– Quarterly GAAP Earnings of $0.24 and Distributable Earnings (DE) of
$0.48 per Diluted Share –
– Paid Dividend of $0.48 per Share and Declared $0.48 Dividend for each of the next Two Quarters
–
– Received Repayments of $0.9 Billion in the Quarter –
– Repriced our $591.0
Million Term Loan B, Reducing Spread by 50 bps to
S+275 –
– Received 8th Nareit Gold Investor CARE
(Communications & Reporting Excellence) Award –
– LNR's Commercial Special Servicer
Rating of CSS1 (Highest Rating Possible) Reaffirmed by Fitch
–
GREENWICH, Conn., Aug. 6, 2024
/PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today
announced operating results for the fiscal quarter ended
June 30, 2024. The Company's
second quarter 2024 GAAP net income was $77.9 million, inclusive of a $42.7 million credit loss provision, and
Distributable Earnings (a non-GAAP financial measure) was
$157.8 million.
"We strategically diversified Starwood Property Trust into
investment cylinders other than commercial lending as we saw risk
and reward shift. Today, more than 40% of our assets are outside of
our commercial lending book. This diversification, along with our
low leverage ratios, have allowed us to outperform in what has been
a tough correction for real estate. We think the roughest patch for
the property sector globally is behind us, and the U.S. and
Europe will be moving into an
easing cycle.
We have delivered a consistent dividend and a greater than 10%
annualized return since our inception 15 years ago. While some
businesses slow, others have accelerated. Our special servicing
team now has nearly $10 billion of
assignments, up 40% from the beginning of the year. Our conduit had
a superb first half of the year and our property book, concentrated
in affordable housing, continues to exhibit meaningful and
continued rental growth," commented Barry
Sternlicht, Chairman and CEO of Starwood Property Trust.
"In addition to the benefits of diversification, we remain well
positioned with over $4.00 per share
of embedded gains in our owned property portfolio, $1.2 billion of liquidity and $4.5 billion of unencumbered assets. Our
liquidity and access to capital has uniquely allowed us to continue
to invest across our businesses in every quarter since inception.
This consistency and stability of our diversified portfolio
provided our Board the confidence to declare our $0.48 per share quarterly dividend for the
remainder of 2024," added Jeffrey
DiModica, President of Starwood Property Trust.
"In the quarter, we were awarded our 8th Nareit gold award in
the last ten years. The award is granted to the mortgage REIT that
exemplifies excellence in investor reporting and communications,
further demonstrating our long-term commitment to our
stakeholders," added Zachary
Tanenbaum, Head of Investor Relations.
Supplemental Schedules
The Company has published supplemental earnings schedules on its
website in order to provide additional disclosure and financial
information for the benefit of the Company's stakeholders.
Specifically, these materials can be found on the Company's website
in the Investor Relations section under "Quarterly Results" at
www.starwoodpropertytrust.com.
Webcast and Conference Call Information
The Company will host a live webcast and conference call on
Tuesday, August 6, 2024, at 10:00 a.m.
Eastern Time. To listen to a live broadcast, access
the site at least 15 minutes prior to the scheduled start time in
order to register, download and install any necessary audio
software. The webcast is available at www.starwoodpropertytrust.com
in the Investor Relations section of the website. The Company
encourages use of the webcast due to potential extended wait times
to access the conference call via dial-in.
To Participate via Telephone Conference Call:
Dial in
at least 15 minutes prior to start time.
Domestic: 1-877-407-9039
International: 1-201-689-8470
Conference Call Playback:
Domestic:
1-844-512-2921
International: 1-412-317-6671
Passcode: 13742860
The playback can be accessed through August
20, 2024.
About Starwood Property Trust, Inc.
Starwood Property Trust (NYSE: STWD), an affiliate of global
private investment firm Starwood Capital Group, is a leading
diversified finance company with a core focus on the real estate
and infrastructure sectors. As of June 30, 2024, the
Company has successfully deployed over $98
billion of capital since inception and manages a portfolio
of $26 billion across debt and
equity investments. Starwood Property Trust's investment objective
is to generate attractive and stable returns for shareholders,
primarily through dividends, by leveraging a premiere global
organization to identify and execute on the best risk adjusted
returning investments across its target assets. Additional
information can be found at www.starwoodpropertytrust.com.
