– Quarterly GAAP Earnings of $0.22 and Distributable Earnings (DE) of
$0.58 per Diluted Share –
– Originated or Acquired $1.6 Billion of Assets in the Quarter and
$3.1 Billion for the Year –
– Received Repayments of $1.1 Billion in the Quarter and
$4.0 Billion for the Year
–
– Liquidity Increased to $1.2 Billion –
– Undepreciated Book Value Per Share of
$20.93 –
– Paid Dividend of $0.48 per Share –
GREENWICH, Conn., Feb. 22,
2024 /PRNewswire/ -- Starwood Property Trust,
Inc. (NYSE: STWD) today announced operating results for the fiscal
quarter and year ended December 31,
2023. The Company's fourth quarter 2023 GAAP net income was
$71.0 million, or $0.22 per diluted share. Distributable Earnings
(a non-GAAP financial measure) was $189.4
million, or $0.58 per diluted
share. The Company's full year 2023 GAAP net income was
$339.2 million, or $1.07 per diluted share, and Distributable
Earnings was $662.6 million, or
$2.05 per diluted share.
"When we created STWD more than 14 years ago, we set out to
build an enterprise that would be durable and so we diversified
into multiple business lines to raise our return on equity, provide
some consistency to our cash flows, and enable us to selectively
deploy capital as risk and reward in the markets changed. The
commercial real estate industry faces a balance sheet issue that
was not created by a lack of discipline per se. Rather, the
issue arose from a rapid and unprecedented increase in interest
rates meant to halt inflation that was largely caused by multiple
COVID stimulus packages followed by the American Rescue Plan Act of
2021. These well-intended programs hit a tattered supply chain
which caused prices to increase. We will continue to face headwinds
in real estate both in the U.S. and abroad until the central banks
lower short-term rates to more accurately reflect spreading
weakness in the private economy.
However, with our strong balance sheet and multiple investment
cylinders, we are able to allocate capital to our highest returning
verticals like energy infrastructure lending, and we are well
positioned to navigate the challenging environment," commented
Barry Sternlicht, Chairman and CEO
of Starwood Property Trust. "We are not out of the woods,
particularly in domestic office markets, but there is light at the
end of the tunnel as inevitably the Fed's data catches up with the
realities of declining housing costs which represent almost
one-third of CPI."
"Our full year results demonstrated the strength of our
diversified platform, which has allowed us to maintain low leverage
and strong access to liquidity," added Jeffrey DiModica, President of Starwood Property
Trust.
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
Thursday, February 22, 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: 13740779
The playback can be accessed through March 7, 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 December 31, 2023, the
Company has successfully deployed over $97
billion of capital since inception and manages a portfolio
of over $27 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.
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, 2023
|
(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
|
$
390,873
|
|
$
63,915
|
|
$
—
|
|
$
5,260
|
|
$
—
|
|
$ 460,048
|
|
$
—
|
|
$
460,048
|
Interest income from
investment securities
|
32,668
|
|
147
|
|
—
|
|
22,626
|
|
—
|
|
55,441
