Starwood Property Trust Deploys $12.7 Billion Across Real Estate and Infrastructure in 2025

Starwood Property Trust, Inc. (NYSE: STWD) reported $12.7 billion in total investments for the fiscal year ended December 31, 2025, marking the company's second-largest investment year in its history, according to a press release issued February 25, 2026.

The company reported full-year GAAP net income of $411.5 million, or $1.15 per share, and distributable earnings — a non-GAAP financial measure — of $615.5 million, or $1.69 per share. For the fourth quarter alone, the company deployed $2.5 billion and reported GAAP net income of $96.9 million, with distributable earnings of $159.5 million, or $0.42 per share.

Record Capital Transactions

Starwood Property Trust executed a record $4.4 billion in capital transactions during 2025. The company reported current liquidity of $1.4 billion as of the end of the period. Management noted that securitization activity and takeout refinancings contributed to higher-than-normal cash levels during the year.

Barry Sternlicht, Chairman and CEO of Starwood Property Trust, characterized 2025 as a transitional period for the company. "2025 was a transition year for Starwood Property Trust. The good news is that the pieces remain in place to outperform for our shareholders in the long run. Our core businesses are positioned and are performing exceptionally well with notable progress across global commercial lending, infrastructure lending, conduit and special servicing, each delivering incredibly strong results for the year," Sternlicht said.

Net Lease Business Acquisition

During the year, Starwood Property Trust acquired the Fundamental net lease business, a move Sternlicht acknowledged would create near-term dilution but described as a long-term earnings generator. The acquired portfolio carries more than 17 years of average lease duration and 2.3% contractual annual rent increases.

"Despite the dilution we knew we would experience when we acquired the Fundamental net lease business, we were excited to add an earnings generator with reliable cash flows, driven by more than 17 years of lease duration and 2.3% contractual rent increases each year, which will be accretive long-term," Sternlicht said in the release.

Nonaccrual Assets and Portfolio Remediation

Management identified the resolution of nonaccrual loans and real estate owned (REO) assets as a key strategic priority and a source of embedded future earnings. The total balance of nonaccrual or impaired assets was not disclosed in the press release.

"As we deploy this cash across our business lines, invest the committed but unfunded loan capital, scale our net lease business, and bring back the earnings power embedded in the nonaccrual and REO assets, we are confident in our ability to raise earnings in the future," Sternlicht said. "We are real estate investors first and have proven our ability to add value to assets once they are in our control."

The company's residential lending portfolio also recorded valuation gains during 2025, which management attributed to declining interest rates over the course of the year.

Dividend Stability

Starwood Property Trust maintained its quarterly dividend of $0.48 per share, a level the company said it has sustained for more than a decade. The company's conduit and special servicing operations also contributed to results, with management describing those segments as delivering strong results during the year.