Forward-Looking Statements
Statements in this press release which are not historical fact
may be deemed forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are developed by combining
currently available information with our beliefs and assumptions
and are generally identified by the words "believe," "expect,"
"anticipate" and other similar expressions. Although Starwood
Property Trust, Inc. believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially
from the Company's expectations include, but are not limited to,
completion of pending investments and financings, continued ability
to acquire additional investments, competition within the finance
and real estate industries, availability of financing, and other
risks detailed under the heading "Risk Factors" in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as well as other risks and
uncertainties set forth from time to time in the Company's reports
filed with the SEC, including its Quarterly Report on Form 10-Q for
the quarter ended June 30, 2024.
In light of these risks and uncertainties, there can be no
assurances that the results referred to in the forward-looking
statements contained herein will in fact occur. Except to the
extent required by applicable law or regulation, we undertake no
obligation to, and expressly disclaim any such obligation to,
update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events,
changes to future results over time or otherwise.
Additional information can be found on the Company's website at
www.starwoodpropertytrust.com.
Contact:
Zachary
Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com
|
Starwood Property
Trust, Inc. and Subsidiaries
Condensed
Consolidated Statement of Operations by Segment
For the three months
ended June 30, 2024
(Amounts in
thousands)
|
|
|
Commercial
and
Residential
Lending
Segment
|
|
Infrastructure
Lending
Segment
|
|
Property
Segment
|
|
Investing
and Servicing
Segment
|
|
Corporate
|
|
Subtotal
|
|
Securitization
VIEs
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
$
358,749
|
|
$
64,218
|
|
$
—
|
|
$
4,465
|
|
$
—
|
|
$
427,432
|
|
$
—
|
|
$
427,432
|
|
Interest income from
investment securities
|
29,373
|
|
130
|
|
—
|
|
24,637
|
|
—
|
|
54,140
|
|
(37,140)
|
|
17,000
|
|
Servicing
fees
|
124
|
|
—
|
|
—
|
|
20,025
|
|
—
|
|
20,149
|
|
(4,116)
|
|
16,033
|
|
Rental
income
|
3,987
|
|
—
|
|
15,736
|
|
5,736
|
|
—
|
|
25,459
|
|
—
|
|
25,459
|
|
Other
revenues
|
1,323
|
|
888
|
|
235
|
|
750
|
|
706
|
|
3,902
|
|
—
|
|
3,902
|
|
Total
revenues
|
393,556
|
|
65,236
|
|
15,971
|
|
55,613
|
|
706
|
|
531,082
|
|
(41,256)
|
|
489,826
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
192
|
|
—
|
|
—
|
|
—
|
|
30,325
|
|
30,517
|
|
—
|
|
30,517
|
|
Interest
expense
|
216,511
|
|
37,875
|
|
11,652
|
|
8,475
|
|
70,084
|
|
344,597
|
|
(208)
|
|
344,389
|
|
General and
administrative
|
17,745
|
|
4,230
|
|
1,202
|
|
23,691
|
|
4,214
|
|
51,082
|
|
—
|
|
51,082
|
|
Costs of rental
operations
|
3,412
|
|
—
|
|
5,545
|
|
3,113
|
|
—
|
|
12,070
|
|
—
|
|
12,070
|
|
Depreciation and
amortization
|
2,136
|
|
15
|
|
5,926
|
|
1,795
|
|
252
|
|
10,124
|
|
—
|
|
10,124
|
|
Credit loss provision
(reversal), net
|
42,995
|
|
(286)
|
|
—
|
|
—
|
|
—
|
|
42,709
|
|
—
|
|
42,709
|
|
Other
expense
|
26
|
|
—
|
|
35
|
|
224
|
|
—
|
|
285
|
|
—
|
|
285
|
|
Total costs and
expenses
|
283,017
|
|
41,834
|
|
24,360
|
|
37,298
|
|
104,875
|
|
491,384
|
|
(208)
|
|
491,176
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,180
|
|
17,180
|
|
Change in fair value of
servicing rights
|
—
|
|
—
|
|
—
|
|
885
|
|
—
|
|
885
|
|
10
|
|
895
|
|
Change in fair value of
investment securities, net
|
(274)
|
|
—
|
|
—
|
|
(23,710)
|
|
—
|
|
(23,984)
|
|
24,351
|
|
367
|
|
Change in fair value of
mortgage loans, net
|
47,711
|
|
—
|
|
—
|
|
16,710
|
|
—
|
|
64,421
|
|
—
|
|
64,421
|
|
Income from affordable
housing fund investments
|
—
|
|
—
|
|
6,446
|
|
—
|
|
—
|
|
6,446
|
|
—
|
|
6,446
|
|
Earnings (loss) from
unconsolidated entities
|
1,671
|
|
(58)
|
|
—
|
|
550
|
|
—
|
|
2,163
|
|
(493)
|
|
1,670
|
|
Gain (loss) on
derivative financial instruments, net
|
9,120
|
|
41
|
|
267
|
|
709
|
|
(9,151)
|
|
986
|
|
—
|
|
986
|
|
Foreign currency gain,
net
|
6,858
|
|
17
|
|
10
|
|
—
|
|
—
|
|
6,885
|
|
—
|
|
6,885
|
|
Loss on extinguishment
of debt
|
—
|
|
(60)
|
|
(1,045)
|
|
—
|
|
—
|
|
(1,105)
|
|
—
|
|
(1,105)
|
|
Other loss,
net
|
(2,515)
|
|
—
|
|
(277)
|
|
—
|
|
—
|
|
(2,792)
|
|
—
|
|
(2,792)
|
|
Total other income
(loss)
|
62,571
|
|
(60)
|
|
5,401
|
|
(4,856)
|
|
(9,151)
|
|
53,905
|
|
41,048
|
|
94,953
|
|
Income (loss) before
income taxes
|
173,110
|
|
23,342
|
|
(2,988)
|
|
13,459
|
|
(113,320)
|
|
93,603
|
|
—
|
|
93,603
|
|
Income tax (provision)
benefit
|
(10,787)
|
|
130
|
|
—
|
|
(5,221)
|
|
—
|
|
(15,878)
|
|
—
|
|
(15,878)
|
|
Net income
(loss)
|
162,323
|
|
23,472
|
|
(2,988)
|
|
8,238
|
|
(113,320)
|
|
77,725
|
|
—
|
|
77,725
|
|
Net (income) loss
attributable to non-controlling interests
|
(4)
|
|
—
|
|
(5,637)
|
|
5,806
|
|
—
|
|
165
|
|
—
|
|
165
|
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
$
162,319
|
|
$
23,472
|
|
$ (8,625)
|
|
$
14,044
|
|
$
(113,320)
|
|
$ 77,890
|
|
$
—
|
|
$
77,890
|
Definition of Distributable Earnings
Distributable Earnings, a non-GAAP financial measure, is used to
compute the Company's incentive fees to its external manager and is
an appropriate supplemental disclosure for a mortgage REIT.
For the Company's purposes, Distributable Earnings is defined as
GAAP net income (loss) excluding non-cash equity compensation
expense, the incentive fee due to the Company's external manager,
acquisition costs for successful acquisitions, depreciation and
amortization of real estate and associated intangibles, any
unrealized gains, losses or other non-cash items recorded in net
income (loss) for the period and, to the extent deducted from net
income (loss), distributions payable with respect to equity
securities of subsidiaries issued in exchange for properties or
interests therein. The amount is adjusted to exclude one-time
events pursuant to changes in GAAP and certain other non-cash
adjustments as determined by the Company's external manager and
approved by a majority of the Company's independent
directors. Refer to the Company's Quarterly Report on Form
10-Q for the quarter ended June 30,
2024 for additional information regarding Distributable
Earnings.
|
Reconciliation of
Net Income to Distributable Earnings
For the three months
ended June 30, 2024
(Amounts in
thousands except per share data)
|
|
|
Commercial
and
Residential
Lending
Segment
|
|
Infrastructure
Lending
Segment
|
|
Property
Segment
|
|
Investing
and Servicing
Segment
|
|
Corporate
|
|
Total
|
|
Net income (loss)
attributable to Starwood
Property Trust, Inc.
|
$
162,319
|
|
$
23,472
|
|
$
(8,625)
|
|
$
14,044
|
|
$
(113,320)
|
|
$
77,890
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
—
|
|
—
|
|
4,660
|
|
—
|
|
—
|
|
4,660
|
|
Non-controlling
interests attributable to unrealized gains/losses
|
—
|
|
—
|
|
(2,285)
|
|
(9,470)
|
|
—
|
|
(11,755)
|
|
Non-cash equity
compensation expense
|
2,538
|
|
508
|
|
99
|
|
1,576
|
|
5,947
|
|
10,668
|
|
Management incentive
fee
|
—
|
|
—
|
|
—
|
|
—
|
|
3,510
|
|
3,510
|
|
Depreciation and
amortization
|
2,285
|
|
5
|
|
6,012
|
|
1,888
|
|
—
|
|
10,190
|
|
Interest income
adjustment for securities
|
5,367
|
|
—
|
|
—
|
|
7,256
|
|
—
|
|
12,623
|
|
Consolidated
income tax provision (benefit) associated with fair
value adjustments
|
10,787
|
|
(130)
|
|
—
|
|
5,221
|
|
—
|
|
15,878
|
|
Other non-cash
items
|
4
|
|
—
|
|
278
|
|
(390)
|
|
(9)
|
|
(117)
|
|
Reversal of GAAP
unrealized and realized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(47,711)
|
|
—
|
|
—
|
|
(16,710)
|
|
—
|
|
(64,421)
|
|
Credit loss provision
(reversal), net
|
42,995
|
|
(286)
|
|
—
|
|
—
|
|
—
|
|
42,709
|
|
Securities
|
274
|
|
—
|
|
—
|
|
23,710
|
|
—
|
|
23,984
|
|
Woodstar Fund
investments
|
—
|
|
—
|
|
(6,446)
|
|
—
|
|
—
|
|
(6,446)
|
|
Derivatives
|
(9,120)
|
|
(41)
|
|
(267)
|
|
(709)
|
|
9,151
|
|
(986)
|
|
Foreign
currency
|
(6,858)
|
|
(17)
|
|
(10)
|
|
—
|
|
—
|
|
(6,885)
|
|
(Earnings) loss from
unconsolidated entities
|
(1,671)
|
|
58
|
|
—
|
|
(550)
|
|
—
|
|
(2,163)
|
|
Recognition of
Distributable realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(1,003)
|
|
—
|
|
—
|
|
15,778
|
|
—
|
|
14,775
|
|
Securities
|
(298)
|
|
—
|
|
—
|
|
(5,913)
|
|
—
|
|
(6,211)
|
|
Woodstar Fund
investments
|
—
|
|
—
|
|
17,593
|
|
—
|
|
—
|
|
17,593
|
|
Derivatives
|
30,351
|
|
89
|
|
3,006
|
|
1,020
|
|
(11,176)
|
|
23,290
|
|
Foreign
currency
|
(3,074)
|
|
3
|
|
10
|
|
—
|
|
—
|
|
(3,061)
|
|
Earnings (loss) from
unconsolidated entities
|
1,670
|
|
(13)
|
|
—
|
|
370
|
|
—
|
|
2,027
|
|
Distributable
Earnings (Loss)
|
$
188,855
|
|
$
23,648
|
|
$
14,025
|
|
$
37,121
|
|
$
(105,897)
|
|
$
157,752
|
|
Distributable
Earnings (Loss) per Weighted Average Diluted Share
|
$
0.58
|
|
$
0.07
|
|
$
0.04
|
|
$
0.11
|
|
$
(0.32)
|
|
$
0.48
|
|
Starwood Property
Trust, Inc. and Subsidiaries
Condensed
Consolidated Statement of Operations by Segment
For the six months
ended June 30, 2024
(Amounts in
thousands)
|
|
|
Commercial
and
Residential
Lending
Segment
|
|
Infrastructure
Lending
Segment
|
|
Property
Segment
|
|
Investing
and Servicing
Segment
|
|
Corporate
|
|
Subtotal
|
|
Securitization
VIEs
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
$
753,221
|
|
$
130,616
|
|
$
—
|
|
$
7,087
|