|
|
(36,606)
|
|
18,835
|
Servicing
fees
|
112
|
|
—
|
|
—
|
|
14,423
|
|
—
|
|
14,535
|
|
(3,642)
|
|
10,893
|
Rental
income
|
1,959
|
|
—
|
|
22,872
|
|
5,148
|
|
—
|
|
29,979
|
|
—
|
|
29,979
|
Other
revenues
|
520
|
|
301
|
|
219
|
|
1,033
|
|
450
|
|
2,523
|
|
—
|
|
2,523
|
Total
revenues
|
426,132
|
|
64,363
|
|
23,091
|
|
48,490
|
|
450
|
|
562,526
|
|
(40,248)
|
|
522,278
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
(133)
|
|
—
|
|
—
|
|
—
|
|
44,015
|
|
43,882
|
|
—
|
|
43,882
|
Interest
expense
|
246,576
|
|
37,828
|
|
14,293
|
|
9,859
|
|
60,774
|
|
369,330
|
|
(213)
|
|
369,117
|
General and
administrative
|
13,665
|
|
4,049
|
|
1,189
|
|
25,567
|
|
3,787
|
|
48,257
|
|
—
|
|
48,257
|
Acquisition and
investment pursuit costs
|
463
|
|
—
|
|
(5)
|
|
(158)
|
|
—
|
|
300
|
|
—
|
|
300
|
Costs of rental
operations
|
1,272
|
|
—
|
|
5,772
|
|
2,888
|
|
—
|
|
9,932
|
|
—
|
|
9,932
|
Depreciation and
amortization
|
1,944
|
|
19
|
|
7,899
|
|
2,185
|
|
84
|
|
12,131
|
|
—
|
|
12,131
|
Credit loss provision,
net
|
25,281
|
|
694
|
|
—
|
|
—
|
|
—
|
|
25,975
|
|
—
|
|
25,975
|
Other
expense
|
279
|
|
—
|
|
—
|
|
51
|
|
—
|
|
330
|
|
—
|
|
330
|
Total costs and
expenses
|
289,347
|
|
42,590
|
|
29,148
|
|
40,392
|
|
108,660
|
|
510,137
|
|
(213)
|
|
509,924
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
42,664
|
|
42,664
|
Change in fair value of
servicing rights
|
—
|
|
—
|
|
—
|
|
3,085
|
|
—
|
|
3,085
|
|
(1,889)
|
|
1,196
|
Change in fair value of
investment securities, net
|
6,493
|
|
—
|
|
—
|
|
(5,676)
|
|
—
|
|
817
|
|
(403)
|
|
414
|
Change in fair value of
mortgage loans, net
|
151,264
|
|
—
|
|
—
|
|
22,685
|
|
—
|
|
173,949
|
|
—
|
|
173,949
|
Income from affordable
housing fund investments
|
—
|
|
—
|
|
37,548
|
|
—
|
|
—
|
|
37,548
|
|
—
|
|
37,548
|
Earnings (loss)
from unconsolidated entities
|
847
|
|
4,378
|
|
—
|
|
456
|
|
—
|
|
5,681
|
|
(337)
|
|
5,344
|
Gain on sale of
investments and other assets, net
|
28
|
|
—
|
|
—
|
|
10,215
|
|
—
|
|
10,243
|
|
—
|
|
10,243
|
(Loss) gain on
derivative financial instruments, net
|
(157,892)
|
|
(121)
|
|
(2,337)
|
|
(8,817)
|
|
12,131
|
|
(157,036)
|
|
—
|
|
(157,036)
|
Foreign currency gain
(loss), net
|
78,762
|
|
426
|
|
(61)
|
|
—
|
|
—
|
|
79,127
|
|
—
|
|
79,127
|
Gain on extinguishment
of debt
|
1,018
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,018
|
|
—
|
|
1,018
|
Other loss,
net
|
(103,883)
|
|
—
|
|
—
|
|
17
|
|
—
|
|
(103,866)
|
|
—
|
|
(103,866)
|
Total other income
(loss)
|
(23,363)
|
|
4,683
|
|
35,150
|
|
21,965
|
|
12,131
|
|
50,566
|
|
40,035
|
|
90,601
|
Income (loss) before
income taxes
|
113,422
|
|
26,456
|
|
29,093
|
|
30,063
|
|
(96,079)
|
|
102,955
|
|
—
|
|
102,955
|
Income tax (provision)
benefit
|
(14,991)
|
|
9
|
|
—
|
|
(3,333)
|
|
—
|
|
(18,315)
|
|
—
|
|
(18,315)
|
Net income
(loss)
|
98,431
|
|
26,465
|
|
29,093
|
|
26,730
|
|
(96,079)
|
|
84,640
|
|
—
|
|
84,640
|
Net income
attributable to non-controlling interests
|
(4)
|
|
—
|
|
(12,007)
|
|
(1,668)
|
|
—
|
|
(13,679)
|
|
—
|
|
(13,679)
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
$
98,427
|
|
$
26,465
|
|
$
17,086
|
|
$
25,062
|
|
$
(96,079)
|
|
$
70,961
|
|
$
—
|
|
$
70,961
|
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 Annual Report on Form 10-K for the year
ended December 31, 2023 for
additional information regarding Distributable Earnings.
