GREENWICH, Conn., Feb. 25, 2020 /PRNewswire/ -- Starwood
Property Trust, Inc. (NYSE: STWD) today announced operating results
for the fiscal quarter and year ended December 31, 2019. The Company's fourth
quarter 2019 GAAP net income was $171.9
million, or $0.60 per diluted
share, and Core Earnings (a non-GAAP financial measure) was
$139.5 million, or $0.47 per diluted share. These amounts
include a gain on sale of the Company's Ireland property portfolio of $119.7 million and $60.1
million for GAAP and Core Earnings, respectively, or
$0.41 and $0.20 per diluted share, respectively, and a GAAP
and Core loss of $71.9 million and
$70.6 million, respectively,
resulting from the impairment of the Company's interest in a
regional mall portfolio, or $0.25 and
$0.24 per diluted share,
respectively.
The Company's full year 2019 GAAP net income was $509.7 million, or $1.79 per diluted share, and Core Earnings was
$528.9 million, or $1.80 per diluted share. These amounts
include the fourth quarter gain on sale of the Company's
Ireland property portfolio
discussed above and a full year GAAP and Core write down of
$116.8 million and $139.5 million, respectively, relating to the
Company's interest in the regional mall portfolio, or $0.40 and $0.48 per
diluted share, respectively.
"Our fourth quarter results were highlighted by contributions
throughout our multi-cylinder platform, which brought our
investment portfolio to a record size of over $17 billion. In our primary business line,
commercial lending, we originated $2.2
billion this quarter, bringing our on balance sheet
portfolio to a record $9.1 billion.
We also added over $600 million of
new loans to our infrastructure portfolio. Our residential lending
platform continues to perform well, with over $1.4 billion of assets and the completion of our
fifth securitization. We continue to execute strategic joint
ventures in our CMBS portfolio, the largest of which closed in the
fourth quarter. This has allowed us to expand our named special
servicing footprint.
We successfully completed the sale of our Ireland portfolio this quarter, realizing a
Core gain of $83 million before a tax
withholding adjustment. We believe we still have over
$800 million in unrealized gains
remaining in our book, over $700
million of which relates to the four portfolios remaining in
our property segment. Following the successful refinancings
of our medical office and first multifamily portfolios, we expect
the yields on our stabilized property portfolio to be approximately
15%," commented Jeffrey DiModica,
President of Starwood Property Trust.
"Our balance sheet activity continues to create a very strong
liquidity position headed into 2020," added Barry Sternlicht, Chairman and CEO of Starwood
Property Trust. "We have a strong pipeline of investment
opportunities across our business cylinders and will remain highly
selective as to where we deploy capital. We intend to stay
disciplined with the right side of our balance sheet but are in a
prime position to take advantage of any future dislocations across
our target asset classes."
Dividend
On February 25, 2020, the
Company's Board of Directors declared a dividend of $0.48 per share of common stock for the quarter
ending March 31, 2020. The dividend
is payable on April 15, 2020 to
common stockholders of record as of March
31, 2020.
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.
Conference Call and Webcast Information
The Company will host a live webcast and conference call on
Tuesday, February 25, 2020, 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 and download
and install any necessary audio software. The webcast is
available at www.starwoodpropertytrust.com in the investor
relations section of the website.
To Participate via Telephone:
Dial in at least five 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: 13698502
The playback can be accessed through March
3, 2020.
About Starwood Property Trust, Inc.
Starwood Property Trust (NYSE: STWD), is a leading diversified
finance company with a core focus on the real estate and
infrastructure sectors. An affiliate of global private investment
firm Starwood Capital Group, the Company has successfully deployed
over $61 billion of capital since
inception and manages a portfolio of over $17 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, economic conditions, availability of
financing and other risks detailed under the heading "Risk Factors"
in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, as well as other
risks and uncertainties set forth from time to time in the
Company's reports filed with the SEC.
