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“The third quarter of the year was somewhat historic. Interest rates skyrocketed and the forward yield curve moved sharply higher. Though the real estate markets continued their healing, bolstered by a meaningful collapse in most all major asset classes, the rise in rates sent a bit of a shock wave through the property sector and related rate sensitive sectors. We held steady and continued to make meaningful investments in the quarter while continuing to resolve our underperforming assets and loans. Through the first 9 months of the year, we have deployed $8.2 billion into our various business lines at very attractive risk adjusted returns. In addition, we still expect to resolve almost half of the underperforming assets we started the year with. Although our borrowers are feeling the pain of higher interest costs, our balance sheet and liquidity remain very strong,” said Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

Distributable Earnings, a non-GAAP financial measure, is used to compute the Company’s incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company’s purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company’s external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company’s external manager and approved by a majority of the Company’s independent directors.

The Company believes it is also useful to present another non-GAAP financial measure, Distributable Earnings prior to realized commercial lending gains and losses. This measure adjusts Distributable Earnings to exclude realized gains and losses resulting from the disposition or resolution of commercial loans that were on nonaccrual or properties acquired through foreclosure held within the Company’s Commercial and Residential Lending Segment. The Company believes this supplemental measure helps investors assess the earnings capacity of its existing investment portfolio and inform their assessment of future earnings and potential dividends by separately identifying the impact of realized commercial lending gains and losses arising from loan resolutions and dispositions of foreclosed real estate. Because these gains and losses remain an important component of the Company’s overall economic performance and dividend coverage, they are included in Distributable Earnings. The Company’s management and Board of Directors consider both measures when evaluating its performance and determining its dividend.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of September 30, 2026, the Company has successfully deployed $123 billion of capital since inception and manages a portfolio of $32 billion across debt and equity investments. Starwood Property Trust’s investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words “believe,” “expect,” “anticipate” and other similar expressions. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company’s reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	341,142	$	66,654	$	—	$	1,466	$	—	$	409,262	$	—	$	409,262
Interest income from investment securities	15,409		2,090		—		22,206		—		39,705		(31,297)		8,408
Servicing fees	67		—		—		36,899		—		36,966		(6,650)		30,316
Rental income	18,498		—		68,340		3,710		—		90,548		—		90,548
Other revenues	2,417		1,768		117		2,129		888		7,319		—		7,319
Total revenues	377,533		70,512		68,457		66,410		888		583,800		(37,947)		545,853
Costs and expenses:
Management fees	161		—		—		—		29,881		30,042		—		30,042
Interest expense	167,070		38,810		32,259		7,724		113,482		359,345		(200)		359,145
General and administrative	14,528		5,590		7,067		18,755		3,955		49,895		—		49,895
Costs of rental operations	16,645		—		7,740		3,081		—		27,466		—		27,466
Depreciation and amortization	4,544		10		30,753		1,044		251		36,602		—		36,602
Credit loss provision (reversal), net	336,824		(212)		—		—		—		336,612		—		336,612
Other expense (reversal), net	83		33		61		(203)		—		(26)		—		(26)
Total costs and expenses	539,855		44,231		77,880		30,401		147,569		839,936		(200)		839,736
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		33,644		33,644
Change in fair value of servicing rights	—		—		—		822		—		822		1,862		2,684
Change in fair value of investment securities, net	879		—		—		(3,666)		—		(2,787)		2,657		(130)
Change in fair value of mortgage loans, net	(121,362)		—		—		(276)		—		(121,638)		—		(121,638)
Income from affordable housing fund investments	—		—		23,060		—		—		23,060		—		23,060
Earnings from unconsolidated entities	786		1,648		—		484		—		2,918		(416)		2,502
(Loss) gain on sale of investments and other assets, net	(11,580)		—		145		—		—		(11,435)		—		(11,435)
Gain (loss) on derivative financial instruments, net	84,663		3,470		14,792		815		(87,314)		16,426		—		16,426
Foreign currency (loss) gain, net	(480)		—		11		—		—		(469)		—		(469)
Loss on extinguishment of debt	—		—		—		—		(867)		(867)		—		(867)
Other (loss) income, net	(34,563)		—		434		1		—		(34,128)		—		(34,128)
Total other (loss) income	(81,657)		5,118		38,442		(1,820)		(88,181)		(128,098)		37,747		(90,351)
Income (loss) before income taxes	(243,979)		31,399		29,019		34,189		(234,862)		(384,234)		—		(384,234)
Income tax benefit (provision)	7,419		(267)		(19)		(4,064)		—		3,069		—		3,069
Net (loss) income	(236,560)		31,132		29,000		30,125		(234,862)		(381,165)		—		(381,165)
Net (income) loss attributable to non-controlling interests	(3)		—		(9,012)		472		—		(8,543)		—		(8,543)
Net (loss) income attributable to Starwood Property Trust, Inc.	$	(236,563)	$	31,132	$	19,988	$	30,597	$	(234,862)	$	(389,708)	$	—	$	(389,708)