Reconciliation of
Net Income to Distributable Earnings
|
For the three months
ended December 31, 2023
|
(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.
|
$
98,427
|
|
$
26,465
|
|
$
17,086
|
|
$
25,062
|
|
$
(96,079)
|
|
$
70,961
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
—
|
|
—
|
|
4,659
|
|
—
|
|
—
|
|
4,659
|
Non-controlling
interests attributable to unrealized gains/losses
|
—
|
|
—
|
|
4,558
|
|
(2,546)
|
|
—
|
|
2,012
|
Non-cash equity
compensation expense
|
2,237
|
|
387
|
|
79
|
|
1,601
|
|
3,888
|
|
8,192
|
Management incentive
fee
|
—
|
|
—
|
|
—
|
|
—
|
|
19,530
|
|
19,530
|
Acquisition and
investment pursuit costs
|
—
|
|
—
|
|
(82)
|
|
(261)
|
|
—
|
|
(343)
|
Depreciation and
amortization
|
2,114
|
|
9
|
|
7,979
|
|
2,298
|
|
84
|
|
12,484
|
Interest income
adjustment for securities
|
5,743
|
|
—
|
|
—
|
|
8,125
|
|
—
|
|
13,868
|
Consolidated
income tax provision
(benefit) associated with fair
value adjustments
|
14,991
|
|
(9)
|
|
—
|
|
3,333
|
|
—
|
|
18,315
|
Other non-cash
items
|
5
|
|
—
|
|
351
|
|
63
|
|
—
|
|
419
|
Reversal of GAAP
unrealized and realized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(151,264)
|
|
—
|
|
—
|
|
(22,685)
|
|
—
|
|
(173,949)
|
Credit loss provision,
net
|
25,281
|
|
694
|
|
—
|
|
—
|
|
—
|
|
25,975
|
Securities
|
(6,493)
|
|
—
|
|
—
|
|
5,676
|
|
—
|
|
(817)
|
Woodstar Fund
investments
|
—
|
|
—
|
|
(37,548)
|
|
—
|
|
—
|
|
(37,548)
|
Derivatives
|
157,892
|
|
121
|
|
2,337
|
|
8,817
|
|
(12,131)
|
|
157,036
|
Foreign
currency
|
(78,762)
|
|
(426)
|
|
61
|
|
—
|
|
—
|
|
(79,127)
|
Earnings from
unconsolidated entities
|
(847)
|
|
(4,378)
|
|
—
|
|
(456)
|
|
—
|
|
(5,681)
|
Sales of
properties
|
—
|
|
—
|
|
—
|
|
(10,215)
|
|
—
|
|
(10,215)
|
Impairment of
properties
|
101,069
|
|
—
|
|
—
|
|
—
|
|
—
|
|
101,069
|
Recognition of
Distributable realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(541)
|
|
—
|
|
—
|
|
21,326
|
|
—
|
|
20,785
|
Realized credit loss
recovery
|
2,370
|
|
311
|
|
—
|
|
—
|
|
—
|
|
2,681
|
Securities
|
54
|
|
—
|
|
—
|
|
(3,432)
|
|
—
|
|
(3,378)
|
Woodstar Fund
investments
|
—
|
|
—
|
|
16,115
|
|
—
|
|
—
|
|
16,115
|
Derivatives
|
34,120
|
|
102
|
|
6,619
|
|
(4,297)
|
|
(9,222)
|
|
27,322
|
Foreign
currency
|
(2,084)
|
|
53
|
|
(60)
|
|
—
|
|
—
|
|
(2,091)
|
Earnings from
unconsolidated entities
|
847
|
|
93
|
|
—
|
|
427
|
|
—
|
|
1,367
|
Sales of
properties
|
—
|
|
—
|
|
—
|
|
(198)
|
|
—
|
|
(198)
|
Distributable
Earnings (Loss)
|
$
205,159
|
|
$
23,422
|
|
$
22,154
|
|
$
32,638
|
|
$
(93,930)
|
|
$
189,443
|
Distributable
Earnings (Loss) per Weighted Average Diluted Share
|
$
0.63
|
|
$
0.07
|
|
$
0.07
|
|
$
0.10
|
|
$
(0.29)
|
|
$
0.58
|
Starwood Property
Trust, Inc. and Subsidiaries
|
Condensed
Consolidated Statement of Operations by Segment
|
For the year ended
December 31, 2023
|
(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
|
$
1,557,631
|
|
$
236,884
|
|
$
—
|
|
$
9,589
|
|
$
—
|
|
$
1,804,104
|
|
$
—
|
|
$ 1,804,104
|
Interest income from
investment securities
|
135,130
|
|
1,805
|
|
—
|
|
92,147
|
|
—
|
|
229,082
|
|
(152,558)
|
|
76,524
|
Servicing
fees
|
553
|
|
—