|
$
—
|
|
$ 890,924
|
|
$
—
|
|
$
890,924
|
|
Interest income from
investment securities
|
60,778
|
|
268
|
|
—
|
|
45,781
|
|
—
|
|
106,827
|
|
(71,621)
|
|
35,206
|
|
Servicing
fees
|
252
|
|
—
|
|
—
|
|
33,064
|
|
—
|
|
33,316
|
|
(7,594)
|
|
25,722
|
|
Rental
income
|
7,552
|
|
—
|
|
36,511
|
|
10,243
|
|
—
|
|
54,306
|
|
—
|
|
54,306
|
|
Other
revenues
|
2,306
|
|
1,280
|
|
362
|
|
1,498
|
|
1,310
|
|
6,756
|
|
—
|
|
6,756
|
|
Total
revenues
|
824,109
|
|
132,164
|
|
36,873
|
|
97,673
|
|
1,310
|
|
1,092,129
|
|
(79,215)
|
|
1,012,914
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
384
|
|
—
|
|
—
|
|
—
|
|
76,147
|
|
76,531
|
|
—
|
|
76,531
|
|
Interest
expense
|
452,660
|
|
76,848
|
|
24,950
|
|
16,792
|
|
129,513
|
|
700,763
|
|
(418)
|
|
700,345
|
|
General and
administrative
|
34,573
|
|
10,185
|
|
2,465
|
|
47,158
|
|
7,364
|
|
101,745
|
|
—
|
|
101,745
|
|
Costs of rental
operations
|
5,437
|
|
—
|
|
11,252
|
|
5,725
|
|
—
|
|
22,414
|
|
—
|
|
22,414
|
|
Depreciation and
amortization
|
4,085
|
|
29
|
|
11,781
|
|
3,544
|
|
503
|
|
19,942
|
|
—
|
|
19,942
|
|
Credit loss provision,
net
|
77,972
|
|
576
|
|
—
|
|
—
|
|
—
|
|
78,548
|
|
—
|
|
78,548
|
|
Other
expense
|
756
|
|
—
|
|
35
|
|
168
|
|
—
|
|
959
|
|
—
|
|
959
|
|
Total costs and
expenses
|
575,867
|
|
87,638
|
|
50,483
|
|
73,387
|
|
213,527
|
|
1,000,902
|
|
(418)
|
|
1,000,484
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27,266
|
|
27,266
|
|
Change in fair value of
servicing rights
|
—
|
|
—
|
|
—
|
|
(2,496)
|
|
—
|
|
(2,496)
|
|
3,619
|
|
1,123
|
|
Change in fair value of
investment securities, net
|
(7,265)
|
|
—
|
|
—
|
|
(40,168)
|
|
—
|
|
(47,433)
|
|
48,715
|
|
1,282
|
|
Change in fair value of
mortgage loans, net
|
7,034
|
|
—
|
|
—
|
|
28,374
|
|
—
|
|
35,408
|
|
—
|
|
35,408
|
|
Income from affordable
housing fund investments
|
—
|
|
—
|
|
15,894
|
|
—
|
|
—
|
|
15,894
|
|
—
|
|
15,894
|
|
Earnings (loss) from
unconsolidated entities
|
9,016
|
|
269
|
|
—
|
|
863
|
|
—
|
|
10,148
|
|
(803)
|
|
9,345
|
|
(Loss) gain on sale of
investments and other assets, net
|
(41)
|
|
—
|
|
92,003
|
|
—
|
|
—
|
|
91,962
|
|
—
|
|
91,962
|
|
Gain (loss) on
derivative financial instruments, net
|
120,072
|
|
163
|
|
1,988
|
|
3,721
|
|
(23,019)
|
|
102,925
|
|
—
|
|
102,925
|
|
Foreign currency (loss)
gain, net
|
(34,960)
|
|
(67)
|
|
42
|
|
—
|
|
—
|
|
(34,985)
|
|
—
|
|
(34,985)
|
|
Gain (loss) on
extinguishment of debt
|
315
|
|
(620)
|
|
(2,254)
|
|
—
|
|
—
|
|
(2,559)
|
|
—
|
|
(2,559)
|
|
Other (loss) income,
net
|
(5,191)
|
|
40
|
|
(277)
|
|
6
|
|
—
|
|
(5,422)
|
|
—
|
|
(5,422)
|
|
Total other income
(loss)
|
88,980
|
|
(215)
|
|
107,396
|
|
(9,700)
|
|
(23,019)
|
|