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 December 31, 2019 (Amounts in
thousands)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Infrastructure
|
|
|
|
Investing
|
|
|
|
|
|
|
|
|
|
|
Lending
|
|
Lending
|
|
Property
|
|
and Servicing
|
|
|
|
|
|
Securitization
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
|
$
|
147,360
|
|
$
|
24,611
|
|
$
|
—
|
|
$
|
5,130
|
|
$
|
—
|
|
$
|
177,101
|
|
$
|
—
|
|
$
|
177,101
|
Interest income from
investment securities
|
|
|
18,817
|
|
|
3,755
|
|
|
—
|
|
|
29,651
|
|
|
—
|
|
|
52,223
|
|
|
(32,447)
|
|
|
19,776
|
Servicing
fees
|
|
|
113
|
|
|
—
|
|
|
—
|
|
|
8,596
|
|
|
—
|
|
|
8,709
|
|
|
(2,187)
|
|
|
6,522
|
Rental
income
|
|
|
—
|
|
|
—
|
|
|
71,996
|
|
|
10,186
|
|
|
—
|
|
|
82,182
|
|
|
—
|
|
|
82,182
|
Other
revenues
|
|
|
324
|
|
|
19
|
|
|
118
|
|
|
388
|
|
|
—
|
|
|
849
|
|
|
(2)
|
|
|
847
|
Total
revenues
|
|
|
166,614
|
|
|
28,385
|
|
|
72,114
|
|
|
53,951
|
|
|
—
|
|
|
321,064
|
|
|
(34,636)
|
|
|
286,428
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
|
|
368
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
42,480
|
|
|
42,866
|
|
|
39
|
|
|
42,905
|
Interest
expense
|
|
|
50,106
|
|
|
13,579
|
|
|
19,696
|
|
|
8,469
|
|
|
29,086
|
|
|
120,936
|
|
|
(161)
|
|
|
120,775
|
General and
administrative
|
|
|
8,855
|
|
|
4,636
|
|
|
838
|
|
|
25,172
|
|
|
3,252
|
|
|
42,753
|
|
|
85
|
|
|
42,838
|
Acquisition and
investment pursuit costs
|
|
|
436
|
|
|
24
|
|
|
217
|
|
|
(200)
|
|
|
—
|
|
|
477
|
|
|
—
|
|
|
477
|
Costs of rental
operations
|
|
|
1,166
|
|
|
—
|
|
|
24,524
|
|
|
5,418
|
|
|
—
|
|
|
31,108
|
|
|
—
|
|
|
31,108
|
Depreciation and
amortization
|
|
|
396
|
|
|
68
|
|
|
22,483
|
|
|
4,300
|
|
|
—
|
|
|
27,247
|
|
|
—
|
|
|
27,247
|
Loan loss provision,
net
|
|
|
570
|
|
|
3,314
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,884
|
|
|
—
|
|
|
3,884
|
Other
expense
|
|
|
77
|
|
|
—
|
|
|
340
|
|
|
171
|
|
|
—
|
|
|
588
|
|
|
—
|
|
|
588
|
Total costs and
expenses
|
|
|
61,974
|
|
|
21,621
|
|
|
68,098
|
|
|
43,348
|
|
|
74,818
|
|
|
269,859
|
|
|
(37)
|
|
|
269,822
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71,548
|
|
|
71,548
|
Change in fair value
of servicing rights
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|
—
|
|
|
149
|
|
|
(1,481)
|
|
|
(1,332)
|
Change in fair value
of investment securities, net
|
|
|
1,861
|
|
|
—
|
|
|
—
|
|
|
32,775
|
|
|
—
|
|
|
34,636
|
|
|
(34,798)
|
|
|
(162)
|
Change in fair value
of mortgage loans held-for-sale, net
|
|
|
(6,375)
|
|
|
—
|
|
|
—
|
|
|
12,298
|
|
|
—
|
|
|
5,923
|
|
|
—
|
|
|
5,923
|
Earnings (loss) from
unconsolidated entities
|
|
|
2,073
|
|
|
—
|
|
|
(71,824)
|
|
|
565
|
|
|
—
|
|
|
(69,186)
|
|
|
(532)
|
|
|
(69,718)
|
Gain on sale of
investments and other assets, net
|
|
|
1,143
|
|
|
—
|
|
|
119,746
|
|
|
38,982
|
|
|
—
|
|
|
159,871
|
|
|
—
|
|
|
159,871
|
(Loss) gain on
derivative financial instruments, net
|
|
|
(32,349)
|
|
|
(12)
|
|
|
2,673
|
|
|
9,347
|
|
|
(5,663)
|
|
|
(26,004)
|
|
|
—
|
|
|
(26,004)
|
Foreign currency gain
(loss), net
|
|
|
34,367
|
|
|
307
|
|
|
44
|
|
|
(2)
|
|
|
—
|
|
|
34,716
|
|
|
—
|
|
|
34,716
|
Loss on
extinguishment of debt
|
|
|
—
|
|
|
(3,136)
|
|
|
(4,745)
|
|
|
(651)
|
|
|
—
|
|
|
(8,532)
|
|
|
—
|
|
|
(8,532)
|
Other (loss) income,
net
|
|
|
—
|
|
|
—
|
|
|
(100)
|
|
|
16
|
|
|
—
|
|
|
(84)
|
|
|
—
|
|
|
(84)
|
Total other income
(loss)
|
|
|
720
|
|
|
(2,841)
|
|
|
45,794
|
|
|
93,479
|
|
|
(5,663)
|
|
|
131,489
|
|
|
34,737
|
|
|
166,226
|
Income (loss)
before income taxes
|
|
|
105,360
|
|
|
3,923
|
|
|
49,810
|
|
|
104,082
|
|
|
(80,481)
|
|
|
182,694
|
|
|
138
|
|
|
182,832
|
Income tax
provision
|
|
|
(40)
|
|
|
(657)
|
|
|
(135)
|
|
|
(4,020)
|
|
|
—
|
|
|
(4,852)
|
|
|
—
|
|
|
(4,852)
|
Net income
(loss)
|
|
|
105,320
|
|
|
3,266
|
|
|
49,675
|
|
|
100,062
|
|
|
(80,481)
|
|
|
177,842
|
|
|
138
|
|
|
177,980
|
Net income
attributable to non-controlling interests
|
|
|
—
|
|
|
—
|
|
|
(5,308)
|
|
|
(665)
|
|
|
—
|
|
|
(5,973)
|
|
|
(138)
|
|
|
(6,111)
|
Net income (loss)
attributable to Starwood Property
Trust, Inc.
|
|
$
|
105,320
|
|
$
|
3,266
|
|
$
|
44,367
|
|
$
|
99,397
|
|
$
|
(80,481)
|
|
$
|
171,869
|
|
$
|
—
|
|
$
|
171,869
|
Definition of Core Earnings
Core 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, Core 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 from successful acquisitions, depreciation and amortization
of real estate and associated intangibles and any unrealized gains,
losses or other non-cash items recorded in net income for the
period, regardless of whether such items are included in other
comprehensive income or loss, or in net income 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.
Reconciliation of
Net Income to Core Earnings For the three months ended
December 31, 2019 (Amounts in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Infrastructure
|
|
|
|
Investing
|
|
|
|
|
|
|
Lending
|
|
Lending
|
|
Property
|
|
and Servicing
|
|
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Total
|
Net income (loss)
attributable to Starwood
Property Trust, Inc.
|
|
$
|
105,320
|
|
|
3,266
|
|
|
44,367
|
|
|
99,397
|
|
|
(80,481)
|
|
|
171,869
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
|
|
—
|
|
|
—
|
|
|
5,308
|
|
|
—
|
|
|
—
|
|
|
5,308
|
Non-cash equity
compensation expense
|
|
|
1,161
|
|
|
992
|
|
|
83
|
|
|
1,765
|
|
|
5,788
|
|
|
9,789
|
Management incentive
fee
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,117
|
|
|
18,117
|
Acquisition and
investment pursuit costs
|
|
|
(826)
|
|
|
—
|
|
|
(89)
|
|
|
(329)
|
|
|
—
|
|
|
(1,244)
|
Depreciation and
amortization
|
|
|
396
|
|
|
68
|
|
|
22,797
|
|
|
3,975
|
|
|
—
|
|
|
27,236
|
Loan loss provision,
net
|
|
|
570
|
|
|
3,314
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,884
|
Interest income
adjustment for securities
|
|
|
(32)
|
|
|
—
|
|
|
—
|
|
|
1,235
|
|
|
—
|
|
|
1,203
|
Extinguishment of
debt, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(246)
|
|
|
(246)
|
Other non-cash
items
|
|
|
—
|
|
|
—
|
|
|
(1,233)
|
|
|
(1,766)
|
|
|
153
|
|
|
(2,846)
|
Reversal of GAAP
unrealized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
6,375
|
|
|
—
|
|
|
—
|
|
|
(12,298)
|
|
|
—
|
|
|
(5,923)
|
Securities
|
|
|
(1,861)
|
|
|
—
|
|
|
—
|
|
|
(32,775)
|
|
|
—
|
|
|
(34,636)
|
Derivatives
|
|
|
32,443
|
|
|
16
|
|
|
(2,189)
|
|
|
(9,305)
|
|
|
6,519
|
|
|
27,484
|
Foreign
currency
|
|
|
(34,367)
|
|
|
(307)
|
|
|
(44)
|
|
|
2
|
|
|
—
|
|
|
(34,716)
|
(Earnings) loss from
unconsolidated entities
|
|
|
(2,073)
|
|
|
—
|
|
|
71,824
|
|
|
(565)
|
|
|
—
|
|
|
69,186
|
Recognition of Core
realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
1,848
|
|
|
1
|
|
|
—
|
|
|
14,189
|
|
|
—
|
|
|
16,038
|
Securities
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,906
|
|
|
—
|
|
|
2,906
|
Derivatives
|
|
|
(7,300)
|
|
|
210
|
|
|
14,981
|
|
|
6,961
|
|
|
—
|
|
|
14,852
|
Foreign
currency
|
|
|
5,347
|
|
|
(83)
|
|
|
44
|
|
|
(2)
|
|
|
—
|
|
|
5,306
|
Earnings (loss) from
unconsolidated entities
|
|
|
1,773
|
|
|
—
|
|
|
(70,557)
|
|
|
1,618
|
|
|
—
|
|
|
(67,166)
|
Sales of
properties
|
|
|
—
|
|
|
—
|
|
|
(74,878)
|
|
|
(12,062)
|
|
|
—
|
|
|
(86,940)
|
Core Earnings
(Loss)
|
|
$
|
108,774
|
|
$
|
7,477
|
|
$
|
10,414
|
|
$
|
62,946
|
|
$
|
(50,150)
|
|
$
|
139,461
|
Core Earnings
(Loss) per Weighted Average Diluted Share
|
|
$
|
0.37
|
|
$
|
0.02
|
|
$
|
0.04
|
|
$
|
0.21
|
|
$
|
(0.17)
|
|
$
|
0.47
|
Starwood Property
Trust, Inc. and Subsidiaries Condensed Consolidated
Statement of Operations by Segment For the year ended
December 31, 2019 (Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Infrastructure
|
|
|
|
Investing
|
|
|
|
|
|
|
|
|
|
|
Lending
|
|
Lending
|
|
Property
|
|
and Servicing
|
|
|
|
|
|
Securitization
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
|
$
|
610,316
|
|
$
|
99,580
|
|
$
|
—
|
|
$
|
14,117
|
|
$
|
—
|
|
$
|
724,013
|
|
$
|
—
|
|
$
|
724,013
|
Interest income from
