Starwood Property Trust Posts $389.7M Q3 GAAP Loss on $336.6M Credit Provision; DE of $0.31
STWD is trading near its 52-week low of $11.84 (8.8% above the low).
Summary
Starwood Property Trust reported a $389.7 million Q3 GAAP loss driven by a $336.6 million credit loss provision, while Distributable Earnings of $0.31 per share still covered the $0.48 dividend. The company invested $3.2 billion in the quarter and repurchased $108 million of stock.
Key Events · Earnings and Guidance · STWD
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Q3 GAAP Loss of $389.7 Million
For the quarter ended September 30, 2026, net loss attributable to Starwood was $389.7 million, or $1.08 per diluted share.
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Credit Provision Jumps to $336.6 Million
A $336.6 million credit loss provision plus $32.2 million of non-cash property impairments drove the GAAP loss; the prior quarter carried a $30.2 million provision.
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Distributable Earnings Cover the Dividend
Distributable Earnings were $116.8 million, or $0.31 per diluted share, and $0.41 per share before realized commercial lending losses, against a $0.48 per share dividend.
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$3.2 Billion Deployed, Record Lending Book
The company invested $3.2 billion in the quarter and $8.2 billion over nine months, including $2.4 billion of commercial lending that lifted the portfolio to a record $17.8 billion.
Analysis · STWD · Real Estate & Construction
The headline GAAP loss is almost entirely accounting-driven: a $336.6 million credit loss provision and $32.2 million of non-cash property impairments pushed the quarter to a $389.7 million net loss, or $1.08 per diluted share. Cash-like earnings held up far better, with Distributable Earnings of $116.8 million, or $0.31 per share, and $0.41 per share before realized commercial lending losses, comfortably covering the $0.48 annualized quarterly dividend. The provision is the number that matters: at roughly nine times the prior quarter's $30.2 million charge disclosed in the August 10-Q, the market will focus on whether this is a one-quarter catch-up on the underperforming loan book or the start of a broader deterioration. Management says it still expects to resolve almost half of the underperforming assets it began the year with, and the balance sheet remains large and liquid, with $391.9 million of cash and $15.3 billion of secured financing. Against that, the company kept deploying capital, investing $3.2 billion in the quarter, including $2.4 billion of commercial lending, and bought back a record $108 million of its own stock.
How filings like this one have moved
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 $12.88 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.