|
|
—
|
|
44,895
|
|
—
|
|
45,448
|
|
(12,327)
|
|
33,121
|
Rental
income
|
8,369
|
|
—
|
|
93,459
|
|
25,838
|
|
—
|
|
127,666
|
|
—
|
|
127,666
|
Other
revenues
|
2,527
|
|
1,296
|
|
713
|
|
2,335
|
|
1,622
|
|
8,493
|
|
—
|
|
8,493
|
Total
revenues
|
1,704,210
|
|
239,985
|
|
94,172
|
|
174,804
|
|
1,622
|
|
2,214,793
|
|
(164,885)
|
|
2,049,908
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
496
|
|
—
|
|
—
|
|
—
|
|
141,047
|
|
141,543
|
|
—
|
|
$
141,543
|
Interest
expense
|
971,028
|
|
141,016
|
|
54,522
|
|
34,611
|
|
235,776
|
|
1,436,953
|
|
(846)
|
|
1,436,107
|
General and
administrative
|
55,782
|
|
15,569
|
|
4,155
|
|
87,619
|
|
17,087
|
|
180,212
|
|
—
|
|
180,212
|
Acquisition and
investment pursuit costs
|
1,128
|
|
17
|
|
(5)
|
|
(215)
|
|
—
|
|
925
|
|
—
|
|
925
|
Costs of rental
operations
|
8,777
|
|
—
|
|
22,806
|
|
13,259
|
|
—
|
|
44,842
|
|
—
|
|
44,842
|
Depreciation and
amortization
|
7,206
|
|
103
|
|
31,960
|
|
9,788
|
|
84
|
|
49,141
|
|
—
|
|
49,141
|
Credit loss provision,
net
|
225,720
|
|
18,008
|
|
—
|
|
—
|
|
—
|
|
243,728
|
|
—
|
|
243,728
|
Other
expense
|
1,730
|
|
—
|
|
23
|
|
67
|
|
—
|
|
1,820
|
|
—
|
|
1,820
|
Total costs and
expenses
|
1,271,867
|
|
174,713
|
|
113,461
|
|
145,129
|
|
393,994
|
|
2,099,164
|
|
(846)
|
|
2,098,318
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
181,688
|
|
181,688
|
Change in fair value of
servicing rights
|
—
|
|
—
|
|
—
|
|
401
|
|
—
|
|
401
|
|
1,193
|
|
1,594
|
Change in fair value of
investment securities, net
|
69,259
|
|
—
|
|
—
|
|
(51,889)
|
|
—
|
|
17,370
|
|
(16,603)
|
|
767
|
Change in fair value of
mortgage loans, net
|
25,874
|
|
—
|
|
—
|
|
36,828
|
|
—
|
|
62,702
|
|
—
|
|
62,702
|
Income from affordable
housing fund investments
|
—
|
|
—
|
|
291,244
|
|
—
|
|
—
|
|
291,244
|
|
—
|
|
291,244
|
Earnings (loss) from
unconsolidated entities
|
4,410
|
|
5,702
|
|
—
|
|
8,849
|
|
—
|
|
18,961
|
|
(2,239)
|
|
16,722
|
(Loss) gain on sale of
investments and other assets, net
|
(112)
|
|
—
|
|
—
|
|
25,841
|
|
—
|
|
25,729
|
|
—
|
|
25,729
|
(Loss) gain on
derivative financial instruments, net
|
(25,206)
|
|
123
|
|
2,111
|
|
(4,348)
|
|
(11,285)
|
|
(38,605)
|
|
—
|
|
(38,605)
|
Foreign currency gain
(loss), net
|
60,644
|
|
201
|
|
(11)
|
|
—
|
|
—
|
|
60,834
|
|
—
|
|
60,834
|
Loss on extinguishment
of debt
|
(804)
|
|
—
|
|
—
|
|
(434)
|
|
—
|
|
(1,238)
|
|
—
|
|
(1,238)
|
Other (loss) income,
net
|
(135,576)
|
|
—
|
|
(5)
|
|
29
|
|
—
|
|
(135,552)
|
|
—
|
|
(135,552)
|
Total other income
(loss)
|
(1,511)
|
|
6,026
|
|
293,339
|
|
15,277
|
|
(11,285)
|
|
301,846
|
|
164,039
|
|
465,885
|
Income (loss) before
income taxes
|
430,832
|
|
71,298
|
|
274,050
|
|
44,952
|
|
(403,657)
|
|
417,475
|
|
—
|
|
417,475
|
Income tax benefit
(provision)
|
990
|
|
590
|
|
—
|
|
(898)
|
|
—
|
|
682
|
|
—
|
|
682
|
Net income
(loss)
|
431,822
|
|
71,888
|
|
274,050
|
|
44,054
|
|
(403,657)
|
|
418,157
|
|
—
|
|
418,157
|
Net income
attributable to non-controlling interests
|
(14)
|
|
—
|
|
(77,156)
|
|
(1,774)
|
|
—
|
|
(78,944)
|
|
—
|
|
(78,944)
|
Net income (loss)
attributable to Starwood Property Trust, Inc.