investment securities
|
|
|
81,255
|
|
|
6,318
|
|
|
—
|
|
|
117,663
|
|
|
—
|
|
|
205,236
|
|
|
(128,607)
|
|
|
76,629
|
Servicing
fees
|
|
|
423
|
|
|
—
|
|
|
—
|
|
|
69,962
|
|
|
—
|
|
|
70,385
|
|
|
(16,089)
|
|
|
54,296
|
Rental
income
|
|
|
—
|
|
|
—
|
|
|
287,094
|
|
|
50,872
|
|
|
—
|
|
|
337,966
|
|
|
—
|
|
|
337,966
|
Other
revenues
|
|
|
1,038
|
|
|
751
|
|
|
409
|
|
|
1,317
|
|
|
26
|
|
|
3,541
|
|
|
(26)
|
|
|
3,515
|
Total
revenues
|
|
|
693,032
|
|
|
106,649
|
|
|
287,503
|
|
|
253,931
|
|
|
26
|
|
|
1,341,141
|
|
|
(144,722)
|
|
|
1,196,419
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
|
|
1,495
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
117,404
|
|
|
118,971
|
|
|
161
|
|
|
119,132
|
Interest
expense
|
|
|
222,118
|
|
|
62,836
|
|
|
76,838
|
|
|
33,621
|
|
|
113,964
|
|
|
509,377
|
|
|
(648)
|
|
|
508,729
|
General and
administrative
|
|
|
29,481
|
|
|
18,260
|
|
|
6,232
|
|
|
87,115
|
|
|
13,681
|
|
|
154,769
|
|
|
343
|
|
|
155,112
|
Acquisition and
investment pursuit costs
|
|
|
1,351
|
|
|
75
|
|
|
217
|
|
|
(587)
|
|
|
—
|
|
|
1,056
|
|
|
—
|
|
|
1,056
|
Costs of rental
operations
|
|
|
2,691
|
|
|
—
|
|
|
95,370
|
|
|
24,921
|
|
|
—
|
|
|
122,982
|
|
|
—
|
|
|
122,982
|
Depreciation and
amortization
|
|
|
1,091
|
|
|
83
|
|
|
92,561
|
|
|
19,587
|
|
|
—
|
|
|
113,322
|
|
|
—
|
|
|
113,322
|
Loan loss provision,
net
|
|
|
2,616
|
|
|
4,510
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,126
|
|
|
—
|
|
|
7,126
|
Other
expense
|
|
|
307
|
|
|
—
|
|
|
1,693
|
|
|
365
|
|
|
—
|
|
|
2,365
|
|
|
—
|
|
|
2,365
|
Total costs and
expenses
|
|
|
261,150
|
|
|
85,764
|
|
|
272,911
|
|
|
165,094
|
|
|
245,049
|
|
|
1,029,968
|
|
|
(144)
|
|
|
1,029,824
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
236,309
|
|
|
236,309
|
Change in fair value
of servicing rights
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,468)
|
|
|
—
|
|
|
(1,468)
|
|
|
(2,172)
|
|
|
(3,640)
|
Change in fair value
of investment securities, net
|
|
|
(1,084)
|
|
|
—
|
|
|
—
|
|
|
89,206
|
|
|
—
|
|
|
88,122
|
|
|
(87,289)
|
|
|
833
|
Change in fair value
of mortgage loans held-for-sale, net
|
|
|
10,462
|
|
|
—
|
|
|
—
|
|
|
61,139
|
|
|
—
|
|
|
71,601
|
|
|
—
|
|
|
71,601
|
Earnings (loss) from
unconsolidated entities
|
|
|
10,649
|
|
|
—
|
|
|
(114,362)
|
|
|
4,166
|
|
|
—
|
|
|
(99,547)
|
|
|
(1,807)
|
|
|
(101,354)
|
Gain on sale of
investments and other assets, net
|
|
|
4,619
|
|
|
3,041
|
|
|
119,746
|
|
|
60,622
|
|
|
—
|
|
|
188,028
|
|
|
—
|
|
|
188,028
|
(Loss) gain on
derivative financial instruments, net
|
|
|
(20,325)
|
|
|
(3,349)
|
|
|
(1,284)
|
|
|
(7,414)
|
|
|
26,062
|
|
|
(6,310)
|
|
|
—
|
|
|
(6,310)
|
Foreign currency gain
(loss), net
|
|
|
17,342
|
|
|
205
|
|
|
37
|
|
|
(2)
|
|
|
—
|
|
|
17,582
|
|
|
—
|
|
|
17,582
|
Loss on
extinguishment of debt
|
|
|
(857)
|
|
|
(11,357)
|
