Starwood Property Trust posts a 389.7 million dollar loss
US property lender and investor Starwood Property Trust reported a third-quarter net loss of 389.7 million dollars. Credit-loss provisions and property impairments weighed on the accounting result. Its separate distributable earnings measure remained positive, while the company invested 3.2 billion dollars during the quarter and expanded its commercial lending portfolio.
Economics & Markets··Morning
Credit provisions weigh on quarterly earnings
Starwood Property Trust, a US property lender and investment company, reported a third-quarter net loss of 389.7 million dollars under generally accepted accounting principles. The loss amounted to 1.08 dollars per diluted share. Its accounts included a 336.6 million dollar credit-loss provision and 32.2 million dollars in noncash property impairments. The figures cover the quarter ended in September. Chief executive Barry Sternlicht described pressure from higher interest rates on borrowers.[1], [2]
Distributable earnings remain positive
The company’s separate non-GAAP distributable earnings measure was 116.8 million dollars, or 0.31 dollars per diluted share. Excluding realised commercial lending gains and losses, it was 155.2 million dollars, or 0.41 dollars per share. The quarterly dividend was 0.48 dollars per share. Distributable earnings exclude certain noncash charges and valuation effects; the first calculation includes realised losses from commercial loan resolutions.[1]
Quarterly investment reaches 3.2 billion dollars
Starwood invested 3.2 billion dollars during the quarter, bringing the nine-month total to 8.2 billion dollars. Commercial lending investment reached 2.4 billion dollars, the largest quarterly amount in four years according to management. Its commercial lending portfolio stood at 17.8 billion dollars. The company also repurchased 108 million dollars of shares and completed 2.1 billion dollars of refinancing.[1]
