The Profit Paradox: What's Behind Starwood Property Trust's Low Net Income? Starwood Property Trust's recent quarterly report has raised eyebrows due to its stark contrast between net income and Distributable Earnings.
While GAAP net income for the quarter ended June 30 came in at $6. 6 million, or just $0. 01 per diluted share, Distributable Earnings reached a more respectable $151. 5 million, or $0. 40 per share.
This discrepancy is not unique to Starwood; it's a phenomenon observed in several other real estate investment trusts (REITs) in recent years.