|
$
431,808
|
|
$
71,888
|
|
$
196,894
|
|
$
42,280
|
|
$
(403,657)
|
|
$
339,213
|
|
$
—
|
|
$
339,213
|
Reconciliation of
Net Income to Distributable Earnings
|
For the year ended
December 31, 2023
|
(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.
|
$
431,808
|
|
$
71,888
|
|
$
196,894
|
|
$
42,280
|
|
$
(403,657)
|
|
$
339,213
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests attributable to Woodstar II Class A Units
|
—
|
|
—
|
|
18,732
|
|
—
|
|
—
|
|
18,732
|
Non-controlling
interests attributable to unrealized gains/losses
|
—
|
|
—
|
|
47,249
|
|
(13,885)
|
|
—
|
|
33,364
|
Non-cash equity
compensation expense
|
8,755
|
|
1,469
|
|
310
|
|
6,372
|
|
22,341
|
|
39,247
|
Management incentive
fee
|
—
|
|
—
|
|
—
|
|
—
|
|
35,709
|
|
35,709
|
Acquisition and
investment pursuit costs
|
(81)
|
|
—
|
|
(328)
|
|
(555)
|
|
—
|
|
(964)
|
Depreciation and
amortization
|
7,810
|
|
64
|
|
32,257
|
|
10,263
|
|
84
|
|
50,478
|
Interest income
adjustment for securities
|
22,404
|
|
—
|
|
—
|
|
28,368
|
|
—
|
|
50,772
|
Extinguishment of debt,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
(246)
|
|
(246)
|
Consolidated income tax
(benefit) provision associated with fair value
adjustments
|
(990)
|
|
(590)
|
|
—
|
|
898
|
|
—
|
|
(682)
|
Other non-cash
items
|
15
|
|
—
|
|
1,468
|
|
285
|
|
—
|
|
1,768
|
Reversal of GAAP
unrealized and realized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
—
|
Loans
|
(25,874)
|
|
—
|
|
—
|
|
(36,828)
|
|
—
|
|
(62,702)
|
Credit loss provision,
net
|
225,720
|
|
18,008
|
|
—
|
|
—
|
|
—
|
|
243,728
|
Securities
|
(69,259)
|
|
—
|
|
—
|
|
51,889
|
|
—
|
|
(17,370)
|
Woodstar Fund
investments
|
—
|
|
—
|
|
(291,244)
|
|
—
|
|
—
|
|
(291,244)
|
Derivatives
|
25,206
|
|
(123)
|
|
(2,111)
|
|
4,348
|
|
11,285
|
|
38,605
|
Foreign
currency
|
(60,644)
|
|
(201)
|
|
11
|
|
—
|
|
—
|
|
(60,834)
|
Earnings from
unconsolidated entities
|
(4,410)
|
|
(5,702)
|
|
—
|
|
(8,849)
|
|
—
|
|
(18,961)
|
Sales of
properties
|
—
|
|
—
|
|
—
|
|
(25,841)
|
|
—
|
|
(25,841)
|
Impairment of
properties
|
124,902
|
|
—
|
|
—
|
|
—
|
|
—
|
|
124,902
|
Recognition of
Distributable realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
—
|
Loans
|
(4,072)
|
|
—
|
|
—
|
|
36,375
|
|
—
|
|
32,303
|
Realized credit
loss
|
(12,292)
|
|
(10,795)
|
|
—
|
|
—
|
|
—
|
|
(23,087)
|
Securities
|
105
|
|
—
|
|
—
|
|
(22,475)
|
|
—
|
|
(22,370)
|
Woodstar Fund
investments
|
—
|
|
—
|
|
61,513
|
|
—
|
|
—
|
|
61,513
|
Derivatives
|
119,917
|
|
397
|
|
22,851
|
|
(2,493)
|
|
