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Starwood Property (VSP) Q3 2026 Earnings Report

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CH:VSP Q3 2026 EPS Results

Actual EPS
CHF 0.26
Consensus EPS
CHF 0.23
Beat/Miss
Beat by +CHF 0.03
One Year Ago EPS
CHF 0.33

CH:VSP Q3 2026 Revenue Results

Actual Revenue
CHF 446.40M
Expected Revenue
CHF 444.21M
Beat/Miss
Beat by +CHF 2.19M
YoY Revenue Growth
+9.09%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/06/2026
Time
Before Open
Conference Call
Friday, November 6, 2026
CH:VSP Upcoming Earnings

Starwood Property's next earnings date is estimated for March 3, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

CH:VSP Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 06, 2026|% Change Since:0.00%|
Earnings Call Sentiment|Positive

The call was cautiously constructive. The company reported record asset growth, substantial liquidity, strong repayment and resolution activity, diversified businesses with notable operating performance, and continued investment. However, higher rates caused a significant reserve build, increased risk ratings, a negative residential mark-to-market, pressure on borrowers and net lease growth, and uncertainty around the dividend and future resolution timing. Positive operating and strategic developments outweighed the challenges, but management remained cautious about the rate environment and earnings recovery.

Company Guidance

Management remains on track to achieve the over $800 million resolution target for 2026, which would be more than 40% of nonaccrual NREO, while Barry said they expect to hit the $850-ish million that told you about for the year; elevated quarterly repayments in line with the 1.2 billion seen this quarter are expected to continue for the foreseeable future, and distributable earnings excluding realized gains and losses of $0.41 per share is viewed as a base earnings rate, with projections “a little bit higher” and a prior path to getting to the $0.48 paid out in a few quarters. Management expects special-servicing assets to remain for an average of 12 to 18 months, with the September rate highs potentially leading to late 27 or early 28 significant income growth; it will examine whether to reduce the dividend and then increase it as earnings power is restored, while net lease growth depends on rate stability and the business is expected to remain accretive.

