Starwood Property Trust JPM 2Q26 Earnings Scorecard – Preview

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Starwood Property Trust

JPM 2Q26 Earnings Scorecard – Preview

Overweight

STWD, STWD US

Price (05 Aug 26):$16.21

Consumer Finance

STWD will report 2Q26 results on Thursday (8/6) BMO and will host an earnings

call the same day at 10:00AM ET. Below is a summary of JPM and consensus

estimates for key metrics.

Richard Shane AC

(1-415) 315-6701

Hong Zhang

Estimates:

We estimate distributable EPS of $0.39, slightly below consensus of $0.40,

we are forecasting total interest income from loans and securities of $430.7M,

up from $413.8M Q/Q. We project total revenues of $537.5M, down from

$550.7M Q/Q, and expenses of $513.8M (inclusive of estimated provision

expense), up from $480.5M Q/Q.

We estimate undepreciated book value per share of $18.80, down from

$18.97 in 1Q26.

(1-212) 622-6416

J.P. Morgan Securities LLC

Key Issue for 2Q:

Investor focus for 2Q26 will remain on the pace of legacy loan and REO

resolutions and the extent to which these drive distributable earnings gains.

Also in focus is the pace of originations, and more specifically whether

STWD's diversified platform can sustain deployment and mitigate the impact

of a lower-activity, higher-for-longer environment.

Other Issues:

Liquidity: CREITs need to maintain a substantial cash buffer to resolve

troubled loans, meet unfunded commitments, and pay dividends. As of March

31, STWD had ~$1B of current liquidity.

Net Interest Income: STWD is slightly asset sensitive, and with the Fed on

hold and the market now pricing potential hikes rather than cuts, the prior

headwind from lower base rates has effectively been removed, supporting NII

on the performing book. Asset spreads may widen given the higher risk

premium in the current environment, and while this will likely be offset in part

by higher liability spreads, the lack of expected base rate declines could result

in a net positive movement for NII. STWD's diversified earnings streams and

limited non-accrual drag relative to peers leave it better positioned than most

to realize this benefit.

Credit: Elevated, higher-for-longer short-end rates keep pressure on debt

…