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Starwood Property Trust Profit Falls as Investing Surges and Credit Cleanup Accelerates

Executives say the strategy pairs aggressive new lending with a fast cleanup of troubled assets to set up a rebound.

Overview

  • Starwood reported first-quarter revenue of $512.5 million and net income of $51.9 million, which declined from both the prior quarter and the same period last year.
  • The firm has deployed about $4 billion so far in 2026, with $2.5 billion invested in the first quarter and another $1.5 billion after March.
  • It resolved $387 million of legacy assets in the quarter, including three foreclosures in Dallas and Phoenix, and targets roughly $900 million more by year-end with another $500 million in 2027.
  • Management is shifting exposure away from office toward apartments, industrial sites, infrastructure and residential lending, net-lease assets and data centers, with the net-lease platform fully occupied.
  • Starwood shored up funding with $20 million in share buybacks, two securitizations totaling about $1.1 billion, and access to roughly $1 billion of liquidity and $10.4 billion of loan capacity.