Starwood Property Trust, Inc. (STWD) Earnings Call Transcripts

Starwood Property Trust, Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Starwood Property Trust, Inc. (STWD:US) reported distributable earnings (DE) of $147 million, or $0.39 per share, which fell short of expectations due to ongoing challenges with nonperforming assets and a dilutive net lease segment. Management noted that adjusted DE would have been $0.47 per share if not for these factors. The company deployed $2.5 billion in capital during the quarter, contributing to a record total undepreciated asset base of $31.7 billion. Forward guidance indicates a potential recovery in earnings, with expectations to exceed the dividend coverage of $0.48 by late 2026 or early 2027.

Reported metrics

Guidance from management

Management expects to exceed the dividend coverage of $0.48 by late 2026 or early 2027, contingent on resolving nonperforming assets and optimizing the net lease segment.

What management said

Yes. We will -- we prefer to let you know when they happen because the market's moved pretty quickly. There are 2 or 3 that we that we think happen fairly soon. There are a couple of leases that could move some away from nonaccrual. I think you'll see that with some potential upgrade. But I don't want to signal any of the sales quite yet, Gabe. But I gave you the sense that we hope to get through $900 million this ye...

What analysts pressed on

Analysts expressed concerns regarding the timeline for resolving nonaccruals and the dilutive impact of the net lease segment. There were questions about the potential for achieving the $0.48 dividend coverage target and the pace of asset resolutions.

Main topics on the call

• Nonperforming Assets Resolution — Management highlighted the resolution of over $300 million in nonperforming assets, with expectations to resolve up to $900 million by year-end 2026. They stated, 'We have additional REO sales in process and expect furth...
• Capital Deployment — Starwood deployed $2.5 billion of capital in Q1, with $1.5 billion in commercial lending and $597 million in infrastructure lending. This was described as 'the highest level since inception' for their loan portfolio, sig...
• Dilution from Net Lease Segment — The net lease segment continued to be dilutive, contributing only $0.03 to DE. Management acknowledged, 'If optimized and at scale, this business would have contributed $0.03 of incremental DE to the quarter.'
• Improvement in Loan Portfolio Risk Rating — The weighted average risk rating on the loan portfolio improved from 3.0 to 2.9, indicating a healthier portfolio. Management noted, 'Nearly half of the over 50 loans in our history that have been risk rated 4 or 5 have ...

Read the full Starwood Property Trust, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 29 Starwood Property Trust, Inc. earnings call transcripts on record, spanning February 25, 2020 to May 8, 2026. Based on this history, Starwood Property Trust, Inc. reports quarterly. The most recent call on file is dated May 8, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

STWD

Exchange

NYSE

Country

US

Sector

Real Estate

Industry

Mortgage Real Estate Investment Trusts (REITs)

Calls on record

29

First call

February 25, 2020

Most recent

May 8, 2026

Reporting cadence

quarterly