Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Q2 2025 Earnings Presentation
48 slides from Starwood Property Trust's earnings presentation, Aug 7, 2025
Slide 1: Q2 2025 Supplemental Reporting Information
SUPPLEMENTAL Q2 REPORTING 2025 INFORMATION
Slide 2: Table of Contents
Table of Contents Press Release Page 1 Highlights Page 9 Commercial and Residential Lending Segment Page 12 Infrastructure Lending Segment Page 21 Property Segment Page 22 Investing and Servicing Segment Page 25 Capitalization Page 27 Appendix Page 33 Cover photo: $350M senior mortgage and mezzanine
Slide 3: Press Release
PRESS RELEASE
Slide 4: Starwood Property Trust Reports Results for Quarter Ended June 30, 2025
For Immediate Release Starwood Property Trust Reports Results for Quarter Ended June 30, 2025 – Quarterly GAAP Earnings of $0.38 and Distributable Earnings (DE) of $0.43 per Diluted Share – – Invested $3.2 Billion in the Quarter and $5.5 Billion in the 6 Months, Surpassing 2024 Capital Deployment –
Slide 5: Supplemental Schedules and Webcast Information
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 Relat
Slide 6: Forward-looking statements and contact
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 obl
Slide 7: Condensed Consolidated Statement of Operations by Segment, Three Months
Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended June 30, 2025 (Amounts in thousands) Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment S
Slide 8: Definition of Distributable Earnings and Reconciliation
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
Slide 9: Condensed Consolidated Statement of Operations by Segment, Six Months
Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the six months ended June 30, 2025 (Amounts in thousands) Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Seg
Slide 10: Reconciliation of Net Income to Distributable Earnings, Six Months
Reconciliation of Net Income to Distributable Earnings For the six months ended June 30, 2025 (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) attr
Slide 11: Condensed Consolidated Balance Sheet by Segment
Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of June 30, 2025 (Amounts in thousands) Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs
Slide 12: Highlights
HIGHLIGHTS
Slide 13: STWD Highlights
STWD Highlights Leading diverse global multi-cylinder platform, built to thrive in all market environments $27.5B of total assets with an adjusted debt- Strong Balance Sheet to-equity ratio of 2.50x and undepreciated book value per share of $19.65 Consistent Dividend Paid quarterly dividend of $0.48
Slide 14: Q2 2025 Highlights
Q2 2025 Highlights • GAAP book value per share of $18.80 and undepreciated book value per share of $19.65 ◦ GAAP book value reflects $1.87 per share cumulative reduction for CECL reserves and property impairments • GAAP earnings of $0.38 and Distributable Earnings ("DE") of $0.43 per diluted share •
Slide 15: Total Assets $27.5B
Total Assets Ø U.S. office represents only 9% of our diversified $27.5B asset base (8% pro forma for Fundamental acquisition) Int'l O Commercial ffice U.S. Office 9% Multifamily 19% Loans 2% 56% In ta ng ib Ot le he s1 r3 % % Ca sh & A/R l 6% 2% Hote REIS C MBS 4 % $27.5B Mixed Use 6% Infrastructure
Slide 16: Commercial and Residential Lending Segment
COMMERCIAL AND RESIDENTIAL LENDING SEGMENT
Slide 17: Commercial Lending Portfolio
Commercial Lending Portfolio Q2 Activity Loan Risk Rating • $1.9B originations ($1.3B funded) • $198M follow on fundings • $898M repayments and sales, including proceeds from: ◦ $230M A-note sale Not ◦ $115M sales of two previously foreclosed assets 5 Rated 1 ◦ $70M sale of previously obtained equit
Slide 18: Characteristics and Top Loans by Property Type
Top 10 Loans by Largest Property Types Multifamily Office Industrial International 16% 7% Characteristics 24% U.S. 3% Property 21% 11% $5.3B $0.6B $2.0B 19% 13% 33% $2.4B 100% 72% 81% Southeast Southwest West Warehouse Data Center Mid-Atlantic Northeast International Class A Class B Production Studi
