(737)





(636)



2,977





1,604





1,604

Total other income (loss)

26,594



1,014



4,340



36,058



16,161



84,167



37,396



121,563

Income (loss) before income taxes

163,191



19,864



(1,298)



52,118



(98,508)



135,367





135,367

Income tax benefit (provision)

5,495



88





(6,254)





(671)





(671)

Net income (loss)

168,686



19,952



(1,298)



45,864



(98,508)



134,696





134,696

Net (income) loss attributable to non-controlling interests

(4)





(5,326)



448





(4,882)





(4,882)

Net income (loss) attributable to Starwood Property

Trust, Inc

$                       168,682



$           19,952



$     (6,624)



$          46,312



$     (98,508)



$   129,814



$                 —



$  129,814

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 June 30, 2025 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings 

For the three months ended June 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

$                           168,682



$                              19,952



$                            (6,624)



$                             46,312



$                          (98,508)



$                           129,814

Add / (Deduct):























Non-controlling interests attributable to Woodstar II Class A Units





4,629







4,629

Non-controlling interests attributable to unrealized gains/losses





(3,383)



(2,699)





(6,082)

Non-cash equity compensation expense

2,844



723



107



1,367



8,389



13,430

Management incentive fee









183



183

Depreciation and amortization

2,528





5,987



1,845





10,360

Interest income adjustment for loans and securities

5,832







7,304





13,136

Consolidated income tax (benefit) provision associated with fair

value adjustments

(5,495)



(88)





6,254





671

Other non-cash items

5





316



(380)





(59)

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























Loans

(8,425)







(21,442)





(29,867)

Credit loss provision, net

3,663



2,003









5,666

Securities

2,058







(3,728)





(1,670)

Woodstar Fund investments





(5,115)







(5,115)

Derivatives

116,140





13



1,304



(16,161)



101,296

Foreign currency

(83,257)



(630)



126







(83,761)

Earnings from unconsolidated entities

(1,412)



(1,167)





(5,647)





(8,226)

Sales of properties

(4,128)











(4,128)

Recognition of Distributable realized gains / (losses) on:























Loans

(702)







19,165





18,463

Securities

(316)







(4,223)





(4,539)

Woodstar Fund investments





21,600







21,600

Derivatives

17,555



50



(99)



347



(6,868)



10,985

Foreign currency

1,671



91



(125)







1,637

Earnings (loss) from unconsolidated entities

1,412



(109)





5,801





7,104

Sales of properties

(44,438)











(44,438)

Distributable Earnings (Loss)

$                           174,217



$                              20,825



$                            17,432



$                             51,580



$                        (112,965)



$                           151,089

Distributable Earnings (Loss) per Weighted Average Diluted Share

$                                  0.49



$                                  0.06



$                                0.05



$                                  0.15



$                               (0.32)



$                                  0.43

 

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the six months ended June 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

$            603,894



$         126,405



$              —



$             8,843



$              —



$      739,142



$                 —



$         739,142

Interest income from investment securities

45,224



302





49,952





95,478



(72,944)



22,534

Servicing fees

176







40,456





40,632



(9,092)



31,540

Rental income

14,735





32,552



10,139





57,426





57,426

Other revenues

5,344



2,102



474



3,270



631



11,821





11,821

Total revenues

669,373



128,809



33,026



112,660



631



944,499



(82,036)



862,463

Costs and expenses:































Management fees

357









71,239



71,596





71,596

Interest expense

346,045



74,260



18,044



15,927



154,419



608,695



(405)



608,290

General and administrative

30,141



10,541



2,651



46,862



9,024



99,219





99,219

Costs of rental operations

10,468





11,948



6,916





29,332





29,332

Depreciation and amortization

6,098



19



11,740



3,495



503



21,855





21,855

Credit loss (reversal) provision, net

(22,096)



2,763









(19,333)





(19,333)

Other expense

(25)



3,616



(76)



229





3,744





3,744

Total costs and expenses

370,988



91,199



44,307



73,429



235,185



815,108



(405)



814,703

Other income (loss):































Change in net assets related to consolidated VIEs













68,971



68,971

Change in fair value of servicing rights







3,454





3,454



(338)



3,116

Change in fair value of investment securities, net

5,339







(18,901)





(13,562)



13,734



172

Change in fair value of mortgage loans, net

50,999







37,272





88,271





88,271

Income from affordable housing fund investments





9,025







9,025





9,025

Earnings from unconsolidated entities

2,708



545





5,892





9,145



(736)



8,409

Gain on sale of investments and other assets, net

31,662











31,662





31,662

(Loss) gain on derivative financial instruments, net

(181,978)



(19)



(111)



(2,377)



43,500



(140,985)





(140,985)

Foreign currency gain (loss), net

117,873



866



(187)







118,552





118,552

Gain (loss) on extinguishment of debt

20,773



(783)









19,990





19,990

Other (loss) income, net

(1,226)





(1,464)



2,981





291





291

Total other income (loss)

46,150



609



7,263



28,321



43,500



125,843



81,631



207,474

Income (loss) before income taxes

344,535



38,219



(4,018)



67,552



(191,054)



255,234





255,234

Income tax benefit (provision)

5,201



(45)





(9,593)





(4,437)





(4,437)

Net income (loss)

349,736



38,174



(4,018)



57,959



(191,054)



250,797





250,797

Net (income) loss attributable to non-controlling interests

(7)





(10,410)



1,689





(8,728)





(8,728)

Net income (loss) attributable to Starwood Property

Trust, Inc

$            349,729



$           38,174



$      (14,428)



$           59,648



$    (191,054)



