Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Investor Presentation (December 2021)
22 slides from Starwood Property Trust's investor presentation, December 2021
Slide 1: Investor Presentation December 2021
INVESTOR PRESENTATION December 2021
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 $7.6B 1 Highly flexible investment platform backed by approximately 350 dedicated employees and leveraging Starwood Capi
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 Distributable Earnings Breakdown2 Infrastructure Infrastructure Lending Lending 9% Property 5% 9% Property 12% Commercial Lending 54% REIS 3 7% REIS 3 Commercial 24% Lending 61% Residential Lending Residential 11% Lending 8% Note
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 of over $95B • Acquired over $195B of assets over the p
Slide 7: Starwood Global Footprint
Starwood Global Footprint New York City Amsterdam Chicago Luxembourg Tokyo San Francisco Greenwich London Arlington Washington, D.C. Hong Kong Los Angeles Atlanta Miami Dallas Over 4,000 professionals in 16 offices and over 8,000 additional employees affiliated with multiple portfolio Sydney operati
Slide 8: Commercial Lending Overview
Commercial Lending Leading Provider of First Mortgage and Mezzanine Loans Overview STWD Competitive Advantages ($M) Portfolio Size1 vs. W.A. LTV2 Size W.A. LTV • Reputation, scale and market US$ (B) $14,000 66% knowledge $12,000 65% 64% • Information advantage from $10,000 63% $8,000 62% affiliation
Slide 9: Commercial Lending Illustrative Loan Origination and Structuring Process
66 Commercial Lending Illustrative 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 + 3.75% 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 3% equity 1% 3% mortgages 12% North East Land 4% 1% 1% 19% 2% Mezzanine Multi-fa
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: Residential Lending Segment Overview
Residential Lending Segment Overview Platform and Portfolio Overview • In 2016, Starwood Property Trust commenced its strategy of investing in non-agency residential mortgage loans • This new business leverages Starwood’s existing expertise in the Residential sector and the same team of professional
Slide 13: Infrastructure Lending Segment
Infrastructure Lending Platform and Portfolio Overview Segment Key Portfolio Metrics • Full-service platform across loan origination, underwriting, capital markets and asset No. of Loans 42 management Total Commitments/Funded Balance $2.0/$1.9B • Domain expertise in the thermal and renewable power a
Slide 14: 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 15: Property Segment Portfolio
Property Segment Portfolio $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 $ 762 $ 594 $ 168 94% 5.4 years Southeast, U.S. - Woodstar I 641 573 68 98% 0.5 years Southeast, U
Slide 16: Investing & Servicing Segment Overview
21% Investing & Servicing Segment Overview Special Servicer Market Share ($B) Leading CMBS Investor, Special Servicer and Conduit Originator $120 30% Billions CMBS 1.0 UBP $100 CMBS 2.0/3.0 UBP • One of the largest CMBS special servicers $80 in the U.S. Active SS Market Share 20% SPECIAL SERVICING •
Slide 17: Investing & Servicing Segment Advantages
21% Investing & Servicing Segment Advantages The Power of Experience Underwriting Process • The longest serving investor in subordinate • Since 2013 the segment has deployed over CMBS; persevered through every real estate $14B of capital cycle since 1991 • In evaluating a new CMBS investment, STWD •
Slide 18: Conservative Balance Sheet
Conservative Balance Sheet Utilize a Combination of Secured Asset-Level, Unsecured and Off Balance Sheet Debt Debt-To-Equity Ratios Capitalization Unsecured Debt 4.1x $1.7 Equity Market Capitalization 2.5x $7.0 (2) 1 2 Secured Debt Adjusted on-balance sheet leverage (1) $14.1 Commercial lending A-no
Slide 19: Total Debt Capacity
Total Debt Capacity Over $21B of total capacity, not including capacity that would result from selling A-notes or issuing CLOs or securitizations Debt Obligations $M Maximum Facility Available Type Size (1) Drawn (2) Capacity Asset Specific Financing: Large Loans, Commercial $ 10,771 $ 5,437 $ 5,334
Slide 20: Corporate Debt Maturity Schedule
Corporate Debt Maturity Schedule US$ (M) $1,192M $1,200 Dec ’21 $800 $792M $550M $500M November $400 $300M $300M $400M April $250M Feb ’21 $0 Dec-21 2022 2023 2024 2025 2026 Senior Unsecured Q4’21 Convertible Notes Outstanding Senior Unsecured Term Loan B Note: As of September 30, 2021, unless other
Slide 21: 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 22: 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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