|
|
(4,745)
|
|
|
(845)
|
|
|
(1,466)
|
|
|
(19,270)
|
|
|
—
|
|
|
(19,270)
|
Other (loss) income,
net
|
|
|
—
|
|
|
(50)
|
|
|
(100)
|
|
|
16
|
|
|
(73)
|
|
|
(207)
|
|
|
—
|
|
|
(207)
|
Total other income
(loss)
|
|
|
20,806
|
|
|
(11,510)
|
|
|
(708)
|
|
|
205,420
|
|
|
24,523
|
|
|
238,531
|
|
|
145,041
|
|
|
383,572
|
Income (loss)
before income taxes
|
|
|
452,688
|
|
|
9,375
|
|
|
13,884
|
|
|
294,257
|
|
|
(220,500)
|
|
|
549,704
|
|
|
463
|
|
|
550,167
|
Income tax
(provision) benefit
|
|
|
(4,818)
|
|
|
89
|
|
|
(393)
|
|
|
(8,110)
|
|
|
—
|
|
|
(13,232)
|
|
|
—
|
|
|
(13,232)
|
Net income
(loss)
|
|
|
447,870
|
|
|
9,464
|
|
|
13,491
|
|
|
286,147
|
|
|
(220,500)
|
|
|
536,472
|
|
|
463
|
|
|
536,935
|
Net income
attributable to non-controlling interests
|
|
|
(392)
|
|
|
—
|
|
|
(21,630)
|
|
|
(4,786)
|
|
|
—
|
|
|
(26,808)
|
|
|
(463)
|
|
|
(27,271)
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
|
$
|
447,478
|
|
$
|
9,464
|
|
$
|
(8,139)
|
|
$
|
281,361
|
|
$
|
(220,500)
|
|
$
|
509,664
|
|
$
|
—
|
|
$
|
509,664
|
Reconciliation of
Net Income to Core Earnings For the year ended December
31, 2019 (Amounts in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Infrastructure
|
|
|
|
Investing
|
|
|
|
|
|
|
Lending
|
|
Lending
|
|
Property
|
|
and Servicing
|
|
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Total
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
|
$
|
447,478
|
|
|
9,464
|
|
|
(8,139)
|
|
|
281,361
|
|
|
(220,500)
|
|
|
509,664
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
|
|
—
|
|
|
—
|
|
|
21,630
|
|
|
—
|
|
|
—
|
|
|
21,630
|
Non-cash equity
compensation expense
|
|
|
3,918
|
|
|
2,683
|
|
|
312
|
|
|
6,582
|
|
|
22,697
|
|
|
36,192
|
Management incentive
fee
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,165
|
|
|
20,165
|
Acquisition and
investment pursuit costs
|
|
|
(882)
|
|
|
2
|
|
|
(355)
|
|
|
(780)
|
|
|
(356)
|
|
|
(2,371)
|
Depreciation and
amortization
|
|
|
1,091
|
|
|
83
|
|
|
93,864
|
|
|
18,156
|
|
|
—
|
|
|
113,194
|
Loan loss provision,
net
|
|
|
2,616
|
|
|
4,510
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,126
|
Interest income
adjustment for securities
|
|
|
(617)
|
|
|
—
|
|
|
—
|
|
|
15,933
|
|
|
—
|
|
|
15,316
|
Extinguishment of
debt, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,950)
|
|
|
(1,950)
|
Other non-cash
items
|
|
|
—
|
|
|
—
|
|
|
(1,798)
|
|
|
(1,067)
|
|
|
623
|
|
|
(2,242)
|
Reversal of GAAP
unrealized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
(10,462)
|
|
|
—
|
|
|
—
|
|
|
(61,139)
|
|
|
—
|
|
|
(71,601)
|
Securities
|
|
|
1,084
|
|
|
—
|
|
|
—
|
|
|
(89,206)
|
|
|
—
|
|
|
(88,122)
|
Derivatives
|
|
|
20,680
|
|
|
3,353
|
|
|
6,268
|
|
|
7,536
|
|
|
(26,396)
|
|
|
11,441
|
Foreign
currency
|
|
|
(17,342)
|
|
|
(205)
|
|
|
(37)
|
|
|
2
|
|
|
—
|
|
|
(17,582)
|
(Earnings) loss from
unconsolidated entities