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Net (loss) income attributable to Starwood Property Trust, Inc.	(236,563)		31,132		19,988		30,597		(234,862)		$	(389,708)
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		4,628		—		—		4,628
Non-controlling interests attributable to unrealized gains/losses	—		—		714		(929)		—		(215)
Non-cash equity compensation expense	2,613		797		(269)		1,467		6,472		11,080

Depreciation and amortization	4,580		—		31,237		1,083		—		36,900
Straight-line rent adjustment	—		—		(1,864)		57		—		(1,807)
Interest income adjustment for loans and securities	4,558		—		—		13,207		—		17,765

Consolidated income tax (benefit) provision associated with fair value adjustments	(7,419)		267		19		4,064		—		(3,069)
Other non-cash items	3		(1)		(82)		(406)		—		(486)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	121,362		—		—		276		—		121,638
Credit loss provision (reversal), net	336,824		(212)		—		—		—		336,612
Securities	(879)		—		—		3,666		—		2,787
Woodstar Fund investments	—		—		(23,060)		—		—		(23,060)
Derivatives	(84,663)		(3,470)		(14,792)		(815)		87,314		(16,426)
Foreign currency	480		—		(11)		—		—		469
Earnings from unconsolidated entities	(786)		(1,648)		—		(484)		—		(2,918)
Sales of properties	11,563		—		(145)		—		—		11,418
Unrealized impairment of properties	32,163		—		—		—		—		32,163
Recognition of Distributable realized gains / (losses) on:
Loans	(715)		—		—		1,164		—		449

Securities	(437)		—		—		(8,415)		—		(8,852)
Woodstar Fund investments	—		—		19,591		—		—		19,591

Derivatives	(6,720)		(5)		10,072		519		(7,550)		(3,684)
Foreign currency	8,249		—		11		—		—		8,260
Earnings from unconsolidated entities	786		476		—		490		—		1,752
Sales of properties	(38,397)		—		(120)		—		—		(38,517)
Distributable Earnings (Loss)	$	146,602	$	27,336	$	45,917	$	45,541	$	(148,626)	$	116,770
Realized losses on foreclosed property sales	38,397		—		—		—		—		38,397
Distributable Earnings (Loss) prior to realized commercial lending gains and losses	$	184,999	$	27,336	$	45,917	$	45,541	$	(148,626)	$	155,167
Distributable Earnings (Loss) per weighted average diluted share	$	0.39	$	0.07	$	0.12	$	0.12	$	(0.39)	$	0.31
Distributable Earnings (Loss) prior to realized commercial lending gains and losses per weighted average diluted share	$	0.49	$	0.07	$	0.12	$	0.12	$	(0.39)	$	0.41