(32,659)
|
|
108,013
|
Foreign
currency
|
(7,250)
|
|
13
|
|
(11)
|
|
—
|
|
—
|
|
(7,248)
|
Earnings (loss) from
unconsolidated entities
|
4,410
|
|
(1,908)
|
|
—
|
|
7,020
|
|
—
|
|
9,522
|
Sales of
properties
|
—
|
|
—
|
|
|
|
6,246
|
|
—
|
|
6,246
|
Distributable
Earnings (Loss)
|
$
786,180
|
|
$
72,520
|
|
$
87,591
|
|
$
83,418
|
|
$
(367,143)
|
|
$
662,566
|
Distributable
Earnings (Loss) per Weighted Average Diluted Share
|
$
2.43
|
|
$
0.22
|
|
$
0.27
|
|
$
0.26
|
|
$
(1.13)
|
|
$
2.05
|
Starwood Property
Trust, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheet by Segment
|
As of
December 31, 2023
|
(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
|
$
8,823
|
|
$
56,300
|
|
$
19,957
|
|
$
22,011
|
|
$
87,569
|
|
$
194,660
|
|
$
—
|
|
$
194,660
|
Restricted
cash
|
23,902
|
|
28,693
|
|
1,016
|
|
5,175
|
|
58,526
|
|
117,312
|
|
—
|
|
117,312
|
Loans
held-for-investment, net
|
15,069,389
|
|
2,495,660
|
|
—
|
|
9,200
|
|
—
|
|
17,574,249
|
|
—
|
|
17,574,249
|
Loans
held-for-sale
|
2,604,594
|
|
—
|
|
—
|
|
41,043
|
|
—
|
|
2,645,637
|
|
—
|
|
2,645,637
|
Investment
securities
|
1,147,829
|
|
19,042
|
|
—
|
|
1,147,550
|
|
—
|
|
2,314,421
|
|
(1,578,859)
|
|
735,562
|
Properties,
net
|
431,155
|
|
—
|
|
555,455
|
|
59,774
|
|
—
|
|
1,046,384
|
|
—
|
|
1,046,384
|
Properties
held-for-sale
|
—
|
|
—
|
|
290,937
|
|
—
|
|
—
|
|
290,937
|
|
—
|
|
290,937
|
Investments of
consolidated affordable housing fund
|
—
|
|
—
|
|
2,012,833
|
|
—
|
|
—
|
|
2,012,833
|
|
—
|
|
2,012,833
|
Investments in
unconsolidated entities
|
19,151
|
|
52,691
|
|
—
|
|
33,134
|
|
—
|
|
104,976
|
|
(14,600)
|
|
90,376
|
Goodwill
|
—
|
|
119,409
|
|
—
|
|
140,437
|
|
—
|
|
259,846
|
|
—
|
|
259,846
|
Intangible
assets
|
13,415
|
|
—
|
|
25,432
|
|
63,985
|
|
—
|
|
102,832
|
|
(37,865)
|
|
64,967
|
Derivative
assets
|
55,559
|
|
84
|
|
5,638
|
|
2,156
|
|
—
|
|
63,437
|
|
—
|
|
63,437
|
Accrued interest
receivable
|
180,441
|
|
12,485
|
|
1,502
|
|
1,369
|
|
5,070
|
|
200,867
|
|
—
|
|
200,867
|
Other
assets
|
301,436
|
|
3,486
|
|
50,459
|
|
15,828
|
|
49,564
|
|
420,773
|
|
—
|
|
420,773
|
VIE assets, at fair
value
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
43,786,356
|
|
43,786,356
|
Total Assets
|
$
19,855,694
|
|
$
2,787,850
|
|
$
2,963,229
|
|
$
1,541,662
|
|
$
200,729
|
|
$
27,349,164
|
|
$
42,155,032
|
|
$
69,504,196
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
$
106,236
|
|
$
45,232
|
|
$
12,225
|
|
$
44,452
|
|
$
85,297
|
|
$
293,442
|
|
$
—
|
|
$
293,442
|
Related-party
payable