|
|
|
(10,649)
|
|
|
—
|
|
|
114,362
|
|
|
(4,166)
|
|
|
—
|
|
|
99,547
|
Recognition of Core
realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
9,028
|
|
|
(984)
|
|
|
—
|
|
|
63,908
|
|
|
—
|
|
|
71,952
|
Securities
|
|
|
970
|
|
|
—
|
|
|
—
|
|
|
14,608
|
|
|
—
|
|
|
15,578
|
Derivatives
|
|
|
(5,500)
|
|
|
(1,186)
|
|
|
17,238
|
|
|
(10,153)
|
|
|
—
|
|
|
399
|
Foreign
currency
|
|
|
622
|
|
|
(1,081)
|
|
|
37
|
|
|
7
|
|
|
—
|
|
|
(415)
|
Earnings (loss) from
unconsolidated entities
|
|
|
8,851
|
|
|
—
|
|
|
(139,462)
|
|
|
15,812
|
|
|
—
|
|
|
(114,799)
|
Sales of
properties
|
|
|
—
|
|
|
—
|
|
|
(74,878)
|
|
|
(19,359)
|
|
|
—
|
|
|
(94,237)
|
Core Earnings
(Loss)
|
|
$
|
450,886
|
|
$
|
16,639
|
|
$
|
29,042
|
|
$
|
238,035
|
|
$
|
(205,717)
|
|
$
|
528,885
|
Core Earnings
(Loss) per Weighted Average Diluted Share
|
|
$
|
1.54
|
|
$
|
0.05
|
|
$
|
0.10
|
|
$
|
0.81
|
|
$
|
(0.70)
|
|
$
|
1.80
|
Starwood Property
Trust, Inc. and Subsidiaries Condensed Consolidated
Balance Sheet by Segment As of December 31,
2019 (Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Infrastructure
|
|
|
|
Investing
|
|
|
|
|
|
|
|
|
|
|
Lending
|
|
Lending
|
|
Property
|
|
and Servicing
|
|
|
|
|
|
Securitization
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
26,278
|
|
$
|
2,209
|
|
$
|
30,123
|
|
$
|
61,693
|
|
$
|
356,864
|
|
$
|
477,167
|
|
$
|
1,221
|
|
$
|
478,388
|
Restricted
cash
|
|
|
36,135
|
|
|
41,967
|
|
|
7,171
|
|
|
10,370
|
|
|
—
|
|
|
95,643
|
|
|
—
|
|
|
95,643
|
Loans
held-for-investment, net
|
|
|
9,187,332
|
|
|
1,397,448
|
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
10,586,074
|
|
|
—
|
|
|
10,586,074
|
Loans
held-for-sale
|
|
|
605,384
|
|
|
119,528
|
|
|
—
|
|
|
159,238
|
|
|
—
|
|
|
884,150
|
|
|
—
|
|
|
884,150
|
Investment
securities
|
|
|
992,974
|
|
|
45,153
|
|
|
—
|
|
|
1,177,148
|
|
|
—
|
|
|
2,215,275
|
|
|
(1,405,037)
|
|
|
810,238
|
Properties,
net
|
|
|
26,834
|
|
|
—
|
|
|
2,029,024
|
|
|
210,582
|
|
|
—
|
|
|
2,266,440
|
|
|
—
|
|
|
2,266,440
|
Intangible
assets
|
|
|
—
|
|
|
—
|
|
|
47,303
|
|
|
64,644
|
|
|
—
|
|
|
111,947
|
|
|
(26,247)
|
|
|
85,700
|
Investment in
unconsolidated entities
|
|
|
46,921
|
|
|
25,862
|
|
|
—
|
|
|
32,183
|
|
|
—
|
|
|
104,966
|
|
|
(20,637)
|
|
|
84,329
|
Goodwill
|
|
|
—
|
|
|
119,409
|
|
|
—
|
|
|
140,437
|
|
|
—
|
|
|
259,846
|
|
|
—
|
|
|
259,846
|
Derivative
assets
|
|
|
14,718
|
|
|
7
|
|
|
3
|
|
|
7
|
|
|
14,208
|
|
|
28,943
|
|
|
—
|
|
|
28,943
|
Accrued interest
receivable
|
|
|
45,996
|
|
|
3,134
|
|
|
133
|
|
|
2,388
|
|
|
13,242
|
|
|
64,893
|
|
|
(806)
|
|
|
64,087
|
Other
assets
|
|
|
59,170
|
|
|
6,101
|
|
|
82,910
|
|
|
54,238
|
|
|
8,911
|
|
|
211,330
|
|
|
(7)
|
|
|
211,323
|
VIE assets, at fair
value
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,187,175
|
|
|
62,187,175
|
Total
Assets
|
|
$
|
11,041,742
|