163,442
|
|
78,797
|
|
242,239
|
|
Income (loss) before
income taxes
|
337,222
|
|
44,311
|
|
93,786
|
|
14,586
|
|
(235,236)
|
|
254,669
|
|
—
|
|
254,669
|
|
Income tax (provision)
benefit
|
(11,508)
|
|
258
|
|
—
|
|
(5,834)
|
|
—
|
|
(17,084)
|
|
—
|
|
(17,084)
|
|
Net income
(loss)
|
325,714
|
|
44,569
|
|
93,786
|
|
8,752
|
|
(235,236)
|
|
237,585
|
|
—
|
|
237,585
|
|
Net (income) loss
attributable to non-controlling interests
|
(7)
|
|
—
|
|
(11,862)
|
|
6,506
|
|
—
|
|
(5,363)
|
|
—
|
|
(5,363)
|
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
$
325,707
|
|
$
44,569
|
|
$
81,924
|
|
$
15,258
|
|
$
(235,236)
|
|
$
232,222
|
|
$
—
|
|
$
232,222
|
|
Reconciliation of
Net Income to Distributable Earnings
For the six months
ended June 30, 2024
(Amounts in
thousands except per share data)
|
|
Commercial
and
Residential
Lending
Segment
|
|
Infrastructure
Lending
Segment
|
|
Property
Segment
|
|
Investing
and Servicing
Segment
|
|
Corporate
|
|
Total
|
|
Net income (loss)
attributable to Starwood
Property Trust, Inc.
|
$
325,707
|
|
$
44,569
|
|
$
81,924
|
|
$
15,258
|
|
$
(235,236)
|
|
$
232,222
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
—
|
|
—
|
|
9,319
|
|
—
|
|
—
|
|
9,319
|
|
Non-controlling
interests attributable to unrealized gains/losses
|
—
|
|
—
|
|
(3,963)
|
|
(11,523)
|
|
—
|
|
(15,486)
|
|
Non-cash equity
compensation expense
|
4,738
|
|
964
|
|
185
|
|
3,173
|
|
11,654
|
|
20,714
|
|
Management incentive
fee
|
—
|
|
—
|
|
—
|
|
—
|
|
22,593
|
|
22,593
|
|
Depreciation and
amortization
|
4,384
|
|
10
|
|
11,951
|
|
3,731
|
|
—
|
|
20,076
|
|
Interest income
adjustment for securities
|
10,948
|
|
—
|
|
—
|
|
17,261
|
|
—
|
|
28,209
|
|
Consolidated
income tax provision
(benefit} associated with fair
value adjustments
|
11,508
|
|
(258)
|
|
—
|
|
5,834
|
|
—
|
|
17,084
|
|
Other non-cash
items
|
7
|
|
—
|
|
552
|
|
(352)
|
|
—
|
|
207
|
|
Reversal of GAAP
unrealized and realized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(7,034)
|
|
—
|
|
—
|
|
(28,374)
|
|
—
|
|
(35,408)
|
|
Credit loss provision,
net
|
77,972
|
|
576
|
|
—
|
|
—
|
|
—
|
|
78,548
|
|
Securities
|
7,265
|
|
—
|
|
—
|
|
40,168
|
|
—
|
|
47,433
|
|
Woodstar Fund
investments
|
—
|
|
—
|
|
(15,894)
|
|
—
|
|
—
|
|
(15,894)
|
|
Derivatives
|
(120,072)
|
|
(163)
|
|
(1,988)
|
|
(3,721)
|
|
23,019
|
|
(102,925)
|
|
Foreign
currency
|
34,960
|
|
67
|
|
(42)
|
|
—
|
|
—
|
|
34,985
|
|
Earnings from
unconsolidated entities
|
(9,016)
|
|
(269)
|
|
—
|
|
(863)
|
|
—
|
|
(10,148)
|
|
Sales of
properties
|
—
|
|
—
|
|
(92,003)
|
|
—
|
|
—
|
|
(92,003)
|
|
Recognition of
Distributable realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(3,398)
|
|
—
|
|
—
|
|
27,420
