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- **Strategic Acquisition Impact**: $2.2B Fundamental Income Properties deal drives Q3 DE of $28M but causes $0.04 EPS dilution.
- **Balance Sheet Strength**: 3.8-year debt maturity, $2.2B liquidity, 2/3 of Infra Lending in non-mark-to-market CLOs.
- **Growth Catalysts**: 6.7%+ affordable housing rent growth, $1.5B gain from Woodstar refinancing.
- **Market Outlook**: 2026H2 multifamily recovery, data center credit expansion.
- **Near-Term Recovery**: Q1 2026 DE coverage as new investments deploy.

**【CFO Financial Commentary】**
- Q3 distributable earnings (DE) of $149 million ($0.40 per share), GAAP net income of $0.19 per share.
- $2.3 billion of capital raised, with $4.6 billion of new investments across segments.
- Property segment DE of $28 million ($0.08 per share) from $2.2 billion Fundamental Income Properties acquisition, offset by $0.04 GAAP EPS dilution.
- Record $791 million in Infrastructure Lending commitments, 30% refinancing of Woodstar affordable multifamily portfolio at tighter spreads.

**【President's Economic Outlook】**
- Expecting normalization of credit spreads and transaction volumes as rate curve flattens.
- Diversified origination pace maintained at $4.6 billion YTD, on track for second-highest annual originations.
- Credit quality managed with $642 million in reserves, 3.8% of lending portfolio.
- 2026 outlook includes higher transaction volumes, stable credit spreads, and refinancing tailwinds.

**【CEO Strategic Moves】**
- Long-term bet on triple net lease business with 475 properties, 17.1-year weighted average lease term.
- Affordable housing portfolio set for 6.7%+ annual rent growth, $1.5 billion gain from refinancing.
- fortress balance sheet with 3.8-year average debt maturity, $2.2 billion liquidity.
- AI-driven efficiency initiatives to expand margins across lending platforms.

**【Q&A Highlights】**
- Near-term DE recovery expected by Q1 2026 as new investments scale.
- Multifamily market supply overhang to ease by 2026H2, 3.5%+ rent growth potential.
- Data center financing driven by hyperscale tech credits, 165bps over SOFR CLO pricing.
- Triple net lease cap rates to normalize at 5-6% as portfolio scales, offsetting acquisition dilution.

Starwood Property Trust, Inc. (STWD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

STWD

STWD fundamentals

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