|
$
|
1,760,818
|
|
$
|
2,196,667
|
|
$
|
1,914,222
|
|
$
|
393,225
|
|
$
|
17,306,674
|
|
$
|
60,735,662
|
|
$
|
78,042,336
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
|
$
|
30,594
|
|
$
|
6,443
|
|
$
|
48,370
|
|
$
|
73,021
|
|
$
|
53,494
|
|
$
|
211,922
|
|
$
|
84
|
|
$
|
212,006
|
Related-party
payable
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
40,920
|
|
|
40,925
|
|
|
—
|
|
|
40,925
|
Dividends
payable
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137,427
|
|
|
137,427
|
|
|
—
|
|
|
137,427
|
Derivative
liabilities
|
|
|
7,698
|
|
|
750
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
8,740
|
|
|
—
|
|
|
8,740
|
Secured financing
agreements, net
|
|
|
5,038,876
|
|
|
1,217,066
|
|
|
1,698,334
|
|
|
574,507
|
|
|
391,215
|
|
|
8,919,998
|
|
|
(13,950)
|
|
|
8,906,048
|
Collateralized loan
obligations, net
|
|
|
928,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
928,060
|
|
|
—
|
|
|
928,060
|
Unsecured senior
notes, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,928,622
|
|
|
1,928,622
|
|
|
—
|
|
|
1,928,622
|
VIE liabilities, at
fair value
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,743,494
|
|
|
60,743,494
|
Total
Liabilities
|
|
|
6,005,228
|
|
|
1,224,259
|
|
|
1,746,704
|
|
|
647,825
|
|
|
2,551,678
|
|
|
12,175,694
|
|
|
60,729,628
|
|
|
72,905,322
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starwood Property
Trust, Inc. Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,874
|
|
|
2,874
|
|
|
—
|
|
|
2,874
|
Additional paid-in
capital
|
|
|
1,522,360
|
|
|
529,668
|
|
|
208,650
|
|
|
(123,210)
|
|
|
2,995,064
|
|
|
5,132,532
|
|
|
—
|
|
|
5,132,532
|
Treasury
stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104,194)
|
|
|
(104,194)
|
|
|
—
|
|
|
(104,194)
|
Accumulated other
comprehensive income (loss)
|
|
|
50,996
|
|
|
—
|
|
|
—
|
|
|
(64)
|
|
|
—
|
|
|
50,932
|
|
|
—
|
|
|
50,932
|
Retained earnings
(accumulated deficit)
|
|
|
3,463,158
|
|
|
6,891
|
|
|
5,431
|
|
|
1,194,998
|
|
|
(5,052,197)
|
|
|
(381,719)
|
|
|
—
|
|
|
(381,719)
|
Total Starwood
Property Trust, Inc. Stockholders' Equity
|
|
|
5,036,514
|
|
|
536,559
|
|
|
214,081
|
|
|
1,071,724
|
|
|
(2,158,453)
|
|
|
4,700,425
|
|
|
—
|
|
|
4,700,425
|
Non-controlling
interests in consolidated subsidiaries
|
|
|
—
|
|
|
—
|
|
|
235,882
|
|
|
194,673
|
|
|
—
|
|
|
430,555
|
|
|
6,034
|
|
|
436,589
|
Total
Equity
|
|
|
5,036,514
|
|
|
536,559
|
|
|
449,963
|
|
|
1,266,397
|
|
|
(2,158,453)
|
|
|
5,130,980
|
|
|
6,034
|
|
|
5,137,014
|
Total Liabilities
and Equity
|
|
$
|
11,041,742
|
|
$
|
1,760,818
|
|
$
|
2,196,667
|
|
$
|
1,914,222
|
|
$
|
393,225
|
|
$
|
17,306,674
|
|
$
|
60,735,662
|
|
$
|
78,042,336
|
View original
content:http://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-the-quarter-and-year-ended-december-31-2019-301010434.html
SOURCE Starwood Property Trust, Inc.