  • Legacy Asset Resolutions and No New NonaccrualsThe company resolved $254 million of nonaccrual and REO assets during the quarter, including two multifamily REO assets and two units in a New York City residential project. It also returned the final $108 million portion of the Brooklyn office loan to accrual after securing a credit-tenant lease and bringing the property to 100% occupancy. Management reported no new nonaccrual loans and no new foreclosures for the quarter and remains on track for more than $800 million of resolutions in 2026, representing more than 40% of nonaccrual NREO.
  • Record Commercial Lending Portfolio and Broad Investment ActivityThe company originated $2.4 billion of commercial lending investments, funded $1.5 billion, and funded $236 million of preexisting commitments. After $1.2 billion of repayments, the commercial lending portfolio increased by $528 million to a record $17.8 billion. Across the platform, the company invested $3.2 billion during the quarter, bringing year-to-date investments to $8.2 billion and total undepreciated assets to a record $32.3 billion.
  • Strong Liquidity and Conservative CapitalizationCurrent liquidity was $1.1 billion, excluding potential proceeds from REO sales, cash-out refinancing, direct leveraging, and incremental corporate debt. Debt to undepreciated equity was 3.15x, while the $7.2 billion unencumbered asset pool compared with $4.5 billion of unsecured debt, producing a 1.6x coverage ratio versus a 1.2x covenant.
  • Corporate Funding Cost Reduction and Maturity ExtensionThe company repaid $500 million of corporate debt six months before maturity at its first par call date. The debt had a cost of SOFR plus 295 basis points, compared with an average equivalent spread of approximately SOFR plus 203 basis points on $2.1 billion of corporate debt issued or repriced during the year, a reduction of approximately 92 basis points. The company also redeemed two commercial lending CLOs and said the transactions lowered funding spreads while extending corporate debt maturity.
  • Residential Lending Hedge Effectiveness and Lower Financing CostsThe on-balance-sheet residential loan portfolio ended the quarter at $2.2 billion and the retained RMBS portfolio at $310 million. Although the company recognized a $39 million negative mark-to-market on loans net of related hedges, primarily due to spread widening, the year-to-date net mark-to-market was $5 million, which management said evidenced the effectiveness of its hedge strategy. Financing costs on $350 million of financing lines were reduced by a weighted average of 24 basis points.
  • Woodstar Affordable Multifamily Rent Growth and RefinancingWoodstar implemented authorized HUD rent increases averaging 8.9% effective July 1, increasing quarterly earnings by $1.7 million. The company refinanced $415 million of debt, upsized the financing by $146 million at SOFR plus 165 basis points, and said $116 million of that amount could be reinvested to increase future earnings. Since acquisition, the portfolio has returned its entire original cost basis plus an incremental $275 million through cash-out refinancing.
  • Net Lease Portfolio Expansion and Positive ContributionThe company acquired $32 million of net lease properties at a blended 7.37% cap rate, bringing purchases since platform acquisition to $556 million at a 7.45% cap rate. The portfolio totaled $2.8 billion across 34 properties in 44 states, with a 16.6-year weighted average remaining lease term, 2.3% average annual rent escalations, 100% occupancy, and zero defaults. Annualized base rent increased to $193 million from $187 million, and reduced overhead helped the platform become accretive to distributable earnings per share.
  • Special Servicing Revenue and Highest Available RatingElevated resolution volume drove $37 million of special servicing fees in the quarter. The active servicing portfolio ended at $10.2 billion and the named servicing portfolio at $90.8 billion. Fitch reaffirmed LNR's CFS1 special servicer rating, described as the highest rating available, and management said LNR remains the only special servicer to hold that distinction.
  • Infrastructure Lending Credit QualityThe infrastructure lending segment committed $505 million while repayments totaled $389 million, leaving the portfolio at $3.1 billion. Management reported that 100% of the loans in the portfolio were rated 3 or better.
  • Loan Repayments Reducing Pre-2023 ExposureThe company received $1.2 billion of loan repayments during the quarter and an additional $320 million after quarter end, bringing year-to-date repayments to approximately $2.8 billion. More than two-thirds of repayments came from loans originated before 2023. The pre-2023 portfolio stood at $8.5 billion, or 40% of the loan portfolio and 20% of total assets, which management described as among the lowest percentages in its peer group.
  • Borrower Equity Contributions and Brooklyn Office ResolutionSponsors have contributed $710 million of additional equity since closing to the company's 4- and 5-rated loans, including $128 million on loans downgraded during the quarter. In Brooklyn, a $300 million 2021 office loan was restructured rather than foreclosed; three accretive long-term leases increased occupancy to 100%, materially improved the loan's risk profile, and moved the loan to accrual status.
  • Share Repurchases and Management's Valuation ViewThe company repurchased $108 million of common stock during the quarter, bringing year-to-date repurchases to $138 million. Management said the $17.22 undepreciated book value per share and the stock's market price imply a $1.6 billion discount beyond the $1 billion of CECL and REO reductions already reflected on the balance sheet. Management also stated that the stock price implies a 58% loss on the predominantly first-mortgage 4- and 5-rated loan and REO pool, compared with owned real estate resolutions at 72% of original basis and contracted sales at 71% of original basis.
  • Positive Real Estate Operating FundamentalsManagement cited improving real estate fundamentals, including apartment rent growth being raised by 50% by CoStar, office rents increasing almost 3% to 3.5%, industrial rents rising 2%, and an actual quarterly industrial rent increase of 3.5%. Management also cited reduced supply, higher construction costs, strong performance in senior housing and luxury hotels, and improving conditions in some lower-end hotel markets.
  • Energy Infrastructure PerformanceManagement described the energy infrastructure business as a powerhouse business with a 99.996% performing loss ratio. The business was said to benefit from long-term increased demand and to provide solid footing for the company, although repayments were occurring faster than management wanted.
  • Future Special Servicing Revenue OpportunityManagement said assets typically remain with the special servicer for 12 to 18 months. Based on the September rate highs and the current $90 billion of named servicing and more than $10 billion in-house, management expects significant income growth in late 2027 or early 2028.
  • Access to External Capital and Potential Growth OpportunitiesStarwood Capital raised a $10 billion fund, which management cited as evidence of investor interest in equity real estate. Management also said the company is evaluating potential M&A opportunities and partnerships with outside capital across its business verticals where they could create long-term shareholder value.

CH:VSP Earnings History

CH:VSP earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 03, 20272026 (Q4)0.31-0.35――
Nov 06, 20262026 (Q3)0.230.260.33-22.50% (-0.08)
Aug 06, 20262026 (Q2)0.330.330.36-6.98% (-0.03)
May 08, 20262026 (Q1)0.350.330.38-13.33% (-0.05)
Feb 25, 20262025 (Q4)0.340.350.4-12.50% (-0.05)
Nov 10, 20252025 (Q3)0.370.330.4-16.67% (-0.07)
Aug 07, 20252025 (Q2)0.330.360.4-10.42% (-0.04)
May 09, 20252025 (Q1)0.380.380.49-23.73% (-0.12)
Feb 27, 20252024 (Q4)0.390.400.48-17.24% (-0.08)
Nov 06, 20242024 (Q3)0.390.400.41-2.04% (-0.01)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed