Starwood Property Trust Reports Q3 2026 GAAP Net Loss Amid Increased Credit Provisions
Starwood Property Trust (STWD) reported a GAAP net loss of $389.7 million ($1.08 per share) for the third quarter of 2026, driven largely by a $336.6 million credit loss provision and $32.2 million in non-cash property impairments. Despite the bottom-line loss, the company reported distributable earnings (DE) of $0.31 per share, which rises to $0.41 when excluding realized gains and losses from commercial lending resolutions. The company's commercial lending portfolio reached a record $17.8 billion following $2.4 billion in new originations. However, management noted worsening macroeconomic conditions, reflected in total credit loss reserves of $1 billion. While the firm continues to deploy capital—investing $3.2 billion this quarter—Chairman Barry Sternlicht indicated that the company may need to re-evaluate its dividend policy given current earnings trends.
Tickers: $STWD
Topics: Asset Resolutions Commercial Lending Credit Loss Provision Distributable Earnings GAAP Net Loss