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Starwood Property Stock Down on Q1 Earnings Miss, Expenses Rise Y/Y
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Key Takeaways
STWD shares fell about 1.7% after Q1 2026 distributable EPS of 39 cents missed the estimate of 42 cents.
STWD revenue rose 22.5% year over year and topped estimates, but expenses climbed 25%.
STWD reported BVPS down 4.7% and net income fell 53.7%, while fundings rose to $2.3B.
Shares of Starwood Property Trust, Inc. (STWD - Free Report) lost nearly 1.7% in Friday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 distributable earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents. The reported figure also compares unfavorably with 45 cents per share in the year-ago quarter.
Results were primarily affected by a decrease in book value per share (BVPS) and an increase in expenses. Nevertheless, a year-over-year rise in revenues supported the results to some extent.
The company’s first-quarter 2026 net income (GAAP basis) was $51.9 million, which declined 53.7% year over year.
Inside Starwood Property’s Headlines
STWD’s total revenues were $512.4 million, up 22.5% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 6.6%.
Total costs and expenses were $480.3 million, up 25% from the prior-year quarter. The increase was primarily driven by higher interest expense, general and administrative costs, rental operations costs and depreciation and amortization.
Starwood Property’s BVPS (GAAP basis) was $17.98 as of March 31, 2026, down 4.7% from $18.87 in the prior-year quarter.
The company recorded fundings of $2.3 billion, which increased from $2 billion in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of March 31, 2026, cash and cash equivalents were $290.3 million, down 41.9% from the prior quarter.
Loans held for sale totaled $2.3 billion, reflecting a marginal decline from the prior quarter.
Our Take on STWD
Starwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should support portfolio diversification and long-term resilience. However, the decline in BVPS, despite higher revenues, indicates near-term pressure on profitability.
STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2026 earnings available for distribution per average share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents. The figure increased from 72 cents in the year-ago quarter.
NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, a lower economic capital ratio was concerning.
AGNC Investment Corp. (AGNC - Free Report) reported first-quarter of 2026 net spread and dollar roll income per common share of 42 cents, topping the Zacks Consensus Estimate by 16.7%. However, the metric declined 4.5% from the year-ago quarter’s 44 cents.
AGNC’s results benefited from rallies in average asset yield and NII. Also, a rise in tangible net book value per common share in the portfolio was positive. However, a reduced net interest spread and a higher weighted average cost of funds were concerning.
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Starwood Property Stock Down on Q1 Earnings Miss, Expenses Rise Y/Y
Key Takeaways
Shares of Starwood Property Trust, Inc. (STWD - Free Report) lost nearly 1.7% in Friday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 distributable earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents. The reported figure also compares unfavorably with 45 cents per share in the year-ago quarter.
Results were primarily affected by a decrease in book value per share (BVPS) and an increase in expenses. Nevertheless, a year-over-year rise in revenues supported the results to some extent.
The company’s first-quarter 2026 net income (GAAP basis) was $51.9 million, which declined 53.7% year over year.
Inside Starwood Property’s Headlines
STWD’s total revenues were $512.4 million, up 22.5% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 6.6%.
Total costs and expenses were $480.3 million, up 25% from the prior-year quarter. The increase was primarily driven by higher interest expense, general and administrative costs, rental operations costs and depreciation and amortization.
Starwood Property’s BVPS (GAAP basis) was $17.98 as of March 31, 2026, down 4.7% from $18.87 in the prior-year quarter.
The company recorded fundings of $2.3 billion, which increased from $2 billion in the prior-year quarter.
Starwood Property’s Balance Sheet Position
As of March 31, 2026, cash and cash equivalents were $290.3 million, down 41.9% from the prior quarter.
Loans held for sale totaled $2.3 billion, reflecting a marginal decline from the prior quarter.
Our Take on STWD
Starwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should support portfolio diversification and long-term resilience. However, the decline in BVPS, despite higher revenues, indicates near-term pressure on profitability.
STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS Surprise
STARWOOD PROPERTY TRUST, INC. price-consensus-eps-surprise-chart | STARWOOD PROPERTY TRUST, INC. Quote
STWD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2026 earnings available for distribution per average share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents. The figure increased from 72 cents in the year-ago quarter.
NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, a lower economic capital ratio was concerning.
AGNC Investment Corp. (AGNC - Free Report) reported first-quarter of 2026 net spread and dollar roll income per common share of 42 cents, topping the Zacks Consensus Estimate by 16.7%. However, the metric declined 4.5% from the year-ago quarter’s 44 cents.
AGNC’s results benefited from rallies in average asset yield and NII. Also, a rise in tangible net book value per common share in the portfolio was positive. However, a reduced net interest spread and a higher weighted average cost of funds were concerning.