$      242,069



$                 —



$         242,069

 

Reconciliation of Net Income to Distributable Earnings 

For the six months ended June 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

$         349,729



$           38,174



$         (14,428)



$           59,648



$       (191,054)



$         242,069

Add / (Deduct):























Non-controlling interests attributable to Woodstar II Class A Units





9,288







9,288

Non-controlling interests attributable to unrealized gains/losses





(6,757)



(7,202)





(13,959)

Non-cash equity compensation expense

5,636



1,323



216



2,764



16,841



26,780

Management incentive fee









10,244



10,244

Depreciation and amortization

6,270





11,958



3,697





21,925

Interest income adjustment for loans and securities

12,048







22,466





34,514

Consolidated income tax provision (benefit} associated with fair

value adjustments

(5,201)



45





9,593





4,437

Other non-cash items

8





611



(746)





(127)

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























Loans

(50,999)







(37,272)





(88,271)

Credit loss (reversal) provision, net

(22,096)



2,763









(19,333)

Securities

(5,339)







18,901





13,562

Woodstar Fund investments





(9,025)







(9,025)

Derivatives

181,978



19



111



2,377



(43,500)



140,985

Foreign currency

(117,873)



(866)



187







(118,552)

Earnings from unconsolidated entities

(2,708)



(545)





(5,892)





(9,145)

Sales of properties

(4,128)











(4,128)

Recognition of Distributable realized gains / (losses) on:























Loans

(882)







33,872





32,990

Securities

(347)







(6,756)





(7,103)

Woodstar Fund investments





41,921







41,921

Derivatives

46,596



103



(196)



(677)



(13,902)



31,924

Foreign currency

2,057



58



(186)







1,929

Earnings (loss) from unconsolidated entities

2,708



(217)





6,407





8,898

Sales of properties

(44,438)











(44,438)

Distributable Earnings (Loss)

$         353,019



$           40,857



$           33,700



$         101,180



$       (221,371)



$         307,385

Distributable Earnings (Loss) per Weighted Average Diluted Share

$               1.00



$               0.12



$               0.10



$               0.29



$             (0.63)



$               0.88

 

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of June 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

$                   20,699



$                89,036



$                31,842



$                60,226



$                58,118



$             259,921



$                        —



$             259,921

Restricted cash

167,090



29,605



1,170



356



16,723



214,944





214,944

Loans held-for-investment, net

14,765,064



3,060,322









17,825,386





17,825,386

Loans held-for-sale

2,323,276







171,562





2,494,838





2,494,838

Investment securities

871,881



17,055





1,202,438





2,091,374



(1,588,776)



502,598

Properties, net

764,852





650,398



64,761





1,480,011





1,480,011

Investments of consolidated affordable housing fund





2,055,555







2,055,555





2,055,555

Investments in unconsolidated entities

8,514



54,651





33,225





96,390



(14,971)



81,419

Goodwill



119,409





140,437





259,846





259,846

Intangible assets

3,112





20,784



66,619





90,515



(36,083)



54,432

Derivative assets

64,565





4



11



7,374



71,954





71,954

Accrued interest receivable

147,344



16,241





816



240



164,641





164,641

Other assets

173,709



5,502



58,328



7,913



136,116



381,568





381,568

VIE assets, at fair value













36,522,250



36,522,250

Total Assets

$          19,310,106



$          3,391,821



$          2,818,081



$          1,748,364



$             218,571



$       27,486,943



$       34,882,420



$       62,369,363

Liabilities and Equity































Liabilities:































Accounts payable, accrued expenses and other liabilities

$                197,050



$                31,651



$                13,658



$                38,650



$             117,265



$             398,274



$                        —



$             398,274

Related-party payable









25,846



25,846





25,846

Dividends payable









166,227



166,227





166,227

Derivative liabilities

125,447









16,894



142,341





142,341

Secured financing agreements, net

9,820,014



1,195,546



480,912



518,078



1,545,949



13,560,499



(20,110)



13,540,389

Collateralized loan obligations and single asset securitization, net

1,550,966



1,231,809









2,782,775





2,782,775

Unsecured senior notes, net









3,242,251



3,242,251





3,242,251

VIE liabilities, at fair value













34,902,530



34,902,530

Total Liabilities

11,693,477



2,459,006



494,570



556,728



5,114,432



20,318,213



34,882,420



55,200,633

Temporary Equity: Redeemable non-controlling interests





425,453







425,453





425,453

Permanent Equity:































Starwood Property Trust, Inc. Stockholders' Equity:































Common stock









3,491



3,491





3,491

Additional paid-in capital

1,177,279



635,080



(395,728)



(596,291)



5,575,101



6,395,441





6,395,441

Treasury stock









(138,022)



(138,022)





(138,022)

Retained earnings (accumulated deficit)

6,426,450



297,735



2,087,961



1,672,800



(10,336,431)



148,515





148,515

Accumulated other comprehensive income

12,785











12,785





12,785

Total Starwood Property Trust, Inc. Stockholders' Equity

7,616,514



932,815



1,692,233



1,076,509



(4,895,861)



6,422,210





6,422,210

Non-controlling interests in consolidated subsidiaries

115





205,825



115,127





321,067





321,067

Total Permanent Equity

7,616,629



932,815



1,898,058



1,191,636



(4,895,861)



6,743,277





6,743,277

Total Liabilities and Equity

$          19,310,106



$          3,391,821



$          2,818,081



$          1,748,364



$             218,571



$       27,486,943



$       34,882,420



$       62,369,363

 

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-quarter-ended-june-30-2025-302524056.html

SOURCE Starwood Property Trust, Inc.

Latest News