Slide 19: Collateral Diversification
Collateral Diversification Our commercial loan portfolio has transformed over time, with multifamily becoming our largest property type Multifamily Office Hotel Mixed Use Industrial Residential Retail Other 100% 80% 60% 40% 20% —% 0 2 4 1 3 4 1 3 5 0 2 4 1 2 4 1 3 5 0 2 3 4'2 3'2 2'2 2'2 1'2 4'2 4'2
Slide 20: Commercial Portfolio Geographic Diversification
Commercial Portfolio Geographic Diversification U.S. Southwest 17 % Northeast 16 % Southeast 14 % West 12 % Mid-Atlantic 7% Midwest 2% Europe Australia Bahamas / Bermuda Europe: International UK 14 % Ireland 3% Germany 3% Other Europe 3% Australia 7% Bahamas/Bermuda 2% NOTE: Amounts are stated as a
Slide 21: Commercial Lending Metrics
Commercial Lending Metrics (2) Mezzanine Subordinated First Mortgages Lending CMBS (2) Preferred Equity Total CRE ($ millions) Loans Mortgages $14,790 $314 $294 $33 $64 $15,495 Carrying Value Carrying Value $14,003 $314 $177 $28 $18 $14,540 on Accrual Unlevered Return for Assets on 8.1% 8.4% 11.4% 1
Slide 22: Top Commercial Lending Commitments
Top 10 Commercial Lending Commitments(4) $ millions Origination Fully Extended Loan Loan Type Location Property Type UPB Date Maturity Date Commitment Senior Jun 2022 Jun 2030 Various, Australia Casino Hotel* $ 906.1 $ 906.1 Senior Feb 2021 Feb 2028 Various, UK Mixed Use 704.5 704.5 Senior/Mezz Jan
Slide 23: Nonaccrual Assets
Nonaccrual Assets $ millions Ø $951M carrying value of commercial assets on nonaccrual Location Property Type Carrying Value Dallas, Texas Mixed Use $ 242 East Rutherford, New Jersey Retail 188 Brooklyn, New York Office 137 Arlington, Virginia Office 117 Los Angeles, California Office 117 Phoenix, A
Slide 24: Foreclosed Assets
Foreclosed Assets Ø $655M net carrying value of commercial assets previously foreclosed Location Property Type Carrying Value ($ millions) (per sq ft) Los Angeles, California Mixed Use $ 150 $ 131 New York City, New York Residential (Luxury Co-Op) 115 2,083 Dallas, Texas Multifamily 87 180 Windermer
Slide 25: Residential Portfolio
Residential Portfolio $ millions Ø Recorded $31M net unrealized fair value decrease: – Loans: $9M increase – RMBS: $2M decrease – Interest Rate Hedges: $38M decrease to FMV of $4M Ø Repayments of $60M on loans and $10M on RMBS Asset Carrying Values Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024
Slide 26: Infrastructure Lending Segment
INFRASTRUCTURE LENDING SEGMENT 25
Slide 27: Portfolio Metrics and Activity
Portfolio Metrics and Activity Q2 Activity • Record $699M new commitments ($642M funded) • $288M repayments • Portfolio reaches new record high of $3.1B $3.1B Total Portfolio (5) Geographic Location Sector Southwest Power 22% 59% Northeast 29% Midwest 20% Other - U.S. 1% Upstream Mid-Atlantic 1% 1%
Slide 28: Property Segment
PROPERTY SEGMENT 25
Slide 29: Investment Portfolio
Investment Portfolio $ millions Significant Activity During the Quarter: Ø Unrealized fair value decreases of $17M ($13M, net of 20.6% non-controlling interests) in the Woodstar Fund investments Net Asset Q2'25 Net Net Operating Occupancy Investment Carrying Specific (6) Investment (7) Rate Value Fi
Slide 30: Woodstar Fund (the "Fund")
Woodstar Fund (the "Fund") $ millions Ø The Fund, which was formed in Q4 2021, holds the 15,057 affordable housing units comprising the Woodstar I and Woodstar II portfolios and is accounted for under ASC 946, Financial Services – Investment Companies, with its investments reported on our consolidat
Slide 31: Portfolio Snapshot
Portfolio Snapshot $ millions, sq. ft. in thousands Medical Office Woodstar Fund D.C. Multifamily Conversion Gross Gross Region % Occupancy Sq. Ft. Region % Occupancy Units Region Sq. Ft. investment investment Northeast 29% $ 228 100% 430 North Florida 6% 92% 1,230 Mid Atlantic $ 116 375 Texas 20% 1
Slide 32: Investing and Servicing Segment
INVESTING AND SERVICING SEGMENT 21
Slide 33: Investment Portfolio