|
—
|
|
—
|
|
—
|
|
—
|
|
44,816
|
|
44,816
|
|
—
|
|
44,816
|
Dividends
payable
|
—
|
|
—
|
|
—
|
|
—
|
|
152,888
|
|
152,888
|
|
—
|
|
152,888
|
Derivative
liabilities
|
54,066
|
|
—
|
|
—
|
|
—
|
|
48,401
|
|
102,467
|
|
—
|
|
102,467
|
Secured financing
agreements, net
|
10,368,668
|
|
1,088,965
|
|
598,350
|
|
495,857
|
|
1,336,913
|
|
13,888,753
|
|
(20,757)
|
|
13,867,996
|
Collateralized loan
obligations and single asset securitization, net
|
2,674,938
|
|
816,354
|
|
—
|
|
—
|
|
—
|
|
3,491,292
|
|
—
|
|
3,491,292
|
Unsecured senior
notes, net
|
—
|
|
—
|
|
—
|
|
—
|
|
2,158,888
|
|
2,158,888
|
|
—
|
|
2,158,888
|
Debt related to
properties held-for-sale
|
—
|
|
—
|
|
193,691
|
|
—
|
|
—
|
|
193,691
|
|
—
|
|
193,691
|
VIE liabilities, at
fair value
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
42,175,734
|
|
42,175,734
|
Total Liabilities
|
13,203,908
|
|
1,950,551
|
|
804,266
|
|
540,309
|
|
3,827,203
|
|
20,326,237
|
|
42,154,977
|
|
62,481,214
|
Temporary Equity: Redeemable
non-controlling interests
|
—
|
|
—
|
|
414,348
|
|
—
|
|
—
|
|
414,348
|
|
—
|
|
414,348
|
Permanent Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starwood Property Trust, Inc.
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
—
|
|
—
|
|
—
|
|
—
|
|
3,208
|
|
3,208
|
|
—
|
|
3,208
|
Additional paid-in
capital
|
1,121,413
|
|
664,621
|
|
(437,169)
|
|
(705,176)
|
|
5,220,981
|
|
5,864,670
|
|
—
|
|
5,864,670
|
Treasury
stock
|
—
|
|
—
|
|
—
|
|
—
|
|
(138,022)
|
|
(138,022)
|
|
—
|
|
(138,022)
|
Retained earnings
(accumulated deficit)
|
5,514,906
|
|
172,678
|
|
1,974,539
|
|
1,556,399
|
|
(8,712,641)
|
|
505,881
|
|
—
|
|
505,881
|
Accumulated other
comprehensive income
|
15,352
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,352
|
|
—
|
|
15,352
|
Total Starwood Property Trust, Inc.
Stockholders' Equity
|
6,651,671
|
|
837,299
|
|
1,537,370
|
|
851,223
|
|
(3,626,474)
|
|
6,251,089
|
|
—
|
|
6,251,089
|
Non-controlling
interests in consolidated subsidiaries
|
115
|
|
—
|
|
207,245
|
|
150,130
|
|
—
|
|
357,490
|
|
55
|
|
357,545
|
Total Permanent Equity
|
6,651,786
|
|
837,299
|
|
1,744,615
|
|
1,001,353
|
|
(3,626,474)
|
|
6,608,579
|
|
55
|
|
6,608,634
|
Total Liabilities and Equity
|
$
19,855,694
|
|
$
2,787,850
|
|
$
2,963,229
|
|
$
1,541,662
|
|
$
200,729
|
|
$
27,349,164
|
|
$
42,155,032
|
|
$
69,504,196
|
View original
content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-the-quarter-and-year-ended-december-31-2023-302068465.html
SOURCE Starwood Property Trust, Inc.