Starwood Property Trust (STWD) Q4 2025 earnings summary

Executive summary

• Q4 2025 distributable earnings were $160 million ($0.42/share), with full-year DE at $616 million ($1.69/share); adjusted DE was $1.95/share, exceeding the $1.92/share dividend.

• Reported Q4 GAAP EPS of $0.26 and full-year GAAP EPS of $1.15; GAAP net income was $96.9M in Q4 and $411.5M for the year.

• Record $12.7 billion deployed in 2025, including $2.5 billion in Q4, marking the second largest investment year.

• Executed a record $4.4 billion in capital transactions in 2025, enhancing balance sheet duration and lowering spreads.

• Ended the year with $1.4 billion in liquidity and an adjusted debt-to-equity ratio of 2.38x.

Financial highlights

• Q4 distributable earnings impacted by $0.06 dilution from net lease ramp-up and $0.04 from higher cash balances.

• Q4 GAAP net income was $96.9M; full-year GAAP net income was $411.5M.

• Three securitizations in Q4 generated $290 million in proceeds; $1.1 billion of high-yield unsecured debt issued in Q4.

• Total undepreciated assets reached a record $30.7 billion at year-end; GAAP book value per share was $18.34; undepreciated book value per share was $19.25.

• Commercial lending originations of $1.7 billion in Q4; funded loan portfolio grew to $16.6 billion.

Outlook and guidance

• Enhanced liquidity and embedded earnings from 2025 investments and unfunded commitments are expected to drive improved dividend coverage in 2026.

• Management expects long-term accretion from the Fundamental net lease acquisition, with reliable cash flows and annual rent increases of 2.3%.

• Anticipate another robust origination year in 2026, with commercial loan portfolio projected to exceed $17 billion in Q1.

• Net lease business expected to become accretive in 2026 as scale increases.

• Continued focus on resolving non-accrual and REO assets, with goal to resolve most of $1 billion in non-accrual loans in 2026.