|
|
—
|
|
24,022
|
|
Realized credit
loss
|
—
|
|
(1,546)
|
|
—
|
|
—
|
|
—
|
|
(1,546)
|
|
Securities
|
(9,292)
|
|
—
|
|
—
|
|
(37,895)
|
|
—
|
|
(47,187)
|
|
Woodstar Fund
investments
|
—
|
|
—
|
|
35,203
|
|
—
|
|
—
|
|
35,203
|
|
Derivatives
|
71,085
|
|
184
|
|
8,823
|
|
5,373
|
|
(20,325)
|
|
65,140
|
|
Foreign
currency
|
(8,675)
|
|
(12)
|
|
42
|
|
—
|
|
—
|
|
(8,645)
|
|
Earnings (loss) from
unconsolidated entities
|
2,994
|
|
(29)
|
|
—
|
|
683
|
|
—
|
|
3,648
|
|
Sales of
properties
|
—
|
|
—
|
|
39,150
|
|
—
|
|
—
|
|
39,150
|
|
Distributable
Earnings (Loss)
|
$
394,081
|
|
$
44,093
|
|
$
73,259
|
|
$
36,173
|
|
$
(198,295)
|
|
$
349,311
|
|
Distributable
Earnings (Loss) per Weighted Average Diluted Share
|
$
1.21
|
|
$
0.14
|
|
$
0.22
|
|
$
0.11
|
|
$
(0.61)
|
|
$
1.07
|
|
Starwood Property
Trust, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheet by Segment
As of June 30,
2024
(Amounts in
thousands)
|
|
|
Commercial
and
Residential
Lending
Segment
|
|
Infrastructure
Lending
Segment
|
|
Property
Segment
|
|
Investing
and Servicing
Segment
|
|
Corporate
|
|
Subtotal
|
|
Securitization
VIEs
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
8,935
|
|
$
134,806
|
|
$
28,757
|
|
$
8,919
|
|
$
77,850
|
|
$
259,267
|
|
$
—
|
|
$
259,267
|
|
Restricted
cash
|
51,957
|
|
51,855
|
|
1,049
|
|
4,634
|
|
66,940
|
|
176,435
|
|
—
|
|
176,435
|
|
Loans
held-for-investment, net
|
13,923,013
|
|
2,371,596
|
|
—
|
|
—
|
|
—
|
|
16,294,609
|
|
—
|
|
16,294,609
|
|
Loans
held-for-sale
|
2,503,967
|
|
—
|
|
—
|
|
316,059
|
|
—
|
|
2,820,026
|
|
—
|
|
2,820,026
|
|
Investment
securities
|
1,046,972
|
|
17,886
|
|
—
|
|
1,104,981
|
|
—
|
|
2,169,839
|
|
(1,504,125)
|
|
665,714
|
|
Properties,
net
|
476,004
|
|
—
|
|
662,726
|
|
67,941
|
|
—
|
|
1,206,671
|
|
—
|
|
1,206,671
|
|
Investments of
consolidated affordable housing fund
|
—
|
|
—
|
|
2,004,983
|
|
—
|
|
—
|
|
2,004,983
|
|
—
|
|
2,004,983
|
|
Investments in
unconsolidated entities
|
25,917
|
|
52,960
|
|
—
|
|
33,360
|
|
—
|
|
112,237
|
|
(14,813)
|
|
97,424
|
|
Goodwill
|
—
|
|
119,409
|
|
—
|
|
140,437
|
|
—
|
|
259,846
|
|
—
|
|
259,846
|
|
Intangible
assets
|
12,043
|
|
—
|
|
23,589
|
|
60,878
|
|
—
|
|
96,510
|
|
(34,246)
|
|
62,264
|
|
Derivative
assets
|
65,522
|
|
—
|
|
2,677
|
|
2,331
|
|
—
|
|
70,530
|
|
—
|
|
70,530
|
|
Accrued interest
receivable
|
174,982
|
|
14,834
|
|
286
|
|
1,644
|
|
5,368
|
|
197,114
|
|
—
|
|
197,114
|
|
Other
assets
|
156,597
|
|
16,571
|
|
51,189
|
|
16,160
|
|
68,610
|
|
309,127
|
|
—
|
|
309,127
|
|
VIE assets, at fair
value
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
39,665,392
|
|
39,665,392
|
|
Total
Assets
|
$
18,445,909
|
|
$
2,779,917
|
|
$
