Starwood Property Trust Reports Q3 2026 Earnings and Dividend Review
Starwood Property Trust (STWD) reported third-quarter 2026 results characterized by significant legacy loan resolutions and increased credit reserves. The company successfully resolved $254 million in nonaccrual loans and foreclosed properties, moving closer to its annual target of over $800 million. However, higher interest rates necessitated a $369 million increase in Current Expected Credit Losses (CECL) reserves. Distributable earnings reached $0.41 per share, falling short of the current $0.48 quarterly dividend. Consequently, CEO Barry Sternlicht indicated that the board will evaluate the dividend payout ratio to preserve liquidity. Despite these headwinds, management remains optimistic about commercial real estate recovery and intends to recycle capital from resolved loans into higher-yielding investments.
Tickers: $STWD
Topics: credit reserves distributable earnings earnings report nonaccrual loans