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Starwood’s Net Income Drops 95% Annually — and Then Its Stock Drops
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Commercial Observer
Starwood Property Trust’s stock tanked hours after the firm reported its second-quarter earnings, dropping 4 percent in one morning, as the firm reported major declines in net income.
Distributable earnings totaled $151.5 million in the second quarter, up from $147.3 million in the previous quarter and $151.1 million this time last year.
Rental income rose to $87.8 million, up from $80 million in the previous quarter and $28.2 million in the second quarter of 2025.
“Despite a volatile macro backdrop, we’ve accretively deployed a near-record $6.7 billion year-to-date,” said Jeffrey DiModica, Starwood’s president, during the firm’s earnings call.
But Sternlicht expressed optimism about Starwood’s underlying real estate businesses, and insisted the firm will go “asset by asset” to improve performance.