Starwood Property Trust Q3 distributable earnings miss estimates

By Reuters News


Overview

  • U.S. real estate finance firm posted Q3 GAAP net loss, driven by credit loss provision and impairments

  • Q3 distributable earnings missed analyst expectations

  • Company invested $3.2 bln in Q3


Outlook

  • Company did not provide specific financial guidance for the current or future periods


Result Drivers

  • CREDIT LOSS PROVISION - Q3 results included a $336.6 mln credit loss provision, which contributed to the GAAP net loss

  • COMMERCIAL LENDING ACTIVITY - Co invested $2.4 bln in commercial lending during Q3, the highest in four years, increasing its portfolio to a record $17.8 bln

  • HIGHER INTEREST RATES - Co said rising interest rates created challenges for the property sector and its borrowers, but it continued to invest and resolve underperforming assets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Net Income

Miss

$116.80 mln

$120.55 mln (5 Analysts)

Q3 Net Loss

$389.70 mln


Reuters Recommended Reads

  • Nov 4 - Granite Point Mortgage Trust Q3 loss widens on credit provisions, REO impairment

  • Nov 3 - Claros Mortgage Trust posts Q3 net loss

  • Nov 6 - Ares Commercial Real Estate Q3 net income beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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