Starwood 10-Q Details $389.7M Q3 Loss, $336.6M Credit Provision and $32.2M Property Impairments
STWD is trading near its 52-week low of $11.84 (8.0% above the low).
Summary
Starwood's Q3 10-Q shows a $389.7 million GAAP loss driven by a $336.6 million credit provision, up from $30.2 million last quarter, plus $32.2 million of property impairments. Distributable Earnings of $0.31 per share covered the $0.48 dividend only with realized gains included.
Key Events · Earnings and Guidance · STWD
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Q3 GAAP Loss of $389.7 Million
Net loss attributable to Starwood was $389.7 million, or $1.08 per diluted share, for the quarter ended September 30, 2026, versus $72.6 million of net income a year earlier.
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Credit Provision Jumps to $336.6 Million
The quarterly credit loss provision rose from $30.2 million in Q2 to $336.6 million, lifting the loan loss allowance to $704.2 million from $440.8 million at year-end; management attributes it to higher projected rates squeezing floating-rate borrowers.
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Property Impairments and Residential Marks
$32.2 million of impairments were taken on two foreclosed multifamily properties, and the fair value of residential loans fell $121.6 million in the quarter on higher rates and wider credit spreads.
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Dividend Coverage Tightens
Distributable Earnings were $116.8 million, or $0.31 per diluted share, and $0.41 per share before realized commercial lending losses, against the $0.48 quarterly dividend.
Analysis · STWD · Real Estate & Construction
The headline loss was already out in this morning's 8-K, but the 10-Q fills in what drove it. The $336.6 million credit provision is roughly eleven times the $30.2 million taken in Q2, and it comes with $32.2 million of fresh impairments on two foreclosed multifamily properties plus a $121.6 million markdown on residential loans as rates rose. Against that, Distributable Earnings of $0.31 per share still covered the $0.48 dividend only with the help of realized gains — the pre-realized-loss figure was $0.41. The company kept buying its own stock, repurchasing 6.7 million shares for $107.8 million in the quarter at an average $16.11, well above today's $12.79, and has $262.5 million of authorization left. The real question for holders is whether the reserve build is a one-quarter catch-up on floating-rate borrowers or the start of a longer workout cycle.
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In the 30 days to Nov 6, 2026, 35.1% of the 2636 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, STWD was trading at $12.79 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $11.84 to $18.66. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.