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	978,607	$	195,083	$	—	$	7,798	$	—	$	1,181,488	$	—	$	1,181,488
Interest income from investment securities	46,390		2,955		—		68,309		—		117,654		(99,058)		18,596
Servicing fees	290		—		—		108,994		—		109,284		(14,281)		95,003
Rental income	54,611		—		193,010		10,752		—		258,373		—		258,373
Other revenues	6,430		4,715		936		4,056		2,380		18,517		—		18,517
Total revenues	1,086,328		202,753		193,946		199,909		2,380		1,685,316		(113,339)		1,571,977
Costs and expenses:
Management fees	358		—		—		—		96,423		96,781		—		96,781
Interest expense	482,743		114,131		88,985		23,667		323,700		1,033,226		(598)		1,032,628
General and administrative	46,299		17,523		23,860		64,344		12,896		164,922		—		164,922
Costs of rental operations	46,022		—		22,254		8,637		—		76,913		—		76,913
Depreciation and amortization	13,561		29		87,968		3,276		754		105,588		—		105,588
Credit loss provision (reversal), net	367,226		(827)		—		—		—		366,399		—		366,399
Other expense	248		932		360		38		—		1,578		—		1,578
Total costs and expenses	956,457		131,788		223,427		99,962		433,773		1,845,407		(598)		1,844,809
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		99,233		99,233
Change in fair value of servicing rights	—		—		—		2,844		—		2,844		1,047		3,891
Change in fair value of investment securities, net	(257)		—		—		(13,304)		—		(13,561)		13,468		(93)
Change in fair value of mortgage loans, net	(155,053)		—		—		20,686		—		(134,367)		—		(134,367)
Income from affordable housing fund investments	—		—		40,453		—		—		40,453		—		40,453
Earnings from unconsolidated entities	786		5,168		—		1,089		—		7,043		(1,007)		6,036
(Loss) gain on sale of investments and other assets, net	(11,282)		—		641		2,264		—		(8,377)		—		(8,377)
Gain (loss) on derivative financial instruments, net	122,555		3,909		25,422		2,040		(142,987)		10,939		—		10,939
Foreign currency (loss) gain, net	(12,314)		—		49		—		—		(12,265)		—		(12,265)
Loss on extinguishment of debt	—		(31)		(304)		—		(867)		(1,202)		—		(1,202)
Other (loss) income, net	(40,035)		51		(967)		7		—		(40,944)		—		(40,944)
Total other (loss) income	(95,600)		9,097		65,294		15,626		(143,854)		(149,437)		112,741		(36,696)
Income (loss) before income taxes	34,271		80,062		35,813		115,573		(575,247)		(309,528)		—		(309,528)
Income tax benefit (provision)	16,611		(412)		6		(15,415)		—		790		—		790
Net income (loss)	50,882		79,650		35,819		100,158		(575,247)		(308,738)		—		(308,738)
Net income attributable to non-controlling interests	(10)		—		(21,164)		(1,361)		—		(22,535)		—		(22,535)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	50,872	$	79,650	$	14,655	$	98,797	$	(575,247)	$	(331,273)	$	—	$	(331,273)


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Net income (loss) attributable to Starwood Property Trust, Inc.	$	50,872	$	79,650	$	14,655	$	98,797	$	(575,247)	$	(331,273)
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		13,886		—		—		13,886
Non-controlling interests attributable to unrealized gains/losses	—		—		(3,317)		(7,900)		—		(11,217)
Non-cash equity compensation expense	8,282		2,337		3,740		4,341		19,687		38,387
Management incentive fee	—		—		—		—		5,567		5,567
Depreciation and amortization	13,670		—		89,443		3,396		—		106,509
Straight-line rent adjustment	—		—		(5,210)		228		—		(4,982)
Interest income adjustment for loans and securities	14,307		—		—		31,269		—		45,576

Consolidated income tax (benefit) provision associated with fair value adjustments	(16,611)		412		(6)		15,415		—		(790)
Other non-cash items	10		446		(246)		(1,219)		—		(1,009)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	155,053		—		—		(20,686)		—		134,367
Credit loss provision (reversal), net	367,226		(827)		—		—		—		366,399
Securities	257		—		—		13,304		—		13,561
Woodstar Fund investments	—		—		(40,453)		—		—		(40,453)
Derivatives	(122,555)		(3,909)		(25,422)		(2,040)		142,987		(10,939)
Foreign currency	12,314		—		(49)		—		—		12,265
Earnings from unconsolidated entities	(786)		(5,168)		—		(1,089)		—		(7,043)
Sales of properties	11,207		—		(641)		(2,264)		—		8,302
Unrealized impairment of properties	32,163		—		—		—		—		32,163
Recognition of Distributable realized gains / (losses) on:
Loans	(1,537)		—		—		22,358		—		20,821

Securities	(574)		—		—		(14,351)		—		(14,925)
Woodstar Fund investments	—		—		56,620		—		—		56,620

