Starwood Plans Dividend Review, Targets More Than $800M in 2026 Asset Resolutions

Starwood Property Trust plans to review its dividend policy with the board, including a possible reduction, as recent dividends have exceeded distributable earnings and it targets more than $800 million in 2026 legacy-asset resolutions.

The company expects about $850 million in resolutions this year. Management said Starwood remains on track to meet its target of more than $800 million.

Chief Financial Officer Rina Paniry said third-quarter distributable earnings were $0.31 per share, or $0.41 when realized gains and losses tied to commercial loan resolutions are excluded.

Higher interest rates drove much of a $369 million increase in reserves during the quarter. Management said the future path of reserves was uncertain.

The dividend review follows Starwood’s third-quarter earnings update, which covered the company’s income trends.