Investment Portfolio $ millions Significant Activity During the Quarter: Ø Securitized $435M of conduit loans in four transactions Ø Acquired CMBS for a purchase price of $56M Ø Active servicing portfolio increased from $9.6B to $10.3B Ø Obtained two new servicing assignments with a UPB of $1B, whil
Slide 34: CMBS and Special Servicing
CMBS and Special Servicing (8) Owned CMBS by Vintage LNR Special Servicer $ millions $ billions Named SS: 190 $102.1B 250 CMBS Trusts Loan Balance 200 150 Named SS Balance 150 100 100 50 50 '18 '22 '18 '21 '25 '17 '21 '24 '17 '20 '24 '16 '20 '23 '16 '19 '23 '19 '22 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q
Slide 35: Capitalization
CAPITALIZATION 27
Slide 36: Capitalization Overview
Capitalization Overview Credit Metrics Adjusted Debt-to-Equity Ratios Affirmed by all 3 rating agencies in Q2 Ba2 / BB / BB+ Current Corporate Issuer Rating 2.90x Off-Balance $5.0B 2.50x Sheet Total Unencumbered Assets On-Balance Sheet 1.69x Fixed Charge Coverage Ratio 1.53x Unencumbered Assets to U
Slide 37: Capitalization Overview, continued
Capitalization Overview, continued $ billions Ø 90% of commercial lending debt and 82% of consolidated debt has no capital markets mark-to-market provisions Total Debt Outstanding Margin Call Provisions (including off-balance sheet) (including off-balance sheet) Secured Debt $13.6 Spread and Credit
Slide 38: Book Value per Share Bridge
Book Value per Share Bridge $0.85 $19.65 $18.80 Q2'25 Q2'25 Q2'25 GAAP Accumulated Undepreciated Book Value Depreciation & Amortization Book Value 23 29
Slide 39: Financing Facilities
Financing Facilities $ millions $26.2B $9.3B 20 Max Facility Size Available Capacity Counterparties Debt Obligations Maximum Facility (11) Available Type (11) Drawn Size Capacity Asset Specific Financing: Large Loans, Commercial $ 13,627 $ 7,500 $ 6,127 Infrastructure Lending Segment 2,156 1,199 957
Slide 40: Financial Capacity
Financial Capacity Total Available Capital + Available On-BS Financing (12) $ $ 1,221 8,121 $ millions Total Potential Liquidity $ 9,342 2,400 2,100 1,800 $533 $(165) 1,500 $(225) $1,221 1,200 $936 $1,078 900 600 300 $142 0 Cash & Approved and Current liquidity 90-day 90-day expected Working capital
Slide 41: Share Count
Share Count shares in thousands 2025 2025 Q2 Q1 YTD Number of Shares, GAAP EPS: Basic — Average shares outstanding 336,945 335,059 336,007 Effect of dilutive securities — Convertible Notes — — — Effect of dilutive securities — Other 200 397 201 Diluted — Average shares outstanding 337,145 335,456 33
Slide 42: Appendix
APPENDIX 34
Slide 43: Company Information
Company Information Starwood Property Trust, an affiliate of global private investment firm Starwood Capital Group Global L.P., is the largest commercial mortgage real estate investment trust in the United States. Additional information may be found on the Company’s website, www.starwoodpropertytrus
Slide 44: Footnotes
Footnotes 1. Excludes $378M of the commercial portfolio which are classified as CMBS or preferred equity investments and are not risk rated. 2. Contiguous mezzanine loans of $1,098M are included in the first mortgage balance as of June 30, 2025. 3. Unlevered returns are calculated using applicable i
Slide 45: Calculation Methodologies
Calculation Methodologies Distributable Earnings: Distributable Earnings is a non-GAAP measure. We calculate Distributable Earnings as GAAP net income (loss) excluding the following: (i) non-cash equity compensation expense; (ii) the incentive fee due under our management agreement; (iii) acquisitio
Slide 46: Ratings Criteria
Ratings Criteria Rating Characteristics 1 ▪ Sponsor capability and financial condition – Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience. ▪ Loan collateral and performance relative to underwriting – The collateral has surpasse
Slide 47: Special Note Regarding Forward-Looking Statements
Special Note Regarding 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
Slide 48: NYSE: STWD
NYSE: STWD
Starwood Property Trust — Q2 2025 Earnings Presentation on 6ix