Derivatives	14,485		274		6,748		2,445		(13,274)		10,678
Foreign currency	9,191		—		49		—		—		9,240
Earnings from unconsolidated entities	786		3,133		—		1,395		—		5,314
Sales of properties	(43,150)		—		(255)		1,928		—		(41,477)
Distributable Earnings (Loss)	$	504,610	$	76,348	$	109,542	$	145,327	$	(420,280)	$	415,547
Realized losses on foreclosed property sales	43,150		—		—		—		—		43,150
Distributable Earnings (Loss) prior to realized commercial lending gains and losses	$	547,760	$	76,348	$	109,542	$	145,327	$	(420,280)	$	458,697
Distributable Earnings (Loss) per weighted average diluted share	$	1.32	$	0.20	$	0.29	$	0.38	$	(1.10)	$	1.09
Distributable Earnings (Loss) prior to realized commercial lending gains and losses per weighted average diluted share	$	1.44	$	0.20	$	0.29	$	0.38	$	(1.10)	$	1.21

(Amounts in thousands)


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Assets:
Cash and cash equivalents	$	18,143	$	145,463	$	101,493	$	8,922	$	117,914	$	391,935	$	—	$	391,935
Restricted cash	184,359		54,211		2,557		201		79,486		320,814		—		320,814
Loans held-for-investment, net	17,072,140		2,896,938		—		—		—		19,969,078		—		19,969,078
Loans held-for-sale	1,990,315		—		—		65,323		—		2,055,638		—		2,055,638
Investment securities	649,301		120,927		—		1,247,455		—		2,017,683		(1,521,580)		496,103
Properties, net	876,502		—		2,961,467		31,354		—		3,869,323		—		3,869,323

Investments of consolidated affordable housing fund	—		—		1,677,329		—		—		1,677,329		—		1,677,329
Investments in unconsolidated entities	8,514		63,165		—		33,398		—		105,077		(15,224)		89,853
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets, net	2,375		—		397,210		71,793		—		471,378		(36,207)		435,171
Derivative assets	107,398		—		1,947		1,852		—		111,197		—		111,197
Accrued interest receivable	208,648		5,374		42		245		1,528		215,837		—		215,837
Other assets	202,168		13,839		119,003		(25,646)		54,846		364,210		—		364,210
VIE assets, at fair value	—		—		—		—		—		—		27,698,776		27,698,776
Total Assets	$	21,319,863	$	3,419,326	$	5,261,048	$	1,575,334	$	253,774	$	31,829,345	$	26,125,765	$	57,955,110
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	292,575	$	32,076	$	122,330	$	44,852	$	136,669	$	628,502	$	—	$	628,502
Related-party payable	—		—		—		—		27,436		27,436		—		27,436
Dividends payable	—		—		—		—		177,717		177,717		—		177,717
Derivative liabilities	54,250		—		—		—		70,366		124,616		—		124,616
Secured financing agreements, net	11,052,618		690,771		545,906		590,343		2,488,716		15,368,354		(19,542)		15,348,812
Securitized financing, net	977,302		1,810,950		1,712,534		—		—		4,500,786		—		4,500,786
Unsecured senior notes, net	—		—		—		—		4,481,280		4,481,280		—		4,481,280

VIE liabilities, at fair value	—		—		—		—		—		—		26,145,307		26,145,307
Total Liabilities	12,376,745		2,533,797		2,380,770		635,195		7,382,184		25,308,691		26,125,765		51,434,456
Temporary Equity: Redeemable non-controlling interests	—		—		359,225		—		—		359,225		—		359,225
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,799		3,799		—		3,799
Additional paid-in capital	2,152,617		451,876		223,135		(1,037,681)		5,213,142		7,003,089		—		7,003,089
Treasury stock	—		—		—		—		(275,730)		(275,730)		—		(275,730)
Retained earnings (accumulated deficit)	6,782,954		433,653		2,092,093		1,857,994		(12,069,621)		(902,927)		—		(902,927)
Accumulated other comprehensive income	7,429		—		—		—		—		7,429		—		7,429
Total Starwood Property Trust, Inc. Stockholders’ Equity	8,943,000		885,529		2,315,228		820,313		(7,128,410)		5,835,660		—		5,835,660
Non-controlling interests in consolidated subsidiaries	118		—		205,825		119,826		—		325,769		—		325,769
Total Permanent Equity	8,943,118		885,529		2,521,053		940,139		(7,128,410)		6,161,429		—		6,161,429
Total Liabilities and Equity	$	21,319,863	$	3,419,326	$	5,261,048	$	1,575,334	$	253,774	$	31,829,345	$	26,125,765	$	57,955,110