Starwood Property Q4 Earnings Beat Estimates; Book Value Per Share Drops 3.9%
Starwood Property Trust reported Q4 distributable earnings of $0.42 per share, topping the $0.41 consensus but down from $0.48 year-ago, while GAAP net income soared 87.7% to $96.9 million on $492.9 million revenue, up 8.5%. Book value per share fell 3.9% to $18.34.
1. Q4 Earnings Performance
Starwood Property Trust generated distributable earnings of $0.42 per share in Q4 2025, surpassing the $0.41 consensus estimate but down from $0.48 in Q4 2024. GAAP net income jumped 87.7% to $96.9 million on revenues of $492.9 million, an 8.5% increase year over year. Total expenses rose nearly 1% to $482.4 million.
2. Balance Sheet and Funding Activity
As of December 31, 2025, cash and cash equivalents reached $499.5 million, up 65.8% sequentially, and loans held for sale totaled $2.3 billion. The company funded $2.2 billion in new investments, up from $1.6 billion in the prior-year quarter, bolstering its commercial mortgage-backed securities portfolio.
3. Profitability Pressure and Outlook
Book value per share declined 3.9% to $18.34 from $19.08 a year ago, reflecting wider expenses and asset repricing headwinds. Despite a full-year distributable earnings beat at $1.69 per share, down from $2.02 in 2024, the company’s growing cash buffer and ongoing property acquisitions aim to support long-term income stability.