2,775,256
|
|
$
1,757,344
|
|
$
218,768
|
|
$
25,977,194
|
|
$
38,112,208
|
|
$
64,089,402
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
$
160,221
|
|
$
39,912
|
|
$
10,643
|
|
$
35,395
|
|
$
98,411
|
|
$
344,582
|
|
$
—
|
|
$
344,582
|
|
Related-party
payable
|
—
|
|
—
|
|
—
|
|
—
|
|
27,849
|
|
27,849
|
|
—
|
|
27,849
|
|
Dividends
payable
|
—
|
|
—
|
|
—
|
|
—
|
|
153,422
|
|
153,422
|
|
—
|
|
153,422
|
|
Derivative
liabilities
|
29,358
|
|
—
|
|
—
|
|
—
|
|
46,773
|
|
76,131
|
|
—
|
|
76,131
|
|
Secured financing
agreements, net
|
8,861,573
|
|
809,128
|
|
478,548
|
|
640,878
|
|
1,333,278
|
|
12,123,405
|
|
(20,546)
|
|
12,102,859
|
|
Collateralized loan
obligations and single asset securitization, net
|
2,379,206
|
|
1,144,515
|
|
—
|
|
—
|
|
—
|
|
3,523,721
|
|
—
|
|
3,523,721
|
|
Unsecured senior
notes, net
|
—
|
|
—
|
|
—
|
|
—
|
|
2,754,370
|
|
2,754,370
|
|
—
|
|
2,754,370
|
|
VIE liabilities, at
fair value
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38,132,695
|
|
38,132,695
|
|
Total
Liabilities
|
11,430,358
|
|
1,993,555
|
|
489,191
|
|
676,273
|
|
4,414,103
|
|
19,003,480
|
|
38,112,149
|
|
57,115,629
|
|
Temporary
Equity: Redeemable non-controlling interests
|
—
|
|
—
|
|
414,095
|
|
—
|
|
—
|
|
414,095
|
|
—
|
|
414,095
|
|
Permanent
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starwood Property
Trust, Inc. Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
—
|
|
—
|
|
—
|
|
—
|
|
3,241
|
|
3,241
|
|
—
|
|
3,241
|
|
Additional paid-in
capital
|
1,160,903
|
|
569,115
|
|
(391,738)
|
|
(624,371)
|
|
5,192,744
|
|
5,906,653
|
|
—
|
|
5,906,653
|
|
Treasury
stock
|
—
|
|
—
|
|
—
|
|
—
|
|
(138,022)
|
|
(138,022)
|
|
—
|
|
(138,022)
|
|
Retained earnings
(accumulated deficit)
|
5,840,613
|
|
217,247
|
|
2,056,463
|
|
1,571,657
|
|
(9,253,298)
|
|
432,682
|
|
—
|
|
432,682
|
|
Accumulated other
comprehensive income
|
13,920
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13,920
|
|
—
|
|
13,920
|
|
Total Starwood
Property Trust, Inc. Stockholders' Equity
|
7,015,436
|
|
786,362
|
|
1,664,725
|
|
947,286
|
|
(4,195,335)
|
|
6,218,474
|
|
—
|
|
6,218,474
|
|
Non-controlling
interests in consolidated subsidiaries
|
115
|
|
—
|
|
207,245
|
|
133,785
|
|
—
|
|
341,145
|
|
59
|
|
341,204
|
|
Total Permanent
Equity
|
7,015,551
|
|
786,362
|
|
1,871,970
|
|
1,081,071
|
|
(4,195,335)
|
|
6,559,619
|
|
59
|
|
6,559,678
|
|
Total Liabilities
and Equity
|
$
18,445,909
|
|
$
2,779,917
|
|
$
2,775,256
|
|
$
1,757,344
|
|
$
218,768
|
|
$
25,977,194
|
|
$
38,112,208
|
|
$
64,089,402
|
View original
content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-quarter-ended-june-30-2024-302215052.html
SOURCE Starwood Property Trust, Inc.