Starwood Property Trust Q2 profit misses estimates

Starwood Property Trust (Maryland)

06/08/2026 12:17

Overview
US real estate finance firm's Q2 revenue missed analyst expectations
Adjusted EPS and adjusted net income for Q2 both missed analyst expectations
Company invested $2.5 bln in Q2 and repurchased $30 mln of shares in H1

Outlook
Company expects to resolve nearly $900 mln of underperforming assets by year end or shortly after
Company says real estate fundamentals are improving, supporting capital deployment and credit quality
Starwood says it is positioned to continue deploying capital and driving growth across business lines

Result Drivers
IMPROVING FUNDAMENTALS - Co said real estate fundamentals are improving across most asset classes, aided by lower construction and economic growth
ASSET RESOLUTION PLANS - Co expects to resolve nearly $900 mln of underperforming assets by year end, aiming to redeploy equity
DEBT MANAGEMENT - Co said $2.1 bln of corporate debt transactions in the quarter extended debt maturity and lowered cost of funds

Company press release: ID:nPnfwzz4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$513.67 mln
$521.90 mln (3 Analysts)
Q2 Adjusted EPS
Miss
$0.40
$0.41 (8 Analysts)
Q2 Adjusted Net Income
Miss
$151.50 mln
$155.46 mln (6 Analysts)
Q2 Net Income
 
$6.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Starwood Property Trust Inc (Maryland) is $20.50, about 26.5% above its August 5 closing price of $16.21
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
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Aug 5 - NNN REIT beats Q2 revenue estimates, raises 2026 guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)