Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Investor Presentation (May 2020)
21 slides from Starwood Property Trust's investor presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including without limitation, statements concerning the Company’s operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of th
Slide 3: Starwood Property Trust Today
Starwood Property Trust Today Ainfrastructure leading diversified finance company with a core focus on the real estate and sectors and a market capitalization of approximately $3.7B 1 Highly flexible investment platform backed by 350 dedicated employees and leveraging Starwood Capital Group’s ap
Slide 4: STWD Primary Investment Cylinders
STWD Primary Investment Cylinders 2009 2013 2014 2016 2018 Commercial CMBS Special CMBS Loan Owned Residential Infrastructure Lending Investing Servicing Origination Real Estate Lending Lending Originate primarily Invest in new issue Workout defaulted Originate fixed- Invest in high- Originate, Orig
Slide 5: Diversified, Complementary and Scalable Platforms
Diversified, Complementary and Scalable Platforms Portfolio Breakdown1 Earnings Breakdown2 Infrastructure Infrastructure Lending, 10% Lending, 4% Property, 10% Property, 14% Commercial Lending, 59% Commercial Lending, 57% REIS,3 22% REIS,3 9% Residential Lending, 8% Residential Lending, 7% Note: As
Slide 6: Starwood Capital Group
Starwood Capital Group A Leading Global Real Estate Investment Firm Starwood Capital Group Profile Affiliated Business • Founded in 1991 by Barry Sternlicht Real Estate Equity Performing Real Estate Debt Energy • Current assets under management in excess of $60B • Acquired over $110B of assets over
Slide 7: Starwood Global Footprint
Starwood Global Footprint New York City Amsterdam Chicago Luxembourg Tokyo San Francisco Greenwich London Charlotte Washington, D.C. Hong Kong Los Angeles Atlanta Miami Dallas Nearly 4,000 professionals in 14 offices and over 7,000 additional employees affiliated with Starwood Property Trust office
Slide 8: Commercial Lending Overview
Commercial Lending Leading Provider of First Mortgage and Mezzanine Loans Overview STWD Competitive Advantages ($M) Portfolio Size1 vs. W.A. LTV2 Size W.A. LTV • Reputation, scale and market US$ (B) $12,000 66% knowledge $10,000 65% 64% • Information advantage from $8,000 63% affiliation with Starwo
Slide 9: Commercial Lending Hypothetical Loan Origination and Structuring Process
66 Commercial Lending Hypothetical Loan Origination and Structuring Process 1. Originate Whole Loan 2. Either Retain First Mortgage or Split Into Sr/Jr Originate a 75% LTV first mortgage at a rate of L + 4.25% Senior tranche has a 56% LTV while the junior tranche remains at 75% LTV $100M $75M A $56M
Slide 10: Commercial Lending Diversified Loan Portfolio With Strong Fundamentals
Commercial Lending Diversified Loan Portfolio With Strong Fundamentals Carrying Value by Loan Type Carrying Value by Region1 Carrying Value by Property Type1 CMBS Preferred Other Subordinated South West Industrial Other 5% equity 10% 1% 6% mortgages 1% North East Land 1% 1% 25% Multi-family 2% Mid A
Slide 11: Investment Process Overview
Investment Process In-Depth Underwriting and Management of Real Estate Credit Risk Overview i ORIGINATION • Sources deals from borrowers, banks and brokerage community • Compensation linked to loan performance ii CREDIT / UNDERWRITING • Performs independent due diligence on market, property and spon
Slide 12: Infrastructure Lending Segment
Infrastructure Lending Platform and Portfolio Overview Segment Key Portfolio Metrics • Full-service platform, including seasoned leadership team and 20 employees across loan No. of Loans 34 origination, underwriting, capital markets and asset management Total Commitments/Funded Balance $1.9/$1.6B •
Slide 13: Property Segment Overview
Property Segment Overview Multifamily Portfolio High Quality Stabilized Assets with Attractive Current Return Profile • Focused on investing in high quality real estate with: Windchase – Orlando, FL Worthington – West Palm • Stable current cash-on-cash returns (352 Units) Beach, FL (300 Units) • Pot
Slide 14: Property Segment Portfolio
Property Segment Portfolio US$ (M) Weighted Net Carrying Asset Specific Investment (1) Net Investment Occupancy Rate Average Lease Value Financing Term Wholly-Owned: Various, U.S. - Medical Office Portfolio $ 760 $ 591 $ 169 93.0% 6.1 years Southeast, U.S. - Woodstar I 631 478 153 98.3% 0.5 years Va
Slide 15: Investing & Servicing Segment Overview
21% Investing & Servicing Segment Overview Leading CMBS Investor, Special Servicer Special Servicer Market Share ($B) and Conduit Originator $120 40% Billions CMBS 1.0 UBP $100 CMBS 2.0/3.0 UBP • One of the largest CMBS special servicers 30% in the U.S. $80 Active SS Market Share SPECIAL SERVICING •
Slide 16: Investment & Servicing Segment Advantages
21% Investment & Servicing Segment Advantages The Power of Experience Underwriting Process • The longest serving investor in subordinate • Since 2013 the segment has deployed nearly CMBS; persevered through every real estate $13B of capital cycle since 1991 • In evaluating a new CMBS investment, STW
Slide 17: Conservative Balance Sheet
Conservative Balance Sheet Utilize a Combination of Secured Asset-Level, Unsecured and Off Balance Sheet Debt Debt-To-Equity Ratios Capitalization 3.2x Unsecured Debt $1.9 Equity Market Capitalization $2.9 2.1x 1 2 Adjusted on-balance sheet leverage (1) Secured Debt Commercial lending A-note sales a
Slide 18: Total Debt Capacity
Total Debt Capacity Over $20 Billion of On-Balance Sheet Debt Capacity Across 38 Different Facilities Debt Obligations US$ (M) Maximum Facility Available (1) Type Size Drawn Capacity Asset Specific Financing: Large Loans, Commercial $ 9,880 $ 4,516 $ 5,364 Infrastructure Lending Segment 2,490 1,197
Slide 19: Corporate Debt Maturity Schedule
Corporate Debt Maturity Schedule US$ (M) $1,500 $1,200M Dec ’21 $1,000 Dec ’21 11 months $500M $500 in between $399M $250M Feb ’21 Feb ’21 Apr ’23 Apr ’23 Mar ‘25 Jul ‘26 $0 2020 2021 2022 2023 2024 2025 2026 Senior Unsecured Q1’21 Senior Unsecured Q4’21 Convertible Notes Outstanding Senior Unsecure
Slide 20: Corporate Responsibility Overview
Corporate Responsibility Overview Our company strives to make a big difference by focusing on the main ways we can improve both people’s lives and our planet. Environmental Social Governance • Environmental risk assessment for new • Social impact investments in the U.S. • Award winning disclosure an
Slide 21: STWD: A Premier Multi-Cylinder Platform
STWD: A Premier Multi-Cylinder Platform Scaling Existing Businesses Developing Building the Premier New Businesses Multi-Cylinder Finance Internally Company Primarily Focused Exploring on the Real Estate and New Asset Classes Infrastructure Industries Geographic Expansion Future growth opportunities
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